📋 Tender Overview
A private sector-led investment and upgrades to Sofia Airport will help drive economic growth in Bulgaria by enabling increased international trade and tourism creating jobs and adding value along one of the critical transport infrastructures in the countrys supply chain. IFC a member of the World Bank Group is providing 30 million to SOF Connect AD the Sofia Airport concessionaire to support its operations and infrastructure upgrades. This is the first major airport-sector transaction to close in the Europe and Central Asia region since the onset of the COVID-19 pandemic. As part of the total financing package of 240 million IFCs funding will be used to modernize and upgrade the airport including refurbishment and optimization of existing terminal facilities and aircraft gates to boost efficiency provide quality passenger services and expand commercial offerings. The concession agreement between Bulgarias Ministry of Transport Infrastructure Information Technology and Communications and SOF Connecta project company established by Meridiams Europe Infrastructure III Fundas the main investor was signed on July 22 2020. The pool of lenders comprises IFC the European Bank for Reconstruction and Development the Black Sea Trade and Development Bank UniCredit Socit Gnrale Kommunalkredit and DSK Bank. IFC as the lead transaction advisor helped the government design a competitive and transparent tender for this public-private partnershipthe first major PPP in Bulgaria over the last decade and the first under the new Concession Act. Under the PPP model SOF Connect AD will be responsible for improving the airports operations quality of service and financing the airports infrastructure upgrades over the next 35 years before transferring it back to the government. IFCs counter-cyclical investment role in supporting one of the sectors most adversely impacted by the COVID-19 pandemic is critical for the recovery of the industry and the Bulgarian economy said Wiebke Schloemer IFCs Director for Europe and Central Asia. The financing will contribute to the growth of passenger and cargo traffic at Sofia Airport showcasing the private sectors role in delivering efficient solutions to boost the countrys critical infrastructure. IFCs participation will also promote sustainability by supporting the implementation and maintenance of an environmental and social management system and action plan. This will help upgrade safety as well as social and environmental policies and procedures that are consistent with good international practices and IFCs Performance Standards.
