Report: Bucharest Airport needs new terminal, estimated to cost EUR 0.5 bln - EUR 1 bln

Bucharest's main airport Otopeni (Henri Coanda) needs a new terminal, given that the number of passengers is expected to reach around 21 million in 2030 and 33 million in 2050, well above the current maximum capacity, according to a study by Netherlands Airport Consultants (NACO), commissioned by Bucharest Airports minority shareholder Fondul Proprietatea (BVB: FP) and quoted by Bursa.ro.

The airport served 15 million passengers in 2019, before the decline caused by the COVID-19 crisis, and the activity seems to have returned to similar levels in 2023.

The costs related only to the construction of the terminal would be between EUR 0.5 billion and EUR 1 billion, financing that can be raised from the capital market, FP argues.

However, the Ministry of Transport (which owns 80% of the company) blocked the listing of the company with a controversial capital increase, seen by FP as overvaluing the land capitalised (evaluated at RON 3.8 billion or EUR 760 million by a controversial report commissioned by the state) at the secondary airport Baneasa. In 2017, the valuation of the land was RON 270 million, according to the Fund's reports.

If it does not contribute RON 935 million (EUR 180 million), then the Fund's participation risks being diluted from 20% to 0.73%.

"If we are diluted, no investor will look at this IPO [at Bucharest Airports]. The first step we need to settle is the capital increase," said Johan Mayer, CEO of Franklin Templeton Bucharest, administrator of Fondul Proprietatea, in a press conference.

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