Fraport AG won a 35-year concession for the management of two Bulgarian airports, after the previous winner of the tender was disqualified due to technical irregularities, government officials announced Tuesday.
Last year, Copenhagen Airports A/S won the concession for the management of the two Black Sea airports, but a court later disqualified the Danish company, ruling it had no right to bid because it did not meet previously announced tender criteria.
"The winning consortium of Germany's Fraport AG Frankfurt Airport Services Worldwide and Bulgaria's BM Star Ltd has pledged to invest a total of euro403 million (US$506 million) over the whole concession period for the two airports," the government said in a statement.
Varna and Burgas - the country's third and fourth largest cities - are located on the Bulgarian Black Sea coast about 120 kilometers (75 miles) apart.
Under the deal, the Fraport-led consortium will invest euro215 million (US$270 million) in Burgas airport and euro188 million (US$236 million) in Varna airport.
Last year, the two airports handled 2.7 million passengers, and the figure is expected to reach 4 million over the next few years, as Bulgaria hopes to become an EU member.
The government will sign with the winning consortium a final agreement on the terms of the concession contract within 30 days, the statement said.
Besides annual fees, the Fraport-led consortium will have to pay an initial charge of euro3 million (US$3.77 million) within a month after signing the concession agreement.
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