Signing of 25 million € worth Loan Agreement for modernization of Sarajevo International Airport

Agreement on Collateral for the loan to Sarajevo International Airport, concluded between B&H and EBRD, was signed in Sarajevo yesterday (31 March 2010) by the Vice Chairman of the Council of Ministers and Minister of Finance and Treasury Dragan Vrankić and Director of Transport Team of the European Bank for Reconstruction and Development Sue Barrett, while the Loan Agreement between Sarajevo International Airport and EBRD was signed by Bakir Karahasanović, General Manager and Elvedin Begić, Executive Manager on behalf of the Airport, and Sue Barrett on behalf of EBRD.
The Loan Agreement worth 25 million € will be used for extension of infrastructure and enhancement of capacity of Sarajevo International Airport. The investment funds are given to the Public company „SARAJEVO“ International Airport Ltd. Sarajevo. The project will support commercial acitivites at the Airport and implementation of the EU open air initiative in Bosnia and Herzegovina which includes gradual deregulation of air traffic.
The EBRD loan will finance extension of the passenger terminal, construction of a new, fast taxiway and enlargement of the apron. Due to the project, floor area of the terminal, now of 10,000 sqm, will be enlarged for additional 7,000 sqm.  
In order to support this project, the Dutch Government, West Balkans Fund and EBRD special bank stock granted resources in the amount of almost a million €.
The B&H Minister of Finance and Treasury, Dragan Vrankić in his comment said the following: „Since this project for debt servicing is mainly relying on good standing of the Airport, it will help us to test a new legal structure of financing public companies, in which a company, through a direct loan agreement with an international financial institution, takes much more responsibilities regarding implementation of all aspects of the project.“
Director of EBRD Transport team, Sue Barrtt said: „We are glad to be able to support the enlargement of the airport in Bosnia and Herzegovina at the time when financial resources have been limited. Modernization of Sarajevo International Airport is going to improve the air traffic quality and contribute to further growth of passenger operations“.
Pointing out that this project resulted from long-standing co-operation between EBRD and the Airport, General Manager of Sarajevo International Airport, Bakir Karahasanović added the following: „Extension of terminal building will not only solve future development necessities of Sarajevo International Airport, but will also enable provision of top quality services to passengers, while the Airport as a whole will contribute to better image of the country“.