Under the instructions of the President of the Russian Federation "On the development of airports of the Moscow aviation hub" and the order of the Government of the Russian Federation, the Head of the Federal Agency for Air Transport, Alexander Neradko, and the General Director of Sheremetyevo International Airport (SIA), Mikhail Vasilenko, signed a concession agreement for Sheremetyevo airfield for 49 years.

The concession agreement covers the construction of new facilities and the renovation of Sheremetyevo airfield infrastructure with an investment volume of about 61 billion rubles. It is the first agreement in the field aimed at redistributing financial burden of the development of Russia's largest airports from the federal budget to airport operators.

One of the key purposes of the agreement is not only to construct and renovate airfield facilities that allow to handle the steadily growing passenger and cargo traffic, but also to ensure future modernization and overhaul of Sheremetyevo airfield through extra-budgetary funding.

Development and construction of the airfield infrastructure will be financed through the investment component of the service fees for take-offs and landings, as provided by the decree of the Government of the Russian Federation. According to the terms of the concession agreement, all received funds at the expense of the investment component can be used exclusively to finance the costs associated with the construction and renovation of the airfield infrastructure (runways, aprons, taxiways, wastewater treatment plants).

JSC SIA initially plans to carry out construction and renovation of the airfield infrastructure using debt financing in order to reduce the burden on airlines and passengers. According to experts' estimates, additional cost per passenger will add about 100 rubles for the airlines. It is a common practice at the airports around the world.

The concession agreement for Sheremetyevo airfield is the first step towards the development of the Moscow aviation hub and the fulfilment of Moscow potential as an international aviation hub connecting Europe and Asia.

Contributed by Sheremetyevo International Airport