28 April 2010

Freshfields advises on Pulkovo airport PPP scheme – Consortium assumes operation of the Airport

International law firm Freshfields Bruckhaus Deringer has advised the sponsors to St Petersburg's Pulkovo Airport €1.1 billion public private partnership (PPP) scheme.

Effective date under the PPP agreement was achieved today with the transfer of the airport operations to the consortium. The project reached commercial close on 30 October 2009 and it is considered to be the first international airport PPP project in Russia.

The 30-year PPP agreement includes the construction of a new passenger terminal, expansion of apron areas, development of real estate adjacent to the terminal, and the modernisation of the airport’s existing infrastructure. The objective is to create the fourth largest airport in Russia and the main transport hub for the region.

Northern Capital Gateway is the project company for the deal, sponsored by VTB Capital (a subsidiary of VTB Bank, one of the largest financing institutions in Russia), Fraport, owner and operator of Frankfurt Airport is the Lead Operator, and the Greek investment and business group Copelouzos.

Finance documents were signed today under which the European Bank for Reconstruction and Development, International Finance Corporation, Vnesheconombank, Eurasian Development Bank, Nordic Investment Bank and Black Sea Trade and Development Bank are providing term loans totalling €716m until the end of 2024 to fund the project.

The Freshfields team advising on the deal comprised an international team of infrastructure and transport experts including Alex Carver, Innokenty Ivanov, Fedor Teselkin, Martin Goodwin, Keith Gamble, Olesya Dianova, Roman Churakov, and Maxim Osadchiy.

This transaction follows on from the achievement of the $2bn Moscow – St. Petersburg PPP motorway project where Freshfields advised the consortium of lenders.

Commenting on the transaction, infrastructure and transport partner Alex Carver said: 'Like the Moscow – St Petersburg motorway PPP scheme that reached financial close yesterday, this transaction has followed a challenging timetable and we have delivered because we operated as a single team across offices maintaining the highest quality throughout. We are the one firm to have advised on both projects, a fact which further enhances our Russian projects experience'.

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