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VTB and businessman Bolloyev to reinvest 2 billlion roubles in construction of Gelendzhik airport

VTB (MOEX: VTBR) and businessman Taimuraz Bolloyev, jointly implementing the construction of a new airport terminal complex at Gelendzhik airport, are planning to invest an additional 2 billion rubles in its development, as announced by Oleg Pankratov, CEO of VTB Infrastructure Holding Ltd., on the sidelines of the «RUSSIA CALLING!» forum.

«We are indeed planning on investing about 2 billion roubles in the related infrastructure: reconstruction of the old terminal, perspective development etc. We are currently at an early stage of planning», said Pankratov.

He emphasized that the new terminal will officially open in February 2022. Its construction is driven by the need to expand the airport’s capacity in view of the resort’s growing popularity.

«About Gelendzhik — if this airport didn’t suffer from underinvestment, we wouldn’t be needed there. The situation in its current state — when the terminal can barely take the passenger traffic — is a textbook example of how not to do it. That’s why we had no other choice but to build a new terminal. There will be 13 registration desks, 6 loading gates and a modern luggage system. This airport will be able to take up to 2 million passengers a year. This provides both a substantial capacity reserve and, more importantly, the necessary quality of passenger service», noted the company’s head.

The airport will establish a long-term tariff schedule for airline services, which is currently under discussion with the FAS.

As the Head of VTB Andrei Kostin told journalists earlier, the amount of investments in this project has totaled at 6 billion roubles.

«We invested 50/50. We are satisfied with our joint work (with Bolloyev — IF) and we will continue», said Pankratov.

Addressing the payback period, he said that «usually, it’s not shorter than 10 years. Making up for an infrastructure object in Russia in shorter time is, in today’s reality, simply unfeasible».

The holding’s Director General also noted that Gelendzhik airport has seen record traffic this year.

«By last year it grew by 120% (2.2 times — IF), more than 1 million passengers were served, which is a grandstandard for the Russian market. Gelendzhik is currently one of the most popular destinations in the Krasnodar Region, and we believe that it has good prospects for further growth,» said Pankratov.

Gelendzhik Airport is located in the area of the Tonky Cape on the western shore of the Gelendzhik Bay.

The airport began construction of the airport terminal complex in the summer of 2020. The area of the terminal will be about 16.7 thousand square metres, the terminal capacity will be 890 passengers per hour (the capacity of the existing terminal is 400 passengers per hour). Apart from the terminal building the project provides for the construction of service and technical facilities and engineering support, a 430-car parking area and parking areas for taxis and intercity buses, as well as landscaping elements.

VTB and Bolloyev each own 49.5% in the share capital of Gelendzhik Airport LLC. They closed the deal to acquire this asset from BasEl Aero Group (now called Aerodynamika) in April 2018.