Renova Group signed Investment Agreement for development of Kurumoch International Airport

An investment agreement related to the project of construction оf a new air terminal complex, overhaul and upgrade of engineering systems and utilities of Kurumoch International Airport and its operation has been signed today in Moscow at the Representative Office of the Samara Region Administration in the presence of the Governor of the Samara Region Vladimir Artyakov and the Chairman of the Renova Group Board Viktor Vekselberg.
The agreement was signed by the Director General of the Samara Region Development Corporation Olga Serova and the Director General of Koltsovo Airport Evgeny Chudnovsky on the investor’s part.

In line with this investment agreement a new over 35,000 sq.m. passenger terminal equipped with the state-of-the-art systems with traffic capacity of 3.5 mln. passengers will be constructed by the end of 2014. With the growth of passenger flow the terminal will be extended up to 60,000 sq.m. The investment program also implies the construction of a new cargo handling terminal, upgrade of the airport’s engineering systems and utilities, including the construction of a new boiler room and a switching substation. Besides, the program covers the overhaul of administrative offices, as well as ground handling and technical maintenance center.

The investor plans to contribute over RUR 12.3 bln. in airport development in 2011 prices with RUR 4.311 bln. of them to be invested by the end of 2014.

The decision deeming Kotsovo-Invest (Renova Group’s business) the winner of the investor contest organized by the Samara Region Development Corporation was passed by the commission headed by the Samara Region Governor on December 3, 2011. Koltsovo-Invest operates Koltsovo Airport in Ekaterinburg, where it successfully implements the program of creating a regional airline hub, as well as Nizhny Novgorod International Airport.

Under this agreement a special-purpose vehicle established by the investor for this project (Kurumoch-Invest, CJSC) will acquire 71.1773% of Kurumoch International Airport shares held by the Samara Region Development Corporation. Before the facilities are put into commission the project will be controlled by the Samara Region Development Corporation. And only after the investment commitments are met the investor will be able to acquire additional 25.0114% of the airport shares.

The development of Kurumoch International Airport is highly significant for the region from the social and economic perspectives. This project will considerably boost the traffic capacity of the air terminal and bring the airport’s technical equipment in line with the applicable Russian and international standards and the terminal’s technical potential.
The airport’s upgrade will ensure benefits for the Samara region residents and guests who will be provided with most comfortable conditions. The level of passenger services and safety in the new air terminal will meet high international standards.

The unique geographic and economic location of the region will make Kurumoch Airport after the upgrade the main air hub in the Volga region. The project will contribute not only to the fulfillment of the Samara Region’s infrastructure potential and boosting of its investment appeal, but will also create new jobs. The airport upgrade will also serve as an important stage in the preparation for World Football Championship matches to be hosted by the region in 2018.

Vladimir Artyakov: “The agreement offers us entirely new possibilities for the development of the region’s transport infrastructure. In fact we are to construct a new and most advanced airport. It will meet international standards in terms of technical equipment, passenger service and safety. We are aiming at making Kurumoch the largest hub of the Volga Region and its main air gateway. I would like to emphasize, that the terminal’s upgrade is a bright example of the public-private partnership. The investor plans to commit over 12 billion rubles for the development of Kurumoch. In its turn, the Samara Region administration will make all necessary efforts to ensure favorable conditions for our partners’ work. I am confident that our cooperation with Renova will be mutually beneficial and will bring positive results”.

Viktor Vekselberg: “An important element of the Renova Group’s strategy is participation in infrastructure projects and particularly in the airport business. We already have airports in Ekaterinburg and Nizhny Novgorod, therefore our participation in the Kurumoch overhaul tender was logical. The airport is located very conveniently between the two dynamically developing cities of Samara and Togliatti, which will ensure us planned passenger traffic flows. We are positive, that the project will be implemented in time using most advanced technologies. As a result, the Samara Region will have a modern air terminal to become the region’s landmark and will reflect its potential”.