Copenhagen airports operator Kobenhavns Lufthavne's concession agreement to run Bulgaria's Varna and Bourgas airports will involve an investment programme of about 140 million ($170 million) over the period 2005-08.

It will also include a 30% revenue-based concession fee.

Kobenhavns Lufthavne will sign the 35-year concession deal on 12 June following its selection as the preferred concessionaire in April.

It intends to obtain funding for its planned investment programme through equity and shareholder loans amounting to 40million-60 million.

"Plans are to obtain the remaining funding through borrowings and revenues from the operation of the two Bulgarian airports," says the Danish company.

Kobenhavns Lufthavne expects its takeover to become effective during the second half of this year; claims against the Bulgarian government from unsuccessful bidders Fraport and Vinci are still being considered in court.

Source: Flight Daily News