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Investments in Novy Urengoi airport’s modernization exceed $119 mln

December 19, 2017, 17:46 UTC+3 SALEKHARD

Novy Urengoi’s airport serves flights to more than 40 destinations and serves about one million passengers a year

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SALEKHARD, December 19. /TASS/. Investments in modernization of an airport in the Yamal-Nenets Region’s Novy Urengoi will be at least seven billion rubles ($119 million). The region’s government has opened envelopes with competition applications from UrengoiAeroInvest (of the Airports of Regions, a part of Renova) and from the International Airport of Novosibirsk (a part of Novaport), the region’s deputy head Dmitry Artukhov told reporters on Tuesday.

"Russia’s two biggest holdings, working in the airport business, have sent in their applications," the official said. "They are above our expectations, they are better than we have expected… Thus, we shall receive the investments of at least seven billion rubles."

The competition’s results are due on January 18-19, he added.

"The applications are good, but we do not have the right to reveal details; the offers are to be studied in detail," he said.

Earlier it was reported that the region required about six billion rubles ($102 million) to modernize the airport.

Concession terms and conditions

The local administration announced the competition for the airport’s modernization in late July. A private investor would build the airport’s new terminal, modernize the runway, equip the airport with boarding bridges and offer passenger services at the international level. Next to the terminal, a company is to organize a parking for 150 vehicles. A binding condition is - during the reconstruction the air hub should continue serving flights.

After the reconstruction is over, the airport will serve about 800 passengers an hour - instead of 150-200 currently. The runway will be suitable for all types of mid-haul passenger planes. The reconstruction’s term is next 3.5 years. Under the agreement, the investor would rent the facilities for 30 years, and after that time they will again become the region’s property.

The agreement reads, if the airport serves 1.45 million passengers a year, a second stage of reconstruction is optional. At that stage, the works will include organization of an international terminal and reconstruction of the airport’s building to boost the service capacity to 1,200 passengers an hour. In that case, the runway would be extended to three kilometers to serve a wider range of international destinations.

Novy Urengoi’s airport serves flights to more than 40 destinations and serves about one million passengers a year.

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