OREANDA-NEWS. On 14 August 2008 Changi Airports International (CAI) and Russian company Basic Element announced that their consortium has successfully cleared the initial round of the bidding process to develop and operate Pulkovo International Airport (Pulkovo Airport) in St. Petersburg, Russia. The government of St. Petersburg announced today the shortlisted bidders that have met the minimum requirements for construction and airport management as set out in the pre-qualification process.

This announcement followed two months after the signing of a consortium agreement held in Moscow where CAI and Basic Element finalized their plan to jointly bid for the right to develop and operate Pulkovo Airport.

The Pulkovo Airport development is the first airport public-private partnership (PPP) project in Russia. It involves the upgrading and operation of the existing Pulkovo Airport while a new terminal is being developed. Besides the new passenger terminal, there will also be a new business centre and a hotel nearby. The estimated project cost for the passenger terminal alone is EUR 900 million.

As the second largest city in Russia, St. Petersburg is an increasingly important international tourism destination. Situated in the historical and cultural capital of St. Petersburg, Pulkovo Airport is expected to see consistent strong growth in its passenger traffic. In 2007, passenger traffic of Pulkovo Airport reached 6.13 million passengers. This is a significant increase of 20.3% over 2006. The modernized Pulkovo Airport is able to accommodate around 17.5 million passengers annually.

"This PPP project presents an exciting challenge for Changi Airports International as it provides us the opportunity to offer businesses and visitors at Pulkovo Airport the same experience as witnessed by 37 million international travelers in Singapore's Changi Airport. Our bid will combine the merits of Changi Airport's hallmark passenger service quality and Basic Element's like-minded expertise in the Russian aviation sector. I am confident that this combination will offer that signature Changi touch to Pulkovo Airport, as well as the capacity to contribute to the economic growth of St. Petersburg," - said Mr. Wong Woon Liong, Chief Executive Officer of Changi Airports International.

"The city of St Petersburg actively improves transport infrastructure while modernizing or building new roads, tunnels and sea ports. I'm confident that Basic Element's good knowledge of the region as well as Changi's practice of running best airports in Asia, the Middle East and Latin America, will enable our consortium to prepare an optimal project to turn Pulkovo to one of the best airports in Europe", - said Gulzhan Moldazhanova, CEO of Basic Element.

The shortlisted bidders are expected to submit their final proposals by February 2009 and the winner is expected to be announced on 12 March 2009. The terms of this concession agreement is likely to last for thirty years.