Global law firm White & Case LLP is advising the banks financing the third stage of the development of the passenger terminal at Zvartnots International Airport in Armenia.
White & Case is advising the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD) and DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), who together are providing senior financing amounting to approximately US$100 million. The project’s total cost, inclusive of financing to be provided by the borrower’s group, is approximately US$170 million. The borrower is airport operator Armenia International Airports CJSC, which holds a 30-year concession over the airport.
“The expanded airport is a significant step in supporting Armenia’s transition from a Soviet republic to a vibrant, commercially-oriented nation”, commented Marc Polonsky, White & Case LLP partner. “The strategic importance of this airport to Armenia and to the region is underscored by the willingness of major development banks such as ADB, EBRD and DEG to provide financing to support its development into a modern airport, meeting international airport facility standards.”
“The deal has a novel financing structure, with ADB, EBRD and DEG providing senior parallel loans to Armenia International Airports,” said Massimo Galli, counsel at White & Case, who worked on an earlier phase of the financing when he previously worked at EBRD. We are delighted to be able to work with the Asian Development Bank and DEG, alongside the European Bank for Reconstruction and Development, to develop further this important project.”
Zvartnots International Airport is based 10 kilometers west of Yerevan, Armenia’s capital city. This second terminal building is expected to be inaugurated in 2012. Once completed, it will make Zvartnots International Airport the largest airport in South Caucasus , with capacity to service over three million international travellers each year, and it will wholly replace the antiquated, Soviet-era terminal, fulfilling the obligation Armenia International Airports has under its operating concession to refurbish and renovate the airport. Passenger facilities will be significantly modernized, the number of check-in counters doubled, and significant security measures implemented to ensure compliance with international standards. In addition, the new terminal building is designed to be resistant to seismic activity, unlike the existing terminal which, while being situated in a region with significant earthquake risk, was not designed to withstand strong seismic shocks.
The White & Case team was led by partner Marc Polonsky in London, assisted by counsel Massimo Galli, and associates Matthew Wood, Laleh Shahabi and Adam Woollaston. White & Case New York partner Robert Hollander and associate Richard Graham advised on US law aspects of the deal.
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