First public-private partnership for construction works on a Romanian airport

Blue Air, the largest low-cost operator on the Romanian
market, held by businessman Nelu Iordache, has contributed 19
million euros to the share capital of BlueAero, which will manage
George Enescu International Airport in Bacau, in order to meet the
terms of documents that attest the enforcement of the concession
contract for operating and modernising the airport.
Iordache last year won the first concession contract targeting
a Romanian airport, over a 34-year period, through Blue Air.
The contract entered into force on January 27th 2010, although
it was signed in January 2009 because the company had to meet
several pre-conditions, including the setting up of an escrow
account of 19 million euros before the start of investments.
“The first tranche, 19 million euros, which we have to
allocate as share capital for BlueAero, is money that comes from
the holding that includes Blue Air, Romstrade, and other companies.
In the next year we will have to come up with further funds, which
we will probably attract from banks,” says Razvan Rizea, manager of
BlueAero.
The company will have to invest 45 million euros over the next
30 months to build a new terminal with a minimum capacity of 450
passengers/hour, as well as modernising the runway, and building a
6,500 square-metre car park.