Sarajevo Airport outlines development projects, eyes hybrid concession

Sarajevo Airport is poised for another record year in passenger traffic, creating the need for further capacity growth. Although its terminal has recently been expanded and overhauled, additional space will soon be essential to keep up with the increasing number of travellers. Speaking to EX-YU Aviation News, Sarajevo Airport’s CEO, Alan Bajić, said, “Regarding development projects and long-term plans, over the next five years, they include the overhaul of the runway, the construction of rapid-exit taxiways and the extension of the runway towards the southeast, enabling the landing and takeoff of all types of aircraft with improved functionality. Furthermore, we plan to construct a new building for the fire department and workshops for equipment maintenance, as well as an asylum center, the construction of a rent-a-car city centre, a solar power plant, and the construction of a fuel depot”.

Preparations for the extension of the runway have already begun, “We have started work on the perimeter fence in the area southeast of the localizer, which is a prerequisite for the runway extension project. Based on the approval issued by the BHDCA (Bosnia and Herzegovina Directorate of Civil Aviation), which accepted our aeronautical study, the maximum length of the runway has been set at 3.010 meters”, Mr Bajić said. Sarajevo Airport’s current runway is 2.600 metres long.

In addition to runway work, the airport’s masterplan foresees the construction of a new passenger terminal. “In 2021 we initiated activities to develop the concept and necessary documentation for the main framework for the new construction of a terminal building. The terminal is planned to be built on the western side of the airport, with the capacity to handle up to 2.5 million passengers. Given that it is designed with a modular concept to allow for future expansion, the final phase of development would increase its capacity to up to five million passengers. The existing Terminal B would then be repurposed for low cost carriers and charter flights”, Mr Bajić explained.

Planned new Terminal A

In order to facilitate these major development projects, Mr Bajić believes the airport should be part of a hybrid concession model. “I believe it is essential to address the infrastructure capacity shortages at Sarajevo Airport. In this regard, we have identified a possible concession model as optimal, which we have termed a hybrid model, due to the fact that the current legal framework in the country does not recognise public-private partnerships. In this model, the concessionaire invests in projects, and in return, participates in profit distribution, management, and ownership at a proportional rate. A new company would be formed between Sarajevo Airport and the investor, and the concession would be granted to this newly established company. This model ensures that Sarajevo International Airport remains the operator, the employees are retained, and at the end of the concession period, all assets would remain the property of the Federation of Bosnia and Herzegovina”, Mr Bajić said.

Expanding further on the concession model, the CEO noted, “In this case, the Federation of Bosnia and Herzegovina does not take on the risk of losing an extremely important public asset, while opening up opportunities for private investments and introducing private capital to expand capacities. I believe that such investments from private investors, or capital that is not state- or entity-owned, would be more appropriately facilitated through a public-private partnership framework. However, since we currently lack the necessary legislation for this, regulating this area should be a priority. This is why we call this model a hybrid, as it draws key elements from existing legal frameworks. The Government of the Federation of Bosnia and Herzegovina has submitted a draft law on public-private partnerships to the House of Representatives, and we expect its adoption”.