Study estimates new Lisbon airport to cost 3.6 billion euros

22 November 2005

Lisbon, Portugal, 22 Nov – The viability study for the new Lisbon airport, requested by the Portuguese government from Banco Efisa, shows that the airport will cost almost 3.6 billion euros and will be profitable as of 2017.

The study, the results of which were published Monday by Portuguese daily Diário de Notícias, also proposes solutions for the airport to be built without the use of state funds.

The new airport is to be located at Ota, some 50 kilometers north of the Portuguese capital.
If the concession period of the airport is increased to 30 years, rather than the 25 years initially suggested, the Banco Efisa study says that the 472 million euros the Portuguese government had earmarked for the airport can be reduced or even cancelled out altogether.

Other solutions given are an increase in funding from the European Union, an increase in airport taxes and setting up a Development Fund to be financed by a tax paid by passengers using the current Lisbon airport.

According to the proposal published Monday the airport should be 57.8% financed by bank loans – half of which through commercial banks and the other half from the European Investment Bank – 18% by European Community funds and 11% by own funds, other than the 472 million euros already mentioned.

Banco Efisa estimates construction costs for the airport, the design of which will be presented in Lisbon on Tuesday, to be 3 billion euros. The total is increased to 3.6 billion with the addition of financing costs, operating costs, reserve accounts and other applications.

Forecasts point to the airport having positive EBITDA beginning in 2017, of around 180 million euros, and profits two years later, of some 7.2 million euros.

The airport at Ota, together with a high speed railway, is the main infrastructure development project planned by the Portuguese government. (macauhub)