Overview of BER finances30.06.2014
Cost of airport construction and noise protection amounts to €5.4 billion / Supervisory Board discusses BER financing
The management of Flughafen Berlin Brandenburg GmbH today presented the Supervisory Board with the additional funds needed to put BER Airport into operation. According to management, the building costs for Berlin Brandenburg Airport, with an initial capacity of 27 million passengers including noise protection programme, amount to €5.4 billion. Around €730 million of this is for the BER noise protection programme.
The additional sum of €1.1 billion is largely for implementing the fire prevention concept, modifying the smoke extraction system, completing building work on the terminal, further building and planning measures, renovating the north runway, connecting the taxiway Charlie as well as risk provision. Almost €300 million are required to implement the noise protection programme. Not included in the BER building costs of €5.4 billion is the cost of capacity expansion after opening.
Airport CEO Hartmut Mehdorn emphasised the fact that FBB takes care of its finances: ‘During these last months, we have been able to get back on track with completing BER thanks to our fast-track project SPRINT’, said Mehdorn. ‘39 of the 40 buildings on the BER site have been completed. The notice of completion for the north pier will be submitted at the end of July. We will then concentrate fully on planning and building the terminal, main and south pier.´
Although Mehdorn did go on to say how FBB is making good progress in restructuring BER, for example by reducing the number of supervisors from 300 to 200 and the number of engineering firms from 64 to ten, he did, however, criticise the somewhat sluggish progress being made as regards work currently being carried out: ‘We must get better. There is definitely room for improvement in the area of planning, controlling and engineering. Here, we often let things slide instead of pressing ahead quickly and pragmatically.’
Mehdorn: ‘The bigger the airport, the more money and time needed’
Airport CEO Hartmut Mehdorn also pointed out that the originally planned capacity of the airport has been continuously adapted to accommodate the steadily rising number of passengers. The terminal has been expanded from a gross floor area of 220,000 square metres to 340,000 square metres and adapted for greater convenience by extending the south pier and incorporating an intermediate level for transfer traffic. Aircraft operation areas such as aprons and taxiways have also been expanded. Additionally, in 2010, due to the new EU security regulations, the airport company added two new building components (pavilions), one on each side of the terminal. Mehdorn said: ‘The bigger the airport, the more money and time needed. I can’t understand why some people want to turn it into a scandal.
BER is going to be a good, functional and more cost-effective airport – especially compared to other airport projects.’
A good half of BER financing is generated by FBB
More than 50 per cent of the €4.6 billion investment needed to build Berlin Brandenburg Airport and install noise protection (€730 million) is generated by the airport company itself. During the past years, the airport company has invested over half a billion euros in BER from ongoing business activities. Furthermore, in 2009, FBB took out three loans worth a total of €2.4 billion from a banking syndicate consisting of KFW-IPEX Bank and the European Investment Bank. These are to be repaid in full in the years to come.
The shareholders Berlin, Brandenburg and the German government have so far invested €838 million in building BER Airport. €430 million were provided by the shareholders in instalments between 2005 and 2011. So far, €408 million of the €1.2 billion shareholder funds agreed upon in 2012 have been drawn.
Mehdorn: ‘Shareholders are making a good investment’
Mehdorn emphasised the fact that shareholder funds are being well invested in BER: ‘BER is and remains the most important development project in our region. The investments will pay off.’ Mehdorn went on to say that ‘the airport company is far from becoming permanently in need of subsidy, as gloom-mongers recently claimed in a commissioned report. On the contrary. FBB will be able to report a positive cash flow shortly after opening BER and pay the interest and repayments on loans taken out.’