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St.Petersburg shortlists seven for airport deal



ST PETERSBURG, Russia, Aug 11 (Reuters) - Seven companies out of nine contenders have been shortlisted for a $1.5 billion deal to operate St Petersburg's Pulkovo airport, a city official said Monday.

The city, which owns Russia's fourth largest airport by passenger turnover, opened the tendering for a 30-year concession in April and plans to raise 35 billion roubles ($1.5 billion) to build a new terminal by 2025 with an annual capacity of 22 million passengers.

The shortlist includes India's GMR Infrastructure, Turkey's TAV Airports, Austria's Vienna Airport in alliance with Russia's Gazfond and Gazprombank, and the Airport of Singapore with Russia's Basic Element, the industrial holding of Russia's richest man Oleg Deripaska.

It also includes Australian Macquarie Airports with Russian investment bank Renaissance, Germany's Hochtief AG with billionaire Viktor Vekselberg's Renova investment vehicle, and Germany's Fraport AG together with Russia's VTB, Nikolai Asaul, the head of the city's transport policy committee, told reporters.

The other two aspirants -- Russian airport operator Novaport in alliance with the Almaty airport and construction company Elis -- did not meet tender requirements, Asaul said.

A winner will be picked by March 12, 2009 and the concession agreement will be signed by the end of July next year.

St Petersburg, home town to both Russian President Dmitry Medvedev and Prime Minister Vladimir Putin, has enjoyed record investment and a construction boom in the last few years.

All 100 percent of the investment will come from investors and the city has no plans to match funding nor to sell a stake in the airport, Asaul told Reuters.

The World Bank is acting as a strategic adviser on the Pulkovo concession project while Citibank <C.N> will act as a financial consultant and Dewey & LeBoeuf LLP will act as a legal consultant.

The airport handled 6.1 million passengers last year.



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