Investor sought for Novy Urengoy airport

Novy Urengoy airport has one 2,550 meter long runway, which needs reconstruction (Photo by Novy Urengoy airport)

Administration of Russia’s Yamalo-Nenetsky Autonomous District started search for an investor for the Novy Urengoy airport. Finding an investor is vital for the airport’s reconstruction, the cost of which is estimated at 3 billion rubles ($46.3 million). The regional authorities that own 100% of the local airport, plan to apply a state-private partnership model for the reconstruction project, including refurbishment of runway and terminal.

According to Ura.ru news portal, negotiations are currently underway with several airport management companies, however no details have been disclosed.

The state-private partnership implies that the regional administration remains in control as the owner of the infrastructure, and signs a concession agreement with an investor, which would receive the return on investment by efficiently managing the airport. In this case it would be motivated to complete the reconstruction project within deadlines and restrain from double-dealing with contractors.

Industry experts believe that Novy Urengoy airport may be of interest to large airport holdings. For the last three years it holds 29th position by traffic in the list of Russia’s top 30 airports. Air transport remains one of the most popular in the region. Passenger traffic has doubled since 2010 and amounted to 870,728 passengers in 2015. Novy Urengoy is located next to a large gas mining field and is considered the “gas capital” of Russia. Besides that, the ongoing Arctic development programs point to the airport’s promising prospects.

The airport has been asking for modernization for several years now, but lack of budget financing impeded the realization of the project. The airport has one 2550 m long by 46 meter wide runway, and an apron with ten aircraft parking slots and space for up to 20 helicopters.

The airport currently serves seven Russian carriers – Yamal, RusLine, Yakutia, Gazporm Avia, UTair, S7 Airlines and Aeroflot.