The procedure for the 20-year extension of the concession agreement of the Athens International Airport "Eleftherios Venizelos" has been completed, with Athens International Airport SA (AIA) having paid a total consideration of EUR1.403 billion (US$1.59 billion).

The net proceeds of the extension amount to EUR1.132 billion (US$1.28 billion), consisting of AIA’s offer of EUR1.115 billion (US$1.26 billion) plus an additional amount of EUR16.676 million (US$18.89 million) depicting a pro-rata 10.30% per annum rate of return, as from 1 January 2019, as defined in the Extension Agreement between the Greek State, the Hellenic Republic Asset Development Fund (HRADF) and AIA.

AIA's private shareholders are AviAlliance, a German airport management company, and the Copelouzos Group.

The consortium initially bid to extend the concession in June 2017. Its offer was accepted and an agreement was signed with the Greek State and HRADF in October. However, in January 2018 the extension was put on hold by the Directorate General for Competition of the European Commission, who argued the initially agreed price of approximately EUR600 million (US$679.7 million) did not reflect the considerable increase in AIA's passenger traffic.

After months of negotations, AIA submitted a new offer providing for a total price of EUR1.3826 billion (US$1.57 billion), which was approved by HRADF in September 2018. The Greek Court of Auditors approved the offer in November 2018, followed by the Greek Parliament earlier this month - a prerequisite for the completion of the transaction.

The agreement extends the concession contract to 2046. The total benefit to the Greek State from the extension is expected to exceed EUR6 billion (US$6.80 billion).

In addition to the consideration, AIA will pay annual remuneration to the State consisting of 15% of its pre-tax profits, estimated at EUR1.1 billion (US$1.25 billion), revenue from income tax for the same period estimated at EUR1.7 billion (US$1.93 billion) and approximately EUR2.2 billion (US$2.49 billion) due to the future payment of additional dividends.

AIA has also agreed to invest approximately EUR2.9 billion (US$3.29 billion) over the extension period. The investment will serve to expand the airport's capacity, with the aim of gradually increasing passenger churn from 26 million per year to 50 million passengers annually by the end of the concession period. It will include terminal extensions, new aircraft parking places and extension of the airport's road network.