Information for partners and clients

White paper for future development of the Chisinau International Airport

Introduction

Over the last years, access to air travel has become increasingly important to the Republic of Moldova. It is important for business, commerce and industry to provide access to markets; it is important for economic development and regeneration to support inward investment; it is important for tourism to grant access to Moldovan destinations and attractions; and it is important for residents of the country to furnish an efficient transport system for social and leisure purposes.

Our economy depends on air travel. The Airport already offers around eight hundred jobs and encourages businesses to invest in Moldova, bringing prosperity and opportunity to the region.

An unbiased advantage of the Chisinau International Airport is the considerable growth in the passenger traffic. According to the preliminary planning, by the end of 2008, the total amount of passengers arriving to and departing from the Chisinau International Airport will reach the approximate figure of 850 000 people, which is by 18, 97% more compared to the previous year and 2.5 times more than in the year 2003. Import and export cargo service constitutes 1 856 tons, which is by 24% more in relation to 2006. Mail service amounts to 450.2 tons, which is by 19, 5% more.

At the same time, we have to balance all the benefits that air travel offers us against the environmental impacts it might have. Thus, the challenge we face is to deal with the pressures caused by the increasing need to travel whilst concurrently meeting our commitment to protect the environment in which we live.

Strategic framework

All the evidence suggests that the growth in popularity and importance of the air travel industry will remain buoyant in the coming years. In 2009, about 930 000 passengers will be serviced by the Chisinau Airport. According to our latest forecast, by 2014 this figure could, if sufficient capacity were ensured, rise up to 1 300 000 passengers per annum.

The Chisinau Airport is increasingly congested as we attempt to cope with rising passenger number. In some cases, the terminal capacity attains, or it is about to, the saturation point.

The provision of some additional airport capacity will, therefore, be essential if we are to accommodate, even partly, the potential increase in demand. Failure to furnish additional capacity would become a barrier to future economic development and competitiveness.

The need and desire for access to sustainable air travel is expected to continue increasing in the future, the airport becoming more important for the economy growth.

Therefore, the S.E. “Chisinau International Airport” sets out a long-term strategic framework for its development, towards maintaining its position of principal international gateway of the Republic of Moldova. It is essential we make future plans now as our future prosperity depends on this.

Our strategy towards a sustainable development identifies the following objectives:

• Social progress which recognizes everyone’s needs;
• Effective environmental safeguard ;
• Prudent use of natural resources;
• Maintaining high and stable level of economic growth and employment;

Moreover, our company acknowledges the need for a balanced approach to the airport development which shall:

• recognize the importance of air travel to our national and regional economic prosperity, which, without providing additional capacity, would significantly damage the company’s affluence;
• reflect people’s desire to travel further and more often by air, and to take advantage of the affordability of air travel industry and the opportunities it brings;
• seek to reduce and minimize the airport impacts on those who live nearby, and on the natural environment;
• respect the rights and interests of those affected by airport development;
• provide greater certainty for all those involved in the planning of the future airport capacity, but, at the same time, being flexible enough to admit and adapt themselves to the uncertainties inherent in long-term planning.

The above-mentioned principles underpin the future development projects for the Chisinau International Airport.

Environmental impacts

The Chisinau Airport aims at controlling, mitigating and, where relevant, making the subject of suitable compensation for the adverse effects. The following basic principles are fundamental for us in order to manage the environmental impact of airport development so that:

• noise impacts are limited, and where possible reduced over time;
• local air quality is maintained within legal limits across all relevant pollutants in order to protect human health and the wider environment;
• loss of landscape and built heritage is avoided wherever possible, and otherwise minimized and alleviated to the greatest extent possible;
• all relevant water quality and other mandatory environmental standards are met;
• surface access to airport is designed to help limiting local effects on the environment;
• impacts on biodiversity, such as habitants and species’ disturbance, are minimized.

The rehabilitation and upgrade of the existing runway, taxiways, aprons and other connected Airport core assets is associated with limited environmental impacts. Those adverse effects have been identified and quantified in an Environmental Audit and Analysis carried out by independent consultants. The Environmental Audit revealed that the existing environmental performance of the Airport is in line with regulatory requirements. From the results of the qualitative assessment of the environmental and social impacts it has been concluded that, provided discovered alleviation and monitoring measures are implemented, the environmental impacts connected to the development would not be significant.

However, the Chisinau Airport is always applying all measures with full regard to safety considerations, international obligations, technical feasibility, and economic reasonableness.

Next steps: Attracting cargo investor

The Chisinau Airport is committed to meet the challenge in providing favourable conditions for potential investors, service that is fiscally, socially, and environmentally prudent.

One of the major goals of the Airport is to increase the number of landings and take-offs, especially by attracting a cargo-investor to the daily airside operations. In this respect, the Chisinau Airport intends to cooperate with Express Carriers – leaders in cargo industry, international express, overland transport and airfreight. Therefore, as the biggest and main airport of Moldova, the Chisinau Airport launches a long-term project - “Chisinau Airport a Hub between West and East” – for implementing new facilities in the region.

The Chisinau Airport will continue to put all its efforts into creating attractive conditions for cargo investors by elaborating special incentive programs and conducting direct negotiations with major European and worldwide cargo companies. Negotiations will be held at Governmental level, thus offering competitive advantages for all parties.

There are significant opportunities to expand cargo business at the Chisinau Airport, which offers the following advantages to investors:

• H24/7 days at no extra cost;
• No hidden costs;
• Direct access to apron;
• Shortest turn around;
• Specialized services;
• Qualified and cheap labor force;
• Large unused area (33,3 ha);
• Possibility to activate in a FEZ;
• Governmental Sustainability;
• Long-term contracts, based on a mutually beneficial relationship;
• Strategic position;
• Time and money saving.

ISO 9001

The S.E.”Chisinau International Airport” has received a certificate confirming the high level of its management in accordance with the international standard ISO 9001:2000. The audit was conducted by the certification company “Société Générale de Surveillance” (“SGS”).

The report on the company’s performance, made by the “SGS” certification authority, proved that the quality management system implemented within the company fully complies with the international standards and requirements. It was very important for the Airport to receive the ISO 9001 certificate of quality, as its primary goal is meeting and satisfying customers’ demands by providing them with enhanced services.

The audit and certification services allowed the Airport to upgrade its business processes and overcome the issues affecting it. The Airport can currently deliver extra value, improve quality management and performance, minimize risk and gain a real advantage over the competition.

Modernization Project II

The first modernization project of the Airport terminal was carried out in 2000-2001. The total project’s cost was estimated at $ 12 million, which involved the attraction of the capital loan granted by the European Bank for Reconstruction and Development and the contribution of the Government of the Republic of Moldova.

Taking into consideration the rapid economic growth of the Republic of Moldova, the current trend of traffic increase is expected to continue. In order to meet the increasing demand, the Chisinau Airport intends to undergo a series of renovation works to the existing facilities.

Thus, at the moment the EBRD in cooperation with the EIB is considering providing to the Chisinau International Airport a second loan estimated at Euro 45.5 million, to finance the rehabilitation of the runway, aprons, ramps, engineering works and safety equipment amongst other. This second modernization Project is anticipated to be co-financed by the European Investment Bank, together with EBRD.

Within this modernization project, the Airport will develop a Master Plan that is an essential guide that indicates in a detailed manner the direction, size and phasing of the development of key airport systems. The Master Plan will be elaborated with the purpose to define a coherent development of the Airport’s activities over the next twenty years’ period.

The goal of the Chisinau International Airport is to carry on the significant growth it has experienced in the last five years while continuing to improve the quality of services to users. By 2010 it plans to develop an Airport Master Plan for the next twenty-year period to define its aims and specific strategies to address these, thereby ensuring that the Airport is developed in a coherent manner.

A Draft Master Plan is the subject of an extensive consultation process, including consulting works with the external specialists due to the grant that the airport will receive from the European Union.Also, this Master Plan is subject to public consultation with local communities, the wider public, national government, the business community and local interest groups, as part of the community involvement process. The results of this consultation process will be carefully considered by the Airport, before the Master Plan is adopted.

It should be mentioned that this kind of modernization project will be implemented for the first time in Moldova and will contribute considerably to the development of the enterprise’s and country’s infrastructure.