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GAD Munich: Novel Romanian PPP, U.S. Hurdles & Saudi Projects
Kevin Rozario
December 13, 2024
Modalis CEO Curtis Grad updated the audience on the latest deals in the market.
© Andrew O'Brian /
The GAD (Global Airport Development) conference, the premier meeting place for influential public and private airport operators and investors who develop and finance airport infrastructure, took place in Munich from Wednesday to Friday (11-13 December). The event’s more than 15 panel sessions over three days covered many vital themes in the world of airport public-private partnerships (PPPs).
From keeping airports profitable during global instability and staying on top of demand management, to structuring concessions to attract investment, and the art of balancing various KPIs (key performance indicators) to ensure long-term success, the conference offered a comprehensive update—and deep insights—on all aspects affecting the PPP market.
On Wednesday, Curtis Grad, CEO of Modalis Infrastructure Partners (the owner of AirportIR), presented a useful scene-setting round-up of private-sector participation around the world, ownership models, and current and upcoming primary and secondary deals in airports globally.
One of the highlights was a look at plans by Romanian airport service provider Avant Airports to develop Romania’s first privately operated airport at the former military Alexeni airfield 66km east of Bucharest, the capital. Grad described the project as “very interesting and intriguing.”
Carmen Bahrim, a Co-founder of Avant, said the ambitious next-gen project has a long-term concession of 49 years (signed in March this year) and would work under a dual-airport model. This means that once construction is completed, Alexeni will be positioned in a complementary way to Otopeni (OTP), Romania’s main international gateway, enhancing regional connectivity and balancing aviation demand. Avant plans to make the new airport a hub for low-cost airlines and cargo operations.
Carmen Bahrim, Co-founder of Avant, explains the next-gen Alexeni Airport project to GAD delegates.
A Deep Dive into the U.S. Market
A session about delivering PPP airport projects in the United States, moderated by Grad, offered food for thought about the possibilities in a market that has been highly averse to private operators of airports. Just 4% of airports there are in private hands with every state effectively acting as a different country.
Panellists Jorge Roberts, CEO of Avports; Lutz Weisser, Managing Director of Munich Airport International (MAI); and Steven Morris, Senior Vice President at construction consulting company Hill International, discussed the ways to overcome the hurdles.
Discussing the U.S. market (from left) Curtis Grad, Jorge Roberts, Steven Morris, and Lutz Weisser.
During the session, it was underlined that the moniker of ‘state-owned’ did not have to mean not operating as a business enterprise. Munich Airport, for example, is not a private entity but it operates like one. This is rarely true in the U.S. which is why PPP players need to do their homework on the political components of airport ownership and how to win them over. Avports, which has a lot of experience in this field, has invested heavily in lobbying—which it considers essential—to successfully find a way through.
Some entities like the Port Authority of New York & New Jersey have been more flexible with private operators to the point that they have encouraged them in and transformed key, some might say problematic, assets like LaGuardia, and now JFK’s various terminals. Another issue is airlines with long leases at airports. This adds another piece to an already complex jigsaw.
Eyes on the Middle East
Among the announcements at the event was a major RFP (request for proposals) from state-owned Matarat Holding, the body running the vast majority of Saudi Arabia’s airports. Matarat’s EVP Privatization & Commercial, Rudy Vercelli, gave details of an RFP for Abha Airport for pre-qualified bidders, It was first released at the end of November, slightly later than expected.
On December 1, Matarat, which has big non-aeronautical plans, also launched an expression of interest (EOI) for the new Taif International Airport project. The model is a PPP using a build-transfer-operate (BTO) contract for 30 years inclusive of the construction period. The deadline is January 10, 2024.