Following its purchase of a controlling interest in Chisinau International Airport, NR Investments (NRI) has reiterated its commitment to direct a significant percentage of this year’s pledged funding towards a new runway and to further enhance its modern terminal to create a world-class airport.
NR Investments’ Nat Rothschild said: “Our focus since the outset has been to meet all the agreed upon contract terms with the State of Moldova as we improve the management and day to day operation of this expanding airport and promote continued growth in passenger numbers."
In order to do this, and allocate the necessary funding, Rothschild insisted Avia Invest must have the certainty that its legitimate property rights under the concession contract are respected.
Constructive co-operation with the Moldovan Government to finance the asset, working together with credible western banks, is another prerequisite.
Concession holder Avia Invest needs to fund approximately €72 million in capital expenditure by the end of this year. A further €83.9 million will be required when passenger numbers surpass 3.2 million per annum. Total investment (under the concession agreement) will amount to €242 million, a significant sum to support and grow an important asset.
Rothschild stressed that western banks and financiers (NRI included) need to have confidence, before making substantial investments, and that Avia Invests contractual rights are not going to be potentially subject to termination or other prejudicial actions by the government on an arbitrary basis.
Moldova is also a signatory to multiple bilateral investment protection treaties which protect legitimate investors’ property rights. Importantly, the Moldovan Supreme Court previously upheld the legality of the concession contract. NRI remains confident, notwithstanding pressure that some in the government may attempt to exert on the judiciary, the courts will respect the rule of law and the previous ruling of the Supreme Court.
The concession agreement, NRI maintains, is consistent with international precedents. NRI remains open to good faith discussions with the Ministry on refining the agreement for the mutual benefit of Moldova, its people and Avia Invest. It is duly prepared to use all legal means available in Moldova and internationally, including exercising rights under any applicable bilateral investment treaty, to defend its investment and contractual rights in Chisinau International Airport.