Steer has embarked on a crucial project aimed at revitalizing Georgia’s airport sector to capitalize on opportunities for growth and develop Georgia into a regional and transport hub. With the aviation industry facing the long-term impacts of COVID-19, and the expiration of the TAV concession for Tbilisi and Batumi airports in 2027, this initiative is of paramount importance to the Government of Georgia. The project encompasses several key elements, including:
Key considerations in meeting the project's objectives include robust traffic forecasts for major Georgian airports, capacity assessments for Tbilisi, Kutaisi, and condition assessments for Mestia and Ambrolauri. Business plans for each airport, economic value assessments, and evaluations of Public-Private Participation (PPP) options and future strategies are also integral to the project's success.
According to the air traffic forecast summary, Georgia's main airports are projected to serve 21 million passengers by 2050, with an average annual growth rate of 5.0% from 2023 to 2050. These projections will play a pivotal role in shaping the future of the airports.
The development of business plans for Tbilisi, Batumi, and Kutaisi airports involves assessing their financial viability by considering factors such as EBITDA, capital expenditure, and income streams. These plans are fundamental to shaping the airports' strategies and ensuring their sustainability.
The assessment of the economic value of the airports focuses on the net present value of EBITDA net revenue streams compared to required capital expenditures. This analysis will determine whether the airports are financially self-sustainable or require government support. Further, this would help in determining an appropriate project structure for the airport’s development, operations, and management.
The project also explores various strategic options for Georgia's airports, including the location of Tbilisi airport (new Vaziani site or existing airport), management strategies for Western Georgia airports (Kutaisi and Batumi), and potential PPP arrangements for these airports. These decisions will significantly impact the private sector participation, investments, quality of airport services, and thus, the future of Georgia's aviation sector.
In conclusion, the Georgia Airports sector assessment project is pivotal in guiding the country's aviation sector toward growth and sustainability. It involves a comprehensive analysis of various factors and will result in strategic recommendations that will shape the future of Tbilisi, Batumi, Kutaisi, and future airports in Georgia, ensuring they are well-prepped to meet the demands of a regional, dynamic, and evolving aviation landscape.
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