Spain to sell STUNNING airport to reduce debt

Debt-ridden Spain plans to sell off part of its airports operator AENA, which the government says could be worth up to 30 billion euros (Rs 1,964 billion), as it seeks ways to reduce the national debt.

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Seven groups, including Delhi airport's operator GMR Infrastructure, have signed up for the privatisation of Spain's two main airports, in bidding that is expected to raise more than 5 billion euros (Rs 327.17 billion).

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Spain's Development Ministry said that six bidding groups signed up for Madrid's Barajas airport and another six for Barcelona's El Prat.

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Spain expects to award licenses for the country's two largest airports to two separate and competing companies.

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The companies will be allowed to hold 49 per cent stake in both the airports.

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Spain seeks to raise about 3.7 billion euros (Rs 242.16 billion) from the privatisaton of Barajas airport and 1.6 billion euros (Rs 104.74 billion) from El Prat.

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The seven groups have submitted documentation certifying experience in managing airports and more than 3 billion euros (Rs 196.39 billion) in assets.

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Those cleared by the government will have access to data rooms with information on the two airports.

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Both airports will be operated by private companies over a 20-year period, with an option for a five-year license extension.

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The government seeks to grant operating licenses for the two airports by the end of November.

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Candidates for Madrid's Barajas airport include a group led by Ferrovial, the leading shareholder of BAA, the owner of London's Heathrow and Stansted airports.

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Groups led by GMR Infrastructure Ltd; France's Aeroports de Paris; Germany's Fraport; and Spain's Grupo San Jose; and a group formed by Changi Airports International, Spain's FCC and a unit of Siemens AG also signed up for Madrid's airport.

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After its expansion in 2006 with an investment of 6.2 billion euros (Rs 406.03 billion), Madrid's Barajas airport has some of the strongest growth prospects in Europe, particularly as a hub for connecting flights between Europe and Latin America with room for expansion.

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Spain's Abertis Infrastructuras is leading a bidding group for Barcelona's El Prat.

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The groups led by Ferrovial, GMR, AdP, Fraport and Changi Airports International are also seeking to bid for El Prat.

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Spain invested 1.2 billion euros (Rs 78.57 billion) to expand Barcelona's El Prat airport in 2009.

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The government is also preparing the share offering of Spain's National Lottery in an effort to cut the country's budget deficit to three per cent of gross domestic product by 2013, from a 9.2 per cent gap last year.

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Madrid has promised to cut the public deficit from 9.24 per cent of gross domestic product in 2010 to the Eurozone limit of 3.0 per cent in 2013.

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The Barajas airport is the premier international airport in Madrid. According to reports, almost 50 million passengers used this airport last year.

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The airport gets it name from the Barajas district near Madrid.