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Yerevan Zvartnots Airport expansion discussion ongoing

26 May 2024

The ongoing negotiations between the Armenian government and Corporación América Airports over the expansion of Zvartnots, Armenia's main airport, are facing difficulties due to the 20% internal rate of return granted to the company. This rate refers to the annual return the Luxembourg-based conglomerate earns on its investments. Deputy Prime Minister Mher Grigoryan stated that the government seeks to lower this figure before approving the construction of a second terminal.

Grigoryan highlighted that the current concession agreement parameters are unacceptable for Armenia. The agreement, signed in 2001, is a 30-year deal under which Corporación América Airports has invested over $160 million in Zvartnots.

Zvartnots saw record passenger traffic of over 5.3 million last year, a 46% increase, largely due to rerouted Russian traffic following international sanctions on Russia. Corporación América Airports indicated readiness to invest an additional $400 million in a second terminal, pending agreement with the Armenian government. There has been no immediate response to Grigoryan’s proposal for a lower rate of return.

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