We advised RIX Riga Airport on the new passenger terminal expansion project, which included assistance in preparing the contracts for construction and engineering services, including negotiations with the contractor, as well as with the financing arrangements, including negotiations with the European Bank for Reconstruction and Development, Nordic Investment Bank and OP Corporate Bank.
About the project
The construction cost of the terminal expansion is estimated at EUR 98 million.
The terminal expansion will add approximately 20,000 square metres of new building space. In addition, 29,500 square metres of roads, pavements, public spaces, and landscaped green areas will be developed. The new facilities will provide the capacity required to accommodate future passenger growth, addressing the limitations of the current terminal, which already exceeds its originally designed capacity.
Financing will be provided equally by three lenders: two international financial institutions, the European Bank for Reconstruction and Development (EBRD) and the Nordic Investment Bank (NIB), as well as OP Corporate Bank plc Latvian Branch, selected through a tender process. The financing was granted following a comprehensive assessment of Riga Airport’s development plans, business strategy, and creditworthiness. Independent due diligence was conducted both by the lenders and by international advisors engaged by the lenders.
Our services and team
We advised the client on both – the construction and financing aspects of the project.
During the pre-construction phase, we prepared the construction contract based on the FIDIC Yellow Book and the agreement for the FIDIC Engineer’s services based on the FIDIC White Book. We also supported the client in negotiations with the main contractor, advised on the most appropriate dispute resolution forum and assisted with public procurement matters.
This work was handled by partner Jorens Jaunozols, counsel Agita Sprūde, and senior associates Andris Vilisons, Katrīne Pļaviņa-Mika and Reinis Papulis.
Our Finance and Insurance team advised on the financing term sheet, loan agreements, security structure and related documents. The team prepared and revised the documentation, reviewed and addressed the lender’s comments, supported the client in negotiations and strategic discussions, and coordinated advice on specialised matters where necessary.
The financing work was led by partner Rūdolfs Eņģelis, who oversaw the matter, led the negotiations and provided strategic advice throughout the process. He worked closely with counsel Santa Rubīna, who supported the drafting, review and coordination of the financing documents.
