Airport in Radom: a good deal, but not for the city



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Radom Radom passed a resolution yesterday assuming PPL PLN 13.5 million a year for the next 20 years. As reported to Pasazer.com last week, Radom Radoski's president managed to conclude negotiations over the takeover of the Sadków airport by the state-owned company "Porty Lotnicze" ( PPL). The conclusion of the agreement made it possible to file in the court an application for bankruptcy of Radom airport with indication of the buyer, namely PPL. The court should make the appropriate decision in a few weeks.

The details of the contract between PPL and the city are not known, however, the vote at the last meeting of Radom's advisers reveals some of his assumptions. It turns out that the condition for the conclusion of a lease is the consent of the City Council to pay PLP 350 million for future expenses that it will make in the course of the lease. expansion of the port. In accordance with the principles of contract law, the lessor is required to pay the tenant the expenses incurred during the lease at the end of the period for which the contract was concluded. In other words, in 2040, when PPL will stop renting the port area of ​​Radom, the city will have to pay for the infrastructure that it has built. We remind you that PPL will invest half a billion zlotys in the airport of Radom.

Before the vote at the City Council session, President Witkowski said – You can not agree with such a solution today, but that means breaking off the talks with the state airports. The question will remain next. I therefore call for adoption of the resolution.
The president's appeal was heard, because only two councilors voted against it.

As a result of the adoption of this resolution, PPL will receive PLN 13.5 million a year from the city of Radom for 20 years, starting in 2021. In total, Radom will pay PLP 270 million PLP . This amount is lower than the one voted at the Council session because of the deduction of the rent that the city will receive from PPL. This rent in two decades will total more than 117 million zlotys. With the fact that according to the provisions of 30 percent. this amount (more than PLN 35 million) will be allocated to the Ministry of National Defense (MON), which is co-holder of the airport. Thus, the net income (that is, after deduction of claims for the Department of National Defense) of the city of an amount of PLN 80 million was deducted from the 350 million voted.

According to Sławomir Szlachetka, treasurer of the city, one could pay this money once, after the end of the lease in 2040, but more favorably for the budget of the city, it will be divided into subsequent years. However, the solution adopted seems odd for several reasons.

First of all, the takeover of Radom airport was supposed to ease the burden of radom autos, and it turns out that in less than three years, they will have to pay the price. Airport maintenance more than a million zlotys per month.
Secondly, it is unclear where the amount of 350 million zlotys came from, as the expected cost of expenses incurred by PPL up to 2040. Even though PPL is achieving the promised expansion of the PPL. airport, we do not know in what state its infrastructure will be in 22 years.

Third, two decades are very long in preparing the appropriate and cost-effective financial instruments necessary for the eventual payment of expenses incurred during the lease by PPL. Paying PPL directly for indefinite investments seems a diplomatic solution, very controversial.

The fact that the advisers do not know the details of the contract with PPL is the icing on the cake of the airport because President Witkowski has signed a confidentiality clause, which means that the contents of the arrangements do not can be disclosed – I do not see in this contract anything that the state can not know, but we have a contract with PPL and we can not break it – said the President. The same sentence, concerning only the airport Ryanair-Mazowiecki in Modlin, was pronounced a few months ago by officials of the local government of Mazovia, when PPL wanted to read the agreement with the Irish. At that time, PPL representatives were indignant. I wonder what Radom's advisors would say today?

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