Ljubljana airport's planned second terminal draws objections

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Ljubljana airport's owners are to decide next month whether or not to proceed with construction of a new terminal after several shareholders voiced concerns over the costs of the project.

Slovenian restitution and pension funds Kapitalska Družba and Slovenska Odškodninska Družba, which collectively own a 14% stake in the airport, are to use an annual general meeting scheduled for 16 September to raise objections to the construction of the €57 million ($76 million) Terminal 2, on the grounds that the project is unnecessary, the airport confirms.

The Slovenian government - which owns 50% of shares in the airport and has indirect control of both Kapitalska Družba and Slovenska Odškodninska Družba - has not yet stated if it will oppose the expansion but is in the process of privatising its holding to reduce its budget deficit.

Due for completion at the end of 2015, the terminal is to allow the airport to handle 1,600 passengers an hour at peak periods, compared with 700 today.

The airport says it is already struggling to handle passenger traffic at busy peak periods. Its traffic grow 7% so far this year.

Construction of the terminal is to be funded with a mixture of bank loans, European Regional Development Fund grants and airport charges. The project has been repeatedly delayed, with the airport citing the European economic crisis.