In 1994, Airport Development Corporation (“ADC”) was selected by the Hungarian government as the private partner in a Public-Private Partnership with the government for the developoment and operation of the US$150 million terminal project in the Budapest Ferihegy International Airport (recently renamed Budapest Ferenc Liszt International Airport "BUD"). The BUD project included the design and construction of a new passenger terminal facility, and upgrades to the apron, taxiway, roads, bridges and other infrastructure. The terminals handled 4.7 million passengers in 2001.
Subsequent to the award, ADC formed an equal share joint venture with Aéroports de Montréal to participate in the investment and operation of the project. As managing partner, ADC was responsible for the winning bid strategy, arranging financing, formulation of financial and business plan, financial control, liaison with government agencies, marketing and leasing.
The Public-Private Partnership commenced in 1997 and was expropriated without just cause by the Hungarian government in 2002. Subsequently, in December 2005, the Hungarian government sold the 75-year concession of the airport for a price of US$2.2 billion. In October 2006, the Tribunal of International Centre for Settlement of Investment Dispute (ICSID) determined that the expropriation was unlawful and awarded the ADC/Aéroports de Montréal joint venture US$84 million, which was paid by the Hungarian government.