GMR-TERNA JV receives Letter of Award for New Crete airport

Deepthi | Myequity news | Date : 21-09-2018 13:10:00 IST

Govt. of Greece has today issued Letter of Award to the consortium of GMR Airports Limited, a subsidiary of GMR Infrastructure Ltd, and TERNA Group for the Development, Operations and Management of New International Airport of Heraklion at Crete. GMR Airports Limited is the designated Airport Operator in the consortium for this project. This follows the Consortium being declared provisional contractor in June 2017.

Greece is a major International tourist destination, with ~27 Mn tourists per annum. Crete is largest and most visited island in Greece. Heraklion airport, located in Crete, is the 2nd largest in Greece and has witnessed a CAGR traffic growth of ~10% pa over the past 3 years. The current airport is facing capacity constraint and hence the new airport will replace the existing Heraklion airport. The scope of the project involves Design, Construction, Financing, Operation, and Maintenance & Exploitation of the New Heraklion Crete New International Airport. The concession period for the Greenfield project will be 35 years including Phase 1 Construction of 5 years. Expected capex for Phase 1 construction is ~520 Mn Euro. The entire project will be funded through a mix of equity, accruals from the existing airport, and financial grant being provided by the Government of Greece, therefore debt is not required in this project.

Commenting on the development Mr. Srinivas Bommidala, Business Chairman, Energy and International Airports said: “It is a matter of great pride for us to work on this prestigious airport. Along with our partner GEK Terna, we will aim to deliver an airport of global standards which would be a matter of pride for Greece and provide a further fillip to the traffic potential of Crete.”

Sidharath Kapur, Executive Director, GMR Airports Limited added: “This award reinforces the position of GMR Airports Ltd. as a major global airport operator and will provide a fillip to the growth of the Company. We expect to complete necessary documentation and concession signing over the course of next few months.”

About GMR Infrastructure Limited:

GMR Group, a leading global infrastructure conglomerate with interests in Airport, Energy, Transportation and Urban Infrastructure. GMR Group’s Airport portfolio has around 159 mn passenger capacity in operation and under development, comprising of India's busiest Indira Gandhi International Airport in New Delhi, Hyderabad’s Rajiv Gandhi International Airport, Mactan Cebu International Airport in partnership with Megawide in Philippines. While greenfield projects under development includes Airport at Mopa in Goa and Airport at Heraklion, Crete, Greece in partnership with GEK Terna. Recently, the GMR-Megawide consortium has won the Clark International Airport’s EPC project, the second project in Philippines. It is also developing smart cities adjacent to Delhi and Hyderabad airports.

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