GMR, together with Philippines based construction firm Megawide, had won an international bid to develop and operate the Mactan Cebu International Airport (MCIA) on April 4. The project is estimated to cost about USD 700 million.
"The GMR-Megawide Consortium today paid an amount of Philippine Pesos 14.4 billion (approximately USD 320 million) to the Mactan Cebu International Airport Authority in the Philippines as upfront premium for award of the concession of the MCIA," GMR said in a statement today.
Following the receipt of payment, the Department of Transportation and Communications (DOTC) and Mactan Cebu International Airport Authority today signed the concession agreement with the GMR Megawide Consortium, it added.
An upfront payment of USD 320 million to the authority was one of the conditions to be fulfilled before the award of concession agreement for developing and operating the airport.
Commenting on the development, GMR Chairman G M Rao said, "This is just the first step in our endeavor to transform the Mactan Cebu International Airport into a world class airport destination."
The GMR-Megawide consortium had emerged as the highest bidder in the international bidding process held in December 2013 for the project after submitting a bid of PHP 14.4 billion. The DOTC had formally issued the Letter of Award to the GMR consortium on April 4, 2014.
The Bangalore-based GMR currently operates two airports at Delhi and Hyderabad.
Recently the company exited from the Istanbul airport by selling its entire 40 per cent stake for Euro 225 million (Rs 1,900 crore) to Malaysia Airport Holdings Berhad.
GMR shares today fell by 0.98 per cent to close at Rs 25.30 apiece on the BSE.