GMR, Terna ink concession pact for Greece airport

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Published: February 23, 2019 12:32:12 AM

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 with no debt. The concession period for the project is 35 years including first phase construction of five years.

GMR, Terna ink concession pact for Greece airportGMR, Terna ink concession pact for Greece airport

GMR Airports, a subsidiary of GMR Infrastructure, along with Greek partner Terna group has signed the concession agreement for design, construction, financing, operation, maintenance and exploitation of new international airport of Heraklion at Crete, Greece.

The consortium intends to invest over 500 million euro for development of the new airport.

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 with no debt. The concession period for the project is 35 years including first phase construction of five years.

In a statement, Srinivas Bommidala, business chairman, Energy and International Airports, said that this is GMR group’s first foray in the EU region and it is expanding its footprint in the EU. “The signing of the concession agreement is a significant milestone in the growth journey of GMR Airports and reinforces our leadership position. The New Heraklion airport project is a landmark PPP project for Greece and it is a matter of great pride for the GMR Group to work on this prestigious project,” he said.

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Greece is one of the international tourist destinations, attracting nearly 27 million tourists per annum. Crete is the largest and most-visited island in Greece. Heraklion airport, located in Crete, is the second largest airport in Greece and has registered traffic growth at a CAGR of 10% per annum over the past three years. The current airport is facing a severe capacity constraint and will be replaced by the new airport at Kastelli. The scope of the project involves design, construction, financing, operation, and maintenance & exploitation of the new Heraklion Crete international airport.

GMR Group’s airport portfolio has around 159 million passenger capacity in operation and under development, comprising of 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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