GMR group to develop Greek international airport project

GMR group to develop Greek international airport project
Highlights

Spreading its wings further in Europe, diversified GMR Infrastructure Limited on Friday said it received Letter of Award from the Greece government for developing new international airport in the country

Hyderabad: Spreading its wings further in Europe, diversified GMR Infrastructure Limited on Friday said it received Letter of Award from the Greece government for developing new international airport in the country.

A consortium led by GMR Airports Limited, a subsidiary of GMR Infrastructure, will develop, operate and manage the new international airport of Heraklion on Crete island in Greece. GMR Airports and Greece-based Terna Group are members of the consortium which is expected to spend 520 million Euro (nearly Rs 4,415 crore) on the phase 1 construction.

“GMR Airports is the designated airport operator in the consortium for the Greek project. The project involves design, construction, financing of the new Heraklion airport. The concession period for the greenfield project would be 35 years, including phase- 1 construction of five years,” GMR Group said in a statement.

The entire project would be funded through a mix of equity, accruals from the existing airport, and financial grant being provided by the Greek government, it added. Srinivas Bommidala, Chairman, Energy and International Airports, GMR Group, 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 will be a matter of pride for Greece and provide a further fillip to the traffic potential of Crete".

Greece is a major International tourist destination, with nearly 27 million tourists per annum. Crete is largest and most visited island in Greece. Heraklion airport, located in Crete, is the second largest in Greece and has witnessed an average annual traffic growth of about 10 per cent over the past three years. The current airport is facing capacity constraint and hence the new airport will replace the existing Heraklion airport.

“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,” said Sidharath Kapur, Executive Director, GMR Airports.

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