GMR Infrastructure Limited on Friday said that its subsidiary GMR Airports Limited and its Greek partner Terna Group have signed a concession agreement for construction of the new International Airport at Crete in Greece.
The concession agreement involves design, construction, financing, operation and maintenance and exploitation of the new International Airport of Heraklion at Crete.
The Concession Period for the project is 35 years including Phase 1 Construction of 5 years, GMR said in a release here.
Greece is one of the leading International tourist destinations, attracting nearly 27 million tourists per annum.
Crete is 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 cent 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 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; therefore, debt is not required in this project.
Commenting on the development, Mr. Srinivas Bommidala, Business Chairman, Energy and International Airports said, this is GMR Group’s first foray in the EU region and we eagerly look forward to expanding our 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, he said.
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, Mr Srinivas added.
Source: United News of India.