Hyderabad

GMR begins work on Greece’s new international airport

GMR Airports Ltd . has achieved the Concession Commencement Date for design, construction, financing, operation, and maintenance of the new airport at Crete, Greece.

GMR Airports Ltd . has achieved the Concession Commencement Date for design, construction, financing, operation, and maintenance of the new airport at Crete, Greece.   | Photo Credit: Arrangement

Indian airport operator’s first foray into the EU region

GMR Airports Limited (GAL), a subsidiary of GMR Infrastructure Limited, announced that it has achieved the ‘Concession Commencement Date’ for design, construction, financing, operation, and maintenance of new international airport of Heraklion at Crete, Greece, on Monday.

Prime Minister of Greece Kyriakos Mitsotakis laid the foundation stone for the airport, marking the beginning of the project. GAL along with its Greek partner GEK TERNA signed the concession agreement in February 2019 for establishment of the international airport.

The concession period for the project is 35 years, including phase one construction of five years. The consortium intends to invest over 500 million Euros for development of the new airport. The project is funded through support of government grant and would not require any debt. It will be funded through a mix of equity, accruals from the existing airport, and financial grant being provided by the Government of Greece.

Greece is one of the leading international tourist destinations, attracting nearly 33 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 a traffic growth of 10% CAGR over the past three years. The current airport is facing a severe capacity constraint and will be replaced by the new airport at Kastelli.

“GMR is the first Indian airport operator to win the bid to operate a European airport and it is also our first foray into the EU region. It is a matter of great pride for us to work on this prestigious project. Along with our partner GEK Terna, we aim to deliver an airport of global standards which would be a matter of pride for Greece,” said chairman-Eenergy and International Airports, GMR Group, Srinivas Bommidala.

GAL operates airports including the one in Delhi, Mactan Cebu International Airport in partnership with Megawide in The Philippines and city’s Rajiv Gandhi International Airport.

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Printable version | Feb 18, 2020 11:38:35 AM | https://www.thehindu.com/news/cities/Hyderabad/gmr-begins-work-on-greeces-new-international-airport/article30786622.ece

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