GMR gets to develop airport in Indonesia

Hyderabad: GMR Airports Ltd (GAL), a subsidiary of GMR Infrastructure Ltd, has won the bid for the development and operation of Kualanamu International Airport in Medan, the 4th largest urban area in Indonesia and capital of North Sumatra province.

Angkasa Pura (AP) 2, the State-owned enterprise and the bidding authority for Kualanamu International Airport, has completed the final evaluation process for selection of strategic partnership for the airport and announced GMR Airports as the winning bidder.

GMR Airports Limited and its wholly owned subsidiary, GMR Airports International BV had bid for the project as consortium. It will enter into 49:51 partnership with AP2 for this project. The consortium will transform the airport into Western International hub of Indonesia.

The airport handled more than 10 million passengers in 2018. The project scope includes operation, development and expansion of the airport over a period of 25 years. Kualanamu International Airport is an operating airport with healthy cash flows. GMR Airports won the bid for this high growth potential brownfield airport, through a closely contested international competitive bid process and will partner with AP2. The letter of award may be issued in next few days, post bid formalities, while signing of project agreement.

Srinivas Bommidala, Chairman Energy and International Airports, GMR Group, said: "Winning bid for Medan Airport project marks the entry of GMR Airports in fast growing Indonesian Aviation sector – the largest in ASEAN and a high potential market." "We would like to take this opportunity to reiterate our commitment to transform Medan Airport into a Western International hub of Indonesia and contribute to overall infrastructure development of the country, on the back of over 10 years' experience in the country," he adds.