GMR Infrastructure Limited announced that its subsidiary, GMR Airports Limited (GAL), has submitted the bid along with its partner GEK Terna Group of Greece for the Development, Operations and Management of New International Airport of Heraklion at Crete Island, Greece.
The scope of the project involves Design, Construction, Financing, Operation & Maintenance of the airport for a concession period of 35 years. GEK Terna Group is a leading Greek Infrastructure company having presence in Construction, Energy, Mining, Waste management, Concessions, Real Estate development & facilities’ management.
“It is understood that this is the sole bid for this concession,” the company said.
Upon award, GAL will be the airport operator for this project. Under the Bid conditions, it is mandatory for the airport operator to hold a minimum of 10% equity stake in the consortium.
“The bid submission is in line with the GMR Group’s asset light growth strategy with value build up from this project coming to GMR more from leveraging the airport platform, leading to enhanced revenue based services, than just equity,” said a GAL spokesperson.
Greece is a major International tourist destination, with 24Mn tourists per annum. Crete is the largest and most visited island in Greece. Heraklion airport, located in Crete, is the second largest in Greece and has witnessed steady traffic growth in the last 3-4 years. The current airport is facing capacity constraint and is not able to cope with growing traffic demand. The existing Heraklion airport will be closed once the new airport is operational.