GMR to develop Indonesian airport

Mumbai: Infrastructure major GMR Group said on Friday it has signed shareholders agreement with Indonesia’s Angkasa Pura II for the development of Medan Airport on December 23.

GMR Airports, a part of the GMR group, had in November won the bid for this high growth potential brownfield airport, through a closely contested international competitive bid process.

The letter of award for the project was received on November 23 this year, the company said.

Medan is the fourth largest urban area in the country and is capital of North Sumatra province. An operating airport with healthy cash flows, it handled more than 10 million passengers in 2018.

GMR Airports Netherlands BV, a step down subsidiary of GMR Airports Limited (GAL), signed the shareholders’ agreement and Share Subscription Agreement (SSA) with Angkasa Pura II for the development and operations of Kualanamu International Airport (project) in Medan, Indonesia.

With the signing of the agreements, GMR enters into 49:51 partnership with APII, the state-owned enterprise and the bidding authority for the Kualanamu International Airport, GMR said.

“GMR’s entry into the Indonesian aviation sector is a significant step in support of the Indian government’s policy to ‘Look East’,” the company said.