- GMR will enter into a partnership with Angkasa Pura 2 (AP2). AP2 is a state-owned enterprise handling 15 airports including Jakarta
- The project will cover a co-operation period of 25 years
- GMR Airports to enter in high growth Indonesian aviation market
- Reinforces GMR’s position as a global airport operator & developer
GMR Airports Ltd. (GAL), a subsidiary of GMR Infrastructure Ltd., was announced as the winning bidder for the development and operation of Kualanamu International Airport in Medan, Indonesia (‘Medan Airport).
In a communication addressed to GMR Airports Consortium Team, Angkasa Pura 2 (AP2), the state-owned enterprise and the bidding authority for the Medan Airport has informed that they have completed the best and final evaluation process for selection of strategic partnership for the Medan Airport and have announced GMR Airports as the Winning Bidder. It may be noted that GMR Airprots Ltd. and its wholly owned subsidiary, GMR Airports International B.V had bid for the project as consortium.
Medan is the 4th largest urban area in the country and is capital of North Sumatra province. GMR will enter into 49:51 partnership with AP2 for this project. The consortium will transform Kualanamu International 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 Angkasa Pura 2 (AP2). The letter of award is expected to be issued in next few days, post bid formalities, while signing of project agreements before end of the year.
Commenting on the development, Mr. Srinivas Bommidala, Chairman – Energy & International Airports, GMR Group, said: “GMR Airports Ltd. is delighted to have been announced the winning bidder for the development and operation of Kualanamu International Airport in Medan, Indonesia. The 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 our 10+ years experience in the country. The bid win also reinforces GMR Group’s credentials as one of the largst airport developers and operators across the world.”
About GMR Infrastructure Ltd.
GMR Group is a leading global infrastructure conglomerate with unparalleled expertise in designing, building and operating Airports. It also has significant presence in areas of Energy, Transportation and Urban Infrastructure.
GMR is the largest private airport operator in Asia and fourth largest globally, handling passengers in excess of 172 million annually (pre-Covid). It operates the iconic Delhi Airport, which is the largest and fastest growing airport in India. It also runs Hyderabad Airport, a pioneering greenfield airport known for several technological innovations. The company is also operating the architecturally renowned Mactan-Cebu International Airport in Cebu, Philippines, in partnership with Megawide.
The Group is currently developing three major greenfield airport projects across India and Greece. Goa and Visakhapatnam airports in India are poised to transform the economy and landscape of the surrounding areas when ready. Crete airport in Greece will similarly play a significant role in the local economy of the region.
The Group’s Energy business has a diviersified portfolio of around 4,995 MW. Transportation and Urban Infrastructure division of the Group has six operating roads and highway projects spanning over 2,400 lane kilometres. GMR is also developing multi-focus Special Investment Regions at various locations in India.
GMR Group’s underlying philosophy is to work closely with support the local communities wherever it is present. Towards this, GMR Varalakshmi Foundation (GMRVF), the CSR arm of the Group, focuses on improving the quality of life of people by enhancing skills, providing education and developing healthcare infrastructure and services.