GMR-TERNA JV Signs Concession Agreement For New Airport In Greece
GMR Airports Limited, a subsidiary of GMR Infrastructure Limited along with Greek partner TERNA Group has signed the Concession Agreement for Design, Construction, Financing, Operation, and Maintenance & Exploitation of New International Airport of Heraklion at Crete, Greece. The Concession Period for the project is 35 years including Phase 1 Construction of 5 years.
Greece is one of the leading International tourist destinations, attracting nearly 27 Mn tourists per annum. Crete is the largest and most visited island in Greece. Heraklion airport, located in Crete, is the 2nd largest airport in Greece and has registered traffic growth at a CAGR of 10% p.a. over the past 3 years.
The current airport is facing a severe capacity constraint and will be replaced by the new airport at Kastelli. The scope of the project involves Design, Construction, Financing, Operation, and Maintenance & Exploitation of the New Heraklion Crete New International Airport.
The consortium intends to invest over 500 million Euro for the development of the new airport. The entire project will be funded through a mix of equity, accruals from the existing airport, and financial grant being provided by the Government of Greece; therefore debt is not required in this project.