The Government of Greece has issued Letter of Award (LOA) to the consortium of GMR Airports Limited, a subsidiary of GMR Infrastructure Limited, and TERNA Group for the Development, Operations and Management of New International Airport of Heraklion at Crete. GMR Airports Limited is the designated Airport Operator in the consortium for this project. This follows the Consortium being declared provisional contractor in June 2017.

Greece is a major International tourist destination, with approximately 27 million tourists per annum. Crete is largest and most visited island in Greece. Heraklion airport, located in Crete, is the 2nd largest in Greece and has witnessed a CAGR traffic growth of approximately 10% pa over the past 3 years. The current airport is facing capacity constraint and hence the new airport will replace the existing Heraklion airport. The scope of the project involves Design, Construction, Financing, Operation, and Maintenance & Exploitation of the New Heraklion Crete New International Airport. The concession period for the Greenfield project will be 35 years including Phase 1 Construction of 5 years. Expected capex for Phase 1 construction is approximately 520 million Euro. 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.