GVK Power to develop airports in Bali, Java

GVK Power to develop airports in Bali, Java

Mumbai: Infrastructure developer GVK Power and Infrastructure Ltd (GVKPIL), on Tuesday signed two agreements with the Government of Indonesia to develop greenfield international airports in North Bali and Yogyakarta, Java.

The agreements were signed in the presence of H Susilo Bambang Yudhoyono, president of the Republic of Indonesia who is currently on a visit to India.

This Hyderabad-based infrastructure firm runs the Chhatrapati Shivaji International Airport in Mumbai, through Mumbai International Airport Pvt Ltd (Mial) and has become the second largest shareholder in Bangalore International Airport Ltd (Bial).

GVK’s rival company GMR Group had already spreading to various international geographies including Turkey and Male. GMR had built a new passenger terminal with a capacity to handle 20 million passenger capacity, at the Istanbul Sabiha Gökçen International Airport in Turkey and won the concession for modernising and expanding the Male Airport along with Malaysia Airports Holdings Berhad (MAHB).

GMR has developed and commissioned the greenfield international airport at Hyderabad. The group operates the Delhi International Airport.

A media statement by GVK said that the agreement for the Bali airport is a three-way agreement between Badan Koordinasi Penanaman Modal (BKPM - a board set up by the Government of Indonesia for the facilitation of domestic and foreign investment), PT Pembangunan Bali Mandiri (a special purpose vehicle for airport development) and GVKPIL.

The agreement for the Java airport is an agreement between Angkasa Pura I (the Government of Indonesia owned airport operations and management company), BKPM and GVKPIL, it said.

The scope of the agreements provides exclusivity to GVKPIL and includes planning, design and development, operations and management of the airports along with all associated infrastructure, land and commercial development.