GMR Airports subsidiary to develop Indonesia’s Kualanamu Airport
1 min read . Updated: 24 Dec 2021, 06:32 PM IST
Premium- GMR has entered into a 49:51 partnership with Angkasa Pura II, the state-owned enterprise and the bidding authority for the Kualanamu International Airport.
GMR Airports Netherlands BV, a step down subsidiary of GMR Airports Limited (GAL), has signed the shareholders’ pact and share subscription agreement with Angkasa Pura II (APII) for the development and operation of Kualanamu International Airport in Medan, Indonesia.
The letter of award for the project was received on 23rd November, 2021. With this, GMR entered into a 49:51 partnership with APII, the state-owned enterprise and the bidding authority for the Kualanamu International Airport.
"The consortium will transform Kualanamu International Airport into Western international hub of Indonesia. The project scope includes operation, development and expansion of the airport over a period of 25 years," a statement said, adding that Kualanamu International Airport is an operating airport with healthy cash flows.
Medan is the fourth largest urban area in Indonesia and is the capital of North Sumatra province, with over 3.4 million people. The airport handled over 10 million passengers in 2018.
In November 2021, APII had completed the final evaluation process for selection of strategic partnership for the Kualanamu International Airport and had announced GMR Airports as the winning bidder. GMR Airports Limited and its 100% subsidiary, GMR Airports International BV, had bid for the project as a consortium.
GMR Airports won the bid for this high growth potential brownfield airport through a closely contested international competitive bid process.
Srinivas Bommidala, Chairman Energy & International Airports, GMR Group, 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 Hon’ble Prime Minister has given a further clarion call to ‘Act East’ and GMR is pleased to demonstrate commitment to this call by acting in leveraging its expertise for cementing this key partnership in Indonesia."
Bommidala said the company aspires to transform Kualanamu International Airport into a Western International hub of Indonesia.
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