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GMR Airports Netherlands BV, a step down subsidiary of GMR Airports Ltd (GAL), signed the Shareholders’ Agreement (SHA) and Share Subscription Agreement (SSA) with Angkasa Pura II (APII) for the development and operation of Kualanamu International Airport (Project) in Medan, Indonesia) on December 23.
The letter of award for the project was received on November 23.
With the signing of the agreements, GMR enters into 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. 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 a population of over 3.4 million. The airport handled more than 10 million passengers in 2018.
Earlier 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 Ltd and its 100 per cent subsidiary, GMR Airports International BV had bid for the project as a consortium. GMR Airports won the bid for this brownfield Airport, through a closely contested international competitive bid process.
Commenting on the development, Srinivas Bommidala, Chairman, Energy and 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 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.”
“Our partnership with Angkasa Pura II is testimony to the trust placed in us by the Indonesian government and authorities. We will strive to bring our best to this beautiful and strategic country of ASEAN,” he said.
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