GMR Airports Limited, a subsidiary of GMR Infrastructure Limited along with Greek partner TERNA Group has today signed the Concession Agreement for Design, Construction, Financing, Operation, and Maintenance and 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, according to a company statement.

Greece is one of the leading International tourist destinations, attracting nearly 27 million tourists per annum. Crete is 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 per cent per annum over the past three 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 as well as exploitation of the New Heraklion Crete New International Airport.

The consortium intends to invest over 500 million euros for 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.

Srinivas Bommidala, Business Chairman, Energy and International Airports said, “This is GMR Group’s first foray in the EU region and we eagerly look forward to expanding our footprint in the EU. The signing of the Concession Agreement is a significant milestone in the growth journey of GMR Airports’ and reinforces our leadership position.”

“The New Heraklion airport project is a landmark PPP project for Greece and it is a matter of great pride for the GMR Group to work on this prestigious project,” he said.