GMR Takes Charge Of Indonesian Airport For 25 Years

| Updated: 08 July, 2022 4:37 pm IST
GMR Airports has now entered the growing Indonesian aviation market with the project

NEW DELHI/JAKARTA: Angkasa Pura Aviasi (APA), the Joint Venture Company of GMR Airports Limited (Subsidiary of GMR Infrastructure Limited) and Indonesia’s state-owned airport operator Angkasa Pura II (AP2) on Friday announced to assume the operational charge of Indonesia’s Kualanamu International Airport in Medan.

Kualanamu International Airport was built in 2013 to replace the Polonia Airport in the city centre. It has been operating since then. The airport handled more than 10 million passengers in 2018 with international connectivity to Singapore, Malaysia, Thailand and the Middle East. The project scope includes the operation, development, and expansion of the airport over a period of 25 years.

GMR group’s Chairman (Energy and International Airports), Srinivas Bommidala, said GMR Airports Limited is delighted to be part of such a momentous occasion. “We would like to take this opportunity to reiterate our commitment to transforming Medan Airport into the Western International hub of Indonesia and contributing to the overall infrastructure development of the country,” Bommidala said.

“Our participation in the project is in line with our Prime Minister Narendra Modi’s ‘Look East’ policy and President Jokowi’s commitment to developing infrastructure in Indonesia,” he further said.

In the statement issued by GMR group, it was said, “The development of Medan Airport under our joint venture will lead to further growth in tourism and business activities between India and Indonesia. This also reinforces GMR Group’s credentials as one of the largest airport developers and operators globally.”

With this, the GMR Group has expanded its international footprint. It is the only Indian airport operator with a significant presence in South-East Asia and Europe.

At present, GMR is operating the Mactan Cebu International Airport (MCIA) in the Philippines and recently finished the construction of Clark Airport, Philippines. Medan airport would be the second operating asset in the company’s portfolio in South-East Asia.

The Group is also coming up with a Greenfield airport at Crete in GreeceGMR Airports Limited had bid for the development and operation of Medan Airport.

The international selection process was conducted by PT Angkasa Pura II to select a strategic partner for Medan Airport.

APII is a state-owned enterprise handling 20 airports in Indonesia.

In November 2021, GMR Airports Limited was announced as the winning bidder. The Shareholders’ Agreement (SHA) and Share Subscription Agreement (SSA) with Angkasa Pura II were signed in December 2021. With the signing of the agreements, GMR had entered into a 49:51 partnership with APII.

The joint venture formally took over the operations of Medan airport in the presence of Budi Karya Sumadi, Minister of Transportation (MOT), Erick Thohir, Minister of State-Owned Enterprises (MSOE), Edy Rachmayadi, Governor of North Sumatra, and Muhammad Awaluddin, President Director, Angkasa Pura 2.

Also Read Story

TISS suspends student for screening controversial documentaries

Kejriwal calls out Tihar Jail’s lies on his insulin need

ECI forms heat watch task force for elections

Delhi Police files FIR in landfill fire; BJP blames AAP