GMR Subsidiary Awarded Contract to Develop Indonesia's Kualanamu Airport

Dec. 25—NEW DELHI — GMR Airports Netherlands B.V., a subsidiary of GMR Airports Limited (GAL), has signed a Shareholders' Agreement (SHA) and Share Subscription Agreement (SSA) with Indonesia's state-owned airport operator Angkasa Pura II for the development and operation of the South East Asian country's Kualanamu International Airport, the company said in a statement on Friday.

GAL has entered into a 49%-51% partnership with the Indonesian company to operate, develop and expand airport at Medan, one of the largest metropolitan cities in the country, for a period of 25 years.

The airport had handled more than 10 million passengers in 2018, GAL said in a statement.

"GMR's entry into the Indonesian aviation sector is a significant step in support of the Indian government's policy to Look East", said Srinivas Bommidala, Chairman Energy and International Airports at GMR Group, in the statement.

"With our global aviation expertise, we aspire to transform Kualanamu International Airport into a Western International hub of Indonesia and contribute to the overall infrastructure development of the country," he added.

GMR group's airport portfolio has around 172 million passenger capacity in operation and under development, comprising India's busiest Indira Gandhi International Airport in New Delhi, Hyderabad's Rajiv Gandhi International Airport, Mactan Cebu International Airport in partnership with Megawide in the Philippines while greenfield projects under development includes an airport at Mopa in Goa and another airport at Heraklion, Crete, Greece in partnership with GEK Terna.

The group along with its consortium has completed construction of a new terminal building of Clark International Airport earlier this year.

It has also signed the concession agreement for the development and operation of a greenfield airport at Bhogapuram in Andhra Pradesh and another concession agreement to commission, operationalise and maintain the civilian enclave at the Bidar Airport in North Karnataka.

This announcement comes days after GMR Infrastructure Ltd. (GIL) said that it has received an approval from the National Company Law Tribunal's (NCLT) for the demerger of its non-airport businesses, which will pave the way for the company to restructure its various business verticals, and list its airports business separately.

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