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India’s GMR Airports lands 25-year deal to jointly run North Sumatra airport
The deal is worth US$6 billion, including at least Rp 15 trillion ($1.05 billion) in investment from strategic partners.
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Passengers walk past Citilink aircraft in Kualanamu International Airport in Deli Serdang, North Sumatra, on June 11, 2015. (JP/Dhoni Setiawan)
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ew Delhi-based GMR Airports has won a tender to jointly manage and develop Kualanamu International Airport in Deli Serdang, North Sumatra, for 25 years, as it seeks to transform the airport into a regional flight hub.
GMR Airports and state-owned PT Angkasa Pura II (AP II) will create a joint-venture company called PT Angkasa Pura Aviasi to run the airport. The Indonesian company will own 51 percent and the Indian company 49 percent of the joint venture, according to a statement.
The deal is worth US$6 billion, including at least Rp 15 trillion ($1.05 billion) in investment from strategic partners.
“We are committed to transforming Kualanamu airport into an international hub for western Indonesia,” said GMR Indonesia president director K.V. Satyanarayana.
Read also: Asian, European investors express interest in Kualanamu development project
The airport handled more than 10 million passengers in 2018, and AP II expects the partnership to expand the airport’s annual capacity to 17 million passengers in stage one, 30 million in stage two and 42 million in stage three of a development plan. The operator did not specify a timeline.
AP II president director Muhammad Awaluddin said all assets related to the airport would be handed over to AP II after the 25-year partnership expired.
