GMR Infrastructure - GMR-Limak-MAHB Consortium signs Implementation Agreement for Istanbul Sabiha Gokcen International Airport (SGIA) in Turkey
GMR Infrastructure Ltd has informed BSE that the winning consortium of GMR Infrastructure Ltd (GMR), Limak Insaat San.Ve Tic. A.S(Limak) and Malaysia Airports Holding Berhad (MAHB) signed the Implementation Agreement with the Turkish Government’s Ministry of Defence on March 20, 2008 for Istanbul Sabiha Gokcen International Airport (SGIA) in Turkey.
In this regard the Company has issued the following Press Release:
“The winning Consortium of GMR Infrastructure Ltd., (GMR), Limak Insaat San. Ve Tic. A.S. (Limak), and Malaysia Airports Holding Berhad (MANB) signed the Implementation Agreement with the Turkish Government’s Ministry of Defense on March 20, 2008.
The terms of the Agreement are such that the concession period will last 20 years where a committed minimum investment of over 250 million Euros (Rs 1700 crore approx or USD 420mn approx) will be made by the Consortium. The Consortium will pay 1.93 billion Euros (Rs 12000 crore approx or USD 3 bn approx) in concession fees to the government over 20 years. The scope of the concession includes operations of the existing terminals, as well as the construction of the new integrated domestic and international terminal for 10 million passengers per annum. The duties and rights of the Consortium include carrying out any activity related to handling of aircraft, passengers, baggage, cargo, fuelling, and so forth, as well as any non-aero commercial business such as duty free, food and beverages, hotel, car parking, advertising among other things. The multi-level car park will accommodate around 4500 vehicles, while a hotel adjacent to the terminal will serve transit passengers, airline crew and others.
Opened in 2001 as the second international airport of Istanbul, Sabiha Gokcen’s annual passenger capacity of 4 million in 2007 is targeted to be increased to 10 million with the investments. The airport is targeted to handle 35-40 million ppa by the end of the concession. Currently SGIA has a domestic terminal with a passenger capacity of 500 thousand and an international terminal with a passenger capacity of 3 million annually. The targeted operational handover date for SGIA will be towards end of April, 2008, followed by a ground breaking ceremony on May 03, 2008. Thereafter, the construction of the new terminal is expected to be completed over the next 30 months.
Commenting on the agreement, Mr. G B S Raju, Chairman Corporate and International Business Division (IBD) of the GMR Group said, “Winning and developing the Istanbul SGIA project is significant in our foray into international markets in the airports sector. We are happy that we have like-minded partners in both, Limak and MAHB as well as the wholehearted support of the Turkish government. All this will help us deliver our promise of bringing improved customer values, standards and operational efficiencies that are the best in class to this project. We look forward to continuing this partnership in our airport infrastructure growth strategy in international markets.”
Ranjit Murugason, CEO of IBD, GMR Group said, “This project will increase the International exposure of the GMR Group, while improving the internal resource and network development for the Group’s future projects. It will also serve as the ideal reference for entering into other European countries as well as the important markets in Middle East and North Africa (MENA) regions.”
The state will support the Consortium by granting licenses for the operations, hopefully supporting bilateral relations with other countries as to increase traffic’ and by potentially implementing development activities for SGIA including a second runway.
The consortium is well prepared to take over the airport with transition teams been deputed for various activities including operations, project management, commercial, information technology, and human resources. The Consortium and these teams are in regular interface with HEAS, which is currently the operator of the Airport. Regular internal workshops and strategy development sessions take place for each of the aero and non-aero activity.”
Tags: GMR Infrastructure