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GMR Infrastructure Limited, through its subsidiary GMR Airports Limited (GAL), has submitted along with its partner GEK Terna Group of Greece, the only bid for the development, operation and management of the New International Airport of Heraklion at Crete Island, Greece.

The scope of the project involves the design, build, financing, operation and maintenance (DBFOM) of the airport for a concession period of 35 years. The total project investment is estimated at €850 million (US$941 million). 

As we reported in early July, the government of Greece extended the deadline to bid for the project. Previously, in last February the deadline for submitting proposals for the project was extended.

Upon award, GAL will be the airport. Under the bid conditions, it is mandatory for the airport operator to hold a minimum of 10% equity stake in the consortium.

Commenting on the development, a GAL spokesperson, said:

"The bid submission is in line with the GMR Group's asset light growth strategy with value build up from this project coming to GMR more from leveraging the airport platform, leading to enhanced revenue based services, than just equity." 

Greece is a major international tourist destination, with 24 million tourists per annum. Crete is the largest and most visited island in Greece. Heraklion airport, located in Crete, is the 2nd largest in Greece and has witnessed steady traffic growth in the last 3-4 years. The current airport is facing capacity constraint and is not able to cope with growing traffic demand. The existing Heraklion airport will be closed once the new airport is operational.