GMR Airports Limited (GAL) has signed two agreements with Angkasa Pura II (AP II) to develop and run Indonesia’s Kualanamu International Airport.

The agreements, which includes the Shareholders’ Agreement (SHA) and Share Subscription Agreement (SSA), has been signed by GAL step-down subsidiary GMR Airports Netherlands.

As agreed, GMR has formed a 49:51 partnership with APII, the state-owned enterprise and the bidding authority for the Kualanamu International Airport.

The scope of the project covers operation, development, and extension of the airport over a period of 25 years.

Kualanamu International Airport, an operating aviation gateway with healthy cash flows, managed over ten million passengers in 2018.

Last month, GAL emerged as the winning bidder to develop and run Kualanamu International Airport.

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This came after APII concluded the final evaluation process for selection of strategic partnership for the airport.

GAL, in a consortium with its 100% subsidiary GMR Airports International, had bid for the project.

GMR Group energy and international airports chairman Srinivas Bommidala said: “GMR’s entry into the Indonesian aviation sector is a significant step in support of the Indian government’s policy to ‘Look East’.

“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. Our partnership with Angkasa Pura II (AP II) is testimony to the trust placed in us by the Indonesian government and authorities. We will strive to bring our best to this beautiful and strategic country of ASEAN.”

In February this year, GMR Group and Airbus signed a memorandum of understanding to collaborate on numerous aircraft maintenance and airport services.