GMR-Megawide Cebu Airport (GMCAC) has taken over the complete operations of the Mactan-Cebu International Airport (MCIA) in the Philippines.
GMCAC is a joint venture of the Indian infrastructure company GMR Group and the Philippines-based firm Megawide Construction.
The airport project was awarded to the consortium in April as part of the Filipino Government's efforts to encourage private-public partnership (PPP) in modernising key infrastructure assets. The MCIA is the first airport to be privatised under the PPP programme.
The consortium has paid PHP14.4bn ($320m) as an upfront premium payment.
GMCAC plans to construct a new terminal at the airport within the next three years, while upgrading the processes and operating systems at the existing terminal.
The existing terminal, which was initially designed to handle around 4.5 million passengers, currently handles around 7.1 million passengers. With the improvements, the airport is expected to increase its capacity to around 12.5 million, reported the Economic Times.
GMR Infrastructure chairman GM Rao said: "The takeover of operations of Mactan Cebu International Airport marks the beginning of a new chapter for GMR Group's airports business.
"We have the requisite experience across the entire spectrum of airport development and operations. We believe that our strategic plan for MCIA will result in the delivery of an efficient, passenger-oriented and commercially sustainable airport."
GMR operates airports in India, including the Indira Gandhi International Airport in Delhi. In April, it divested 40% stake in Istanbul Sabiha Gökçen to Malaysian Airports Holding for €209m.