GMR Airports to operate and maintain the Bhogapuram airport for 40 years and extendable by 20 years
GMR Airports Limited (GAL), a subsidiary of GMR Infrastructure Ltd, today announced that it has received the Letter of Award (LoA) for the development and operations of Greenfield international airport at Bhogapuram in Andhra Pradesh from the Government of Andhra Pradesh. In February 2019, GAL had emerged as the highest bidder for project on a PPP basis.
The project involves design, build, finance, construction, development, up-gradation, modernization, operation and maintenance of Greenfield International Airport at Bhogapuram for the period of 40 years, extendable by additional 20 years through international competitive bidding process, with GMR airports limited having RoFR of 10%.
In Calendar Year 2019, the existing civil enclave at Vishakapatnam Naval Airfield has handled 2.78 million passengers and ~4400 Tons cargo. Over the past 5 years the passenger traffic at the Vizag airport has grown at 21% CAGR while the Airport ranks 5th amongst the custom airports in India in terms of Cargo traffic.
The proposed greenfield airport site lies on the border of Visakhapatnam and Vizianagaram districts, and is approximately 45 kms from Visakhapatnam through NH-5 and 25 kms from Vizianagaram via NH-43. The site is strategically located on the east coast and is stands to get benefit from the vast catchment area surrounding the region. Moreover, the beach corridor development is underway in proximity to the proposed International Airport in Bhogapuram which will provide impetus to retail and hospitality developments in the region.
GBS Raju, Business Chairman GMR Airports said, “We are very happy to be partnering with Government of Andhra Pradesh to develop, operate and manage the prestigious Bhogapuram International Airport. We are excited about the potential of this region.”