GVK to develop two airports in Indonesia
By IANSTuesday, January 25, 2011
NEW DELHI - GVK Power and Infrastructure will develop two airports in Indonesia with an investment of nearly $5 billion, the company’s vice-chairman G.V. Sanjay Reddy said here Tuesday.
We will be developing two greenfield international airports in Indonesia. It will require an investment of $4-5 billion, Reddy told reporters after signing agreements with a visiting Indonesian delegation here.
GVK, which currently has projects worth over Rs.62,000 crore in the pipeline, signed memoranda of understanding (MoUs) to develop greenfield international airports in North Bali and Yogyakarta in Java.
Bali airport is a three-way agreement between GVK Power and Infrastructure Ltd(GVKPIL), PT Pembangunan Bali Mandiri, a special purpose vehicle for airport development, and Badan Koordinasi Penanaman Modal (BKPM), a board set up by the government of Indonesia for the facilitation of domestic and foreign investment.
The MoU for Java airport is an agreement between Angkasa Pura, government of Indonesia-owned airport operation management company, BKPM and GVKPIL
Scope of the agreements provides exclusivity to GVKPIL and includes planning, design and development, operations and management of the airports along with all associated infrastructure, land and commercial development, the company said in a statement.
Agreements were signed in the presence of Indonesian President Susilo Bambang Yudhoyono, who arrived here Monday on a three-day official visit to India.
