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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 a bid of €480 million for the construction and operation of the new Kastelli airport project in Heraklion.

This bid is nearly half that the expected €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.

The state’s share in the project, meanwhile, will reach 46 percent of the future concession, although its share of the financing also will drop to €180 million from the initial €220 million, which was cited in the international tender for the concession.

The project will be developed on a design, build, finance, operation and maintenance (DBFOM) basis for a period of 35 years. It will feature a runway length of 3.2 km. The new airport will be situated on the south western side of the Hellenic Air Force Base of Kastelli.  Once completed, the airport is expected to handle 7 million passengers per year.

The Kastelli airport will replace the current Nikos Kazantzakis airport in Heraklion and is expected to become Greece’s second biggest.