MegaProject 967: GMR Airports concludes fund raising for Mopa Airport Project
- GMR Group - GMR Infrastructure
- Axis Bank
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GMR Goa International Airports Limited (GGIAL), a subsidiary of GMR Airports Limited, has executed debt facility agreement for the development of Greenfield airport at Mopa (India).
The entire debt of INR13.3 billion (US$206 million) was underwritten by Axis Bank on long tenor door to door basis of 18 years on competitive terms.
GMR Airports Ltd had won the bid to develop & operate the Greenfield airport at Mopa in North Goa last year and the concession agreement was signed on 8th November 2016. The foundation stone for the project was subsequently laid by the Prime Minister Shri Narendra Modi on 13th November 2016.
As per the concession agreement, GMR will design, build, finance and operate the international airport for 40 years with extension option for another 20 years. The Greenfield airport will be developed in stages and will be scaled up as per traffic growth demands. The airport will be a full-service airport catering to domestic and international passenger besides freight services.
The total project investment, including the four phases, is estimated at around US$700 million. The estimated investment for phase I of the project is estimated at around US$35 million. The full project is likely to be commissioned in 2019.
The new Mopa airport will enhance tourism in Goa, which is its primary industry. It handles about 13% of all foreign tourist arrivals in India. Goa is situated on the western coast of India, between the borders of Maharashtra and Karnataka.
Goa has been witnessing an aviation boom with traffic at the existing Dabolim growing at a near 30% rate annually for the past 3 financial years.
On the occasion of signing of financing agreements, Mr Srinivas Bommidala, Chairman Airports said:
"GMR Group is delighted to be partnering with Government of Goa for development of a new civilian airport, which will become the gateway to the state of Goa. Having tied up funding for the project, we are working towards starting on ground construction activity post monsoon. We are confident that the development of the new airport will significantly boost tourism in Goa and also lead to generation of employment opportunities for Goans."
Mr Sidharath Kapur, President, GMR Airports Ltd, added:
"The confidence of banks on the project reflects the intrinsic strength of the project and also the operational and delivery capability of the Spronsor GMR Airports Ltd."
GMR Group developed and operates India’s busiest and currently World’s No1 Indira Gandhi International Airport in New Delhi and Greenfield Rajiv Gandhi international airport at Hyderabad. GMR Infrastructure in partnership with Megawide Construction Corporation is developing Mactan Cebu International Airport (MCIA) in Philippines. The Group is also developing two Special Investment Regions at Krishnagiri and Kakinada and India’s largest Smart Airport City near Hyderabad International Airport.