India’s GMR Airports yesterday said it has received the go ahead to begin construction of a new international airport in Greece in which it will invest EUR 500m (USD 546m).
The Heraklion project will be funded through a mix of equity, accruals from the currently operational airport and financial grants from the Greek government, GMR Airports said in a statement yesterday.
The project will not require any debt, said the company, which is a subsidiary of New Delhi-headquartered GMR Infrastructure.
Greek Prime Minister Kyriakos Mitsotakis laid the foundation stone of the new airport, the company said.
GMR Airports, along with Greek partner GEK Terna, signed the concession agreement in February last year for the design, construction, financing, operations and maintenance of the new international airport at Heraklion. The concession period for the project is 35 years, including the first phase of construction of five years.
Greece attracts nearly 33 million tourists yearly, GMR said, adding that Crete is its largest and most visited island. The Heraklion airport, in Crete, is the country’s second-largest airport and has registered a compounded annual growth rate in traffic of 10% over the past three years, GMR said.