GMR Infrastructure consortium wins tender for Sabiha Gokeen International Airport (SGA) at Istanbul, Turkey

GMR Infrastructure Ltd has announced that the consortium of the Company - 40 per cent, Limak lnsaat Sanayi San Ve Tic A S Turkey (Limak) - 40 per cent and Malaysia Airports Holdings Berhad (MAHB) - 20 per cent, has won the tender for Sabiha Gokeen International Airport (SGA) at Istanbul, Turkey, amidst intense competition from global firms.

This BOT (Build - Operate - Transfer) project involves construction of a new international airport terminal with a 10 million capacity in 30 months besides managing the existing domestic and international terminals (with a passenger capacity of 35 million per annum). The current international terminal will be converted to an all domestic terminal, subsequent to construction of the new terminal. The term of BOT concession would be for 20 years, while the new international terminal will have to be constructed within a period of 30 months from the transfer of the facility.

The total concession fee of Euro 1.93 billion (approx Rs 10808 crore or USD 2.7 billion) is payable to the Government Authority and is structured over a 20 year period of concession, with no concession fee payable in the first three years.

SGA is emerging as a second airport in Istanbul, as an alternative to the already constrained Istanbul Ataturk airport. SGA is located at a similar distance from the centre of Istanbul as the existing Ataturk airport, and strategically placed in the midst of Turkey's most important industrial development zone. SGA is also located within 5 kilometres of the Istanbul Formula One Race circuit.

Source : Equity Bulls

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