Crete’s Kastelli Airport Project Moves to Next Stage

Impression of Kastelli airport.

An infrastructure consortium made up of GMR Airports Limited (GAL) and Greece’s GEK Terna has placed its bid at 480 million euros for the construction and operation of the new Kastelli airport project in Heraklion, Crete, and is expected to receive parliament approval by year-end.

The state will contribute 180 million euros or 46 percent down from the initial 220 million euros set earlier in the tender. Airport use fees have also dropped below 20 euros, while expected time of completion has been set for 60 months.

GMR Airports Limited (GAL)  is a subsidiary of India’s GMR Infrastructure Limited, and together with GEK Terna, on award will be the airport operator holding a minimum of 10 percent equity stake in the consortium.

The project involves the design, construction, financing, operation and maintenance of the airport – expected to handle more than seven million passengers per year – for a concession period of 35 years.

GMR Group is a leading global infrastructure conglomerate with interests in airport, energy, transportation and urban infrastructure. Greek company GEK Terna is active in construction, energy, mining, waste management, and real estate development.

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