US$373 million construction cost for Male Airport: MAHB

Haveeru Daily
Jul 10, 2010 - 12:00
  • A graphic illustration of new Male International Airport to be developed by India's GMR and Malaysia Airports Holdings.

MALE, July 10, 2010 (HNS) – Construction cost for the Male International Airport is about US$373 million, Malaysia Airports Holdings Bhd (MAHB) announced Wednesday.

A consortium comprising MAHB and India's GMR Infrastructure Limited entered into a concession agreement with Maldives Airport Company Limited and the Maldives government for the expansion, operation, and maintenance of the airport on June 28.

The consortium proposed to pay US$78 million (almost Rf1 billion) upfront, one percent of the total profit in the first year (until 2014) and 10 percent of the profit from 2015 to 2035. The company also agreed to pay 15 percent of fuel trade revenues in the first four years and 27 percent from 2015 to 2035. The government earlier revealed that GMR-MAHB would invest US$400 million for building, modernising, and expanding the airport.

"The construction is expected to commence by mid-2011. Construction of the project must be completed no later than July 1, 2014," a statement issued by the company read.

According to the company, tenure of the concession is 25 years starting from the date of handover under the agreement, and is extendable for another 10 years subject to mutual terms and conditions between the relevant parties.

“The parties to the consortium are in the process of discussing the terms and conditions of the joint venture arrangement as well as the financing for the investment in MIA,” it said.

The company noted that the project is expected to be positive arising from the future transportation network to be commercially developed which will integrate a new transportation hub for Maldives.

“The concession agreement is not expected to have any material effect on the share capital and substantial shareholdings of MAHB,” the company said.

MAHB aspired to move from being a company managing local airports with a few overseas activities to being a global airport management through carefully planned investments, the press release added.

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