Consortium members for the construction of the Istanbul Sabiha Gokcen International Airport (SGIA), GMR Infrastructure, Limak Insaat San Ve Tic (Limak) and Malaysia Airports Holding Berhad (MAHB) have signed an implementation agreement with the Turkish Government's ministry of defence.

The agreement was signed on 20 March 2008.

Under the terms of the agreement, the concession is for a period of 20 years where the consortium will make a committed minimum investment of over Euro 250 million. The consortium will also pay Euro 1.93 billion in concession fees to the government over this period.

The scope of the concession includes operations of the existing terminals, as well as the construction of a new integrated domestic and international terminal that will allow the airport to eventually handle 10 million passengers on an annual basis.

The duties and rights of the consortium include carrying out any activity related to handling of aircraft, passengers, baggage, cargo, fuelling, and other activities as well as any non-aero commercial business such as duty free sales, food and beverages, hotel, car parking and advertising, amongst other things.

A multi-level car park will accommodate around 4,500 vehicles, while a hotel adjacent to the terminal will serve transit passengers, airline crew and others.

Opened in 2001, as Istanbul's second international airport, Sabiha Gökçen's 2007 annual passenger capacity of 4 million will now increase to 10 million as a result of the planned investments.

By the end of the concession the airport is aiming to handle 35-40 million passengers on an annual basis.

Currently, SGIA has a domestic terminal, with an annual passenger capacity of 500,000, and an international terminal with an annual passenger capacity of 3 million passengers.

It is expected that the operational handover of the airport will take place sometime in April, to be followed by a ground-breaking ceremony that is scheduled for 3 May. As per the schedule, construction of the new terminal will be completed over the next 30 months.

In a statement GBS Raju, chairman, corporate and international business division (IBD), GMR Group, said, "Winning and developing the Istanbul SGIA project is significant in our foray into international markets in the airports sector. We are happy that we have like-minded partners in both Limak and MAHB, as well as the wholehearted support of the Turkish government. All this will help us deliver our promise of bringing improved customer values, standards and operational efficiencies that are the best in class to this project. We look forward to continuing this partnership in our airport infrastructure growth strategy in international markets."

Complimenting the consortium partners on the occasion, Ms. Ebru Ozdemir, member of the Board of SGIA and also of Limak Holding said, "The aviation sector of Turkey has grown at 14 per cent between 2000 and 2007. During this period, SGIA has grown at 80% - six times the country's average. This highlights the potential for growth at SGIA."

Ranjit Murugason, CEO of IBD, GMR Group said, "This project will increase the International exposure of the GMR Group, while improving the internal resource and network development for the Group's future projects. It will also serve as the ideal reference for entering into other European countries as well as the important markets in Middle East and North Africa (MENA) regions."

According to Yetik Mert, CEO of SGIA, "The SGIA will have many special features including world class infrastructure, facilities with good connectivity to all parts of Turkey. At the end of the 20 year concession period it is forecasted to be handling potentially 42 million passengers and 700,000 tonnes of cargo per annum. It has a runway length of 3,000 m. The airlines will experience quicker turnaround times, while the passengers will experience great shopping experience at reasonable prices thanks to major international duty free, food and beverage, and advertising concessionaires. Major Airlines like Pegasus, Sun-Express, easyjet and Germanwings will increase their use at SGIA. Also with its closeness to the Istanbul Formula One race circuit, SGIA will greatly ease travelling needs of Formula One fans."

Added Abd Hamid Bin Mohd Ali, Sr. general manager, Malaysia Airports, "MAHB operates 39 airports in Malaysia including Kuala Lumpur International Airport. We will bring this expertise in operational management to this project."