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30 Investors Interested in Kualanamu Airport Project

30 global and domestic investors have expressed their interest to Kualanamu International Airport project in Medan, North Sumatra, said CEO PT Angkasa Pura (AP) II on Monday (02/10) - Photo by the Company

JAKARTA (TheInsiderStories) – 30 global and domestic investors have expressed their interest to Kualanamu International Airport project in Medan, North Sumatra, said CEO PT Angkasa Pura (AP) II on Monday (02/10). The investors come from East Asia, West Asia, Southeast Asia and Europe.

CEO of state-owned airport operator, Muhammad Awaluddin, targeting the submission of bid documents from the potential strategic partners will be accepted at the end of June, 2020. He adds, “We are targeting a series of selection to get the world class strategic partner to be completed in the fourth quarter of 2020.”

Later on, AP II and the strategic partner will become shareholders of PT Angkasa Pura Aviasi, the operator of Kualanamu with a 25-year concession period. The operator will hold a minimum 51 percent shares at the unit and the others for the strategic partner.

After the concession period is complete, the management rights along with the existing assets will be fully returned to the company, he stated. With the expansion program, said the CEO, the capacity of the airport its expected will gradually rise to 40 million passengers a year, from the current number around 11 million passengers per annum.

Awaluddine asserted, Kualanamu has huge potential to be able to contribute more to the economy and tourism in North Sumatra. Various infrastructures have been operated to support Kualanamu such as airport trains and the Medan – Kualanamu – Tebing Tinggi toll road.

Earlier, AP II has offered two packages for the project with costs Rp11 trillion (US$785.71 million). At present, 200 hectares of land are available for various developments at the airport.

The first package, worth around Rp7 trillion will include expansion of the runway to allow the airport to accommodate wide bodied aircraft of Airbus 380-800, the expansion of cargo area to 24,715 square meters from 13,450 square meters at present, and expansion of passenger terminal to 224,256 square meters to increase the capacity from 9 million to 17 million passengers annually. Work in the first package has been started in 2018.

While, for the second package worth of Rp4 trillion to develop a 200 hectare plot of land for commercial area outside the passenger terminal. The commercial area will be built with an airport city concept with 3, 4 and 5 star hotels, a hypermarket, office building, hospital and movie theater.

Kualanamu is the second largest airport under the company, after Soekarno – Hatta airport in Tangerang. The airport has continued to record a fast growth of air passengers from year to year now reaching 9 million a year or its full capacity.

Previously, transportation minister, Budi Karya Sumadi, said the expansion of Kualanamu is part of the government program to improve logistic and transport connectivity in the country. The project parts of National Strategic Project until 2024.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com