India-based GVK Power & Infrastructure is joining hands with PT Angkasa Pura I in a project to build a second airport in the Javanese city of Yogyakarta. GVK, the first foreign firm allowed to own a stake in an Indonesian airport, will have a major share in the $700 million project. GVK’s share in the JV, however, will not be more than 49 per cent. The deal that has yet to be finalised must be approved by Angkasa Pura’s shareholders. The construction of the airport is expected to begin in 2015, with operations starting as early as 2017. Angkasa Pura I will fund the project through loans or equity. The Indonesian company that manages 13 airports also plans to increase the capacities of two other domestic airports next year at a cost of around $300 million each.
