To build a second airport in Yogyakarta of Java city in Indonesia, GVK Power & Infrastructure is joining hands with the Indonesia's State-owned infrastructure firm PT Angkasa Pura I. Angkasa Pura will fund the project through loans or equity.
GVK, the Indian infrastructure major and the first foreign firm allowed to own a stake in an Indonesian airport, will have a major share in the $700 million project.
In the joint venture, GVK's share will not be more than 49 per cent. The deal is yet to be finalised and must be approved by Angkasa Pura's shareholders. Construction of the airport is expected to start in 2015, with operations starting as early as 2017.