"Malaysian airports firm to sign Indian airport deal"

Friday, December 17, 2004

MAHB to sign Indian airport deal on Mon
Malaysia - The New Straits Times


MALAYSIA Airports Holdings Bhd (MAHB) will sign on Monday a concession
agreement with the Indian authorities, which gives it the the right to
operate and manage India's Hyderabad airport. Sources told Business Times
that MAHB will be given a concession period of between 30 and 40 years.

MAHB co-owns the US$313 million (US$1 = RM3.80) airport with other investors
through joint-venture company Hyderabad International Airports Ltd (HIAL).

The signing ceremony will be held in India to coincide with Prime Minister
Datuk Seri Abdullah Ahmad Badawi's five- day official visit to India from
Sunday.

Sources also said that MAHB will be allowed to increase its 11 per cent
stake in HIAL.

MAHB officials, when contacted, declined to comment, with one saying a press
statement will be released "at the appropriate time".

The draft concession agreement for the airport received approval from the
Indian Government on Wednesday, eight months after the Cabinet granted "in
principle" the plan to build the greenfield airport.

A source said the terms and conditions in the draft had taken into account
the various views of the officials from the Civil Aviation Ministry, the
Airports Authority of India and HIAL.

Another source said works on the project will take place as early as January
and the airport will be ready for operations in 2008.

Last month, HIAL's managing director was reported as saying that the airport
is expected to break even between seven and 10 years.

MAHB, which provides management services for the Phnom Penh and Seam Reap
airports in Cambodia, has also been shortlisted to redevelop and operate New
Delhi's Indira Gandhi International Airport. If chosen, it will invest some
RM5 billion for a stake of between 10 and 15 per cent.

MAHB stock ended yesterday's trade on Bursa Malaysia Bhd half a sen lower at
RM1.64 with 3.25 million shares changing hands.


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