HUDCO and BIACL sign agreements to develop Bhogapuram airport

The Andhra Pradesh finance department, Housing and Urban Development Corporation Limited (HUDCO) and Bhogapuram International Airport Company Limited (BIACL) have entered into a formal agreement for the development of the Bhogapuram international greenfield airport project. The Andhra Pradesh government will stand as guarantor for a loan of Rs 6.5 billion to be provided by HUDCO. The loan has a repayment period of 17 years with a moratorium of three years and will be utilised for the acquisition of 2,400 acres of land for the project. The funds will be released by HUDCO by mid-June 2016. Upon acquisition of the entire land required for the project, BIACL will invite international bids for construction of the airport.