Speaking to the media, HIAL managing director Kiran Kumar Grandhi said that the debt syndication for the project has been completed with Rs 960 crore committed by the eight- member consortium lead by Infrastructure Development Finance Company Ltd with an average coupon rate of 8% and repayable in 16 years tenure. "With the signing of the financing documents, all the major milestones have been achieved and the company is expected to issue 'notice to proceed' to the EPC contractors before September 1, 2005, " Mr.Grandhi said.

The company has already awarded contracts to China State Engineering (hong Kong) Ltd for passenger terminal building works and to L&T ECC for airside and landside works, he added.

The airport project, a private-public partnership initiative, will have an equity participation of 13% by the government of Andhra Pradesh, and 13% by Airports Authority of India.