New Delhi, Jan 25 (Agencies): GVK Power and Infrastructure Ltd (GVKPIL) on Tuesday said it will invest up to USD four billion over the next 3-4 years to develop two new international airports in Indonesia.

"Investment is going to be around USD 3-4 billion. It will take three-four years to complete projects. The work on the projects will start from tomorrow," GVKPIL Chairman G V Krishna Reddy told reporters here.

The two greenfield airports, in which GVKPIL would rope in local partners for execution, would come up in North Bali and Yogyakarta.

Reddy, however, said that the local partners would have minority stakes in the special purpose vehicles (SPVs) to be created for the execution of the projects while GVKPIL would have the majority stakes.

GVKPIL and the Indonesian Government signed two MoUs here to develop the two airports in presence of the visiting President Susilo Bambang Yudhoyono, the chief guest for the Republic Day celebrations on Wednesday.

The MoU for the proposed Bali airport is a tripartite agreement between Badan Koordinasi Penanaman Modal (BKPM), PT Pembangunan Bali Mandiri (PTPBM) and GVKPIL.

The MoU for Yogyakarta airport is an agreement between Angkasa Pura 1, an Indonesian state-owned airport operations and management company, BKPM and GVKPIL.

"The scope of the agreement provides exclusivity to GVK PIL and includes planning, design and development, operations and management of the airport along with all associated infrastructure, land and commercial development," GVKPIL said in a statement.

Expressing happiness on receiving the opportunity to create new landmarks in Bali and Java, Reddy said agreements would yield significant synergies for all parties involved and help Indonesia in realising its growing potential as a key destination in the region.