India's City and Industrial Development Corporation (CIDCO) has extended the deadline to submit qualification documents for the Navi Mumbai International Airport PPP project to 2 September 2014.
Sanjay Bhatia, CIDO vice-chairman and managing director, has stated:
Bidders had requested us to make certain changes in the existing tender document. Accordingly, we revised it and submitted it to the Ministry for its approval which was given. Bidders have now a month's more time till September 2 to submit RFQs based on the revised tender.
The revised document increases the equity participation by foreign airlines to 26% from the earlier 10% in the private consortium that will execute the project, and Cidco will give a 74% stake to the private consortium, retaining the remaining 26%.
It is important to highlight that Mumbai International Airport Limited (MIAL) - the GVK-led operator of Chhatrapati Shivaji Airport - will have first refusal on the contract. MIAL will qualify automatically for bidding, subject to satisfactory performance at the existing airport, and will have the opportunity to match any opposing bid if its financial proposal is not more than 10% lower than the highest offer.
The project cost is estimated at Rs145 billion (US$2,416 million) by the second stage - at which point capacity will reach 25 million passengers.
The Navi Mumbai airport project will be developed on 1,160 hectares. It is expected to have a yearly capacity of 60 million passengers. The new airport is intended to relieve capacity pressure on the Mumbai Metropolitan Region, where air traffic demand is projected to exceed 40 million annual passengers by 2017 and 100 million passengers by 2030.
Tata Realty and Infrastructure (Tata Group) is preparing a possible joint venture with Heathrow Airport's biggest shareholder, Spain's Ferrovial, to bid for the airport PPP project. Both Ferrovial and Tata Realty are among the 20 companies that participated in a pre-bid meeting held by the CIDCO.
Representatives of Zurich Airport, Mumbai International Airport Limited (MIAL), Srei Infrastructure Finance,Samsung C&T, IL&FS, GMR Group, Shakat Aviation, Walnut Aviation, Essel Infrastructure, IRB Infrastructure Developers, Tata Projects (Tata Group) and Vinci Concessions India were also present.