Meeting held for Mumbai airport PPP deal

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Meeting held for Mumbai airport PPP deal

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The City and Industrial Development Corporation of Maharashtra (CIDCO) held an industry meeting attended by 20 prospective bidders for the Navi Mumbai International Airport PPP project.

Representatives of Zurich Airport, Ferrovial Aeropuertos (SA), TATA Realty and Infrastructure (Tata Group), Mumbai International Airport Limited, SREI Infrastructure Finance, Samsung C&T, IL&FS, GMR Group, among others, were present at the meeting.

The prospective bidders were told that all the technical issues regarding environmental concerns have been resolved and statutory clearances have been acquired. They were also told the airport will have a good connectivity as CIDCO itself is developing the metro rail linking it with the city.

CIDCO reported there will be no air- traffic constraints on the new airport and the Chhatrapati Shivaji International Airport.

Bidders are expected to submit qualification documents by June 18. The airport will be developed on design, build, finance, operate and transfer (DBFOT) basis. The work will be carried out in two phases and the project cost is estimated at R118.58 billion (US$1.90 billion) by the second stage.

It is important to highlight that Mumbai International Airport Limited (MIAL) - the GVK-led operator of Chhatrapati Shivaji Airport - will have the right of 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.

Airports Authority of India  and the Government of Maharashtra (through CIDCO) will take 13% each of the airport equity, paid for by its R23.58 billion (US$377.46 million) investment in pre-development costs. The winning bidder will repay the balance of that investment through annual instalments from the eleventh year of the concession.

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.

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