GVK wins Navi Mumbai airport PPP

GVK wins Navi Mumbai airport PPP

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Maharashtra's City and Industrial Development Corporation (CIDCO), though the the project monitoring and implementation committee (PMIC), has selected a preferred bidder for the Navi Mumbai International Airport PPP project in India.

GVK-led Mumbai International Airport (MIAL) has won the bid for the airport, edging out rival GMR Group. The two compaies were the only bidders.

The contract would be awarded to the company offering the highest revenue share to CIDCO. GVK, which runs the Mumbai and Bengaluru airports, offered 12.6 per cent in revenue share and GMR offered a 10.44 per cent.

The long-delayed project had attracted only one bidder, MIAL, on two earlier occasions and CIDCO was forced to make changes in project conditions. 

The tender process was launched in February 2014. MIAL also had submitted its proposal in February 2015 along with other 3 consortia, including GMR Delhi, Zurich Airport with Hiranandani Developers and MIA Infrastructure (Vinci airports with Tata Realty)

The Navi Mumbai airport project will be developed on 1,160 hectares. It is expected to have capacity of 10 million passengers per annum in its first phase and 60 million upon completion. 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.

The airport will be developed on design, build, finance, operate and transfer (DBFOT) basis.

The total project investment is estimated at Rs145 billion (US$2,28 billion)CIDCO will provide 26 per cent equity to establish the special purpose vehicle (SPV) which will carry out the project.

Cidco Joint Managing Director Prajakta Lavangare said:

“MIAL has offered us 12.6 per cent revenue share, while GMR Group offered 10.44 per cent. Cidco’s technical evaluation committee will meet to evaluate the offer, following which it will be submitted to the state government’s project monitoring and implementation committee. The bid will later be submitted to the state Cabinet for its approval. The letter of intent will be awarded within a month after the state Cabinet’s nod and later the concession agreement will be signed with the selected bidder.”

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