'Bidder must ease burden on fliers'
The City and Industrial Development Corporation (CIDCO), nodal agency for the Navi Mumbai international airport, is likely to call for bids for the green field project by the end of this month.mumbai Updated: Aug 18, 2011 01:15 IST
The City and Industrial Development Corporation (CIDCO), nodal agency for the Navi Mumbai international airport, is likely to call for bids for the green field project by the end of this month. The agency will try to select the bidder, who will reduce burden on fliers and is also willing to give a larger share of profit to the former.
CIDCO will issue request for qualification after the same gets an approval from the steering committee of civil aviation ministry, which is likely to meet and discuss the Navi Mumbai airport next week. The work on the airport is likely to start by early next year. The steering committee has already cleared the final master plan for the proposed airport spread across 2020 hectares and pegged at Rs8,700 crore in May.
After much fine-tuning, officials are now looking at selecting the concessionaire on the basis of the profit that the private partner is willing to share with CIDCO. State planners explored various options for making this green field project commercially viable for the private partner and for the state and airlines.
The concessionaire will be allowed to commercially exploit the non-aeronautical area of the proposed site such as parking, restaurants, retail outlets but will have to share this revenue with CIDCO.
“It was finally decided that this should be the criteria for selecting the private developer. Other options that were considered and may be give weightage include how much revenue the concessionaire is willing to plough back from the non-aeronautical area to the aeronautical area,’’ said a senior official, on condition of anonymity.
This can reduce taxes on the fliers as well as airlines making the airport more viable. A third criteria discussed was to divide development rights of the non-aeronautical area between the private partner and CIDCO.
For starters, the RFQ will shortlist bidders on technical grounds before they can submit financial bids. The document has been prepared with the help of the consultants Louis Berger. CIDCO has also hired KPMG as financial consultants for the project. The first right of refusal for development of the airport will go to the Mumbai International Airport Limited.
State planners are also mulling over traffic allocation between the existing airport and the new one since it is within 150 km radius of each other to ensure than neither one is under-utilised. To break even, Navi Mumbai international airport will need 10 million passengers in the first year of operation.