In a move to fast track the development of Chennai and Lucknow airports through the public-private partnership model, the Centre has issued the Request for Qualification (RFQ) for an entity or entities wanting to participate in their modernisation.
The prospective bidders will be allowed to submit their bids for being qualified to participate in the bidding process till mid-October and the Government hopes to invite financial bids by mid December.
The Government hopes to soon also issue RFQ and request for proposal (RFP) for Kolkata, Guwahati, Jaipur and Ahmedabad airports which will be taken up for modernisation on the same pattern.
An applicant, including its associate, consortium member or an associate, will not be allowed to modernise more than one airport if they are the successful winners in Kolkata, Chennai and Ahmedabad.
The successful bidders will be given the entire airport including the air and city side facilities on long- term concession period which would be specified in the final bidding document.
The entire airport asset will be transferred to a Special Purpose Vehicle in which the private entity will be allowed to hold 100 per cent equity. Airports Authority of India (AAI) will have a golden share, which will ensure that nothing untoward happens.
The concessionaire can levy tariffs for aeronautical services including the User Development Fee (UDF) as may be determined by Airports Economic Regulatory Authority to start with.
“Such charges would be revised normally once every five years by AERA,” the statement by the Ministry of Civil Aviation adds.
Bids will be invited for the project on the basis of the premium in the form of revenue share to AAI for the period of the concession. AAI may prescribe a ceiling of revenue share and a bidder who wishes to make an offer above such ceiling shall have the option of giving such bid on the additional parameters as may be specified in the RFP, the statement adds.
ashwini.phadnis@thehindu.co.in