 "AAI invites FRQ for Chennai, Lucknow airports")
The RFQ for these two airports are invited up to mid October, 2013 and financial bids are likely to be received by mid December, 2013. The Airports Authority of India (AAI) expects to short-list up to seven pre-qualified applicants for participation in the financial bid stage.
The four more airports at Kolkata, Guwahati, Jaipur and Ahmedabad will be taken up for privatization shortly.
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A special purpose vehicle (SPV) by the interested entity would have to be formed to implement the project. In order to secure representation of the AAI on the Board of the SPV, the concession agreement will include a provision for issue of a golden share in accordance with a shareholders’ agreement that would form part of the concession agreement.
Earlier last week senior officials in the ministry of civil aviation had said that the government is open to giving 100% equity to the private party under a management contract for the six specified airports but if the private player so desires, AAI can participate in equity holding.
The concessionaire can levy tariffs for aeronautical services including the User Development Fee (UDF) as may be determined by Airports Economic Regulatory Authority (AERA) to start with. Such charges would be revised normally once every five years by AERA.
The RFP would indicate the parameters for determining charges for aeronautical services as well as the UDF
The authority 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 concession period shall be pre-determined, and will be indicated in the draft concession agreement. The premium shall constitute the sole criteria for evaluation of bids. project shall be awarded to the bidder quoting the highest premium.
The selected bidder shall be required to protect the interest of the existing employees of the airports.
No applicant, including its associate, consortium member or an associate will be entitled with the award of more than two airports out of the six airports to be awarded by the authority. Also, applicant, including its associate, shall not be eligible for award of more than one airport from Kolkata, Chennai and Ahmedabad airports.