The Airports Authority of India (AAI) will submit this week to the civil aviation ministry names of consultants shortlisted to carry out privatisation of the four metro airports. Sources said ABN Amro, ANZ, KPMG and HSBC are the frontrunners among a dozen to bag the contract.
A senior AAI official said: "We would be submitting the names of the consultants to the ministry in a day or two. We are hoping the consultants would be finalised by December." He said the privatisation plan was running behind by a little over a month, but did not reveal the names of the shortlisted consultants.
The civil aviation ministry had earlier set June 2003 as the deadline to complete the privatisation of the metro airports, which is being done through the long-term leasing route.
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The AAI is likely to pay the consultants in three parts_a lump sum fee, a retainer fee and a success fee_all during the course of the privatisation programme.
The earlier timetable, prepared by the civil aviation ministry for implementation of the privatisation plan, had set January 2001 as the tentative date of commencement of the implementation phase, and June 2003 as the tentative date for its completion.
According to the plan, the selection of the financial consultant was to be made by September 1999, but this has now been delayed. The legal consultant is likely to be selected by February 2000. The financial and technical consultants are expected to submit their final reports by January 2001, and the tentative date of implementation phase, as per the original plan, is April 2001.
The AAI is likely to pay a lump-sum fees to the consultants for completion of phases one and two, that will involve due diligence and valuation, and preparation of the sales memorandum and marketing plan.
Following which the consultants will receive a retainer fee for implementation of phase three, that will involve transfer of assets to the preferred firm.