The Airports Authority of India has set the ball rolling for modernisation and restructuring of Delhi and Mumbai airports through joint ventures between AAI and private players by calling for bids to shortlist a financial consultant.
The financial consultant firm would prepare the request for expression of interest, request for proposal, draft concession agreement, draft JV agreement and other necessary project documentation, AAI sources said in Mumbai on Monday.
The consultant would evaluate expressions of interest and technical and financial proposals received; it would organise and manage communications with potential bidders, they said, adding that the last date for receiving bids was October 10, 2003.
The consultant would be required to update traffic, commercial and operational data pertaining to the two airports and work closely with the civil aviation ministry in overall coordination and management of various aspects of the transaction.
The sources said three parties would be short listed based on evaluation of the technical criteria and their presentation.
The financial bids of only those three parties would be opened for evaluation and the selected firm would be required to commence work within one week of being selected.
AAI expects the transaction to be completed within eight months from the commencement of work, excluding the time required to get government approval at certain stages.
The Union Cabinet had on September 11 approved restructuring of the two metro airports through the joint venture route with a maximum of 74 per cent private equity.
A four-member empowered committee of ministers has also been set up to study the overall financial parameters for their privatisation and ensure there is no delay in modernising them.
Nine more airports, including those in Chennai and Kolkata, are to be privatised. The Airports Authority of India Act had been amended by Parliament to meet the needs for developing world-class airports in the country with private participation.