To discuss the learnings from various airport projects commissioned in the country under PPP structure and the way forward for the development of the prestigious Navi Mumbai International Airport (NMIA) project, a one-day workshop was organised by CIDCO for the senior officials of Central Govt., State Govt., consultants and senior officials of CIDCO. The objective of the workshop was the deliberation on the formalization of legal and bidding parameters for NMIA.
The workshop was organised by CIDCO, in association with M/s Hemant Sahai & Associates on 10th March, 2011 at Vivanta By Taj, President Mumbai to expedite the bidding process of the Airport.
In the introductory remark, Mr. T.C. Benjamin, IAS, Principal Secretary, Urban Development, GoM, made a key note, where he briefed about the NMIA project, the activities undertaken and its current status. Mr. Tanaji Satre, VC & MD, CIDCO, also shared his views on the subject and briefed about the workshop to the participants. The workshop was attended by Mr. U.P.S. Madan, Project Manager, Mumbai Transformation Support Unit, All India Institute of Local Self Government, GoM,
Mr. Javed Ahmad, Commissioner of Police, Navi Mumbai, Mr. Suresh Kakani,
Dy. Secretary, UD (I), GoM, Mr. Purushottam Karad, DCP, HQ, Navi Mumbai,
Mr. G. Ubilla, Prime Consultant, LBG, Mr. V. K. Kalra, Advisor, Airport, and senior officials of CIDCO.
Initially, Mr. Soma Vijaykumar, ACTE, CIDCO, made a brief presentation on Navi Mumbai International Airport, in which he covered the information about approvals from GoI and GoM, project brief, site orientation, master plan – NMIA, project activities – status and project schedule.
Mr. Stephen Beatty – Global Head of Aviation, KPMG, presented international case studies wherein he briefed about transaction structure, ownership structure, traffic assignment, regulatory framework, operating challenges, and financing challenges. He also shed light on case studies of multi-airport cities such as New York; London; Sydney; Paris; Bangkok; Chicago; San Francisco; Sao Paulo; Buenos Aires and Madrid. Mr. Beatty also presented an analysis of risk framework in multi-airport-single-operator and multi-airport-multi operator environments.
Mr. Amber Dubey, Director, KPMG, made a presentation on Concession Risk Framework in Greenfield and Brownfield Airport projects in India wherein he covered issues like project risk environment in monopolistic and competing airports – traffic; financing; regulatory and others, comparison with international case studies, discussion on key clauses of the Concession Agreement for Greenfield and Brownfield Concessions, and AERA’s current view on form and approach to regulation.
In the post-lunch session, Mr. Hemant Sahai, Mr. Manish Agrawal and
Dr. Vasudevan, exchanged their views on the bid process followed for Delhi, Mumbai, Hyderabad and Bengaluru Airports, in which they shared their experience about bidding process, where the major emphasis was on issues and challenges in bid process, key learnings for CIDCO and State Govt.
In the last session, the experts from M/s Hemant Sahai & Associates and KPMG provided information on the consideration for successful development of Navi Mumbai Airport wherein topics like traffic distribution – should this be a pre-requisite? – implications on project investment and phasing, preferred transaction structure: preferred bidding parameter – implications of MIAL’s ROFR on choice of bid parameter and development plan for NMIA Project, addressing regulatory risks: determination of Regulated Asset Base; determination of Aero Tariffs; Single Till vs Dual Till vs Hybrid Till – implications on project structuring; determination of cost of capital (WACC); treatment of O&M expenditure; treatment of revenue from commercial assets; provisions for levy of ADF and UDF and treatment of such revenues, compensation provisions; considerations for attracting international interest – likely expectations of foreign bidders, role of CIDCO, State Government, GoI in mitigating development risk – for e.g. financing connectivity infrastructure.
The whole workshop during the day saw a lot of exchange of information, brainstorming sessions and purposeful discussions on varied topics, where the consultants satisfactorily explained the concerns raised by the participants.
The workshop would play a definitive role in the preparation of a comprehensive bidding document to make the project financially viable to the bidders, money lenders, airlines and other concerned parties and help them in making a smooth transaction and timely completion of the project.
Following officers from CIDCO also participated in the workshop: Mr. M. D. Lele, CP, Mr. A. S. Patil, CE&GM (T), Mr. A. M. Agrawal, CAO, Mr. Kamlakar Phand, CLSO, Mr. B. B. Mehta, ACE (RP), Mr. J. R. Kulkarni, GM (Airport),
Mr. Satyendu Sinha, Consultant, Airport, Mr. A. R. Jadhav, Consultant, Lands,
Mr. Ravikumar KVRK, Sr. Planner (DP), Dr. D. U. Watane, PRO, Dr. Mohan Ninawe, PRO, Mrs. Geeta Pillai, TE, Mr. Mahadev, ATE, Mr. T. V. Ohale, Sr. AE, and Mrs. Hema Latha, ATE.
