Bidders get more time to submit proposals for Navi Mumbai international airport project

Bidders want amendments to provisions of eligibility, bid security, time for signing concession agreement

Bidders for the Navi Mumbai international airport project have got one more month to submit the request for qualification (RFQ). The City and Industrial Development Corporation (Cidco), the nodal agency for the project, has extended the deadline to July 31 from June 28 proposed in the RFQ released on February 5.

Leading companies including Zurich Airport, Ferrovial Aeropuertos, Tata Realty and Infrastructure, Mumbai International Airport Limited, SREI Infrastructure Finance Limited, Samsung C&T, IL&FS, GMR Group, Shakat Aviation, Walnut Aviation, Essel Infraprojects, Solux Corsan India Engineering & Construction, Gensler (USA), Ernst & Young LLP, UK Trade & Investment, VINCI Concessions India, Pramitee Engineering & Surveys, and IRB Infrastructure Developers had attended the pre-bid meeting on April 3 and sought amendments to some provisions of the RFQ.

A Cidco official told Business Standard: “The decision to extend the time period was approved by the state project monitoring and investment committee. Bidders had sought amendments to various provisions of RFQ and clarifications with regard to pre-development works, land acquisition, airspace management, rate regulation and airport connectivity.”

Bidders made a strong pitch to amend the clause relating to the eligibility. “As per the clause 2.2.1 (e), the special purpose vehicle to be formed shall not include any equity ownership of a scheduled airline, cargo airline, or its associates exceeding 10 per cent of the total equity ownership. Bidders have proposed that this limit be increased to 26 per cent or 33 per cent,” the official said.

Further, bidders pressed for an increase in the bid security to 50 per cent from the present level of one per cent, which was estimated based on the phase-I and phase-II airport project cost of Rs 9,500 crore.

According to the official quoted above, the bidders also demanded that the period between the letter of award and signing of the concession agreement be increased to 60 days from 30 days.

The official added that Cidco expect the civil aviation ministry’s approval to the amended RFQ by June 15. “Thereafter, Cidco will upload the amended RFQ on the website,” the official said. Cidco expects commencement of work from February 2015 and the first phase to be operational by 2018.