Presented by :Anarpa Singh (49)

First airport in India, to be constructed through a public-private partnership. It started of with the signing of a concession agreement between the Government of Karnataka and Bangalore International Airport Limited (BIAL). The other positive factor for private partners to enter into aviation Industry was that the Indian Government liberalised civil aviation. Bangalore International Airport is an international airport serving the city of Bangalore . The airport is located 4 kms south of Devanahalli and is 40 kms from the central business district of Bangalore, 30 kms from the Bangalore City Railway Station. It replaced the HAL airport. It has been awarded "India's best airport" for the year 2011 by the survey conducted by Skytrax.

Name of the Airport

Bangalore International Airport

Airport Type Owner / Operator

Public Bangalore International Airport Ltd.

(BIAL)

Location Website Status Director

Devenhalli, Karnataka, India www.bengaluruairport.com Operational Mr. Satish C Chhatwal

Privatization of airports was a keenly awaited move to be taken. Thus as a result to get the private money infused into the infrastructure, the Bangalore International Airport was built as the first PPP airport in India. It has been built with the objective to become India's leading travel destination known for its quality and efficiency. BIAL has a vision to develop the Airport with emphasis on: High standards of service, safety and security; Functionality and flexibility; Environment friendly; Efficient operation and maintenance.

TYPE OF THE PROJECT :

The Airport has been built and operated at the best international standards under a public-private partnership model. This project is the first international airport in India built, owned and operated under a public-private partnership model with private shareholders holding a majority stake. Bangalore International Airport (BIA) is India's first greenfield project that has been envisioned as a business and travel hub for South India.

FINANCING :

The estimated Cost of the Project (initial phase) was Rs.2478crores. ICICI was designated as the Financial Arranger by BIAL. It sanctioned the entire debt required of Rs.1,164 crores for establishing the project. The amount of government support in this case was Rs. 350 crores (Viability Gap Funding) & the sponsoring authority was IDD (Infrastructure Development Department).

FUNDING RATIO :
STATE PROMOTER Karnataka State Industrial Investment & Development Corporation Ltd (KSIIDC) Airport Authority of 13% India (AAI) Unique Zurich Airport 17% 13% PRIVATE PROMOTER Siemens 40%

ALLOCATION OF RISKS & RESPONSIBILITIES :

Nodal Agency NHAI Power Supply Water Supply JVC BIAL SPV BIAAPA Responsibility of the Bidder

Larsen &
Tourbo 26%

17%

74%

Concession Agreement : BIAL has entered into a Concession Agreement with the Government of India, whereby the Government of India has granted the exclusive right and privilege to BIAL to carry out the development, design, financing, construction, operation and management of the Airport for a period of 30 years from the Airport opening date, with an option for BIAL to extend the concession for another 30 years. Cost of tendering : The Bidder shall bear all costs associated with the preparation and submission of its proposal and BIAL shall, in no case, be responsible or liable for such costs, regardless of the outcome of the tender process.

Site Inspection and Conditions : The Bidder is advised to visit and inspect the Site and its surroundings, and obtain for itself on its own responsibility and cost, all information regarding all existing and expected conditions and matters that may be necessary for preparing the Proposal and entering into a contract for performance of the scope of

Legal conditions : The Bidder shall be a valid legal entity as per Indian laws. Assignment: Any assignment of the agreement or of any rights in any manner, by operation of law or otherwise, without the prior written consent of BIAL, shall be void. Any such consent shall not relieve the Consultant from its obligations under the RFP/agreement. Memorandum Of Understanding (MoU) : A MoU was signed between KSIIDC and AAI, on 3rd May 1999. It envisaged the project to be established on a commercial, non-recourse finance basis where in the Project would be implemented through a Joint Venture Company (JVC). Land Acqusition : About 4262 acres of land has been assembled for the project and the same is in possession. 3884.5 acres of land is handed over to BIAL for the project.

Selection of JVPs : A Detailed, transparent and elaborate process to select JVP was put in place by the Steering Committee (envisaged in MoU) ultimately concluded with the signing of Shareholders Agreement (SHA) between KSIIDC, AAI and the selected JVP namely : Consortium lead by Siemens of Germany Unique Zurich Airport of Switzerland Larsen & Toubro of India.

Government Regulations: The bidder shall be responsible for obtaining and maintaining permits and alsofor complying with all the laws, orders, regulations or other instructions issuedby all statutory authorities in India. The bidder shall not give, bargain, sell, assign or sublet or otherwise dispose off the bid or any part thereof, or the benefit or advantage of the contract or any part thereof to any third party.

Some other terms & conditions : The language for all written communication shall be English and unless mentioned otherwise the currency shall be Indian Rupee. The proposal should be signed on each page by the Bidder or his duly authorized representative. The proposal should be accompanied by a certified true copy of a power of Attorney or board resolution in favor of signatory to the documents. Any discrepancies, omissions, ambiguities or conflicts in or among contract documents or any doubt as to their meaning should be called to the attention of the contact person as mentioned in the RFP within five (5) days of issue of the RFP. BIAL will not make or be responsible for any oral instructions.

The Bangalore International Airport is positioned as a transit hub for the whole of South-East Asia. It aims to be as efficient and functional as the Zurich airport in Europe, said to be the most efficient airport in that region. The airport offers direct and indirect employment to 15,000 people, besides providing a boost to the economy. Airport capacity can be enhanced to handle up to 50 million passengers (one and-a-half times more than Zurich airport).

CLEARANCE PROBLEMS : Inspite of GoI placing a policy on Airport Infrastructure in December 1997, the Legal Framework namely, the Airports Authority of India Act and the Aircraft Act & Rules did not clearly provide for building and operation of Indian Airports by Private companies. After addressing these issues, changes were incorporated to ammend the Airports Authority Act. LAND ACQUISITION PROBLEMS : 11 villages are involved in the land acquisition process, only 2 villages having 110 families are being relocated, to a near by area about 9 Km from the proposed Airport. DELAYS IN INAUGURATION : The airport was expected to be inaugurated on 30 March 2008 but due to delays in air traffic control (ATC) services, it was finally inaugurated on 23 May 2008.

The Bangalore International Airport came out to be the countrys first successful Greenfield PPP project & opened up the way for others also. Although, there were a few delays in its opening but finally it started on May 23, 2008 & is currently successfully operating. As per 2010-11 : Passenger Movement is 11,592,265 Aircraft Movement is 111,483 Cargo Tonnage is 222,778 As per the recent news, The Bangalore International Airport has undertaken the expansion of Terminal I at a cost of Rs 1,479 crore. The work will be completed by December 2012 and the airport will be able to handle 17.5 million passengers per annum as compared to existing capacity of 11 million.