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Biggies Vie For Airport Makeover Project With 1,942 Crore Bid


By ugesh sarkar, Section Business
Posted on Tue Jun 17, 2008 at 04:43:23 AM EST

India's largest construction company, firms from Canada and Turkey as well as an Italian-Thai joint venture have bid for the Rs 1,942 crore modernization project of Netaji Subhas Chandra Bose International Airport. All three international firms have Indian partners.

While the Indian firms will have to meet the financial norms, the foreign partner will bring expertise to the table.

Eleven companies had initially shown interest in the airport modernization project and six Hervé Pomerleau Canada-Consolidated Construction Consortium Ltd, Italian-Thai Development Public Co Ltd-Cementation India Ltd, TAV Tepe Akfen Yatirim ve Isletme AS-Punj Lloyd Ltd and Larsen & Toubro Ltd, Laing O'Rourke UK-Simplex Infrastructures Ltd and CSCHK Hong Kong-Soma Enterprise  were shortlisted by Airports Authority of India. The last two did not submit the bid on Monday.

"The deadline for submission of bids was 11 am on Monday. Four parties did so. We will now verify the bank guarantees. Bids will be opened once the bidding process for Chennai airport is completed on June 23," NSCBI Airport modernization incharge SPS Bakshi told TOI.

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Though consortiums can bid for projects at both airports, two different companies will be selected for the two schemes. Hence, the decision to keep the selection process in abeyance till the deadline for submission of Chennai airport bids.

The AAI will also appoint a project management consultant to oversee the implementation of the modernization project on a turnkey basis. Leading firms like USbased Louis Berger Group have applied for becoming the consultants.

The project involves construction of a new integrated terminal building to handle 20 million passengers. The Rs 1,600-crore facility is due to be commissioned by 2011. Along with existing capacity of 4.942 million passengers (0.882 million, international and 4.06 million, domestic), the total handling capacity would rise to 24.942 million passengers that will be saturated by 2015-16. Subsequently, total capacity will be increased to 39.32 million in phase-II and 56.13 million in phase-III.

 Kolkata airport modernization was initially proposed with private sector participation on the lines of the Mumbai and Delhi international airports but met with stiff resistance from the Left. Though civil aviation minister Praful Patel was dead against it, he acceded to the demand after a prolonged delay. Thereafter, the project was held up due to queries by the Planning Commission. Now with all hurdles at government-level cleared, work can begin after the monsoon if the principal contractor is selected later this month.

For AAI, modernization of Kolkata and Chennai airports are a challenge to prove its capability at a time when private majors GMR and GVK are implementing projects in Delhi and Mumbai.

Source: Subhro Niyogi From Times News Network 17/Jun/2008

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