GMR wins MOPA airport PPP
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GMR Airports Limited (GAL), a subsidiary of GMR Infrastructure Limited, has won the international competitive bid for development and operation of Mopa Greenfield Airport in North Goa (India).
The concession period for the Greenfield project will be 40 years with a possible extension of another 20 years through a bid process. The airport will be built under the BOT (Build Operate Transfer) model.
Five bidders were prequalified for the tender process: GMR Airports, Airports Authority of India, Essel-Incheon, GVK and Hiranandani-Vinci.
GMR won the tender process through a highly competitive bid process with Airports Authority emerging as the second highest bidder followed by the consortium of Essel-Incheon.
The letter of award is expected to be issued within 60 days, while signing of concession agreement will be done within 45 days from the date of issuance of award letter.
The regulatory regime for the concession will be hybrid with up to 30% cross subsidy. The concession offers 232 acres of land for commercial city side development for a period of 60 years.
The total project investment, including the four phases, is estimated at around US$700 million. The estimated investment for phase I of the project is estimated at around US$35 million. The full project is likely to be commissioned in 2019.
Ammann and Whitney from the United States prepared the Master Plan and the Feasibility Study. A financial consultant, KPMG, and a technical consultant, Louis Berger, were appointed in March 2013 to analyze the feasibility of the project.
The new Mopa airport will enhance tourism in Goa, which is its primary industry. It handles about 13% of all foreign tourist arrivals in India. Goa is situated on the western coast of India, between the borders of Maharashtra and Karnataka.
GMR Group owns and operates India’s Delhi Airport which is presently ranked as World’s No.1 airport in its passenger category as well as Hyderabad airport. The group had constructed Delhi airport’s Terminal 3 in a record time of 37 months and Istanbul’s Sabiha Gokcen airport in 18 months. GMR Infrastructure in partnership with Megawide Construction Corporation is also developing Mactan Cebu International Airport (MCIA) in Philippines.
Commenting on the development, Mr. Srinivas Bommidala, Chairman Airports, GMR Group, said,
“GMR Airports Limited is delighted to have won the bid for the development and operation of Mopa Greenfield airport in Goa. We take this opportunity to reiterate our commitment to contributing to infrastructure development of India and assure the central and state governments that we will deliver an airport worthy of the state of Goa well within the project timelines. The bid win also reinforces GMR Group’s credentials as the largest airport developer and operator in India and one of the top 5 private airport developers across the world.”
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