INDIRA GANDHI

INTERNATIONAL AIRPORT

NEW DELHI

• SPV - Delhi International Airport Ltd. (DIAL) that owns the project assets.

• DIAL entered OMDA (Operations, Management & Development Agreement) with AAI

• Cost of INR128.5bn ($2.7bn)

• Area of 5.4 mil square feet

• Concession Agreement - 30 years + 30 years (Extendable)

• Phase 1 - New runway & domestic terminal• Phase 2 - Modern integrated

passenger Terminal 3

GMR (54%) - LEADER

Airports Authority of India (26%)

Fraport AG (10%) –

AIRPORT OPERATOR

Eraman Malaysia (10%) – RETAIL

ADVISORS

Contractors

Design contractors: Mott McDonald and HOK (UK)

Construction contractors Larsen & Toubro, Airbiz and Meinhardt

Project Management Consultant Parsons Brinckerhoff International

Electrical sub-station & related ABB & subcontractor AGTS

Airport security management & IT systems CEM Systems, Unisys India, Wipro IT

Intelligent light fittings design Entelechy Systems

Baggage Handling System Siemens; Subcontractors - Crisplant & ARINC

Maintenance services of the new runway at T3

Honeywell Airport Systems

Automation: Separate company: Wipro Airport IT Services Limited

• For IT services, a separate JV was formed. Three verticals of IDFC bank helped raise Rs. 500 crore for this JV.

74%

26%

Wipro Airport IT Services Limited

WIPRODIAL

Project Feasibility Facilitated by:

• OMDA – Operations, Maintenance & Development Agreement– lays down the obligations and responsibilities of both the

parties, the terms of revenue sharing and duration of the concession, conditions of assets transfers at present and in future, terms and conditions of land transfers etc.

• Transfer Assets– All assets should be necessarily be acquired by AAI– It will also have to pay for assets created using traveller’s –

development fees• Passenger Service Fee Escrow Account• Revenue sharing agreement Between AAI & DIAL

Risks (Managed)• Project Risks:– Actual Built up Ground floor area was 553887 sq. mt.83,700

sq.mt higher than planned: Financed through Developmental fees

• Operational Risks/Favours: – Case of 2nd airport within 150 kms

• First right of refusal• Dial will be allowed to bid/match most competitive bid

– 10% increase was allowed in landing/parking/pass. Ser. Fees/X-Ray/Baggage handling fees in spite of delay in constr.

– Outsourcing of non-aeronautical & profitable services (advertising/baggage handling/ maintenance, etc.) to non-arms-length companies

• Construction Risks – SSA Agreement: • Removal of encroachment, procurement of additional

land, provide clear air traffic area outside airport boundary, provision of utilities, provide surface access to airport, etc. responsibilities lies with govt.

• Cost Over run Risk• Actual project cost of 12857 Cr vs. planned 8975 Cr

funded by developmental fees levied on passengers (Not mentioned in contract)

• Justified by Additional scope of work and drawings not finalized earlier.

Risks (Managed)

Fudging in Revenue Sources