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BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016

S No

Ref. Artic

le

Document

Particular Bidder Queries Suggested Text / Justifications from Bidders

Authority Responses

5. General

CA Regulatory Framework and Involvement of AAI

a) We understand that in Airport Sector, Airports under Airport Authority of India (AAI) are governed by AAI Act. 1994 while the Airports other than that are governed by Aircraft Act, 1934 and Aircraft Rules, 1937. We request you to clarify which regulatory framework shall govern the development of the proposed Airport at Bhogapuram.b) In case of involvement AAI for the proposed project, if AAI Act, 1994 applies for the development of the Airport. we understand that the said Act permits a limited set of commercial activities like setting up of hotels and warehousing facilities for storage and processing. In such scenario, we request you to clarify how the industrial activities can be included under the City Side Development.c) As a preliminary idea on this issue - we would like to explore whether the land can be split into two lots. If possible, one lot can be used for the airport itself, and the remaining for industrial use that will be used for manufacturing and other activities that can generate air cargo for the airport.

a) All tariff related issues will come under AERA Act; Reserved Matters would come under Govt of India; other matters will be dealt with by the GoAP, GoI , AERA or any other Government Instrumentality as indicated in the RFPb) Refer TEFRc) Commercial development can be done in the area alotted for commercial development. Refer TEFR

22 2.2.3 (a) and (c)

RFP The clause states in the end as under:“In the event the Bidder is not a Consortium, it shall be eligible only if it has equivalent O&M experience of its own or enters into an agreement with having the O&M Experience as set out in Clause 2.2.3 (a), prior to COD, for performing the O&M obligations as per the terms and conditions set out in the Concession Agreement, for a period of not less than 7 (seven) years from the commercial operations of the Project, failing which the Concession Agreement shall be terminated.”Kindly note that clause 2.2.9 allows a Bidder to meet the eligibility criteria through Associates and clause 2.2.3(b) allows an entity holding more than 50% equity in the O&M Project company. Hence, we request Authority to confirm that if the Bidder (whether a single entity or a Consortium) meets the O&M Experience criteria through any of its Associates and/or through O&M Project companies in which more than 50% equity is held by such Associate or the Bidder or the Consortium Member, then the requirement of entering into an agreement as stated in the clause above will not be applicable. Accordingly, please also confirm that the requirement in Part B of Annexure V “Statement of inclusion of O&M entity” will not be applicable for such Bidders.Further it may be noted that we, as a Bidder, would rely on the O&M Experience of Mumbai International Airport Pvt. Ltd. (“MIAL”). However, MIAL cannot become directly or indirectly engaged, concerned or interested in any business other than the Chhatrapati Shivaji International Airport (or any other airport within its 150 km radius), as provided in Article 2.2 of Operation, Management and Development Agreement executed between MIAL and Airports Authority of India. Further, in any case, the selected bidder will have to ensure that the development and operations of the Project are undertaken in accordance with Applicable Laws, Applicable Permits and Good Industry Practice. Therefore, we request you to do away with this requirement for nominated airport operator.In this regard, we would also like to draw your attention to the fact that Government of Goa had recently withdrawn similar requirement from its tender process for a new airport project at Mopa in Goa.

O&M partner requirement is reduced to 5 years (from 7 years). A list of potential world class partners will be provided to the bidders and they can partner only with the members listed.

23. 2.2.9 RFP Please clarify that an Applicant can rely on O&M Experience of its Associates. Accordingly, Clause 2.2.9 may be modified as under:“In computing the Technical Capacity and Net Worth and O&M Experience of the

O&M partner requirement is reduced to 5 years (from 7 years). A list of potential world class partners will be provided to the bidders and they

Response to Bidders' Queries on RFP – Part 41


Applicant/Consortium Members under Clauses 2.2.2, 2.2.3, 2.2.4 and 3.2, the Technical Capacity and Net Worth and O&M Experience of their respective Associates would also be eligible hereunder.”

can partner only with the members listed.

31. Annexure IV of Appendix

I Certificate Form

ats

RFP The instructions stipulate that the certificates have to be provided only as per the formats given. However, usually, the statutory auditors (especially the big 4 firms) use their own formats or make certain changes in the given formats. Hence, so long as the certificates are substantially in the same format as provided by the Authority and do cover all the necessary contents required for establishing the eligible experience, the Authority should accept such certificates with minor deviations.

Accepted. Up to the Authority to decide on the substantive nature of the certificate provided. Authority reserves the right to ask for additional information not provided in the certificate but required in the original format.

33. CA Definition – “Aeronautical Revenues”

We request the definition to be modified as mentioned below:“Aeronautical Revenues” means the aggregate revenue requirement determined by AERA as per the Applicable Laws:including i.e., Airports Economic Regulatory Authority (Terms and Conditions for Determination of Tariff for Airport Operators) Guidelines, 2011

As per RFP

34 CA Definition of “Bank”

We request the Authority to delete the following words since clause 9.1.1 and clause 30.1.1 create restrictions that a Senior Lender cannot be appointed as Escrow Bank or issue a Performance Bank Guarantee which will make this project non bankable. “but does not include a bank in which any Senior Lender has an interest”

As per RFP

35. CA Definition – “CNS/ATMAgreement”

We request the Authority to confirm that the format as provided in Schedule T is final format as prescribed by AAI, and accordingly modify the definition as mentioned below:“CNS/ATM Agreement” means an agreement between AAI and the Concessionaire, substantially in the form set forth in Schedule T”

Will be provided

37. CA Definition – “Exempted Persons”

We request to delete the following persons from the list of Exempted Persons:(n) persons engaged in maintenance of law and order and are visiting the Airport or any part thereof, in their official capacity on duty;(o) fire-fighting personnel and persons on emergency medical service, in their official capacity on duty; and(p) persons entering the Terminal Building for inspection, survey, construction, operation and maintenance thereof in their official capacity on duty;As per Clause 18.12.4, the Exempted Persons are allowed free use of Reserved Parking. Since the persons mentioned above are not the persons entitled for VIP lounges, they should not be considered as Exempted Persons.

Accepted

38 CA Definition – “Government Resolutions”

Please complete the definition of the Government Resolutions with the relevant numbers and dates and also, please provide copies of the same.

Will be provided

39. CA Definition- “Gross Revenue”

(A) Request to exclude deposits from the definition of Gross Revenue for the following reas ons:(1) Inclusion of deposits in Gross Revenue will distort P&L account of the Concessionaire due to mismatch in income and expenditure which may lead to breach of various financial covenants and hence, any deposits should not be included in the Gross Revenue.(2) Further, in any case, in normal course of airport business, deposits are taken from the

As per RFP



sub-licensees as security deposit which are generally in the range of 12-24 months, projected revenues earned by Concessionaire from the respective sub-licensees and hence, should not be considered for the purpose of Gross Revenue calculation.(3) Similarly, as part of financing arrangements concessionaire may be required to accept deposits from public under the provisions of Companies Act, 2013 and there is no reason why these deposits should be subjected to Premium.(B) We further request to add the following exclusions in the definition: (i) any revenue recognized for construction or upgrade services under the provisions of Appendix A (Service Concession Arrangements) of the Indian Accounting Standards (Ind-AS) 11, Construction Contracts and references therein, including subsequent amendments thereof in relation to the recognition of revenues/consideration for construction or upgrade services under Ind-AS, as per Applicable Laws;(ii) any amount that is accrued to / received by the Concessionaire from sale of any capital assets or items;(iii) amounts not treated as business income under Indian Generally Accepted Accounting Principles;(iv) payments made by Concessionaire, if any, for the activities undertaken by Designated GOI Agencies or payments received by Concessionaire for provision of electricity, water, sewerage, or analogous utilities to the extent of amounts paid for such utilities to third party service providers;(v) interest income from investment of surplus funds; and(vi) bad debts written off on which Revenue Share has been paid.

(C) We request that the sub-clauses (b) and (iii) should be modified as mentioned below:“(b) any monies received by the Concessionaire, for or on behalf of any Government Instrumentality, as an authorized agent of such Government Instrumentality; and …”“(iii) Gross Revenue will be computed on an annual basis for an Accounting Year, in accordance with the Indian Generally Accepted Accounting Principles, prevalent before March 31, 2016 and not as per IND-AS for the purpose of computation of Revenue Shareas applicable on the date of the issuance of theRFP

(D) Further, we request that the following sub clause (iv) should be deleted from the clarifications provided in the definition of Gross Revenue:“(iv) in case of any dispute, discrepancy, ambiguity, doubt or otherwise, relating to the computation and/or meaning of Gross Revenue, the decision of the Authority, at its sole discretion, shall be final;”

(E) Please confirm that amounts to be collected by the Concessionaire as Aviation Security Fee / PSF- SC levied for security per departing passenger are a part of exclusions mentioned at clause (b) of the definition.

40 CA Definition – Gross Revenue, 27.1.2, 27.2.3,36.1.1(g)

We request the Authority to modify the following clauses as under:Definition of Gross Revenue : “(c) any deposit amounts refunded to the relevant sub-licensee or any other person authorized by the Authority in a particular Accounting Concession Year provided these pertain to past deposits on which Premium has been paid to the Authority”“27.1.2 The Concession Fees shall be payable in advance within 7 (seven) days of the

As per RFP



commencement of each Accounting Concession year during the Concession Period.”“27.2.3 The Revenue Share shall be due and payable in annual instalments. Within 30 (thirty) days of the close of each Accounting Concession Year, the Concessionaire shall pay to the Authority against the Revenue Share, a provisional amount calculated on the basis of records available for the immediately preceding Accounting Concession Year, and final settlement thereof, based on audited accounts of the Concessionaire, shall be made within 90 (ninety) days of completion of the respective Accounting Concession Year.”“36.1.1 (g) the amount of Damages liable to be paid by Concessionaire due to breach of IATA ‘Level of Service –C (optimum)’ as per Clause 18.6.9 equals to or is more than 2% (two percent) of the Revenue Share for the preceding Accounting Concession year

41. CA Definition – “Key Managerial Personnel”

We request Authority to realign the definition of “Key Managerial Personnel” in accordance with the Companies Act, 2013. The appointment/termination of “Key Managerial Personnel” is included as Reserved Matters with an affirmative vote of the Authority. The definition in its existing form will make the functioning of the Concessionaire impractical, and hence, the definition needs to be realigned.

As per RFP

45. CA Definition – “O&MContracts”

We request the definition should be modified as mentioned below:“O&M Contracts” means the operation and maintenance contracts, with a value of Rs. 50 crores or more, that may be entered into between the Concessionaire and the O&M Contractors for performance of all or any of the O&M obligations;

As per RFP

46 CA Definition – “Project Agreements”

(i) The definition in the current form leads to micro management of the Concession and does not provide operational flexibility to the Concessionaire.(ii) Hence, we request that the definition should be limited to only key agreements related to Project and all other agreements such as (a) O&M Contracts, (b) sub-license agreements and (c) any other material agreements or contracts worth of more than Rs. 25,00,00,000/- (Rupees Twenty Five Crore) annually or cumulatively, should be excluded from the definition. For reference, it may be noted that under OMDA for Mumbai / Delhi, only nine key agreements are considered as Project Agreements.(iii) However, if Authority needs to retain the said agreements in the definition, we request that such contracts should be included in the definition only if the value of each such contract is above Rs 100 crores.

As per RFP

48 2.1.3 of

Schedule

T CNS/ATM Agreemen

t

CA Authority is requested to modify the clause as under:“2.1.3 In the event that the Concessionaire shall require the Designated GOI Agency to upgrade the equipment deployed by it for the provision of Reserved Services, including the CNS/ATM Equipment, to a level which may be in excess of or higher than the requirements set forth under Applicable Laws, including the ICAO Documents and Annexes, then all costs incurred on such incremental upgradation of the equipment and the additional costs of operation thereof shall be borne by the Concessionaire and paid in advance annually to the Designated GOI Agency.”

As per RFP

54 4.1.3 CA 1) We request the following modification in point (b):“procured all the Applicable Permits as may be required for the commencement of the Construction Works for Phase I, including but not limited to the Applicable Permitsspecified in Part I of Schedule E unconditionally, or if subject to conditions relating to the effectiveness of such Applicable Permit, then all such conditions required to be fulfilled by the date specified therein shall have been satisfied in full, and such Applicable Permits are

1) Clause is clear regarding applicability

2) Timeline for completion of satisfaction of Conditions Precedent has been revised to 180 days.



in full force and effect;”There may be certain conditions to effectiveness of the Applicable Permits and only those conditions may need to be complied with for bringing the Applicable Permit to effect. There may be other conditions that need to be complied with on a continuous basis till the expiry of the Applicable Permit and no date may be specified.2) Considering that the Financial Close may not be achieved within 120 days, we request following modification in point (j):“(k) sanction letters have been issued by the Senior Lenders executed the Financing Agreements and delivered to the Authority 3 (three) true copies thereof, duly attested by a Director of the Concessionaire;(l) achieved the Financial Close”3) The proviso may be modified as follows:“Provided that upon request in writing by the Concessionaire, the Authority may, in its discretion, waive any of the Conditions Precedent set forth in this Clause 4.1.3 for the purposes of the achievement of the Appointed Date. The Authority may, in its sole discretion, grant any waiver hereunder with such conditions as it may deem fit, including in relation to extension of the Appointed Date as required by the Concessionaire.”

3) No Change

56 4.3.1 CA Please extend the period for achieving the Appointed Date from 180 days to 270 days. We request to make the following modification:

“4.3.1 Without prejudice to the provisions of Clause 4.2, and subject to the provisions of Clause 9.1 and Clause 9.2, the Parties expressly agree that in the event the Appointed Date does not occur, for any reason whatsoever, before the expiry of the 270 (two hundred seventy) 180 (one hundred eighty) days of the date of execution of this Agreement or any extended period, as per the terms of this Agreement or may be otherwise agreed between the Parties, all rights, privileges, claims and entitlements of the Concessionaire under or arising out of this Agreement shall be deemed to have been waived by, and to have ceased with the concurrence of the Concessionaire, and this Agreement shall be deemed to have been terminated by mutual agreement of the Parties.”Further, it may please be clarified in this Article that the termination rights will be invoked by the Authority only if the Concessionaire does not pay the Damages.

Timeline to fullfill Conditions Precedent by Concessionaire has been increased to 150 days;

Timeline for Financial closure has been increased to 180 days

No such understanding is contemplated in this Clause. The Clause is clear regarding its applicability. No change

61. Various

clauses

indicating micr

o manageme

nt

CA We request the Authority to change the following clause as they lead to micro management of the concession by the Authority and thereby defeating the purpose of privatization:(1) 5.2.2 - The Project Agreements definition needs to be modified as stated in our query above, else, it will operationally be cumbersome to send each and every agreement to the Authority for review and comments. In any case, the Concessionaire itself is obliged to ensure compliance with the Concession Agreement while entering into any contract.(2) 5.2.2 - The requirement of submission of a copy of the Project Agreements duly attested by a Director within seven days of execution should be modified to a monthly submission by an authorized signatory of the Concessionaire.(3) 5.2.5 - The requirement of submission of acknowledgment and undertaking from counter party of every Project Agreement to Authority should also be done away with since the same is counter-productive as the relevant substitution provisions would already be incorporated in the respective agreements and copies of such executed agreements can be submitted to Authority on monthly basis.(4) 5.2.6 - The clause needs to be deleted since prior approval of the Authority and Designated GOI Agency for every EPC Contract and O&M Contract is unwarranted and will

(1) No Change(2) No Change(3) No Change(4) No Change(5) No Change(6) No Change(7) No Change(8) No Change(9) No Change(10) No Change(11) As per Schedule K(12) As per Schedule K(13) No Change



hamper speedy implementation of the Project.(5) 6.5 – The requirement of prior approval for refinancing should be done away with since Authority’s interest is any way protected by putting the condition that repayment will have to be completed at least 1 year before the expiry of the Concession period.(6) 17.5 – Section Closure should not require prior written consent of the Authority.(7) 17.8.1 – When modifications are necessary for the Airport to operate in conformity with the Master Plan, Specifications and Standards, Good Industry Practice, Applicable Laws, Applicable Permits and the provisions of this Agreement, there should not be a need to take approval of Authority.(8) 17.15.5 – The FIR data and collection and other requirements, including submission to Authority, are too onerous and need to be deleted.(9) 18.12.5(b) - Airport is a special channel for many brands and hence, the pricing may differ from the prices prevailing in outside market.(10) 20.4 – The requirement of sending daily / weekly reports relating to accidents and unusual occurrences needs to be done away with and only monthly report needs to submitted.(11) 20.6.1 – The requirement of furnishing O&M Inspection Report within 15 days and weekly progress report needs to be done away with.(12) 21.2 – The requirement of giving details of daily peak hour passenger numbers on a monthly basis needs to be done away with, being very cumbersome and unwarranted.(13) 45.2.2 - Requirement of submission of a true copy of all the pages of Complaint Register within 7 days of close of each month needs to be done away with. Instead Authority may inspect the same with prior notice.

74 6.5 CA We request deletion of the following part from the clause:“…and shall always be on the terms better than the one, as may be existing at such time, and is for the benefit and the interests of the Users.”

As per RFP

75. 7.1(c)

CA We request deletion of this clause since the current tender being a qualification-cum-bidding process, the clause is irrelevant. Moreover, it is impractical to Represent and Warrant that the Preferred Bidder shall continue to meet the Technical Capacity and Financial Capacity requirement at all times during the Concession Period.

As per RFP

86 Article

10.2.5

CA Please provide details of existing right of way and rights of the Project Affected Persons.Request to amend the same to restrict the access to public areas, and with the required security clearances. Further, we request the following modifications in this Article:“……..and the Concessionaire shall perform its obligations in a manner that the Airport is open to Users at all times during the Concession Period, save and except during the hours for which closure thereof shall have been permitted by the Authority, or as per the instructions of the Government Instrumentality .”

As per Query 371 and 560

89. Article

10.2.9

CA Please confirm if any of the Project Affected Persons or other right of way-holders have any usufructuary rights on Site.

As per Query 371 and 560

95. Article

10.3.6

CA It is mentioned that in addition to land included in Schedule-A, any land required for City Side Development, shall be acquired at the sole discretion of the Authority and the Concessionaire shall have no right or claim in the event Authority declines any acquisition in whole or in part. As Schedule of Concession Agreement currently does not indicate extent of land to be provided by the Authority, it is requested that Authority provide a clear statement

Authority will provide the same



on the total land to be made available to Concessionaire on Appointed Date for Airport development and City Side Development.

98 Article

10.10.1

CA We request that the property tax and other applicable taxes on land, if any, should be borne by the Authority and the incremental property tax on account of development of Airport should only be payable by the Concessionaire.

Refer Query 382

99. Article

10.10.2

CA Authority to specify all such charges and taxes. It is also suggested that Authority should not make any such payment of taxes / charges and it should be left to the Concessionaire to deal with the respective government agencies directly.

Bidders will be informed separately.

As regards to any payments by the Authority, please note that it is the primary responsibility of the Concessionaire only to pay such amounts. It is only if the Authority is made to pay such amounts, either due to the requirements of the Applicable Laws or the breach of the terms of CA by the Concessionaire, the Authority may have to pay such amounts, which shall be required to be compensated by the Concessionaire.

104 Article

12.2.2

CA Authority to confirm that all stakeholder requirement are already provided for in the Master Plan and Concession Agreement and necessary consultations have been done with all the major stakeholders.

Authority is in the process of holding stakeholder consultations. Bidders will be updated on a regular basis.

105 Article

12.2.3

CA The time for submission of updated Master Plan should be increased from 60 days to 120 days from the date of execution of Concession Agreement.

106 Article

12.2.4

CA The time for Authority to provide comments on Master Plan should be reduced from 45 days to 30 days. The time for submission of revised Master Plan should be increased from 15 days to 30 days.



Refer query 105

109. Article

12.3.3

CA The time for Independent Engineer to comment on drawings should be reduced from 30 days to 15 days.

Refer query 105

110 Article

12.3.6

CA The time for Independent Engineer / Authority to review the drawings should be reduced from 30 days to 15 days.

Refer query 105

129. Article

16.2.5

CA The clause should be modified as mentioned below:“Any such Change of Scope shall be made in accordance with the provisions of this ARTICLE 16 subject to the approval of AERA

Refer query 770

137. Article

17.12.1

CA Please confirm that installation of DG sets will meet this requirement and there is no need to set up a separate power plant. Please also confirm the source from where water and power are to be procured by the Concessionaire.

DG sets would meet the requirement of standby power.Water and power would be provided by the Authority till the boundary of the airport.

140 18.2 CA We request to delete the words “at its own cost and expense” from the clause as the third party ground handling is allowed.

Accepted

156 19.6(c),(d),(e),

27.1.4

CA Please confirm that the amount recovered from the passengers towards security and paid to the Authority or Designated GoI Agencies (PSF-SC/ Aviation Security Fee) shall be utilized exclusively for cost of deployment of designated security agencies at the Airport, cost of procuring and maintaining security equipment and security related expenses and Concessionaire shall not be liable to bear any of the security related expenses.We request the Authority to provide a suitable confirmation from MoCA for the above and include this provision appropriately in the MoU with GoI.Further, we request that the amount so recovered on account of security fee shall not be subjected to Revenue Share payable to Authority.

Noted

175. Article

24.4.1

CA The clause is ambiguous, as it seems to allow offices, shopping malls, etc. but at the same time, such development is restricted in certain earmarked areas. We request there should be clarity on the permissible commercial development and the land use should be allowed for all commercial uses, with the exception of probably such uses which are strictly prohibited.

Clause is clear



183. Article

28.3.2

CA Document to be Submitted

Please provide a copy of the GoI approval for Shared-Till. As per NCAP 2016

185. Article

28.3.6

CA Following Para is ambiguous:“GOI shall make reasonable endeavors to procure that AERA provides for appropriate adjustments in the allowable revenues in the tariff order for the first control period, based on the Multi-Year Tariff Proposal filed by the Concessionaire with AERA, in accordance with regulations and guidelines issued by AERA from time to time”We request to modify the same suitably or delete the same.

Refer query 787

193. 31.2(f)

CA The clause should be amended as below:“(f) any other insurance that may be necessary to protect the Concessionaire and its employees, including all Force Majeure Events that are insurable at commercially reasonable premiums and not otherwise covered in items (a) to (e) above.”

As per RFP

194 Article

32.1.1

CA The clause should be amended as below:“32.1.1 The Concessionaire shall maintain books of accounts recording all its receipts (including all Gross Revenue and other revenues derived/collected by it from or on account of the Airport and/or its use), income, expenditure, payments (including payments from the Escrow Account), assets and liabilities, in accordance with this Agreement, Good Industry Practice, Applicable Laws and Applicable Permits. The Concessionaire shall provide 2 (two) copies of its Balance Sheet, Cash Flow Statement and Profit and Loss Account, along with a report thereon by its Statutory Auditors, within 90 (ninety) days of the close of the Accounting Year to which they pertain and such audited accounts, save and except where expressly provided to the contrary, shall form the basis of payments by either Party under this Agreement. However, it is expressly clarified that for the purposes of computation of Gross Revenue, Revenue Share and Damages (any other term linked with Gross Revenue) under this Agreement, shall be computed in accordance with the Indian Generally Accepted Accounting Principles, prevalent before March 31, 2016. The Authority has the right, either through itself or through any of its authorized representative (appointed from the Panel of Chartered Accountants as stipulated in Clause 32.2.3), to inspect the records of the Concessionaire during office hours and require copies of relevant extracts of books of accounts, duly certified by the Statutory Auditors, to be provided to the Authority for verification of basis of payments, and in the event of any discrepancy or error being found, the same shall be rectified and such rectified account shall form the basis of payments by either Party under this Agreement.”

As per query 451

221. Article

41.1.1

CA The following changes may be made to this Article:“The Concessionaire shall indemnify, defend, save and hold harmless the Authority and its officers, servants, agents, Government Instrumentalities, Designated GOI Agencies and Authority owned and/or controlled entities/enterprises, (“Government Indemnified Persons”) against any and all suits, proceedings, actions, demands and claims from third parties for any loss, damage, cost and expense of whatever kind and nature, whether arising out of any breach by the Concessionaire of any of its obligations under this Agreement or any related agreement or on account of any defect or deficiency in the performance of the obligations by the Concessionaire or from any negligence of the Concessionaire under contract or tort, or on the ground of fraud or negligence, or on any other ground whatsoever, which materially and adversely affect the performance by the Authority of its obligations under this Agreement except to the extent that any such suits, proceedings, actions, demands and

As per RFP



claims have arisen due to any wilful negligent act or omission, or breach or default of this Agreement on the part of the Government Indemnified Persons or the Authority.”

226 Schedule E – 2(a)

CA Please delete the requirement of obtaining BCAS and DGCA approval to Master Plan as they don’t approve Master Plan

As per RFP

229. Schedule

I

CA Average annual delay per aircraft: no more than 4 minutesAuthority to clarify what is implied by this condition. We request that this requirement should be deleted.

Aircraft delay from Touchdown to Gate and from Pushback to Takeoff

241. Schedule M 1.2

CA Please confirm if “Technical Consultants” is a defined term. If yes, kindly provide the definition of the same.

Will be updated

243. Schedule

N 5.5

CA Please provide a copy of Quality Control Manuals of the Authority. Will be provided

249. Definition of

Reserved Matters

Schedule S –

Shareholde

rs Agreemen

t

CA Please delete Clause (l) – appointment / termination of any Key Managerial Personnel, as it will be totally impossible to operate the airport since appointment of most of people will be subject to approval of the Authority and that too in a Shareholders General meeting.We further request addition of the following highlighted language in this definition:“(h) to transfer Equity Shares to persons other than Shareholders, except as provided in the Concession Agreement;”“(p) other than as provided in the Concession Agreement, to create any mortgage and\ or to sell or transfer any part or whole of the undertaking of the Concessionaire or any of the Project Assets;”

As per RFP

255. 3.5.4Schedule S –

Shareholde

rs Agreemen

t

CA Details to be mentioned

Clause 3.5.4 is as under:“3.5.4 The Concessionaire shall be capitalized through the issue of Equity Shares to the Shareholders as may be required from time to time, whether in one or more tranches. Provided always that the Authority and/ or its nominee’s:(a) shall not be required to pay or infuse any amount in the Concessionaire in excess of Rs. [ ] (Rupees ) towards subscription of the Equity Shares, which amount shall be infused by the Authority as per the capital requirements of the Concessionaire, on Pro Rata Share basis;Please clarify the amount as the same is left blank.

Refer query 556

260 6.9.2Schedule T –

CA We request the Authority to kindly delete the clause below:“8.9.2 Without thereby implying any restriction on AAI otherwise assigning, transferring, dealing with or granting rights in or over all or any of its rights or obligations under this Agreement, it is expressly recognized that, without requiring the consent of the

As per RFP



CNS/ATMAgreemen

t

Concessionaire: (a) AAI may assign the benefit of or create any other encumbrance upon all or any of its rights hereunder; and (b) AAI may assign and transfer all or any of its rights and obligations under this Agreement, subject to AAI guaranteeing to procure full and complete observance and performance of all such obligations by the assignee. Provided, however, that AAI may assign this Agreement to a successor entity or any statutory or other authority

261. 2.2.1Schedule U -

MoU with GoI

CA We request the Authority to add the following clarifications at the end of the Clause

“Non Aeronautical Revenues, for the purpose of computation of 30% cross subsidy will be calculated, in accordance with the Indian Generally Accepted Accounting Principles, prevalent before March 31, 2016 and not as per IND-AS”

Refer query 451

262 New claus

e 2.2.8Schedule U -

MoU with GoI

CA We request addition of the following new sub-clause as 2.2.8 in this Clause:“2.2.8 GOI hereby undertakes that it will issue necessary directions under Section 42 of AERA Act, 2008 to AERA from time to time as may be required to give effect to this MoU and the Concession Agreement.”

As per RFP

264 Recital A Schedule V -

State Governme

nt Support

Agreemen

t

CA Authority is requested to modify the Clause as under:“A. The Government of India (“GOI”), vide its letter no. [ ] dated [ ] (“GOI Approval”) granted its approval for the establishment of an international airport for public use at Bhogapuram in the State of Andhra Pradesh through Public Private Partnership (“PPP”), subject to the terms and conditions stipulated therein, and had resolved to establish the Airport in accordance with the terms and conditions set forth therein in this Agreement.”Authority is also requested to provide a copy of the approval.

Will be provided

265. 2.5.1Schedule V -

State Governme

nt Support

CA We request addition of a new sub-clause (f) as under for the purpose of exemption from payment of stamp duty:“(f) the Financing Agreements and other Project Agreements for the Project.”

As per RFP



Agreemen

t267. Environment

relatedMinutes of 4th meeting of EAC (Infra 2) MoEF for Bhogapuram International Airport dated 28th and 29th March mention that Bhogapuram International Airport Corporation has stated to MoEF that the proposed airport is planned for Code F operations (Airbus A 380 aircrafts). Authority is requested to delete the condition of Code F requirement.

Refer query 282

268 Environment related

From the minutes of the meeting of EAC (Infra 2) MoEF, it is clear that Bhogapuram International Airport Corporation has not submitted the details of proposed pre-development works, including hill cutting and filling required for the airport development, as these are not mentioned anywhere in the MoM, Authority is therefore requested to confirm (i) that the proposal submitted to MoEF for environmental approval includes the proposed cutting of the entire hill and, disposal of the soil and (ii) the details of the proposed hill cutting and filling as part of pre-development works and its costs.

MoEF details will be provided by the Authority

270 Environment related

The MOM of 4th meeting of EAC (Infra 2) MoEF mention that Bhogapuram International Airport Corporation informed the Committee that site area required for Phase-I is 2004.54 acres out of total land required for the Airport measuring 3645.79 acres. This is in variance with the statement given in Section 1.5 of Techno- Economic Feasibility Report (TEFR) wherein it is clearly stated that in Phase-1, 2004.54 acres for airport development and 57.29% of 1525.21 acres i.e. 873.79 acres shall be available for commercial development. Authority is requested to confirm actual total land availability on the date of appointment for Phase-1 and total land to be made available for airport development.

Land details will be provided by the Authority

271. Environment related

Authority to confirm that the proposed Real Estate commercial development on 1525 acres of land area is included for MoEF approval currently submitted by Authority to MoEF.

MoEF details will be provided by the Authority

273. TEFR

Authority to confirm that the total land area designated for proposed Real Estate development is 1525 acres and this entire area shall be made available to the Concessionaire on the date of appointment.

Authority would provide details of the land

286 7.2 TEFR

Project Phasing states that Phase-1 will be 2016-17 to 2019-20, while agreeing to traffic forecast demand for6.3 mppa by the year 2030. Similarly, TEFS states that Phase 2 Airport infrastructure for 18 mppa has to be developed by 2020-30, although demand capacity 18 mppa, shall actually materialize in the year 2050. Authority is requested to link the proposed Phase to traffic triggers and not to any specific time period. Conventionally, traffic triggers, of 80% of planned capacity is considered for initiating the next phase of development. The same may be confirmed by the Authority for this project.

Refer query 118

287. 7.3 TEFR

Implementation Programme states that Authority expects MoEF approval by August 2016 and final Master Plan to be completed by the Concessionaire after award of work. It is mentioned that pre-development works/ site provision of work shall start in 2017 followed by construction of first Phase of work, and its completion by 2019-20. This assumption that the entire pre-development work and airport construction can be completed within a period of 24 months, is unrealistic and not feasible. Authority is therefore requested to revise the proposed implementation schedule and confirm that airport development works for Phase 1 shall commence after commencement of pre-development works (expected to take at least 24 months) and subsequently airport development works for Phase 1 shall take additionally 36 months after that.

As per RFP



290 1.2.7 RFP 1.2.7 (a) Bids are invited for the Project on the basis of a percentage of the annual Gross Revenue from the 10th (tenth) anniversary of Commercial Operations of the Project till the end of concession period (the “Revenue Share”) to be paid to the Authority as per the terms and conditions set out in Concession Agreement. The concession period and other terms are pre‐determined as indicated in the draft Concession Agreement forming part of the Bidding Documents. The Revenue Share shall constitute the sole criteria for evaluation of Bids. The Project shall be awarded to the Bidder quoting the highest Revenue Share.

Please clarify whether the Revenue Share shall be inclusive or exclusive of applicable taxes. ‐NA‐ As per AERA norms

291. 1.1.4 RFP The estimated cost of the Project (the “Estimated Project Cost”) has been specified in Clause 1.1.1 above. The assessment of

Please confirm who will approve the project cost. Under AERA Act, AERA has no powers to approve project cost.

‐NA‐ As per AERA norms



actual costs, however, will have to be made by the Bidders.

305. 1.1 RFP “Aeronautical Revenues” means the aggregate revenue requirement determined by AERA as per the Applicable Laws including i.e., Airports Economic Regulatory Authority (Terms and Conditions for Determination of Tariff for Airport Operators) Guidelines, 2011;

Request to delete the highlighted portion from the definition since the said Guidelines stipulate single till mechanism for the tariff determination.

“Aeronautical Revenues” means the aggregate revenue requirement determined by AERA as per the Applicable Laws including i.e., Airports Economic Regulatory Authorit y (Terms and Conditions f or Determination of Tariff for Airport Operators) Gu idelines, 2011;

The Guidelines have to be read in tandem wit subsequent amendments and other relevant

Laws, Policies.

307. 1.1 RFP “Debt Due” means the aggregate of the following sums expressed in Indian Rupees outstanding on the Transfer Date, and shall at all times be calculated in reference of the Total Project Cost:(a) the principal amount of the debt provided by the Senior Lenders under the Financing Agreements for financing the Total Project Cost (“principal”), but excluding any part of the principal that had fallen due for repayment 2

Request to delete the highlighted portion.Also, request to include foreign currency debt in the Definition of Debt Due.

“Debt Due” means theaggregate of the followingsums expressed in IndianRupees outstanding on theTransfer Date, and shall at alltimes be calculated inreference of the Total ProjectCost:(a) the principal amount of thedebt provided by the SeniorLenders under the FinancingAgreements for financing theTotal Project Cost (“principal”),but excluding any part of the principal that had fallen duefor repayment 2 (two) yearsprior to the Transfer Date;(b) all accrued interest,financing fees and chargespayable under the FinancingAgreements on, or in respect

As per RFP



(two) years prior to the Transfer Date;(b) all accrued interest, financing fees and charges payable under the Financing Agreements on, or in respect of, the debt referred to in Sub‐ Clause (a) above, until the Transfer Date, but excluding: (i) any interest, fees or charges that had fallen due 1 (one) year prior to the Transfer Date, …

of, the debt referred to in Sub‐Clause (a) above, until theTransfer Date, but excluding: (i)any interest, fees or chargesthat had fallen due 1 (one) yearprior to the Transfer Date, …

308 1.1 RFP “Equity” means the sum expressed in Indian Rupees representing the paid up equity share capital of the Concessionaire for meeting the equity component of the Total Project Cost, and for the purposes of this Agreement shall include convertible instruments or other similar forms of capital, which shall compulsorily convert into equity share capital of the Concessionaire. Provided however that, the amount specified in Clause 0 as Authority’s equity capital infusion shall be

a) Kindly include the highlighted suggestion in the provision.b) Please also confirm the clause reference highlighted in the suggested provision.

“Equity” means the sum expressed in Indian Rupees representing the paid up equity share capital of the Concessionaire for meeting the equity component of the Total Project Cost and in respect of expansion of the Airport in accordance with the provisi ons of this Agreement , and for the purposes of this Agreement shall include convertible instruments or other similar forms of capital, which shall compulsorily convert into equity share capital of the Concessionaire. Provided however that, the amount specified in Clause 0 as Authority’s equity capital infusion shall be considered as Equity for the purposes of this Agreement;

As per RFP



considered as Equity for the purposes of this Agreement;

314 RFP providers;4. amounts related to capital receipts;5. buy back of shares held by the Concessionaire.c) Point (iv) of the definition of Gross Revenue i.e.iv) in case of any dispute, discrepancy, ambiguity, doubt or otherwise, relating to the computation and/or meaning of Gross Revenue, the decision of the Authority, at its sole discretion, shall be final,should be deleted as this is absolutely an arbitrary clause.Please note that the mechanism for calculation

As per RFP

315. RFP of Gross Revenue is already given and in case of dispute, there is already a dispute mechanism provided in the CA. Hence, deletion requested. d) Further, please confirm that the Gross Revenue calculation will be done as per Indian GAAP and not as per Ind ‐ AS (IFRS) even if the Concessionaire is required to maintain the books as per Ind ‐ AS (IFRS) at a later date. Please also confirm that any notional revenues accounted (such as construction revenue, straight lining of rentals, NPV of deposits, etc.) in the books of accounts in accordance with the Ind ‐ AS will not be included in the definition of Gross

Refer query 451

316 RFP Revenue. It should be clarified that for the calculation of 30% shared till, AERA would consider Non ‐ aeronautical Revenues as per Indian GAAP.

Refer query 451

317. 1.1 RFP Key Managerial Person

Request to limit the definition to CEO, MD, Whole Time director, Chief Financial Officer, Chief Commercial Officer, Chief Operation Officer and Company Secretary.

‐NA‐ As per RFP

325. RFP Phase I, including the Aeronautical Assets and the Non‐Aeronautical Assets forming part of Phase I, and shall be limited to the lowest of:(a) actual capital costs of the Construction Works incurred in relation to the construction, implementation and commissioning;(b) the capital cost, as set forth in the Financial Package; and

phase and subject to increase on account of project cost overrun. Request to modify the definition accordingly.2. All the development excluding Non‐Aero such as like MRO etc. should be included as part of RAB and return should be allowed over it. Please modify accordingly.3. Authority is requested to confirm that Total Project Cost mentioned in the Concession Agreement is only indicative and actual cost incurred will be considered by AERA for the purposes of determination

Phase I, including the Aeronautical Assets and the Non‐Aeronautical Assets forming part of Phase I, and shall be limited to the lowest of:(a) actual capital costs of the Construction Works incurred in relation to the construction, implementation and commissioning;(b) the capital cost, as set forth in the Financial Package and any revision thereof appro ved by the Senior Lenders ; and(c) a sum of Rs. 40,99,00,00,000 (Rupees Four Thousand and Ninety Nine Crores);…

2. AERA norms to be followed3. AERA norms to be followed



(c) a sum of Rs. 40,99,00,00,000(Rupees Four Thousand and Ninety Nine Crores);……

328 1.1 RFP Definitions of Airport, Project Assets, Total Project Cost

Please clarify/confirm whether these definitions would include relevant reference to City Side Development?

‐NA‐ Query is not understood. Bidder requested to elaborate

329. 1.1 RFP Realizable Fee Please provide definition of Realizable Fee. ‐NA‐ Will be provided331. 3.1.1 RFP Subject to and in

accordance with the provisions of this Agreement, GOI Approval, GoAP Approval, Applicable Laws and the Applicable Permits, the Authority hereby grants to the Concessionaire, the concession set forth herein including the exclusive right, license and authority to develop, operate and maintain the Airport (“Concession”) for an initial period of 30 (thirty) years commencing from the Appointed Date, and the Concessionaire hereby accepts the Concession and agrees to implement the Project subject to and in accordance with the terms and

Considering the magnitude of this Project, we request the term should start from COD and not Appointed Date so as to give the Concessionaire 30 years of operating period (as opposed to about 27 years).

Subject to and in accordance with the provisions of this Agreement, GOI Approval, Applicable Laws and the Applicable Permits, the Authority hereby grants to the Concessionaire, the concession set forth herein including the exclusive right, license and authority to develop, operate and maintain the Airport (“Concession”) for an initial period of 30 (thirty) years commencing from the COD.

Refer query 921



conditions set forth herein.

344 4.3.2(a)

RFP Preferred Concessionaire shall discharge all liabilities, if any created, in any form whatsoever, within 7 (seven) days of such termination;

Kindly delete this clause since it is unreasonable and there shall be no obligation on the Preferred Bidder in such a situation.

Preferred Concessionaire shall discharge all liabilities, if any created, in any form whatsoever, within 7 (seven) days of such termination;

As per RFP

362 6.1.2 RFP Obligations of the Authority…

Request to add the Authority’s obligation to provide the entire land required for the Airport before the date of Letter of Award so that the Concessionaire should be able to undertake the work in accordance with the Concession Agreement from day 1.We also request the Authority to provide the road access to/from the Airport for ensuring smooth operation of the Airport.Authority should also provide road access during the construction period to enable the Concessionaire to undertake the construction of the Airport.

Obligations of the Authority(i) Notwithstanding anythi ng contained herein, the Authority shall provide the entire land required for the Project (including right of way) to the Concessionaire on or before the date of Letter of Award.(j) The Authority shall pro vide the appropriate connectivit y facilities (road access) to/fr om the Airport on or before th e COD.(k) The Authority shall also provide appropriate road access to the Site during th e Construction Period.

Refer query 374

364 8.1.5 RFP Except as otherwise provided in this Agreement, all risks relating to the Project shall be borne by the Concessionaire and the Authority shall not be liable in any manner for such risks or the consequences

The Authority is requested to provide land related documents (including the status of land acquisition as on date) and relevant documents forunderstanding the Authority’s right to provide the Right of Way.A data room may be provided in order to access all relevant documents with regard to Project Land; permits & approvals (including environmental clearance); and other project documents.We also suggest that the land acquisition process should be completed in entirety before the Bid Due Date as specified in the Request For Proposal.

‐NA‐ Necessary documents will be made available to the selected bidder, and bidders to do their own due-diligences.

374 Article

RFP Without prejudice to the provisions of

Subject to our comment on clause 6.1.2 above, kindly confirm the percentage of the total area of the Site which may not be delivered under clause 10.3.2. We request that 100% land

[ ] per cent to read 10%. The Authority would provide 90% of the land before Appointed



10.3.2

Clause 10.3.1, the Parties hereto agree that on or prior to the Appointed Date, the Authority shall have granted vacant access and Right of Way such that the Appendix shall not include more than [ ] ([ ] percent) of the total area of the Site required and necessary for the Airport …..

should be delivered to the Concessionaire under this clause in order to undertake the Project. Date.

376 Article

10.3.4

RFP The Authority shall make best efforts to procure and grant, no later than 180 (one hundred eighty) days from the Appointed Date, the Right of Way to the Concessionaire in respect of all land included in the Appendix. Provided that, the occurrence of any such delay in the grant of Right of Way, will not have any impact whatsoever on the rights, interests, entitlements, benefits, etc. of the Authority that it may have under and in accordance with this Agreement..

Subject to our comment on clause 6.1.2 above, it should be the obligation of the Authority to grant right of way within 90 (not 180 days) days and so it is requested to delete the reference to ‘best efforts’.This is also important as the timely handover of the remaining land will help the Concessionaire in effectively commencing the commercial operations.Any delay in grant of Right of Way will hamper the progress of the Concessionaire, and thus, damages should be provided along with extension of time to the Concessionaire.

The Authority shall make best efforts to procu re and grant, no later than 18 90 (one hundred eighty ninety) days from the Appointed Date, the Right of Way to the Concessionaire in respect of all land included in the Appendix. Provided that, the occurrence of any such delay in the grant of Right of Way, will not have any impact whatsoever on the rights, interests, entitlements, benefits, etc. of the Authority that it may have under and in accordance with this Agreement except t he rights, interests, entitlements, benefits, etc. accruing to th e Authority due to delay in g rant of Right of Way.In case of any delay in gran t of the Right of Way for the la nd included in the Appendix, t he

As per RFP



Authority shall be liable to pay Damages and grant extensi on of time in respect thereof.

389. Article

12.2.3

RFP The Preferred Bidder has submitted the initial Master Plan to the Authority within 30 (thirty) days of the issuance of the LOA.

We request to extend the timeline for submission of Master Plan to 120 days of the issuance of the LOA as the prescribed timeline is too short.

The Preferred Bidder shall has submitted the initial Master Plan to the Authority within 120 30 (one hundred and twenty thirty) days of the issuance of the LOA.

Refer query 105

392 Article

12.2.10

RFP The Concessionaire may, at any time during the Concession Period, seek approval of the Authority for modifications in the Master Plan to improve or augment the Aeronautical Services or to expand any part of the Airport to minimize or eliminate the congestion, and upon receipt of any request hereunder, the Authority shall grant approval to the extent reasonably required herein.

Please consider providing time period for approval by the Authority. This has been inserted for clarity purposes.

The Concessionaire may, at any time during the Concession Period, seek approval of the Authority for modifications in the Master Plan to improve or augment the Aeronautical Services or to expand any part of the Airport to minimize or eliminate the congestion, and upon receipt of any request hereunder, the Authority shall grant approval to the extent reasonably required herein, which shall not be unreasonably withheld and granted within a period 30 Days.

Accepted

400 Article

12.9.2

RFP The Concessionaire acknowledges and agrees that the capital cost of each of the Pre‐development Works for the

a) It is requested that Pre‐ development Works be completely undertaken at the cost and responsibility of the Authority.b) Kindly also confirm the clause reference highlighted in the suggested provision.

The Concessionaire acknowledges and agrees that the capital cost of each of the Pre‐development Works for the purposes of this Agreement, shall always be deemed to be an aggregate of the amount

a) The pre development works are limited to making encumbrance free site available to the Concessionaire / obstruction removal / shifting of utilities / construction of approach roads till airport boundary, supplying power / water upto the airport boundary. b) Will be updated



purposes of this Agreement, shall always be deemed to be an aggregate of the amount specified in Clause 0. The Concessionaire agrees and undertakes that any amount or expenditure in excess thereof in respect of the Pre‐ development Works, shall, save and except where such excess is on account of force majeure, change of scope instructed by the Authority or change in law, be borne directly, entirely and solely by the Concessionaire and the Authority shall not provide any compensation, cost, or otherwise for any such excess. Any additional costs…

specified in Clause 0. The Concessionaire agrees and undertakes that any amount or expenditure in excess thereof in respect of the Pre‐ development Works, shall, save and except where such excess is on account of force majeure, change of scope instructed by the Authority or change in law, be borne directly, entirely and solely by the Concessionaire and the Authority shall not provide any compensation, cost, or otherwise for any such excess. Any additional costs…

427. 20.1 RFP ……..The Concessionaire shall provide AODB access to the Authority for periodic review and generation of reports.

We understand that there shall be technical limitations to provide direct connectivity to AODB to the authorities and therefore request for interface details from the authorities to share the data.

‐NA‐ Will be provided

480 Article

36.1.1

RFP Save as otherwise provided in this Agreement, in the event that any of the defaults

Request to grant a cure period of 90 days to the Concessionaire, equal to the cure period provided to the Authority.

Save as otherwise provided in this Agreement, in the event that any of the defaults specified below shall have occurred, and the

As per RFP



specified below shall have occurred, and the Concessionaire fails to cure the default within the Cure Period set forth below, or where no Cure Period is specified, then within a Cure Period of 60 (sixty) days, the….

Concessionaire fails to cure the default within the Cure Period set forth below, or where no Cure Period is specified, then within a Cure Period of 90 (sixty) 60 (sixty) days, the….

481. 36.1.1 (a)

RFP …….(a) The Performance Security has been encashed and appropriated in accordance with Clause 9.2 and the Concessionaire fails to replenish or provide fresh Performance Security within a Cure Period of 15 (fifteen) days;….…(d) the Concessionaire abandons or manifests intention to abandon the construction or operation of the Airport without the prior written consent of the Authority;….…(p) the Concessionaire repudiates this Agreement or otherwise takes any action or evidences or conveys an

We suggest that cure period for providing a fresh Performance Security be extended to 30 days.

…..(a) The Performance Security has been encashed and appropriated in accordance with Clause 9.2 and the Concessionaire fails to replenish or provide fresh Performance Security within a Cure Period of 30 (thirty) 15 (fifteen) days;….…(d) the Concessionaire abandons or manifests intention to abandon the construction or operation of the Airport without the prior written consent of the Authority;……(p) the Concessionaire repudiates this Agreement or otherwise takes any action or evidences or conveys an intention not to be bound by the Agreement;….…(s) an execution levied on any of the assets of the Concessionaire has caused a Material Adverse Effect unless the same has been done in accordance with law or the directions of a court or sim ilar body;……

As per RFP



intention not to be bound by the Agreement;….…(s) an execution levied on any of the assets of the Concessionaire has caused a Material Adverse Effect;……

490 46.2 RFP (a) agrees that the execution, delivery and performance by it of this Agreement constitute commercial acts done and performed for commercial purpose;

Suggested revision is requested for clarity purposes. (a) agrees that the execution, delivery and performance by it of this Agreement constitute commercial acts done and performed for commercial purpose and neither Party shall invoke any of its powers w hich accrues to it as a governme nt agency/company.

As per RFP

500 Annex –I

(Schedule – I)

RFP Service Quality RequirementsPassenger boarding bridgesInternational – 90% of annual passengers Domestic – 90% of annual passengers travelling on A/C B737/A320 or larger unless not required by Airlines

We suggest that the said service standard may be relaxed as it’s a tier –II airport. ‐NA‐ As per RFP

544 5.8Obligation

s relating to employment of traine

d perso

RFP Obligations relating to employment of trained personnelThe Concessionaire shall ensure that the personnel engaged by it in the performance of its obligations under this

Please clarify on the percentage of Local personnel to be employed. As per State government laws



nnel Agreement are at all times properly trained for their respective functions. The Concessionaire shall comply with the Applicable Laws and the Applicable Permits in relation to the hiring of local personnel, and shall endeavor to employ as many local personnel including but not limited to the Project Affected Persons and/ or any of their family personnel during the implementation, development and operations of the Project.

554 Clause

4.3.1

Concession Agreement

Deemed Termination on account of Appointed Date not occurring within 180 days of date of execution of Concession Agreement, is onerous and too stringent. It is requested that Deemed Termination should happen on expiry of 360 days from the date of execution of Concession Agreement.

As per RFP

557. Clause

9.1.1


It is requested that the Performance Security should not be stipulated to be provided within60 days of the Concession Agreement, but should be allowed to be submitted within a period of 180 days of the Concession Agreement, so as to align with the requirement of Clause 4.1.3 which mandates submission of Performance Security as a Conditions Precedent of the Concessionaire

As per RFP

558 Clause

9.1.2


It is requested that the period of 90 days as provided under this Clause 9.1.2 for submission of Performance Security should be increased to 180 days, in line with the immediately preceding query.

As per RFP

562 Clause

Concess

The percentage of land forming part of Appendix has been left blank in the Concession Agreement. The Authority is requested to clarify the same.

Authority would provide details of the same



10.3.2

ion Agreement

566 Clause

12.2.3


The time period of 30 days provided for submission of Initial Master Plan from the date of LOA should be increased to atleast 120 days from LOA.Similarly, the timeline for submission of updated Master Plan should be increased from 60 days of execution of Concession Agreement to atleast 120 days from execution of Concession Agreement

The time lines prescribed under the Concession Agreement for submission of initial and updated Master Plan are unrealistic and practically impossible to comply with. It should be appreciated that Master Plan is a very comprehensive and holistic activity, upon which the execution of the entire Project is going to depend, therefore the timelines for completing this activity should match with ground realities and actual time required to be taken for completing this activity.

Refer query 105

585. Para 1.5 &

9.1/

page no. 27&

198

TEFR

It is requested to provide the details of total Land acquired till date and the details and status of land yet to be acquired.

Authority would provide the same

590 Para 10.11

/page no. 67

(DCA)

TEFR

License Fee to be paid by the concessionaire @ Rs. 20,000 per acre per annum. Please clarify on which land parcel license fee to be paid in the scenario where land is yet to be acquired.

Only for land handed over to Concessionaire

610 1.2.7 C

“For the purposes of this RFP and the Concession Agreement, the term “Gross Revenue” will mean all pre-tax gross revenues earned by the Concessionaire under or pursuant to the Concession Agreement…

The definition of “Gross Revenue” may please be kept simple as Gross revenue earned by concessionaire from project and remove all other items including insurance, receivables from deposits etc. from this

As per RFP



definition. 629. 2.15.

4 The envelopes specified in Clause 2.15.2 and 2.15.3 shall be placed in an outer envelope,

which shall be sealed. The outer envelope shall clearly bear the following identificationThe RFQ document does not contain clause 2.15.2 related to submission of the bid.

Noted

630 3.2.1 (b)

core sectors would be deemed to include power generation, information technology (IT) parks, ports, highways & bridges, expressways, railways (including metro rail), industrial parks/ estates, logistic parks and real estate development provided further that in case of real estate development,

Kindly modify 3.2.1 (b) in line with standard planning commission document by considering only Power instead of power generation. This will enable to include power projects other than generation like distribution and transmission which is covered in original document. Kindly modify clause as per below request;

core sectors would be deemed to include power, information technology (IT) parks, ports, highways & bridges, expressways, railways (including metro rail), industrial parks/ estates, logistic parks and real estate development provided further that in case of real estate development,

Refer query 637

632 ( b) the entity claiming experience should have held, in the company owning the Eligible Project, a minimum of 26% (twenty six per cent) equity from the date of signing of the Concession Agreement till date of commercial operations of the Eligible Project for which Eligible Experience is being claimed; and should have been designated as the lead member for such Eligible Project,

(b) the entity claiming experience should have held, in the company owning the Eligible Project, a minimum of 26% (twenty six per cent) equity during the period for which Eligible Experience is being claimed;

As per RFP

650 7.1 Representations and warranties

of the

Concessio

The Concessionaire represents and warrants to the Authority that: i) there are no actions, suits, proceedings, or investigations pending or, to its knowledge, threatened against it at law or in equity before any court or before any other judicial, quasi-judicial or other authority, the outcome of which may result in the breach of this Agreement or which individually or in the aggregate may result in any material impairment of its ability to perform any of its obligations under this Agreement;

Request the authority to be amended as under:i) there are no actions, suits, proceedings, or investigations pending as of date or, to its knowledge, threatened against it at law or in equity before any court or before any other judicial, quasi-judicial or other authority, the outcome of

As per RFP



naire which may result in the breach of this Agreement or which individually or in the aggregate may result in any material impairment of its ability to perform any of its obligations under this Agreement;

651. 9.1.1 DCA

The Concessionaire shall, for the performance of its obligations hereunder in respect of Phase I, provide to the Authority, no later than 60 (sixty) days from the date of this Agreement, an irrevocable and unconditional guarantee from a Bank for a sum equivalent to Rs. 108,00,00,000/- (Rupees one hundred and eight crores only)

Request if 60 days can be increased to 90 days

As per RFP

652 11.4 Felling of trees

The Authority shall assist the Concessionaire in obtaining the Applicable Permits for felling of trees to be identified by the Authority for this purpose, if and only if, such trees cause a Material Adverse Effect on the development, operation or maintenance of the Airport. In the event of any delay in felling thereof for reasons beyond the control of the Concessionaire, it shall be excused for failure to perform any of its obligations hereunder if such failure is a direct consequence of delay in the felling of trees. The costs and expense in respect of felling of trees shall be borne by the Concessionaire and any revenues thereof shall be paid to the Authority.

In the event trees had to be cut off from land adjoining the airport, and any compensation is levied by any court order/statutory body/public agitation – then request if the costs can be borne equally by both parties. We believe such a situation will not arise as all necessary approvals will be done by the authority in this front. Please confirm.

As per RFP

654 12.7 Expansion

of the

Airport

(DCA)

12.7.1 As and when the existing Phase(s) of the Airport, achieves the traffic trigger as specified in the Master Plan ….the Concessionaire shall undertake capacity addition and expansion thereof, to meet such shortfall and/or future requirements

Are these subject to a separate agreement or part of the same arrangement? If yes, can the terms be pre-defined.

Refer query 118

656 24.4.2

DCA

The Concessionaire acknowledges and agrees that it shall not sub-license, assign or in any manner create an Encumbrance on any part of City Side Development except in accordance with the provisions of Clause 5.2.

This article is requested to be deleted as otherwise the Concessionaire would not only lose an important source of fund raising, but also would not be able to tie up commercial arrangements with respect to city side development

As per RFP

658 17.12 Electricity

17.12.1 The Concessionaire shall procure water and electricity, as may be necessary for operation of the Airport, from the respective local utilities upon payment of charges in accordance with Applicable Laws. It is agreed that the Concessionaire shall install its own

It will be difficult for the Concessionaire to procure water and electricity on its

The connection for water and electricity would be provided by the Authority up to the boundary of the airport as part of pre-development activity.



and Wate

r Supp

ly

plant for standby supply of electricity as may be necessary for operation of the Airport. own, it would require the assistance and expertise of Authority to do so. This is covered in 6.1.2 (b)

Request this to be amended as under:The Concessionaire with the assistance of the Authority shall procure water and electricity, as may be necessary for operation of the Airport, from the respective local utilities upon payment of charges in accordance with Applicable Laws. It is agreed that the Concessionaire shall install its own plant for standby supply of electricity as may be necessary for operation of the Airport.

660 36.1 Termination for Concessionaire

’s Default

The defaults referred to herein shall include the following: v) a resolution for winding up of the Concessionaire is passed, or any petition for winding up of the Concessionaire is admitted by a court of competent jurisdiction and a provisional liquidator or receiver is appointed and such order has not been set aside within 90 (ninety) days of the date thereof or the Concessionaire is ordered to be wound up by a court except for the purpose of amalgamation or reconstruction, provided that, as part of such amalgamation or reconstruction, the entire property, assets and undertaking of the Concessionaire are transferred to the amalgamated or reconstructed entity and that the amalgamated or reconstructed entity has unconditionally assumed the obligations of the Concessionaire under this Agreement and the Project Agreements; and provided that

If a winding up petition has been admitted, and such order may or may not be able to set aside within 90 days in case the Court does not place the matter for hearing or there is a delay in passing the set aside order.

The clause can be amended to insert as under:v) a resolution for winding up of the Concessionaire is passed, or any petition for winding up of the Concessionaire is admitted by a court of competent jurisdiction and a provisional liquidator or receiver is appointed and such order has not been set aside within 90 (ninety) working days of the date thereof or the Concessionaire is ordered to be wound up by a court

As per RFP



except for the purpose of amalgamation or reconstruction,

661. General

Master planningAuthority is requested to provide following data required for developing master plan of airport. Pl indicate the date by which these data can be provided as these will have impact on due diligence, and designing master plan complying with DGCA regulations

a Wind rose data from Year 2000 till date. This data is essential for determining runway orientation and required to obtain regulatory approval from DGCA for approval of master plan.

b AutoCAD drawing indicating the exact perimeter of the land that shall be handed over so that Airport Master plan can be drawn within this perimeter.

c AutoCAD drawing of the contours of the land that shall be handed over to Airport developer.

d Marking of location on an AutoCAD drawing from which power supply and water shall be drawn by the airport developer for operating the airport

e As per the master plan indicated in the Techno – feasibility plan, a large piece of land for property development is located

Will be provided



outside and adjoining the airport boundary wall. As per BCAS security regulations no such property development is permitted close to boundary wall due security threat to airport. Thus a large proportion of such land will not be available to developer for real estate development.

Authority is requested to get approval of BCAS for the location of this site for commercial development

In addition, a significant part of this land is under the approach /takeoff path of proposed runway 05/23 , which will severely restrict the height of commercial development and impact commercial viability of airport.

In view of above, Authority is requested to review land use plan of the airport

664 General

Airport must not be mandated to be designed for Code F aircraft i.e. A 380 type of aircraft. This aircraft is not designed to operate on 2-3 hours long flights on domestic sectors in India. Therefore no Indian carrier has any plan to induct this aircraft in their fleet. Further, it will cost a few hundred crores rupees more to make airport compatible with Code F aircraft. Such waste of money could be questioned by CAG and also not permitted by AERA since it

Refer query 282



will increase flight ticket cost by a few hundred rupees. - which will be against the interest of common man.

AAI , the largest airport operator in the country has taken a considered decision not to upgrade any other airport, except Chennai and Kolkata, to accommodate Code F aircraft

686 RFP Claus

e 1.2.7 (c),

Page 12

RFP (i) Deposits which are refundable in nature should be excluded from Gross Revenue, since such amounts would need to be returned to the person giving the deposit;

We request that the definition of Gross Revenue should exclude:

As per RFP

687. RFP (ii) Pass through costs, such as taxes, utilities and expenses collected should be excluded from the definition of Gross Revenue as ultimately these do not remain in the hands of the Concessionaire and do not benefit its stakeholders in any way;

(i) Deposits, which are refundable in nature. In the alternate, if a portion of the deposits is included as Gross Revenue and, as a consequence, a part of it is paid to Authority, then at the time of refund, Authority should refund such amount to the Concessionaire, such that the refundable deposits are pass through in nature. It is typical in case of terminal retail and associated facilities to require a certain refundable deposit to be maintained by the sub-licensee;

As per RFP

688 Definition of “

Gross

Revenue”

RFP (iii) Debts provided by the Concessionaire which have deteriorated or been written off should be excluded as they will not come into the hands of the Concessionaire even at a later stage and hence would not be revenue for the Concessionaire;

(ii) Any amounts which are collected by the Concessionaire but eventually paid out to entities other than stakeholders such as taxes, charges for utilities and expenses;

As per RFP

689. RFP (iv) Authority cannot have final discretion in determining Gross Revenue, this should be a (iii) Debts which are not As per RFPResponse to Bidders' Queries on RFP – Part 4

31


subject matter of dispute resolution. realizable or which have been written off by the Concessionaire; and

690 RFP (iv) Any revenue earned from disposal of capital assets should not be treated as Gross Revenue as these would not constitute the operating revenues of the project.

As per RFP

692 RFP Also, please explain the implications of deposits being considered as revenues item for tariff calculations by AERA.

Bidders are requested to refer to AERA

693. RFP, Claus

e 1.2.7. (c). iv,

Page 13

RFP Gross Revenues to be computed on basis of IGAAP We understand that the accounting standards in India are likely to move towards IndAS and MCA has mandated the same for companies from 31 March 2017.

Please provide clarity on mechanism to be followed by AERA and Authority in case of potential changes in accounting standards in future.

Refer query 451

696 RFP, Claus

e 2.2.3 page 18

RFP O&M Experience We request Authority to clarify, the following:(a) Request Authority to allow both in case of consortium or Single Bidder to bring in O&M member before COD without any equity stake in SPV.(b) In case of Consortium, does O&M Member require to hold any stake in SPV.

Refer query 613

701. DCA, Part

I, Article 1, Page

CA Same issues as with the definition of “Gross Revenue” as provided in the RFP and set out at RFP Sr. No. 2 above.

Please modify the definition as requested at RFP Sr. No. 2 above.

Refer query 613



24Definition of

Gross

Revenue

707. DCA Part II,

Article 2, Para 2.1 (c),

page 37

CA The clause refer to the Development, operation and maintenance of City side as per Schedule A and Schedule B. However the Schedule A and Schedule B does not specify any scope for City Side Development.

We request Authority to provide the Scope and land to be provided for City side development.

We also request Authority to clarify that how much land for Airport and City Side development will be given on Appointed Date.

Authority would provide the same

717. DCA, Part II, Article 4, Para 4.1.3 (b), Page 41

CA 120 days for procuring all Phase 1 construction approvals is too stringent a time period. Particularly, given the timelines for approval of the Master Plan (which would be a pre-condition to seeking relevant approvals), it seems that getting Phase 1 construction approvals is not a realistic requirement, within the time period.

Please remove this requirement as a Condition Precedent and include the following covenant on the Concessionaire in Clause 5:

Refer query 105

718 DCA, Part II, Article 4, Para 4.1.3 (b), Page 41

CA Further, airport development is a dynamic activity and various approvals would be required at various stages through the entire development lifecycle and all approvals would not be taken upfront. Given the complex nature of the activity, it would not be logical to seek approvals prior to complete firming up of the Master Plan and even thereafter, the developments would keep changing with alterations to the Master Plan. Therefore there does not seem to be a rationale for including such a condition precedent to effectiveness.

5.18 The Concessionaire shall, from time to time, obtain and maintain all Applicable Permits as may be required for the commencement and undertaking of, Construction Works for Phase 1, including but not limited to Applicable Permits specified in Part 1 of Schedule E.

As per RFP

721. Given that the Concessionaire would commence expenditure of large amounts of money right from the time of LoA, any delay on the part of the Authority would have a significant financial impact on the Concessionaire. Accordingly, a suitable mechanism would need to be included to compensate the Concessionaire.

‘In the event the Authority does not procure fulfilment or waiver of any or all of the Conditions Precedent set forth in Clause 4.1.2 within the period specified in that Clause, and the delay has not occurred due to a Force

As per RFP



Majeure, the Authority shall pay to the Concessionaire, Damages in an amount calculated at the rate of 0.3% of the Performance Security for each day of delay until the fulfilment of the Conditions Precedent.’

722 DCA, Part

II, Article 4, Para 4.1.2, Page 40

CA The clause provides for certain conditions precedent to be fulfilled by the Authority. In order to ensure timely availability of Site and completion of pre-development works and Project Affected Persons settlement specific conditions precedents would be required to be included in Clause 4.1.2.

We requests that the following be made additional Condition Precedents to be satisfied by the Authority prior for the Concessionaire to achieve the Appointment date:

· Completion of Pre-development works in compliant with quality criteria by Authority· Land acquisition 100% completed· Project Affected Persons resettlement 100% completed

1. The pre development works are limited to making encumbrance free site available to the Concessionaire / obstruction removal / shifting of utilities / construction of approach roads till airport boundary, supplying power up to the airport boundary, water upto the airport boundary. 2. Refer query 3743. R&R and PAP details would be provided by the Authority

730 DCA, Part

II, Article 6,

Paragraph 6.4, Page 54

CA The entire mechanism with respect to the Authority’s Share is unclear, as the document does not deal with the nature of instruments that may be subscribed to be the Authority, the value at which subscription shall happen, the terms associated with the instruments etc.

(i) Will the Authority subscribe to the same classes of instruments subscribed to by the Promoters or only to equity shares of the Concessionaire?

Equity shares only

731. DCA, Part

II, Article 6,


CA (ii) In the event that Authority would only subscribe to Equity Shares, we assume that the 26% holding of the Authority only be determined with reference to the total equity share capital of the Company. Please confirm this understanding.

Yes

732 DCA, Part

CA (iii) Please confirm if the Authority would invest in

Refer query 733 and 556



II, Article 6,


the capital of the Company in the form of actual contribution or whether this would be in the form of conversion of money spend on Pre-development work.

733. DCA, Part

II, Article 6,


CA (iv) Clause 12.9 of the Concession Agreement refers to conversion of money spend on Pre-development work into equity. Please provide the cost of Pre-development work.

The equity stake of the govt is not only the pre-development cost, but also the expenses such as land acquisition cost, R&R cost and other intangible value of the Government.

735. DCA, Part

II, Article 6,


CA (vi) Would the Authority subscribe to convertible instruments?

No.

736 DCA, Part

II, Article 6,


CA (vii) Would the Authority permit the Promoters to subscribe to convertible debentures and preference shares? If yes, please reconfirm that the said instruments would be excluded from computation of Authority’s Share unless the Authority participates pro-rata in the subscription of such instruments.

Authority would not participate. Concessionaire would have to execute as per RFP

743. DCA, Part

II, Article 6,

Paragraph

CA The obligation of the Authority in respect of the Reserved Services is only to extend support in procuring services from the Relevant Governmental Authority and there is no firm consequence upon the Authority in case of a failure of such relevant Governmental Authority to provide the relevant services

Please include the following as Clause 6.4.4:

“The Concessionaire shall be relieved of all obligations and liabilities under this Agreement to the extent

Answer as per above



6.4, Page 54

resulting from a failure of the Authority or the Designated GOI Agency in providing the Reserved Services.”

747. DCA, Part

II, Article 7, Para 7.1(d

), Page 55

CA The clause provides for a representation from the Concessionaire stating that neither it nor the Preferred Bidder directly or indirectly have the equity ownership of any scheduled airline, cargo airline or any of their Associates, exceeding 26% of the total equity of the Concessionaire.

Please delete all references to the equity ownership in the Preferred Bidder, as this has no relevance and not consistent with the RFP.

Consistent with the modification requested in RFP Clause 2.2.1 (e) at RFP Comment 5

Clause 7.1(d) should be replaced as under:“it does not have the equity ownership of any scheduled airline and cargo airline, exceeding 26% (twenty six percent) of the total Equity of the Concessionaire;”

Associates to be removed

761. DCA, Part III,

Article 12, Para 12.2.3 and 12.2.

4, Page 70

CA Process of approval of the Master Plan: The current mechanism contemplates that the first draft of the entire airport master plan would be submitted within 30 days of the LoA. Thereafter a master plan would be submitted within 60 days of the execution of the Agreement and finalized after all comments within 120 days of the execution of the Agreement.

We note that the timelines for the development of the master plan seem very aggressive. That said, given that several of the other actions, such as construction approvals would be a fallout of the approved master plan, please confirm if the time lines for the CPs dependent on the master plan approval would commencement from the date of approval of the final master plan.

Please also confirm that the Authority shall not be permitted to make or instruct the Concessionaire to make any alterations to the Master Plan.

Refer query 105

778 DCA, Part

CA Ground Handling Services: The clause states that the Concessionaire shall provide or cause to be provided, at its own cost and expense, the infrastructure required for operation of the

Request you to kindly clarify if the infrastructure and

Ground Handling - "at its own cost and expense" to be removed



III, Article 18, Para 18.2, 18.3 and

18.4, Page 95

ground handling services.

Aircraft Fuelling Services: The clause states that the Concessionaire shall provide or cause to be provided, the infrastructure required for operation of fuelling services on equal access basis for all aircrafts.

Cargo Facilities: The clause states that the Concessionaire shall or cause to develop, operate and maintain the Cargo Facilities.

equipment required for the purposes of provision of ground handling services, aircraft fuelling services and cargo facilities need to be owned by the Concessionaire in the even the Concessionaire engages the services of a third party for provision of such services.

781. DCA, Part III,

Article 18, Page 95

CA It is also not clear that all activities other than those mentioned in Clause 18 may also be undertaken through sub-licenses / sub-concessions.

Please clarify that all activities that may be undertaken by the Concessionaire may also be undertaken through sub-licensees /sub-concessionaire.

Query is not understood.

796 DCA, Part

V, Article 36, Para 36.1.

3, Page 147

CA The clause provides for the mechanism in which the substitution right of the lenders may be exercised by the lenders representative.

The third proviso to the clause provides that no right of substitution shall be available to the lender’s representatives if the concessionaire’s default has resulted due to failure of the Concessionaire to achieve phase milestone of 40% of Phase I.

Please note that this clause severely limits the right of the lender, and shall impact the lender’s option in case of failure of the Concessionaire to meet with the obligations under the Financing Agreements.

We would request deletion of the third proviso.

As per RFP

806 DCA, Part VI,

Article 46, Para 46.17

, Page 172

CA Stamp duty shall be payable by Concessionaire We request Authority to provide exemption on Stamp Duty

The bidders are requested to go through AP Civil Aviation Policy which has a provision for exemption of Stamp duty. The applicable policies and laws will be applicable.

820 DCA, Part III,

Article 12, Paragraph 12.2.2 and

The Preferred Bidder/Concessionaire is required to submit an initial Master Plan within 30 days of the issuance of the LOA and an updated Master Plan on or before 60 days from the date of execution of the Concession Agreement.

We believe that these dates are insufficient to allow the Preferred Bidder/Concessionaire to prepare a fully considered and quality Master Plan to meet all the requirements set out in Schedule A, Annex II (Page 177) and also to meet

Refer query 105



12.2.3,

Page 70

the requirement set out in Article 12, Paragraph 12.2.2 (Page 70) for the Master Plan to be made “…pursuant to full consultation with all major stakeholders..” In addition, we believe that “Major stakeholders” needs to be defined. We suggest that clauses 12.2.2 and 12.2.3 are redefined as follows: 12.2.2: "The Master Plan for the Airport must be consistent with all the Regulatory requirements. The Initial Master Plan shall be made pursuant to full consultation with a limited group of stakeholders in accordance with the terms of the Applicable Laws and this Agreement. The updated Master Plan shall be made pursuant to full consultation with the group of stakeholders, in accordance with the terms of the Applicable Laws and this Agreement." 12.2.3: “The Preferred Bidder has submitted the Initial Master Plan to the Authority within 90 (ninety) days of the issuance of the LOA. The Concessionaire hereby undertakes that it shall submit the updated Master Plan, based upon the Initial Master Plan submitted by the Preferred Bidder, to the Independent Engineer and the Authority, for its review and comments on or before 270 (two hundred and seventy) days from the date of the execution of this Agreement."



824 DCA, Part III,

Article 12, Paragraph 12.5.

2 Page 73

The measurement of “Physical Progress is not defined. The definition of “Financial Progress” is not clear.

We request BIACL to more clearly define the measurement of ‘Physical Progress’ and ‘Financial Progress’. How does BIACL propose to objectively measure 'Physical Progress'? And, is 'Financial Progress' measured against the Phase I Cost or the Total Project Cost?

This will be defined in the DPR to be done by the Concessionaire.

831. DCA, Part III,

Article 17, Paragraph 17.13

.1, Page 91

The Concessionaire is required to agree and assure the Authority that is shall comply with all the conditions as will be laid down by the Ministry of Environment and Forests in their respective clearances.

As the clearances are in process and yet to be obtained, BIACL is requested to clarify the progress that has been made in obtaining these clearances and when they are likely to be obtained.

BIACL is requested to clarify which of the conditions would wholly be BIACL's responsibility, which would be the responsibility of the appointed Concessionaire and which are the joint responsibilities of the BIACL and the appointed Concessionaire.

The Authority would acquire the initial MoEF clearance required for the airport. Any subsequent clearances required for construction and operations of the airport, if any, are the responsibility of the Concessionaire.

840 DCA, Part III,

Article 22, Paragraph 22.9, Page 111

Punitive damages apply if any of the key performance measures listed in Article 22 fall below average performance in each quarter; these include the ACI ASQ survey and the various Service Quality Requirements set out in Annex I of Schedule I. The level of damages is not defined in the Draft Concession Agreement but will be determined ‘in consultation with AERA’.

We believe that BIACL and/or AERA will need to provide a more comprehensive service quality regime proposal, including the level of fines to apply to each measure so that the bidders can assess potential liability and build this into their financial models.

As per RFP

878 TEFS

Report - 0.9

TEFS

Concessionaire to ensure the compliance of preconditions imposed by MoD and MoEF. As Master plan design and financial assumption are directly depend on preconditions imposed by MoD and MoEF. Hence we

Will be provided



WAY

FORWARD

request BIACL to share the compliance of preconditions indicated in In-principal approval & site Clearance.

891. Land Status of Land Acquisition

What is the current status of land acquisition and possession for the project and when the full acquisition/ possession are expected to be completed?

Will be provided

921. Article 3

Grant of Concession

Being a Greenfield Project with high capital investment, the fist spell of concession period should be 50 years instead of 30 years. It may please appreciated that land meant for the non-aeronautical facilities/city side development should always have longer concession periods say minimum 60 years in one go, because demand generation and gestation period for development of these facilities will be much longer than the aeronautical facilities.

Concession period updated to 33+30
