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BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
4. 10.11 CALicense Fee for Project Land.
It has been proposed that License fee payable by the Concessionaire, for land to be allotted, will beRs. 20000/Acre per annum. However, the rate of escalation on this has been proposed at 6% per annum. We request that t the escalation of license fee should be reasonable like other infrastructure sector projects. For example, Port Policy of Andhra Pradesh specifies the escalation of lease rental at 2%. Hence, we request to reduce the escalation of license fee from 6% per annum to 2% per annum.
The rate of escalation has been based on inflation expectation of the RBI. It may be revised by Authority as it sees fit.
6. General CA Role of
State Govt.
We understand that Airports are under the Union List of Constitution of India. Hence, Airport development is the subject matter of Central Government. However, we observe that the Draft t Concession issued as part of the Bid Documents refers the BIACL as the Authority who shall enter into an Agreement with the Concessionaire. We understand that t BIACL is the GoAP Undertaking. Hence, we would like to have clarification regarding the specific role of the Government in awarding the concession to develop, operate and maintain the proposed Greenfield Airport at Bhogapuram. We are aware that State Governments can play a role by providing the land, investing the equity and providing grants and/or other incentives for the Project.We understand that concession for development and operation of Airport cannot be granted by a State Government. Kindly clarify who shall be the Concessioning Authority in case of Bhogapuram Airport? Also, clarify what will be the exact role of BIACUGoAP in the development of the said Project.
Concessioning Authority will be BIACL. Other greenfield airports under development such as Mopa, Navi Mumbai are being developed by the respective state governments.
7. Schedule V CA
State Government Support Agreement
We refer in the State Government Support Agreement. However, various activities are being supported by the State Government in terms of best endeavor effort basis. We request you to provide the firm commitment with some sort of responsibility.Further. Andhra Pradesh Civil Aviation Policy specifies certain fiscal as well as non-fiscal incentives which seems to have not been included. Sr. E Incentives Offered in Andhra Pradesh Civil Aviation Policy include providing land to private entity I AAI. Exemption of lease charges for specified period, reimbursement of electricity charges, reimbursement of property taxes, Viability Gap Funding, incentives for airlines, providing rail road access to the Airport, etc. Further. The policy also spells out the incentives like exemption from stamp duty payment for land purchased me leased, reimbursement of electricity duty, provision of fire-fighting and security free of cost.
SGSA is as per model document. Firm commitments required in SGSA to be spelt out by bidders. All the incentives mentioned in the AP Civil Aviation Policy would apply for the time period specified in the Policy. The Concessionaire would have to apply for the incentives separately to the GoAP after the Appointed
1Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
In addition to the incentives for airport infrastructure, there are incentives specified for airport related ancillary infrastructure also like MRO (Maintenance, Repair and Overhaul) facilities. Warehousing and processing facilities. Air freight stations. Etc. These incentives include the stamp duty exemption and property tax reimbursement subject to specified investment limit for period of 5 years from COD.Thus. We would like to request the Authority to include all the fiscal and non-fiscal incentives in the State Government Support Agreement as provided by the Andhra Pradesh Civil Aviation Policy 2015 with firm commitment and not just with an endeavor to provide these incentives.
Date.
8. Article 24 CA
City Side Development - Scope of Industrial Development
Under the scope of City Side Development. There is a proposal to develop industrial segment. It has not been specified in detail regarding the industries which can be set up within the area allocated for this segment. Hence, we request the Authority to clarify whether it may include the defense manufacturing activity. If yes, what shall be the requirements for clearance for the same?Defense manufacturing may include the manufacturing of defense Aircraft ts also. We request the Authority to clarify whether the Runway proposed for the Airport can be used for testing of the Aircraft which may be manufactured under the industrial segment of City Side Development.
Emphasis was given on backward and forward linkages of the industries already present in AP and sunrise industries such as F&B, Electronics, and Auto & Auto components.
Defence manufacturing would be allowed by the Authority. The requisite clearances and security requirements are to be evaluated by the bidder.
The Authority has no objection in the Concessionaire manufacturing Defence aircrafts and testing the same in the runway. View of the MoCA, MoD and other relevant authorities may be taken.
2Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
9. Article 24 CA
Rules for industrial and commercial structure
What are the specific rules regarding: a) Safe distance from Runway and adjoining funnel area for: i. For Commercial Developmentii. For Industrial Developmentiii. For Polluting Industries like Power Plant or any other such industryb) Rules of height for industrial and commercial structures within certain radius of runway and adjoining funnel.
The safe distances and height restrictions shall be in accordance with provisions of ICAO Annexure-14, relevant CAR provisions of DGCA and rules & regulations of BCAS/AAI etc... Polluting / smoke producing industries or industries attracting bird menace are strictly not permitted in accordance with AAI/DGCA/BCAS/AERA norms.
10 General CA
Tariff Fixation Framework
We request the Authority to clarify the Regulatory Framework for Tar if Fixation for the proposed Project. Please clarify whether tariffs chargeable by the Concessionaire for providing various Airport Services will be regulated or determined by the Concess ionaire.Also. Kindly clarify the charges to be paid by the Concessionaire regarding the services provided by AAI I any other designated Govt. Agencies as mentioned in Article 19.1. Also clarify how these charges will be fixed and what will be the frequency of payment? What shall be the monthly I yearly amount payable by the Concessionaire against the above?
AERA would be the regulatory authority for the tariff fixation. Bidders are to refer to the rules and regulations of AERA regarding the same.
11.26.1 and 27.2
CA Revenue Share
DCA specifies the Revenue Share at 26.1 as well as 27.2 Clauses. 26.1 species Revenue Sharebeing applicable to be paid for each year starting from execution of the Concession Agreement. However, Article 27.2 refers that the Revenue Share starts from the day after completion of 10 years from COD. We request you to correct I clarify the position regarding the applicable year of starting the payment for Revenue Share.
The revenue share starts 10 years from COD.
3Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
18 12.9 CAPre-development works
We request you to clarify the amount of Pre-development works that is to be considered for the referred sion.
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.
19. Article 1.1.1 RFP Please give detailed breakup of the project cost for phase 1 and phase 2
separately. Please also provide the supporting documents for such details. Please refer chapter-7 of TEFS report.
21. 2.2.1(d) RFP Authority to provide the names of its legal, financial and technical advisors.
The Concessionaire can query the Authority before appointing any external consultants. Authority would clarify within 1 week of receipt of query on any conflict of interests.
4Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
52 4.1.3 CA
We request that the time period for fulfilling the Conditions Precedent by Concessionaire should be increased to at least 180 days. Also, similar to proviso to clause 4.1.2 allowing Authority an additional period of 120 days for fulfilling the Conditions Precedent, a proviso should be added for Concessionaire in clause 4.1.3.
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
57. 4.3.2 CA
Additional clause be added at the end of Article 4.3.2 to read as follows: “Upon termination of the Concession Agreement in accordance with Clause 4.3 and provided that in the event the delay in occurrence of the Appointed Date is for reasons attributable to the Authority, the Authority shall release the Bid Security or the Performance Security, as the case may be, submitted by the Concessionaire in accordance with the provisions of this Agreement.”
Refer Clause 9.3
62 5.2.4 CA
We request the clause may be modified as mentioned below:“Except as otherwise contained in this Agreement for the purposes of the construction and operation of the Airport, including Aeronautical Services and the Non-Aeronautical Services, the Concessionaire shall not assign or in any manner create an Encumbrance on any Project Asset without prior written approval of the Authority, which approval shall not be unreasonably withheld the Authority may, in its discretion deny,
As per RFP
5Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
63. 5.3.2 CA
Please refer to the definition of the term ‘Change in Ownership’ which prescribes the equity thresholds for determining the change in the ownership of the Concessionaire. In light of the same, sub-clauses (a) and (b) in this Article 5.3.2 are not required and the same may be deleted.
As per RFP
66 5.4.6 CA
We suggest the following highlighted words be added in the para:-
“The Preferred Bidder will, and the Concessionaire will procure that the Preferred Bidder and all shareholders of the Concessionaire other than the Authority (or its nominee), transfer its entire shareholding in the Concessionaire, upon the Termination of this Agreement to the Authority, in consideration of the receipt of the Termination Payment and Performance Security, as the case may be, in accordance with the terms hereof.”
As per RFP
67. 5.6.2 CA We request that the value limit for e-tendering should be increased to Rs 50 crores and the limit should be further revised as per Price Index on an annual basis.
As per RFP
6Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
72 6.2 CA We request that the Authority should be responsible for the security, management and maintenance of the Site, at its own cost and expense till the Appointed Date or the actual handover date, whichever is later.
As per RFP
79. 7.2 CA
1) We request addition of the highlighted portion in the following sub-clause:
“(e) it has no knowledge of any violation or default with respect to any order, writ, injunction or any decree of any court or any legally binding order of any Government Instrumentality which may result in any Material Adverse Effect on the Authority’s ability to perform its obligations under this Agreement and no fact or circumstance exists which may give rise to such proceedings that would have Material Adverse Effect on performance of its obligations under this Agreement;”2) We request addition of the following clause as 7.2(h) as a representation from the Authority:
“all information furnished by the Authority as part of the bidding process and in this Agreement and as updated on or before the date of this Agreement is true, complete and accurate in all respects as on the date hereof;”
As per RFP
81. 9.1.2 CA The time period for fulfilment of Conditions Precedent under clause 4.1.3 and encashment of Bid Security for failure of submission of Performance Security under this clause 9.1.2 should be same at 180 days.
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
7Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
82 9.1.3 CA
We suggest the following modification in this Article: “The Concessionaire shall provide separate Performance Securities prior to undertaking the development works Construction Works for any of the subsequent Phases, for an amount equivalent to 2% (two percent) of the cost approved for such Phase by the Senior Lenders of each such Phase of the Project….”
As per RFP
83. 9.2 CA
Considering that the terms regarding consequences of failure to meet the Conditions Precedent by the Concessionaire and appropriation of the Bid Security is already provided in Article 4.2, we suggest the following modification in this Article:“Upon occurrence of a Concessionaire’s Default or failure to meet any Condition Precedent, the Authority shall, without prejudice to its other rights and remedies hereunder or in Applicable Law, be entitled to encash and appropriate from the Performance Security, the amounts due to it, for and in respect of such Concessionaire’s Default or for failure to meet any Condition Precedent. Upon such encashment and appropriation from the Bid Security or Performance Security, as applicable, the Concessionaire shall, within 45(forty five) 15 (fifteen) days thereof, replenish, in case of partial appropriation, to its original level, and in case of appropriation of the entire Bid Security or Performance Security, provide a fresh Performance Security, failing which the Authority shall be entitled to terminate this Agreement in accordance with ARTICLE36. Upon such replenishment or furnishing of a fresh Performance Security, the Concessionaire shall be entitled to an Cure Period of 120 (one hundred twenty) 60 (sixty) days for remedying the Concessionaire’s Default or satisfying any Condition Precedent, and in the event of the Concessionaire not curing its default or meeting such Condition Precedent within such Cure Period, the Authority shall be entitled to encash and appropriate such Performance Security as Damages, and to terminate this Agreement in accordance with ARTICLE 36.”
As per RFP
8Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
96 10.4 CA
Please give a list of existing rights of way, easements, privileges, liberties and appurtenances to the Site. Further, The Site needs to be free from all existing Encumbrances considering the nature of obligations of the Concessionaire in relation to development of the Airport and therefore, we request addition of the following highlighted language in this Article:“……..It is agreed that existing rights of way, easements, privileges, liberties and appurtenances as may be available to the Project Affected Persons pursuant to the Government Resolutions to the Site shall not be deemed to be Encumbrances.”
As per RFP
97. 10.6 CA
The clause mentions that Concessionaire shall bear all costs and charges for any special or temporary Right of Way required by it with regard to access to the Site including those from PAPs. This is unrealistic and non- feasible. Authority should provide all required Right of Way for the purpose of Airport development.
Bidders are advised to peruse Article 10 in entirety. The Clause 10.6 refers to special/ temporary right of way, which necessarily are in the nature of the access and other right of way, if any required by the Concessionaire as per its own plans. Authority has no role in that. No Change
100 11.2 CA
We request modification of this Article as follows: “The Concessionaire shall, subject to Applicable Laws and with assistance of the Authority, undertake shifting of any utility including electric lines, water pipes and telephone cables, to an appropriate location or alignment within or outside the Site if and only if such utility causes or shall cause a Material Adverse Effect on the development, operation or maintenance of the Airport……”.……”.The Concessionaire should have the right to remove all such obstructions (as may be required) for smooth development, construction and operation of the Airport.
As per RFP - Refer Clause 11.2
9Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
112 Article 12.5.1 CA
Authority to confirm the completion dates for the Pre-development Works. It is requested that the Concessionaire should be given clear 3 years period post completion of Pre-development Works by the Authority.
As per Query 94 above
118 Article 12.7.1 CA
The traffic trigger is not mentioned in the clause / Techno-Economic Feasibility Report. We request Authority to confirm that the development for second phase will be required to be taken up once the traffic reaches 80% of the capacity of phase 1.
Traffic Trigger would be used for triggering Phase 2 expansion. Amendment to RFP would be issued for the same
119. Article 12.9.1 CA
There is no clarity on the quantum, extent, cost and other details of Pre-development Works. Kindly provide the same. The application made to MoEF does not include any reference to any of the pre-development works. The TEFR indicates considerable amount of pre-development works required to initiate any airport development works on site. Hence, Authority is requested to provide detailed break up of all required pre- development works along with costs, schedule and specific documents.
Pre-development works will be undertaken by Authority.
10Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
124 Article 13.3.1 CA
Please clarify the following sentence in the clause as the meaning is not clear: “…The size of sample for such tests shall, to the extent possible, not exceed 10% (ten percent) of the quantity and/or number of tests the total works performed….”
"The size of sample for such tests shall, to the extent possible, not exceed 10% (ten per cent) of the quantity and/or number of tests that the owner or builder of such works would normally undertake in accordance with Good Industry Practice."
134 17.9 CA
We request that the following modifications may be made to this Article:“The Concessionaire shall not be considered in breach of its obligations under this Agreement if all or any part of the Airport is not available to Users on account of any of the following for the duration thereof:(a) an event of Force Majeure or non-compliance by the Authority;(b) measures taken to ensure the safe use of the Airport except when unsafe conditions occurred because of failure of the Concessionaire to perform its obligations under this Agreement; or(c) compliance with a request from the Authority or the directions of any Government Instrumentality, the effect of which is to close all or any part of the Airport.Provided that any such non-availability and particulars thereof shall be notified by the Concessionaire to the Authority without any delay.Provided further that the Concessionaire shall keep all unaffected parts of the Airport open to normal operations, provided they can be operated safely.”
The inclusion of word "all" is accepted, Noncompliance of Authority is not accepted
141. 18.3 CA We understand that “equal access basis for all the aircrafts at the Airport” means fuelling services in a transparent manner without discrimination between aircraft. Please confirm if the understanding is correct.
The clause is clear
11Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
147. 18.12 CA Parking Query Please confirm if Parking necessarily has to be a multi-level car parking. The clause is clear
157. 19.6(i) CA We request to delete the words “at its own cost and expense”. If the deletion is not possible, please modify the clause to state that this obligation will only be limited to operational areas of the Reserved Services.
As per query no 145
159. Article 19.7.2 CA
Please amend the clause as mentioned below: “….The obligations of the Concessionaire in respect of Reserved Areas and its access thereto shall be restricted to maintenance of civil works, structures and equipment forming part of the Reserved Area (and provided by Concessionaire as part of civil works only), provided that it shall have unrestricted access thereto in case of Emergency, fire or other similar event….”
As per Query 144
12Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
162 20.2.3(f) CA ICAO and IATA should be removed since they are not Government
Instrumentality.
As per RFP. Clause will be updated to reflect ICAO and IATA not being Govt Instrumentalities
169. 22.3.2(d) CA We request deletion of this clause as Concessionaire will need flexibility to
regulate the vehicular and other movements. As per IATA Service C norms
170 Article 22.7.1 CA
The requirement that the Airport shall appear within top 20 percentile of all airports, in its category in the world in ACI survey needs to be deleted since concessionaire will have no control over the development of other airports. The requirement of achieving and maintaining a rating of at least 4.5 should meet the purpose of the Authority.
As per Query 540
13Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
171. 22.7.3, 22.7.4 CA
We request the Authority to delete the provisions of engaging an independent expert agency to conduct a sample survey of User satisfaction once every calendar quarter since User surveys are already proposed to be conducted by ACI which is an independent and internationally recognized council of international airports.
User survey may be done once every 6 months.
176 24.5 CA Details to be mentioned
Please confirm the FSI available or the city side development. Also, as per clause 12.1.1(d), Authority itself is the town planning authority for the airport. Hence, the specific FSI should be mentioned in this clause, which will be applicable for the entire Concession Period instead of stating that FSI will be lower of [ ] or the limit specified by the local authorities.
FSI: 1.5
180 Article 25.1.1 CA
Period for Financial Close should be increased from 120 days to at least 180 days.Further, considering that achieving the Financial Close is a Condition Precedent and non-fulfilment of which will attract Damages as per Article 4.2, the Concessionaire should not be made liable to pay Damages over and above the Damages set out in Article 4.2.
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
14Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
190 Article 28.6.2 CA
Please confirm that AERA shall grant approval for the Construction Works for the subsequent phases since as per our understanding AERA does not grant any approval for Construction Works. Also please clarify about other approvals that Concessionaire is required to take from other Government Instrumentality for undertaking the Construction Works.
As per RFP
191. 29 CA
The term “Competing Facility” is not defined anywhere in the Agreement; hence, we are unable to assess the impact of any such competing facility on the Concession.Notwithstanding the above, we would like to submit the following:1) As per finalized National Civil Aviation Policy of GOI, if a new greenfield airport is proposed within 150 km radius of an existing operational AAI airport (not being a civil enclave), AAI will be compensated by any of the following options: (a) Right of First Refusal (ROFR), (b) equity participation in the new airport between 26% - 49% or (c) formation of JV between AAI and the state government. Such compensation will be available only if AAI is not reaching the saturation point in the year of commissioning of the new project.2) In case of Bhogapuram Airport, this is a greenfield project wherein the Authority has stipulated Phase 1 capacity as 6.3 million passengers p.a. as against the FY 15-16 passenger throughput at existing Visakhapatnam airport of merely 1.8 million passengers. Thus, the Concessionaire is expected to construct a facility which is for about 3.5 times the current demand, making the project a heavily capital-intensive project with much longer capital recovery period. Therefore, Authority should guarantee that no greenfield competing airport project will be taken up either by Authority or by any other government instrumentality unless the Bhogapuram Airport reaches saturation.3) Further, Authority should confirm that the existing Visakhapatnam Airport shall cease to handle civilian operations once Bhogapuram Airport is commissioned. Moreover, Authority should also confirm that civil operations shall not be revived at Visakhapatnam Airport at any time, unless the Bhogapuram Airport reaches saturation. In a scenario where Visakhapatnam Airport is made operational, it will also be treated as Competing Facility and shall entitle Concessionaire of Bhogapuram Airport for the compensation.
1) Since Vizag is a Civil Enclave, the 150 km rule is not applicable as per Greenfield Airports Policy. 2) The existing airport in Vizag would be closed for a period of 30 years as per the MoM of the MoCA approval meeting. 3) The existing airport in Vizag would be closed for a period of 30 years as per the MoM of the MoCA approval meeting. 4) As per Greenfield Airports policy, no competing facility can arise within 150 km of existing airports. RoFR will be provided to the Concessionaire (KPMG to introduce the Clause from NMIA) 5) As per Greenfield Airports policy, no competing facility can arise within 150 km of existing airports. RoFR will be provided to the
15Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
4) Compensation options available to AAI as per National Civil Aviation Policy should also be made available to the Concessionaire in case of Competing Facility.5) Alternatively, in addition to the extension of Concession Period as stipulated in clause 29.2, operationalization of a Competing Facility should also be treated as Change in Law under Article 40 of the Concession Agreement. Accordingly, the Concession Agreement should be amended so as to place the Concessionaire in the same financial position as it would have enjoyed had there been no Competing Facility.
Concessionaire (KPMG to introduce the Clause from NMIA)
196 33.2(a) CA Following may be added in this Article: “aircraft accident or breakdown”.
Will be considered If it shuts down the airport for a time period of 7 days continuously over a period of one year.
201. Article 33.9.1 CA
Please add the highlighted sentence in the said clause to read as follows:-“If Termination is on account of a Non-Political Event, the Authority shall make a Termination Payment to the Concessionaire in an amount equal to 90% (ninety percent) of the Debt Due less Insurance Cover and an amount equal 90% (ninety percent) of the Additional Termination Payment less Insurance Cover, if applicable.”
As per RFP
16Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
205. 36.1.1(g) CA
We request the Authority to kindly make the modifications as under:“34.1.1(g) the amount of Damages outstanding at any given point of time 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 10% (ten percent) 2% (two percent) of the Revenue Share for the preceding Accounting Concession Year;”
Sub-clause (g) is removed
217. New Clause CA
Authority is requested to add a new clause as 36.9 as mentioned below:“On account of Termination of this Agreement as a result of Authority’s Default or Force Majeure, Performance Security would be released to the Concessionaire.”
As per RFP
223. 46.3 CA We request Authority to delete this clause since a separate Article 40 has already been provided for Change in Law.
As per RFP. Clause will be moved to "Change in Law" Article.
17Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
231.
Schedule I Annex I
CA The Performance Measure states “Lifts, escalators and travellators, etc.” Please confirm that this list is only indicative and the travellators are not mandatory.
Depending on distances to be covered and the passenger traffic volume, Concessionaire may provide travellators.
232
Schedule I Annex I
CA It mentions passenger boarding bridges to be 90% of annual passengers for both International and domestic. We request Authority to revise this to 80% for International and 60 % for Domestic, in order to optimize the project costs.
Accepted for domestic passengers for Phase 1 developments keeping in view low traffic density
233.
Schedule I Annex I
CA Parking bays percentage time available is mentioned as 99%. We request Authority to revise this to 90%. Accepted
237.
Schedule I Annex I Clause 2
CA
The clause stats in the beginning that the subjective quality of service shall be measured on the parameter of “Overall satisfaction with the airport” on the ACI ASQ survey to be conducted every quarter. However, in the end, it states that rating of the Airport shall be computed using the list of items given in the clause.As this is contradictory, please confirm that “Overall satisfaction with the airport” will be the only criteria and rating for this criteria alone will be considered for the compliance under the Agreement. Therefore, we request that
"Overall satisfaction of the airport"
18Response to Bidders' Queries on RFP – Part 2
BHOGAPURAM INTERNATIONAL AIRPORT CORPORATION LIMITED (BIACL) Notice No. 114/BIA/RFP Notification/2016 Dated 27 September 2016
Sr. No.
Ref. Article
Document Particular Bidder Queries Suggested Text / Justifications from Bidders Authority Responses
the list of parameters mentioned in this clause (Navigational Items, Connectivity Items, Service Facilities, and Value for Money) should be deleted.
251.
3.4.1Schedule S – Shareholders Agreement
CA
Please provide the details of arrangement entered into or to be entered by the Authority with the Project Affected Persons, providing and governing the grant and issuance of the beneficial interest in the Authority’s Shares in favor of the Project Affected Persons.
Authority would provide details of the R&R package for PAPs
258
2.2(d) of Schedule T – CNS/ATMAgreement
CA
The National Civil Aviation Policy provides the following: “Facilities for government agencies like CISF, Immigration, Customs, Police etc., other than reasonable office space and operational area, will be arranged for by the government on payment basis, except for items to be billed to Passenger Service Fees (PSF) or those covered under Handling of Cargo in Customs Area Regulation 2009 and CISF Act. No cost will be levied on the airport operator. Norms for such facilities will be finalized in consultation with the stakeholders.”In view of the aforesaid policy, we request that obligation of the Concessionaire to provide residential accommodation and parking facilities should be deleted.
Refer Query 506
259.
2.2(h) of Schedule T – CNS/ATMAgreement
CA In view of the National Civil Aviation Policy as aforesaid, we request that obligation of the Concessionaire to provide residential flats for at least one half of the ATC employees (free of any cost or charge) should be deleted.
Refer Query 506
19Response to Bidders' Queries on RFP – Part 2
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269. Environment related
MoM of EAC (Infra 2) MoEF mention that Public Hearing is to be conducted and has asked for status of R &R. Authority is requested to clarify and provide the details of Rehabilitation and Re-settlement package for the PAPs. Authority to provide the conditions of SCZMA for this project.
R&R and PAP details will be provided by the Authority.
272 Environment related
Authority to also confirm that the Public Hearing proposed for this project shall include the entire proposed airport site area of Phase 1 as well as Phase 2 including the 1525 acres proposed for commercial development.
Only the airport site (2,004 acres) is included in the public hearing.
274 TEFR
Authority to confirm that the Concessionaire is free to revise/change/have new uses for the proposed Real Estate development in the designated 1525 acres for Real Estate development and there shall be no requirement to adhere to the uses indicated in the TEFS for this 1525 acres of land.
Confirmed. The master plan of the Concessionaire should be strictly in accordance within laid down guidelines of Ministry of Civil Aviation, Government of India, GoAP, AAI / DGCA / BCAS / AERA and local by-laws.
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275. TEFR
Authority to provide copy of Real Estate demand assessment study done by it for the proposed 1525 acres of Real Estate/Commercial development for Bhogapuram International Airport.
Existing demand assessment study for larger land parcel may be provided.
276 TEFR Authority to provide Contour Plan and Master Plan of the project in AutoCAD.
Technical consultants have provided the AutoCAD drawings to bidders who have purchased the TEFR.
277. TEFR
The Authority should provide ATC report on the existing obstruction of Adu-Konda Hill of 255 meter height located about 15 kms from the approach of Runway 10/28. Similarly, Authority should also provide ATC report on the existing obstruction of Mane-Amanam Hill of 255 meters, located about 3.3 km South of the Airport.
The location of hill(s) are marked on the obstruction plan and these need to be taken into consideration during further stages of the project.
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278 1.5 TEFR
It is stated that the land measuring 5311 acres was finalized in August 2015 for the Airport. It also states that the total land to be acquired for the proposed airport development is 5311 acres. Authority is requested to confirm that the entire 5311 acres of land has been acquired by now, and provide the details of land acquisition and associated compensation to be paid to the Project Affected People (PAP) by the Authority.
PAP details will be provided to bidders.
279. 2.4 TEFR
It states that the application for TOR was submitted in February, 2016 and presentation to MoEF committee was done on 28th March, 2016. Therefore, this project is yet to receive MoEF approval. Authority to clarify the date by which MoEF approval is expected for this project.The Concession Agreement should state (in relevant clauses and articles) that the airport development shall be taken up as per the conditions of MoEF approval and the Airport Master Plan shall be modified if as required as per the conditions of MoEF approval.
CA clause will be modified as suggested by bidders
280 4.2.5 TEFR
It is stated that the present ground elevation of Bhogapuram International Airport is about 20-60 meters and aerodrome elevation for planning is considered as 40 meters above mean sea level. This implies that large scale filling shall be required on site. Authority to confirm on the method for cutting of the hill and filling of the site proposed as part of Airport Master Plan, and its inclusion in EIA study submitted to MoEF for approval.
The earthwork quantities are worked out as per Master plan stage detailing requirements and are projected in cost estimates. No hill cutting is envisaged.
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281. 4.2.6 TEFR
It is stated that maximum rainfall in 24 hours (in1961-1990) has been 293.3 mm, and average annual rainfall is 1051 mm. Authority to confirm that the Airport Drainage Master Plan is prepared with the drain sizes and out fall levels as per requirement of rainfall and proposed airport elevation levels.
This needs to be addressed during further stages while detailing of the project is undertaken. Concessionaire would be doing the DPR and this would be addressed then.
283. 5.2.4.1 TEFR
The clause mentions that 95% of passengers shall be provided with contact gates and therefore eight aerobridges have been proposed. Authority is requested to avoid any such conditions of 95% passengers to be serviced by contact gates. As requested earlier in case of Schedule I – Annex I, we request Authority to revise this to 80% for International and 60 % for Domestic, in order to optimize the project costs.
As per response for query 232
284 5.3.1.1 TEFR
The clause mentions that the proposed level and services for BIA is IATA level B. Authority is requested to confirm IATA Level C, in line with the requirement stipulated in Clauses 18.6.9, 20.3(c) and (d), etc.
As per RFP
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288 TEFR
Authority confirm that commercial development/Real Estate development can be taken up in the land side area in Phase-1 of airport development, within the 2004.54 acres of Phase-1.
Air side land plan to be maintained as per technical master plan. Land side may be developed as per existing ICAO, DGCA, MoCA, BCAS, GoI and GoAP norms.
289. TEFR Authority to provide proposed R& R plan for more than 10 settlements located
within the airport project area. There are only 3 settlements and the plan would be provided.
292 1.3 RFPSchedule of Bidding Process
Considering a greenfield airport opportunity the prescribed timelines are too short to analyze the opportunity and complete various studies associated with it.Considering above, we request to extend the Bid Due Date by four (4) months.
‐NA‐ Bid due date extended
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293. 1.3 & 1.4 RFP Pre‐bid
Conference
We request that post circulation of response from the Authority and circulation of revised drafts of RFP and the Concession Agreement, one more pre‐ bid conference should be held so that the bidders may further seek clarity/suggest post inputs received from the Authority.
‐NA‐ Second pre-bid meeting scheduled for 7th Oct 2016
294 2.2.1 (c) (vi) RFP
Such Bidder, or any Associate thereof has participated as a consultant to the Authority in the preparation of any documents, design or technical specifications of the Project.
Please list the names of all consultants/advisors and their subordinate firms who participated in the preparation of the projects in full or part. ‐NA‐
The bidders can refer to the Authority the names of technical, legal or financial consultants which they are planning to engage. Authority will, within 7 working days, confirm whether they fall under the list of consultants assisting the Authority.
295. 2.2.1 (d)
RFP Any Bidder shall be liable for disqualification and forfeiture of Bid Security if any legal, financial or technical adviser of the
Please provide the name of legal, financial and / or technical advisors of the Authority in relation to the Project so that the Bidder may comply with this clause.
‐NA‐ The bidders can refer to the Authority the names of technical, legal or financial consultants which they are planning to engage. Authority will, within 7 working days, confirm whether they fall under the list of consultants assisting the Authority.
25Response to Bidders' Queries on RFP – Part 2
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Authority in relation to the Project is engaged by the Bidder, its Member or any Associate thereof…
299. 2.15 RFPSealing and Marking of Bids
Request to kindly revise the clause references as clause2.15.2 is missing in the said provision. ‐NA‐ Noted
302 Recital A
RFP The Government of Andhra Pradesh (“GoAP”), approved the establishment of an international airport for public use at Bhogapuram Mandal, Vizianagaram District and designated the Authority as a project proponent for
Request to provide us with a copy of the GoAP Order.Additionally, request clarity on the status of the existing Vizag airport postcommencement of operations at Bhogapuram Airport. In the Investor presentation, it’s clearly mentioned that the existing Vizag airport will be closed upon commencement of operations at Bhogapuram.The same is not reflected in the bidding documents for Bhogapuram. Request you add a provision in the Bidding documents to bring clarity.
‐NA‐ Will be provided during signing of concession agreement
26Response to Bidders' Queries on RFP – Part 2
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the purposes of the construction, operations and maintenance of the Project vide GO RT No. 63 dated 20 May 2016.
303. Recital B RFP
The Government of India (“GOI”), (“GOI Approval”) granted its approval for the Project subject to the terms and conditions stipulated therein vide GO No. [ ]
Request to provide us with a copy of the GOI Approval (including In‐principal Approval).Please also provide the constitution of the Authority as well as under the powers and authorization as ‘Airports’ is a Central Subject and Ministry of Civil Aviation, GOI is the nodal ministry for development and regulation of civil aviation in the Country.
‐NA‐ In-principle approval for Bhogapuram airport has been granted by MoCA on 26th Sep 2016
306 1.1 RFP Change in Ownership Request to amend the said provision for clarity purposes.
means a transfer of the direct and/or indirect legal or beneficial ownership of any shares, or securities convertible into shares, that causes the aggregate holding of the Preferred Bidder, together with its Affiliates, in the total Equity to decline below:
As per RFP
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312 1.1 RFP Gross Revenue
Request to consider the following submissions:a) ‘deposits refundable’ should not be part of the Gross Revenue as this will create complexities from the perspective of regulatory reconciliation of revenue and accounting standards for revenue recognition.b) Kindly include the following exclusions (from the calculation of Gross Revenue):
‐NA‐ As per RFP
313. RFP
1. any bad debts written off provided these pertain to past revenues on which Annual Premium has been paid to the Authority;2. Reimbursement of costs incurred, actual or otherwise for provisioning of activities undertaken by Government Instrumentalities; 3. payments received for provision of electricity, water, sewerage or analogous utilities to the extent of amounts paid for such utilities to third party service
As per RFP
318 1.1 RFPProject Affected Persons
Please provide the details such as a number of Project Affected Persons and status etc. ‐NA‐ Details will be provided
320 1.1 RFP
“Right of Way” means the constructive possession of the Site, together with all way
Please incorporate the highlighted revision as Right of Way for the City Side Development is highly essential from the Concessionaire’s perspective.
“Right of Way” means the constructive possession of the Site, together with all way leaves, easements, unrestricted access and other rights of way, howsoever described, necessary for construction, operation and maintenance of the Airport and the City Side Development;
Definition of "Airport" covers this. Hence, as per RFP
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leaves, easements, unrestricted access and other rights of way, howsoever described, necessary for construction, operation and maintenance of the Airport;
321. 1.1 RFP
“Senior Lenders” means the financial institutions, banks, multilateral lending agencies, trusts, funds and agents or trustees of debenture holders, including their successors and
Request that the charge be first paripasu charge so as to be the Senior Lender; changes highlighted accordingly.
“Senior Lenders” means the financial institutions, banks, multilateral lending agencies, trusts, funds and agents or trustees of debenture holders or any organization , including
As per RFP
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323. 1.1 RFP
“Shared Till Approval” has the meaning as set forth in Clause 18.2;
Please accept the substitution as the original text contains a typographical error. “Shared Till Approval” has the meaning as set forth in Clause 18.22 8.3.2 ; Noted
327. 1.1 RFP ‐NA‐Aeronautical Assets, Non Aeronautical Assets and Terminal Buildings are defined separately.How will Terminal Buildings be treated? Will they be Aeronautical or Non Aeronautical Assets?For the sake of clarity, each of the Terminal Building assets should be included appropriately in the list of either Aeronautical or Non‐ aeronautical assets. Otherwise, it will lead to ambiguity at the time of tariff determination.Similarly, other assets included either in Aeronautical or Non‐ aeronautical Assets should be classified appropriately as per AERA Act.
‐NA‐ As per AERA norms
334 4.1.2 RFP
The Concessionaire may, upon providing the Performance Security to the Authority in accordance with ARTICLE 9…..
Request addition of the condition precedent related to appointment of Independent Engineer.As per the procedural requirements provided by the Ministry of Civil Aviation, Government of India, it is the obligation of the Authority to procure the approval for construction of the Airport from Directorate General of Civil Aviation (DGCA). We therefore request that it be added as condition precedent for Authority as well.
(d) Appointed the Independent Engineer. (e) Procured the approval from DGCA for construction of Airport.
Independent Engineer is part of Concessionaire CP. 2. Approval from MoCA for the airport construction will be procured by Authority and same would be added as part of Authority's CP.
335. 4.1.3 RFP
The Conditions Precedent required to be satisfied by the Concessionair
In order to achieve the Financial Close and associated activities, the approval of the Development Plan is the first step. Therefore, we request that the timeline for fulfillment of Conditions Precedent by the Concessionaire should be extended to 360 days.
The Conditions Precedent required to be satisfied by the Concessionaire within a period of 120 360 (one hundred and twenty three hundred and sixty) days from the date of this Agreement shall be deemed to have been fulfilled when the Concessionaire shall have…
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to
30Response to Bidders' Queries on RFP – Part 2
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e within a period of 120 (one hundred and twenty) days from the date of this Agreement shall be deemed to have been fulfilled when the Concessionaire shall have…
180 days
337. RFP
Have been fulfilled, when the Concessionaire shall, subject to the satisfaction of the Authority, have…(d) executed and procured execution of the Escrow Agreement in the form provided in Schedule O and the same shall have become effective in accordance with the terms thereof;(e) executed and procured execution of the Substitution Agreement in the form provided in Schedule R and the same shall have become effective in accordance with the terms thereof;(f) executed and procured execution of the Shareholders’
As per query 336
338 RFP
Agreement in the form provided in Schedule S and the same shall have become effective in accordance with the terms thereof;(h) executed and procured execution of the Memorandum of Understanding in the form provided in Schedule U and the same shall have become effective in accordance with the terms thereof,
As per query 336
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(i) executed and procured execution of the State Government Support Agreement in the form provided in Schedule V and the same shall have become effective in accordance with the terms thereof,
(l) the Lead Member shall have infused at least 10% (ten percent) of the Total Project Cost for Phase I in the Concessionaire, before the Concessionaire avails any debt from the Senior Lenders,…
343. RFP
Whatsoever, before the expiry of the 180 (one hundred eighty) days of the date of execution of this Agreement or any extended period,
Whatsoever, before the expiry of the 480180 (four hundred eighty-one hundred eighty) days of the date of execution of this Agreement or any extended period….
Same as query 343
348 5.1.7 (k) RFP
Concessionaire shall at its own cost and expense, in addition to and not in derogation of its obligations …
a) How will the Concessionaire recover these costs? Please confirm whether these form part of RAB?b) Please also clarify whether procuring electricity from grid is the only option available to the Concessionaire or can the Concessionaire set up its own captive/solar power plant, as mentioned in our query above.
‐NA‐ RAB - as per AERA norms. Others - refer answer to query 347 above
356 5.8 RFP
Obligations relating to employment of trained
We suggest that employment be provided only when the concerned persons are competent/ suitable for the jobs at hand.The preference may be given to the persons specified subject to the requisite qualification
Obligations relating to employment of trained personnelThe Concessionaire shall ensure that the personnel engaged by it in the performance of
Obligations relating to employment of trained personnelThe Concessionaire shall
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personnelThe Concessionaire shall ensure that the personnel engaged by it in the performance of its obligations under this 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
threshold and the Concessionaire’s employment policies so that service standards are not adversely affected.Further, is there any criteria to be followed for locals hiring? Any prescribed limit or percentage? It seems all hiring has to be local as far as possible. Is the understanding correct?
its obligations under this 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, subject to requisite qualifications and the Concessionaire’s employment policy, 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, if such persons are found to be suitable to fulfil the job requirements.
ensure that the personnel engaged by it in the performance of its obligations under this 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, subject to requisite qualifications, 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, if such persons are found to be suitable to fulfil the job requirements.
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not limited to the Project Affected Persons and/ or any of their family personnel during the implementation, development and operations of the Project.
358 5.11 RFP
The Concessionaire shall not, either directly or through Associated Firms, or in any other manner acquire control or interest in the operations or services of any other airport…..
This clause should be deleted as this would discriminate among the bidders, provide undue advantage to certain bidders or may be arbitrary in nature.
The Concessionaire shall not, either directly or through Associated Firms, or in any other manner acquire control or interest in the operations or services of any other airport…..
RoFR may be introduced. Refer query 191
361. 5.16.1 RFP
The Airport or any part thereof shall not be branded in any manner to
We request that the Concessionaire should be allowed todisplay/advertise itsname/brand orname/brand of its shareholders. The revision is requested to attract investments/interest in the Airport and the commercial premises.
The Airport or any part thereof shall not be branded in any manner to advertise, display or reflect the name or identity of the Concessionaire or its shareholders, except the Authority. Save and except as may be necessary in the normal course of business, the
The Airport or any part thereof shall not be branded in any manner to advertise, display or reflect the name or identity of the Concessionaire or its shareholders, except the
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advertise, display or reflect the name or identity of the Concessionaire or its shareholders, except the Authority. Save and except as may be necessary in the normal course of business, the Concessionaire undertakes that it shall not, in any manner, use the name or identity of the Airport to advertise or display its own identity, brand equity or business interests, including those of its shareholders, except the Authority.
Concessionaire undertakes that it shall not, in any manner, use the name or identity of the Airport to advertise or display its own identity, brand equity or business interests, including those of its shareholders, except the Authority or if the Concessionaire uses its name or name of its Shareholders in association with the name of the Airport .
Authority. Save and except as may be necessary in the normal course of business, the Concessionaire undertakes that it shall not, in any manner, use the name or identity of the Airport to advertise or display its own identity, brand equity or business interests, including those of its shareholders, except the Authority or if the Concessionaire uses its name in association with the name of the Airport.
367. 9.3 RFP The Performance
This clause is ambiguous. We request to revise this clause to ensure that the Performance Security gets released after three (3) months from COD. ‐NA‐ As per RFP
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Security shall remain in force and effect for a period of 7 (seven) years from the COD for the respective Phases of the Project and shall be released after 3 (three) months from the expiry of the COD of the respective Phases, provided, however, that any of the Performance Security shall not be released, if the Concessionaire is in breach of this Agreement…
.
369. 10. 11 RFP
The License Fee shall be due and payable in advance every
Revision suggested is to bring more clarity.
The License Fee shall be due and payable in advance every year and the first License Fee shall be paid by the concessionaire before upon execution of this Concession Agreement. The authority shall not be obliged to dem
Instead of "upon" use "by the time of execution"
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year and the first License Fee shall be paid by the concessionaire before execution of this Concession Agreement. The authority shall not be obliged to demand payment of License Fee by notice or otherwise, and it shall be incumbent upon the concessionaire to pay the License Fee as and when it falls due. The License Fee shall be payable by the concessionaire during the term of this Concession Agreement.
and payment of License Fee by notice or otherwise, and it shall be incumbent upon the concessionaire to pay the License Fee as and when it falls due. The License Fee shall be payable by the concessionaire during the term of this Concession Agreement.
371. Article 10.2.5 RFP The license,
access and Please clarify to which persons/ entities have been granted the existing right of way and for what purpose.
The license, access and right of way granted by this Agreement to the Concessionaire shall
Sub-clause (b) to be deleted. PAP details and GR will be
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right of way granted by this Agreement to the Concessionaire shall always be subject to existing rights of way and the rights of the:(a) persons executing the Pre‐ development Works, until its successful completion; and(b) Project Affected Persons at all times during the Concession Period, in accordance with the Government Resolutions;and the Concessionaire shall perform its obligations in a manner that
As requested above, please provide details of Government Resolutions and Project Affected Persons and exact land details where such right of Project Affected Persons exists.
always be subject to existing rights of way and the rights of the: (a) persons executing the Pre‐ development Works, until its successful completion; and(b) Project Affected Persons at all times durin g the Concession Period, in accordance with t he Government Resolutions; 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.
provided by govt.
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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.
373. Article 10.2.10 RFP
Notwithstanding anything contrary contained elsewhere in this Agreement, the Concessionaire hereby acknowledges, accepts and agrees that it has understood and inspected the scope and performance of the Pre‐ development Works, and hereby confirms as
As requested in our query below w.r.t. Clause 12.2.9, please provide us the details of Pre‐development Work.Further, we request deletion of this clause 10.2.10.
Notwithstanding anything contrary contained elsewhere in this Agreement, the Concessionaire hereby acknowledges, accepts and agrees that it has understood and inspected the scope and performance of the Pre‐ development Works, and hereby confirms as below:(a) the Pre‐development Works does not have any impact or affect the Concessionaire’s performance obligations under this Agreement in any manner whatsoever;(b) neither it shall not have any claim in respect of any delay in the completion of the Pre‐development Works or any impact thereof in the delay in the completion of the Construction Works, nor the Authority shall be liable in such regard in any manner whatsoever;(e) the Concession Period will not be extended under this Agreement on account of any delay caused in the completion of Pre‐development Works.
Refer query 561, 818
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below:(a) the Pre‐development Works does not have any impact or affect the Concessionaire’s performance obligations under this Agreement in any manner whatsoever;(b) neither it shall not have any claim in respect of any delay in the completion of the Pre‐ development Works or any impact thereof in the delay in the completion of the Construction Works, nor the Authority shall be liable in such regard in any manner whatsoever;(e) the
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Concession Period will not be extended under this Agreement on account of any delay caused in the completion of Pre‐development Works.
375. Article 10.3.3
RFP On and after signing the memorandum referred to in Clause 10.3.1, and until the Transfer Date, the Concessionaire shall maintain a round‐the‐clock vigil over the Site and shall ensure and procure that no encroachment thereon takes place, and in the event of any
Concessionaire can only maintain over such portion of the Site as has been handed over to the Concessionaire.
On and after signing the memorandum referred to in Clause 10.3.1, and until the Transfer Date, the Concessionaire shall maintain a round‐the‐clock vigil over such portion of the Site as has been handed over to the Concessionaire and shall ensure and procure that no encroachment thereon takes place, and in the event of any encroachment or occupation on any part thereof, the Concessionaire shall report such encroachment or occupation forthwith to the Authority and undertake its removal at its cost and expenses.
Same as query 93
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encroachment or occupation on any part thereof, the Concessionaire shall report such encroachment or occupation forthwith to the Authority and undertake its removal at its cost and expenses.
378 10.4 RFP ……..It is agreed that existing rights of way, easements, privileges, liberties and appurtenances to the Site shall not be deemed to be Encumbrances. It is further agreed that the Concessionaire accepts and undertakes to bear any and all risks arising out of the
Please clarify what are ‘existing rights of way, easements, privileges, liberties and appurtenances to the Site’.
‐NA‐ As per query 15
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inadequacy or physical condition of the Site.
379. 10.6 RFP Special/ temporary right of wayThe Concessionaire shall bear all costs and charges for any special or temporary right of way required by it in connection with access to the Site, including those from the Project Affected Persons. The Concessionaire shall obtain at its cost such facilities on or outside the Site as may be required by it for the purposes of the Airport and the performance
Providing any special/ temporary right of way should be the responsibility of the Authority, and the cost, if any towards providing such right of way should be borne by the Authority.
Special/ temporary right of wayThe Authority Concessionaire shall bear all costs and charges for any special or temporary right of way required by it in connection with access to the Site, including those from the Project Affected Persons. The Authority Concessionaire shall obtain at its cost such facilities on or outside the Site as may be required by it for the purposes of the Airport and the performance of its obligations under this Agreement.
Bidders are advised to peruse Article 10 in entirety. This Clause 10.6 refers to special/ temporary right of way, which necessarily are in the nature of the access and other right of way, if any required by the Concessionaire as per its own plans. Authority has no role in that. No Change
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of its obligations under this Agreement.
380 Article 10.7.1 RFP
The Concessionaire shall allow free access to the Site at all times for the authorized representatives of the Authority, Senior Lenders, and the Independent Engineer…
A notice prior to accessing the Site is required to prevent any hindrance in operations of the Concessionaire.
The Concessionaire shall allow free access to the Site at all times, provided a notice is given 3 (three) days prior to such visit, for the authorized representatives of the Authority, Senior Lenders, and the Independent Engineer…
"Prior notice" to be accepted. No need to mention time.
382 Article 10.10.1
RFP The property tax (currently, in the nature of the service charge, and shall be replaced by the property tax upon the Site being covered within the municipal limits pursuant to the Applicable Laws), shall
a) Request to insert clause as suggestedb) Please clearly mention in this clause (as suggested) that all taxes prior to the Appointed Date shall be borne by the Authority and the Concessionaire should only be liable after the Appointed Date for development undertaken by it.This position has already been confirmed in Mopa, Goa Airport bidding.b) What is the current rate of property tax/service charge?c) Will there be revenue share on recovery of property tax by way of tariff?
All property taxes on the Site shall be payable by the Authority as owner of the Site; provided, however, that any taxes on property payable by the Authority to the extent arising out of any development undertaken by the Concessionaire after the Appointed Date, shall be paid by the Authority in accordance with Applicable Laws and reimbursed by the Concessionaire.All taxes prior to the Appointed Date shall be borne by the Authority.
a) "The property tax (currently, in the nature of the service charge, and shall be replaced by the property tax upon the Site being covered within the municipal limits pursuant to the Applicable Laws), shall be payable by the Concessionaire to the Authority as per the rates prevalent from time to time."b) Acceptedc) Information can be obtained from the concerned Government Instrumentalitiesd) AERA to confirm
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be payable by the Concessionaire to the Authority…..
395. Article 12.5.2 RFP
The Concessionaire shall construct the Airport in accordance with the Phase Completion Schedule set forth in Schedule G ……..
Request to provide the Phase Milestone in Schedule G. Also, we suggest to keep one end date as the parameter. ‐NA‐ As per provisions of
"Schedule-G" Concessioner to propose milestones for approval of the authority.
399. Article 12.9.1 RFP
The Concessionaire acknowledges that the Authority has undertaken certain pre‐development works at the Site as specified in Annex of Schedule B (“Pre‐ development Works”)……..
Please provide details of Pre‐development Works to be undertaken by the Authority. ‐NA‐
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.
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412 Article 17.11.4 RFP
The Concessionaire shall provide adequate space for parking of 2 (two) aircrafts of the Authority or its nominees…...
We understand that the Concessionaire shall be responsible for the allocation of adequate space for hangers and aprons for 2 code C aircrafts whereas the Authority shall be solely responsible for the construction of the said facilities. Please confirm.
‐NA‐The facility to be constructed by Concessionaire and to be made available to the authority / government free of cost.
413. Article 17.11.5 RFP
The Concessionaire shall carve out an area of land in its Master Plan for allocation by the Authority to the Defence Forces, as per the provisions mentioned in Schedule B.
Please provide specific details related to requirement of allocation of land to Defense Forces. ‐NA‐ To provide Minimum 10
acres of land gratis for a Naval Air Enclave.
414 Article 17.12.1
RFP The Concessionaire shall procure water and electricity, as may be necessary for operation of the Airport, from the
a) We request to include suitable provisions whereby the state government shall provide these utilities (water & Power) at the proposed airport boundary.b) Please confirm if the Concessionaire will be authorized to make bore wells during the construction phase.
‐NA‐a) Authority: yes, Authority will provide water and power up to the boundary
b) With the approval of local authorities subject to meeting the prevalent by laws.
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respective local utilities upon payment of charges in accordance with Applicable Laws.
416 Article 17.19.2 RFP
The Damages set forth in Clause 17.19.1 may be assessed and specified forthwith by the Independent Engineer…
Please clarify the process/ basis for assessment by the Independent Engineer. ‐NA‐ To be decided by the independent engineer
419. 17.16 RFP
The Concessionaire shall provide adequate space for parking of 2 (two) aircrafts (aeroplane and helicopter) of the Authority or its nominees including 1 (one) hangar in the Airport…….
a) Please clarify if the hanger should be for exclusive use or would a shared hanger be acceptable?b) Further, kindly confirm the cost of construction of hangar for the Authority will be borne by the Authority only.
‐NA‐ a) The hanger shall be for exclusive use.
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420 18.2 RFP
The Concessionaire shall provide or cause to be provided, at its own cost and expense, the infrastructure required for operation of the ground handling services required at the Airport for and in respect of the Users like aircrafts, passengers and cargo……..
We understand by the language that sub‐licensing is allowed.
Accordingly, deletion required for clarity purpose.
The Concessionaire shall provide or cause to be provided, at its own cost and expense, the infrastructure required for operation of the ground handling services required at the Airport for and in respect of the Users like aircrafts, passengers and cargo………
The facility to be constructed by the Concessionaire and to be made available to the Authority / Government free of cost
429. 21.2 RFP
The Concessionaire shall collect data relating to airside and land side passengers and cargo traffic through the Airport. A monthly statement of such data
Suggested revision is requested as not possible and very onerous to require the Concessionaire to provide data related to aircraft movements on a daily basis.
The Concessionaire shall collect data relating to airside and land side passengers and cargo traffic through the Airport. A monthly statement of such data shall be compiled and furnished forthwith by the Concessionaire to the Authority in the format acceptable to the Authority. Each monthly traffic statement shall include interalia Peak Hour passenger numbers, aircraft movements and cargo tonnage on a daily basis.
Change the word "aircraft movement" to "ATM"
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shall be compiled and furnished forthwith by the Concessionaire to the Authority in the format acceptable to the Authority. Each monthly traffic statement shall include inter alia Peak Hour passenger numbers, aircraft movements and cargo tonnage on a daily basis.
431. 22.3.2 (d)
RFP all entry and exit points, passages, circulation areas and vehicular traffic are so managed that they do not have a queue with a waiting time exceeding 5
The elements covered in this statement specifying a maximum queue or wait time of five minutes are very diverse, Authority to note that circulation areas for passengers and for vehicles should be designed to different service standards. In view of this Authority is requested to remove this requirement or provide separate service standard for terminal circulation and vehicular traffic.
‐NA‐ IATA Service Norms C to be followed
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(five) minutes for 95% of the times; and
434 22.9 RFP
The Concessionaire shall ensure and procure compliance of each of the Key Performance Indicators specified in this Article 22 and for any shortfall in average performance during a quarter, it shall be liable for Damages. Any such Damages will be determined in consultation with AERA and adjusted against Aeronautical Charges for the specified period.
a) Please clarify the basis for levy of such quantum of charges and whether damages would be proportional to the shortfall in meeting Key Performance Indicators.b) Damages payable should be fairly proportional to actual damage by non‐conformity of the KPIs.
This is clear in the RFP
441. 24.5 RFP… Area earmarked in the Master
Please advise the status of approval for FSI. Further, it is requested that a higher FSI is allowed to optimize full potential.For computation of FSI principle of district planning should be applied for
… Area earmarked in the Master Plan as City Side Development, but excluding the areas reserved f
FSI shall be allowed as per local bye-laws. At present FSI of 1.5 is permitted.
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Plan as City Side Development, but excluding the areas reserved for roads, parks and other common facilities and amenities.
efficient city side master planning. or roads, parks and other common facilities and amenities.
447.
25.1Financial Close
RFP
The Concessionaire hereby agrees and undertakes that it shall achieve Financial Close within 120 (one hundred twenty) days from the date of this Agreement and in the event of delay, it shall be entitled to a further period not exceeding 60 (sixty) days…….
Request to modify as highlighted. Period of 120 and 60 days respectively is too short and should be extended to 360 and 120 days respectively.
The Concessionaire hereby agrees and undertakes that it shall achieve Financial Close within 120 360 (one three hundred twenty sixty) days from the date of this Agreement and in the event of delay, it shall be entitled to a further period not exceeding 60 120 (sixty one hundred twenty) days …….
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
453. 27.3 RFP The Authority may, in order The Authority may, in order to satisfy itself that
the Concessionaire is reporting its Gross May be from "Panel of Chartered Accountants" and
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to satisfy itself that the Concessionaire is reporting its Gross Revenue honestly and faithfully, depute its representatives to the Airport, and the offices of the Concessionaire, and undertake such other measures and actions as it may deem necessary, to ascertain the actual revenues of the Concessionaire……
Revenue honestly and faithfully, depute its representatives, which shall be a reputable audit firm and as may be agreeable to the Concessionaire, to the Airport, and the offices of the Concessionaire, and undertake such other measures and actions as it may deem necessary, to ascertain the actual revenues of the Concessionaire…….
representative of the Authority to accompany.
458 Article 28.3.7 RFP
The Concessionaire shall have no recourse whatsoever against the Authority, in respect of any aspect
Please confirm who would bear the loss in case AERA does not adhere to the concession agreement. ‐NA‐ As per RFP
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concerning the determination, levy, recovery (including under or over recovery) or appropriation of the Aeronautical Charges.
461. Article 28.5.2
RFP Any additional costs, if any, or reduction thereof arising from Change of Scope, Change in Specifications and Standards, security requirements or compliance with new international obligations having the force of Applicable Law may be reviewed by AERA, for the purposes
We suggest that the said provision be deleted as under the AERA Act the powers of approval of capex is not vested with AERA.
Any additional costs, if any, or reduction thereof arising from Change of Scope, Change in Specifications and Standards, security requirements or compliance with new international obligations having the force of Applicable Law may be reviewed by AERA, for the purposes of revision of the Aeronautical Charges. Any such review by AERA shall include consideration of the revenues for and in respect of Aeronautical Services, in accordance with the Applicable Permits issued for the Project.
As per RFP. The provision of review by AERA would be required only in cases of the Concessionaire wishing to revise the tariffs which come under AERA Act. The need for approval of capex by AERA is not implied by this clause.
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of revision of the Aeronautical Charges. Any such review by AERA shall include consideration of the revenues for and in respect of Aeronautical Services, in accordance with the Applicable Permits issued for the Project.
462 Article 28.5.3
RFP … AERA Act and this Agreement. Provided, however, that in the event AERA determines that any increase in the Aeronautical Charges is unjustified and prejudicial to the interests of Users, it
The proviso is contrary to the main clause and the provisions of the AERA Act which does not empower AERA to waive any increase in the Aeronautical Charge, once the same has been determined after considering the factors specified under Section 13(1) (a) of the AERA Act.
… AERA Act and this Agreement. Provided, however, that in the event AERA dete rmines that any increase in the Aeronautical Charges is unjustified and prejudicial to the interests of Users, it may waive such increase fully or par tly.
Accepted
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may waive such increase fully or partly.
465. 30.1 & 30.3 RFP Escrow
Account
We request that withdrawals from the Escrow Account should be restricted to 1. Statutory dues and taxes payable; and 2. Surplus Account.Amount from Surplus account should be transferred to the Trust and Retention Account with the lenders, which should be available to concessionaire for O&M, debt payment, payment to Authority etc. Provision of creation of Surplus Account should be suitable incorporated.
‐NA‐ As per RFP
469. Article 32.1.2
RFP The Concessionaire shall, within 30 (thirty) days of the close of each quarter of an Accounting Year, furnish to the Authority its unaudited financial results in respect of the preceding quarter, in the manner and form prescribed by the Securities and Exchange
Suggested revision is requested to avoid putting an additional obligation on the Concessionaire to adhere to applicable SEBI format.
The Concessionaire shall, within 30 (thirty) days of the close of each quarter of an Accounting Year, furnish to the Authority its unaudited financial results in respect of the preceding quarter, in the manner and form as may be mutually agreed prescribed by the Securities and Exchange Board of India for publication of quarterly results by the companies listed on a stock exchange
As per RFP
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Board of India for publication of quarterly results by the companies listed on a stock exchange.
496 Schedule E RFP
1. The Concessionaire shall obtain, as required under Applicable Laws, the ‘In principle’ approval of MOCA/DGCA for construction of the Airport, on or before the Appointed Date.
It should be the Authority’s obligation to procure the approval from DGCA. ‐NA‐ In-principle approval for Bhogapuram airport has been granted by MoCA on 26th Sep 2016
506
Schedule – TClause 2.2 (d)
RFP
Provide such residential accommodation and parking as AAI may require for provision and operation of the CNS/ATM Services, and
Kindly clarify the built up area or no of dwelling units/ types as required in the clause.Further, the Concessionaire should be able to charge for such residential accommodation and parking and other facilities?
‐NA‐ AS per the requirements to be given by Airport Authority in subsequent stages.
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maintain, demolish, redevelop or build, as the case may be, such residential accommodation and parking facilities as described in the Concession Agreement or as may be mutually agreed between the Parties from time to time
507. Schedule U RFP
Memorandum of Understanding
1. This should be in form of the agreement (and not MOU) and should be tripartite i.e. to be executed by Concessionaire, Authority and GOI.2. Request to insert a provision whereby no new airport should be developed within a radius of 150 kilometers from the Airport.3. We also suggest incorporation of suitable provisions regarding indemnification in case of breach by GOI or inability of GOI to grant requisite permits or other services on time etc.
‐NA‐ a) As per guidelines / policy of Ministry of Civil Aviation Government of India. b) As per RFP
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508 New clause RFP Please incorporate new provisions at appropriate clauses for limitation of
liability of the Concessionaire. ‐NA‐ Provision of RFP prevails
514 General RFP
Interest on working Capital
Whether interest on working capital will be allowed as part of Opex.INPUT : Working capital interest should be allowed since the same is required to fund the day to day operations of the airport and is required in normal course of business.Working capital interest is also allowed by other regulators such as in Power sector.
All decisions on RAB and Aero and non-Aero assets will be determined by AERA as per the AERA Act and guidelines issued by AERA from time to time
520 General RFP Bad Debts Bad debts written off are integral part of a business. Whether these will be ‐NA‐
All decisions on RAB and Aero and non-Aero assets will be determined by AERA as per the AERA Act and guidelines issued by AERA from time to time
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521. RFP
Allowed as part of Opex. If not how will it ensure adequate return to investorsINPUT: Bad debts are allowed as a part of operating expense in other sectors e.g. the power sector. Few examples to cite as below:Gujarat Electricity Regulatory Commission has allowed bad debt of 0.067% of ARR.Chhattisgarh Electricity Regulatory Commission has allowed provision for bad debts subject to actual writing off of bad and
All decisions on RAB and Aero and non-Aero assets will be determined by AERA as per the AERA Act and guidelines issued by AERA from time to time
522 RFP
Doubtful debts.Madhya Pradesh Electricity Regulatory Commission has allowed bad debts of Rs. 1 crore each for its three distribution companies for FY 2013‐14.Maharashtra Electricity Regulatory Commission allows 1.5% of ARR as bad debts.
All decisions on RAB and Aero and non-Aero assets will be determined by AERA as per the AERA Act and guidelines issued by AERA from time to time
531. General RFP Authority to confirm that all airspace constraints have been resolved, or provide
detail of any issues that the Concessionaire needs to consider? ‐NA‐
1) The proposal was examined in consultation with Air HQ and Naval HQ. Air HQs has stated that NOC for construction of Greenfield airports at Bhogapuram, Vizianagaram District (Latitude 18000’ 02” N Longitude 830 28’ 48” E) is recommended, subject to the following conditions: a) The NOC is for construction of Greenfield Airport and does not authorize acquisition/use of Defence land
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b) Airport operator shall provide all airport services including radio navigation-aids, landing and parking facilities free of charge for Defence and other Para-military aircraft. Towards this, the airport operator is to earmark the parking areas, technical support services, transit and other services in advance.c) Earmarking of airspace, ATS routes, if any, for the proposed airport shall not infringe any restricted airspace/danger airspace.d) All aircraft movements from the proposed aerodrome shall operate with valid Air Defence Clearance.e) Radio navigational aids installed at the airport are to be made available for military aircraft operations without any charges, whenever so requested.f) Necessary clearances from AAI shall be obtained. g) Prior to operationalization of the airport, the information regarding its watch hours, runway orientation, Aerodrome Traffic Zone, frequencies of Radio/NavAids and contact details of key appointments
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shall be notified to CATCO, HQ Southern Air Command, Akkulam, Thiruvananthapuram-31 and CATCO, HQ Training Command, JC Nagar Post, Bengaluru-06h) Commencement and completion of the construction of the airport shall be notified to CATCO, HQ Southern Air Command, Akkulam, Thiruvananthapuram-31 and CATCO, HQ Training Command, JC Nagar Post, Bengaluru-06.i) The validity of this NOC is for five years from the date of issue. If the construction, for which NOC has been issued is not completed within five years or is found to be in deviation from original proposal, the NOC shall be deemed null and void and it will be the responsibility of the applicant to obtain fresh NOC for the proposal.2) Navy Wing has stated that the proposal has been got examined in consultation with Naval Head Quarters (NHQ). NHQ while recommending this proposal have outlined following measures in order to ensure
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safe and unhindered flying operations by Indian Navy from INS Dega;a) Airspace designation and promulgation thereof by AAI for proposed Bhogapuram Airport including the Terminal Control Area, Aerodrome Traffic Circuit, VOR Holding Areas, Outbound Track, Final Approach, Missed Approach of all Instrument Approach Procedures for all categories of aircraft and Standard Instrument Arrival & Departure for both runways is to be kept within 5nm to the South of Bhogapuram airfield.b) The Bhogapuram Airport Control Zone is to be restricted to 5NM towards South of Bhogaopuram and 10 nm to the North Centered on ARP upto a height of 5000 ft. c) A buffer zone of 2.5 NM widths is to be provided South of the Control Zone. The aerodrome traffic circuit for visual circling approaches is to be designed on the Northern side of the proposed runways.d) In order to effect safe concurrent military and civil
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aircraft operations from both the airfields, the Approach Control should positively be handled by Dega ATC. Any new ATS procedures to be designated are to be done in consultation with the Indian Navy.e) The recommended model for Airspace Delineation and Operational Procedures for Air Traffic Management, enclosed at Appendix to this letter, is to be adopted and incorporated in the Standard Operating Procedures of the new Greenfield Airport by INCAP and Airports Authority of India (AAI).f) A time slot of at least one hour during the day is to be made available for military flying in Bhogapuram control zone which froms part of sector North and North East of INS Dega Local Flying Area.g) Bhogapuram authorities be requested to provide 10 acres of land gratis for a Naval Air Enclave. This will serve as a diversion in case of bad weather or runway blockage at Dega. They may be requested to extend the facilities of proposed Airport for naval operations and
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rescue missions free of cost.h) Operations from the proposed airfield should at no stage interfere with any military/maritime air operations, particular those undertaken for coastal security operations from INS Dega. Launch of military operational missions would take priority over normal operations.i) A hotline be established by the applicant between the ATCs of the new airfield and INS Dega for instantaneous coordination at all times.
532 General RFP
Airport Location and Land earmarked
Kindly specify the exact location of the airport, with schematic maps and the area earmarked for the airport with clear segregation of area for runway, PTB & other mandatory structures, and city side unrestricted land.
Details provided in TEFR
535. 4.1.2 (b) RFP
Procured Applicable Permits relating to pre‐construction activities, which are required to be mandatorily
It seems that the Authority has not been able to procure Defence Clearance& Environment & CRZ Clearance for the project as on date. Request Authority to kindly obtain the clearances and circulate proof of this.
Will be provided
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obtained by the Authority, including the following: (i) Defence Clearance No.[ ] dated [ ], from the Ministry of Defence, GOI; (ii) Environment and CRZ Clearance F. No. [ ] dated [ ], from the Ministry of Environment and Forests, GOI
538 Article 10.3.2
RFP 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
Request to fill percentage value in the blank.We request Authority to provide for the entire 100% land prior to the Appointed date.
Will be updated
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the Airport
539. Article 18.12.9 RFP
…parking slots provided in the Parking are sufficient to meet the requirements of Users. In the event that 80% (eighty percent) of the parking…
Request you to change it to 90%, As per RFP
542
Clause 5.1 Obligations of the Concession aire
RFPObligations Concessionaire
Whether there would be state government support in getting these utilities (water & Power) at the proposed airport boundaryThe provision for water and electricity may be specified. The source of the same may be detailed for more clarity.
Authority will provide water and power up to the boundary of the airport
543.
CL, 5.1.7(k) Obligations of the Concession aire
RFP
procure the supply of electricity to the Airport from the grid, including procuring standby arrangements for supply of electricity necessary for maintenance of Aeronautical
Please clarify that procuring standby arrangement means installation of Generators as standby arrangement or getting power from two separate grids.
Procuring standby arrangement means installation of Generators as per existing law.
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Services and Non‐Aeronautical Services in the event of outages or failure of electricity supply from the grid, and also arranging for the availability of the electricity for the Users of the Airport and various Aeronautical Services and Non‐ Aeronautical Services in accordance with the provisions of the Electricity Act, 2003 and rules and regulations made thereunder;
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545.New Provision
RFP Request to add a provision in the Concession Agreement that protects Concessionaire in case of development of another airport with in the radius of 150 Km.
As per Query 811
546 Clause 5.13 Obligations relating to aesthetic quality of the Airport
RFP Obligations relating to aesthetic quality of the AirportThe Concessionaire shall maintain a high standard in the appearance and aesthetic quality of the Airport and achieve integration of the Airport with the character of the surrounding landscape through both appropriate design and sensitive
Request Authority to specify the aesthetic standards As per best practices followed worldwide.
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management of all visible elements. The Concessionaire shall engage professional architects and town planners of repute for ensuring that the design of the Airport meets the aforesaid aesthetic standards.5.14 Obligations
550Clause 4.1.2 (b)
Concession Agreement
The details of Defence & Environment Clearance have not been provided. We request the Authority to provide copies of the same Will be provided
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551. Clause 4.1.3
Concession Agreement
The period of 120 days provided to the Concessionaire to satisfy the Conditions Precedent is too less and we request to extend this period to at least upto 180 days.
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
552
Clause 4.1.3(g) (h) & (i)
Concession Agreement
The Concessionaire is required to “executed and procured execution of” CNS-ATM Agreement, MoU & State Government Support Agreement. It is submitted that execution of these Agreements is the obligation of Authority under Clause 4.1.2 (c), hence certain provisions of Clause 4.1.3 and 4.1.2 are sort of overlapping. It is requested that Clause 4.1.3 (g) (h) & (i) should be deleted from Concessionaire’s Conditions Precedent.
To be retained for Concessionaire and removed for Authority.
556
Clause 5.4.4 & Shareholders’ Agreement
Concession Agreement
Clause 5.4.4 specifies that the Authority shall not infuse any capital in the Concessionaire, whereas Clause 3.5.4 of the Shareholders’ Agreement stipulates that the Authority shall infuse a maximum amount of Rs. (amount is blank) towards capitalization of the Concessionaire through subscribing to the Equity Shares. It is requested to kindly clarify the discrepancy and specify the amount in Clause 3.5.4 of the Shareholders’ Agreement
The amount is Rupees Twenty Crore ( Rs 20 crore) and the same will be updated in the document
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561. Clause 10.2.10
Concession Agreement
It is requested that this Clause should be deleted
The provisions contained in Clause 10.2.10 (a), (b) & (c) are onerous to the rights and interests of the Concessionaire. As per the Concession Agreement, the Authority is obliged to provide an encumbrance free Site with unrestricted access to the Concessionaire, whereas this Clause puts a restriction and hindrance to such right of the Concessionaire. The provisions of this Clause are against the very essence of a Contract any result an impediment on the rights and obligations of the Concessionaire without any recourse. Therefore, such provisions are Ultra Virus the overall structure of the Concession Agreement
If the pre-development works are delayed beyond the COD, the Concession Period would be extended by the time period by which the pre-development works are delayed beyond COD
565. Clause 10.11
Concession Agreement
The provisions relating with License Fee is requested to be deleted
The term “Concession” means License, and this Agreement has a prescribed Concession Fee under Clause 27.1, so there should not be two similar Fee under different names. Further, MCA for Greenfield Airports also does not prescribe for such Fee
License would be changed to lease and all clauses updated
570 Clause 12.9.1
Concession Agreement
The cost of Pre-Development Works is blank. It is requested to specify such cost at the earliest
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.
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574 Clause 24.4.5
Concession Agreement
FSI for City Side Development has been left blank. It is requested to kindly specify the same FSI: 1.5
575. Clause 24.6.2
Concession Agreement
It is requested that the City Side Assets should be allowed to be sub-licensed from the Appointed Date Refer to Query 440.
576
Clause 26.1 &Clause 27.2
Concession Agreement
Clause 26.1 prescribes payment of Revenue Share from the date of execution of Concession Agreement, whereas Clause 27.2 prescribes payment of Revenue Share after 10 years of COD, and are therefore in contradiction of each other. It is requested that Clause 26.1 may be amended to bring it in line with Clause 27.2
After 10 years of COD
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577. Clause 28.3.2
Concession Agreement
The GO details for Shared Till framework is blank in this provision. It is requested to kindly provide a copy of the same. Will be provided
578 Clause 33.4
Concession Agreement
Change in law as a Political Force Majeure Event has been omitted from this Clause. It is requested to kindly include Change in Law as a Political Force Majeure Event
As per query 472
579.
Clause 36.1.1(g) & (h)
Concession Agreement
It is requested that para (g) & (h) of Clause 36.1.1 may be deleted Sub-clause (g) is removed
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580 General
Concession Agreement
Please specify the details of linkages for Electricity and Water connectivity to the Site. Whether the ROW required for Electricity and Water connectivity to Site has been procured by the Authority??
Electricity and water shall be provided by the government upto the airport boundary.
583. Clause 32.6.2
Concession Agreement
We understand that determination of Aeronautical Tariff by AERA shall happen post completion of construction of each phase, based on actual cost and no approval of AERA or MOCA is required for undertaking the phase II. Please confirm
Phase 2 expansion is based on traffic trigger. MoCA consent may be required.
584
Para 2.2 /page no. 52
TEFR It is requested to provide details of Bore logs for assessment of sub soil strata. Not Available at present.
Will be provided shortly
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586
Para 5.2.6 /page no. 106
TEFR
All the pavements are bituminous as per TEFR. However, as per general practice, apron need to be rigid in nature. Authority is requested to clarify whether the Concessionaire has the flexibility to design and undertake construction activities as per the best industry practices, which may be in variance with the requirements specified by the Authority.
The apron pavement shall be RIGID and type of payment (flexible or Rigid) for runways / taxiways / roads etc. can be decided by the Concessionaire during detailed engineering stage.
587.
Para 3.6 /page no. 64
TEFR
For phase–I, area of Proposed Terminal Building is given as 81,000 sqm considering peak passenger as 3395, which seems to be on higher side considering saturation of 6.3 million in year 2030. Please clarify whether modular TB can be taken up in phases so as to commensurate the realistic capacity.
As the air traffic at Vizag has already crossed 2 million mark and Bhogapuram airport is planned to become operational sometime in 2020 by which time annual traffic is expected to reach 3 million mark (with a peak hour of 2,000), terminal size proposed is in line with traffic demand and laid down guidelines.
588
Para O.5 & 7.2/ page no.12 & 156Table no. -O.12 & 7.1
TEFR
As per Airport Master Plan vide table O.12, it is mentioned that main RWY, secondary RWY, Parallel Txy for both main RWY & Secondary RWY, Apron, Link Txy etc. are mentioned while as per table 7.1 only main RWY, Parallel Txy for main RWY Apron, Link Txy are to be taken up in Phase-I. Please clarify the ambiguity.
Two parallel taxiways to the main runway are proposed (first full length and second partial length). Refer s.no. 1.3 & 1.4 of table 0.12 and para 5.2.2 of TEFS. No parallel taxiway to the secondary runway is proposed.
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589.
Para 5.2.1.5 /page no. 100
TEFR
The requirement of RWY in Phase-I is stipulated for Code-F Aircrafts. The statistical data of the proposed Airport do not support for the requirement of 3800 mtr RWY in initial phase and same can be extended in due course at the time of requirement keeping other facilities and features compliant to Code-F Aircraft operation. The Authority is requested to suitable modify this requirement
As per table 4.5 runway length requirement for Boeing 747 is calculated as 3800m. Hence runway length 3800m is proposed in phase-1 to cater to the long range international aircraft operations.
592
Para 5.9 / page no. 132 / Table no. 5.4
TEFR
The area of Car park is indicated as 77,000 sqm in Phase-I which seems to be on higher side as compared to passenger capacity till 2030. Please clarify that construction and expansion can be taken up in phases as per the requirement triggers.
Car park can be planned in phases, based on traffic triggers.
593.
Para 12.7.1 /page no. 74 (DCA)
TEFR Triggering is not mentioned in the TEFR or in DCA, only reference is traffic
trigger as specified in the Master Plan. Please clarify Traffic trigger as mentioned above
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596
Table 7.3 &7.4, page no.159-168
TEFR
Consideration for estimated cost towards sub head-V i.e. for CCTV, PA system, HVAC, Electrical installations, BHS, Escalators and Elevators etc. are considered in the capex separately, please confirm that the aforesaid expenditure is not included in the basic cost of the building considered as Rs. 100000 per sqm.
The cost of special systems is estimated separately. The basic cost of building is inclusive of site development works, superior finishes, interiors, internal / external services etc. and cost towards meeting green building norms.
597.
RPF –Vol -1Cl No 1.2.1
RFP Authority is requested to provide this report free of cost. If we purchase TEFR, then cost should be reimburse.
The cost of TEFR will be borne by the interested bidder, the same is applicable to all the interested participants
600
RPF –Vol -1Cl No 2.6
RFP Authority is requested to explain the project Situation when bidder have site visit for easy understanding of the project. Authority will assist bidder in
site visit.
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601. What will be the status of current Vizag airport will for civil commercial operations once Bhogapuram airport becomes operational? It is not clearly specified anywhere.
The existing Vizag Airport will cease commercial operations on the commencement of Bhogapuram International Airport
602 Will Bhogapuram airport be classified as a major airport and regulated by AERA? If so, from which year.
Bhogapuram Airport will be classified as Major Airport after commencement of commercial operations
603.
RPF Vol -2,Cl No : 28.3.2
RFP
Shared-Till Method: Is there any specific reason why Single-Till model is not being followed. Specified GOI details are not provided. Shared-till will lead to increased user charges and hence dampen the demand/traffic thus leading to a longer project feasibility period.
Shared till approval from AERA will be provided. New airport projects in India are following shared till model. As per RFP
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606 TEFR
As per AERA order no 07/2016-17, for major airport projects, tentative ceiling for capital costs for terminal building is Rs 65,000/sqm and Rs 4700/sqm for Runway/Taxiway/Apron (excluding earthwork upto subgrade level) for code E a/c. If we see this as a benchmark – if not a regulation – still the planned cost of Bhogapuram airport comes to be very high. This is a deterrent. Request to please re-look into the project cost structure mentioned in TEFR.
The cost estimate has been on a realistic basis. The bidders are advised to do independent estimation. However, the Authority has revised the cost downwards for enhance project feasibility.
607. TEFR
While the feasibility report TEFR doesn’t give revenue projections, it mentions Aeronautical revenues as “As per AERA”. However, given assessment of very high unit costs as above, aeronautical charges needed for project feasibility could be very high thus making the airport uncompetitive/unattractive. Request for detailed revenue projections in the TEFR.
The revenue projection of the Authority shows that the airport is feasible. The bidders are advised to do independent estimation
611. 1.3 Schedule Bidding process
It is requested that the bid due date should be postponed by at least 4 months beyond 22 9 2016 as we need to get following studies done:1 Demand forecast2 Master plan preparation after extensive site survey3 Revenue potential of City side real estate4 Financial modelling/due diligenceEach of these studies takes about 2-3 months
Bid due date postponed. Refer amendment issued
613. 2.2.3 (c)
In the event the Bidder does not have the relevant O&M Experience, it shall enter into an agreement with an entity 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
We suggest modifying this clause in line with provision as per planning commission document by also allowing engagement of experienced and qualified personnel for discharging its O&M obligations. Kindly modify clause as under;
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
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which the Concession Agreement shall be terminated. they can partner only with the members listed.
614
In the event the Bidder does not have the relevant O&M Experience, it shall enter into an agreement with an entity 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 3(three) years from the commercial operations of the Project, or engage experienced and qualified personnel for discharging its O&M obligations in accordance with the provisions of the Concession Agreement, failing which the Concession Agreement shall be terminated.
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.
615.
Further since the privatization of Delhi, Mumbai, Bangalore, Hyderabad and Cochin airports, which manage about 130 Million passengers constituting about 60 % of All India traffic, there is enough world class trained manpower in India to manage Bhogapuram airport which, as on date, has only about 1.5- 2 million passenger traffic at Vizag airport.
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.
616
Engaging a foreign airport operator will only increase the operating cost astronomically making either the project unviable or increasing the airport charges for airport users to very uncomfortable levels.
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.
617. Airports are one of the most regulated businesses in the world. Airports have to
O&M partner requirement is reduced to 5 years (from 7
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designed and operated as per regulations laid down by DGCA and BCAS (Bureau of Civil aviation security.). An airport can be operated only after DGCA issues a license. Thus an airport can certainly be designed and operated by Indians. However, if required, the developer can always engage a foreign airport operator as consultant/advisor on need basis at minimum expense.
years). A list of potential world class partners will be provided to the bidders and they can partner only with the members listed.
618
Engaging Indian trained manpower and eliminating dependence on foreign powers is also in line the Prime Minister’s vision of “Make in India”.
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.
637. Annexure-IV
Instructions: 6. Mention the sector, to which the Eligible Project belongs – viz. airport, highways, expressways, power (only generation), ports, railways and metro rail.
As per our request in query no 12, kindly allow only power instead of power generation.
power generation/transmission/distribution would be included in RFP
641. Annexure-V
Part- BDear Sir, We hereby confirm that we/the Consortium (constitution of which has been described in the Bid) have entered into an agreement dated [●] ("Agreement") with …………………… (Insert name) and have complied with the terms and conditions laid out in the Clause 2.2.3 (b) of this RFP. We agree and undertake that …………………… (insert name) will act as the O&M entity for the Project in accordance with clause 2.2.3 (b) of this RFP and perform the O&M obligations as set out in the Concession Agreement, failing which the Concession Agreement shall be terminated. We undertake that there shall no amendment to the Agreement without the prior written approval of the Authority. Thanking you,
Kindly remove the requirement in case applicant has provided O&M undertaking as per request in our query no. 5.
The Annexure would be modified as per updated O&M requirements.
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Yours faithfully, (Signature, name and designation of the authorized signatory)
642 General
Please provide financials of Vishakapatnam Airport with separate aero and non-aero revenues, for last 5 years
Can be obtained from AAI - the existing airport operator.
643. General
It is requested to arrange for a detailed site visit of complete site, preferably on the day of pre bid meeting.
Authority will enable site visit.
644 General
A. The Government of Andhra Pradesh (“GoAP”), approved the establishment of an international airport for public use at Bhogapuram Mandal, Vizianagaram District and designated the Authority as a project proponent for the purposes of the construction, operations and maintenance of the Project vide GO RT No. 63 dated 20 May 2016
B. The Government of India (“GOI”), (“GOI Approval”) granted its approval for the Project subject to the terms and conditions stipulated therein vide GO No. [______]
Request you to share the said notification dated 20th May 2016 where approval has been granted
Will be provided. Can also be downloaded from GoAP website.
646 3.1.1 (DCA)
Along with the notice for extension of the Concession Period, the Concessionaire shall submit the following documents:(b) a certificate confirming from Airports Council International or any other equivalent agency of similar international repute confirming that the Airport has been within top 20 (twenty) percentile of all airports in its category in the world, for a continuous period of preceding 5 (five) years as on the date of such application; and
Request you to clarify 20 percentile of all airports in what category…traffic, ASQ, etc. Please clarify.
For overall satisfaction as monitored by ASQ
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648
10.6 Special/ temporary right of way
The Concessionaire shall bear all costs and charges for any special or temporary right of way required by it in connection with access to the Site, including those from the Project Affected Persons. The Concessionaire shall obtain at its cost such facilities on or outside the Site as may be required by it for the purposes of the Airport and the performance of its obligations under this Agreement
Kindly consider and amend as “The Authority shall bear all costs and charges for any special or temporary right of way required by it.
The Authority to decide if any special or temporary right of way is required or not and hence the costs can be borne by the Authority.
As per query 349
648
6.1 Obligations of the Authority
Obligations of the Authority
Kindly consider our request to insert the proviso under Obligations of the Authority – It is the Authority’s obligation (i) to provide entire land and necessary documents for the Project within 180 days from the date of issue of Letter of Award; (ii) to provide access road to the Airport till expressway land is provided; and Further, failure of the above should constitute event of default of the Authority ….
As per query 362
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657.
25.1 Financial Close
25.1.1 The Concessionaire hereby agrees and undertakes that it shall achieve Financial Close within 120 (one hundred twenty) days from the date of this Agreement and in the event of delay, it shall be entitled to a further period not exceeding 60 (sixty) days, subject to the submission of a written request describing the reasons for seeking such extension at least 15 (fifteen) days in advance and payment of Damages to the Authority of a sum calculated at the rate of 0.05% (zero point zero five percent) of the Performance Security for each day of delay, provided that the Damages specified herein shall be payable every week in advance and the period beyond the said 120 (one hundred twenty) days shall be granted only to the extent of Damages so paid, provided further that no Damages shall be payable if such delay in Financial Close has occurred as a result of any default or delay by the Authority in procuring satisfaction of the Conditions Precedent specified in Clause 4.1.2 or due to Force Majeure. The Damages payable hereunder by the Concessionaire shall be in addition to the Damages, if any, due and payable under the provisions of Clause 4.2.
Request the Authority to increase 120 days to 180 days….The Concessionaire hereby agrees and undertakes that it shall achieve Financial Close within 180 (one hundred eighty) days
0.05% of the Performance Security for each day of delay, provided that the damages specified herein shall be payable every week in advance. The rate calculated for each day of delay is taxing and additional upon the Concessionaire, especially when damages are already payable under the provisions of Clause 4.2.
Request if the rate of 0.05% can be reduced to 0.01% for each day of delay is deleted.
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
662 General
Authority is requested to confirm that existing Civil Enclave shall be closed with effect from the day Bhogapuram airport is commissioned
The existing Vizag Airport will cease commercial operations on the commencement of Bhogapuram International Airport
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665. General
Pl advise the date by which EIA report and its approval by the competent authority shall be provided to the bidders. The bid due date should be at least one month after such date, since the implementation of orders could have major bearing on the Master Plan as well as Capex/Opex of the airport.
Further, as per para 0.9 at page 37 of TEFS report, in principal approval from MOCA can be initiated only after EIA clearance.
Therefore, the bid due date should be only after all the regulatory approvals are accorded from Govt of India.
In-principle approval of MoCA has been obtained for Bhogapuram International Airport on 26 Sep 2016
666 General
As per para 0.9 at page 37 of TEFS report, “The state Govt should issue a notification for limiting heights of new structure within the OLS indicated associated with the airport development”
Authority is requested to share a copy of this notification
667. General
Kindly advise the status of land acquisition. As per media reports farmers are strongly opposing land acquisition by the govt. Further, As per media reports hardly less than 50% of required land has been acquired till now.
Will be provided
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668 General
Kindly advice the date by which Approach road to airport connecting the city shall be commissioned by Authority.
Will be completed by the time of Site handover
673.Definition in DCA
Adjusted EquityThis is a risk for the Concessionaire, as the Adjusted Equity is only covering the Phase I investment and not Phase II. Kindly clarify.
Definition includes airport expansion also.
678Clause 10.10.1 of DCA
Property Tax
Being an owner of the Project Site, the Authority should pay the Property Tax, if any to the municipal corporation. Kindly amend the Clause.
This has already been answered in query 382
680Clause 25.1.1 of DCA
Financial CloseConsidering the complexity and size of the Project, it is not possible for Concessionaire to achieve Financial Close within 120 days. Kindly
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150
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extend the timeline to at least 270 days from Agreement Date.
days;
Timeline for Financial closure has been increased to 180 days
697.
RFP, Appendix 1, Para 6, Page 51
RFP Please clarify that the term “public authority” refers only to Indian public authorities. Confirmed
706
DCA, Part I, Article 1, Page 31
Concessional Agreement
Total Project Cost is defined as "a sum of Rs. 4,099 crore … "
We request deletion of sub-paragraph (c) as we do not believe this to be a realistic estimate of the project cost.
In any event please confirm that the Total Project Cost shall not be treated by AERA as a basis for determination of the Regulatory Asset Base.
Total project cost has been re-estimated by Authority.
710
DCA, Part II, Article 3, Para 3.1.1, Page 38
Concessional Agreement
Given the significant phase wise investments to be made in the Project, it is essential for the Concessionaire to have a clear understanding of the available certain period of amortization in order to prepare its financial model.
We also request for the initial concession period to be of 40 years from the date of commencement of commercial operations, providing for optimal tenure for recovery of significantly high capital expenditure associated with the greenfield project.
Refer query 331
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711.
DCA, Part II, Article 3, Para 3.1.1, Page 38
Concessional Agreement
Additionally, the concession period should be accounted from the date of commencement of commercial operations and not from the Appointed Date, consistent with the start date of tenure in the BIAL and HIAL concession agreements.
Further extension of 20 years based on the condition laid out in Concession Agreement. Refer query 331
719.
DCA, Part II, Article 4, Para 4.1.3 (j), Page 41
Concessional Agreement
120 days for execution of Financing Agreement is too stringent a time period, particularly given that other CPs, including those of the Authority which are essential for Financial Close are also to be undertaken simultaneously.
Further, given the complex nature of the Project, lenders typically would undertake a very extensive diligence on the entire project.
Please remove this requirement as a Condition Precedent and include it as a Condition Subsequent. In the alternate, we would request that the time for achieving Financial Close be extended to 180 days, which is period consistent with other concession agreements in the Indian market.
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
720
DCA, Part II, Article 4, Para 4.1.2, Page 41
Concessional Agreement
At present, the Authority has a deemed grace period of 120 days after the due date for CP satisfaction. However, even after this extended period, there are no consequences on the Authority. Further, the Authority has the right to extend the period by intimation to the Concessionaire (without any consent requirement).
Please include the following provision in Clause 4.1.2:
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
742
DCA, Part II, Article 5, Para 5.16, Page 52
Concessional Agreement
Branding for the airport to be limited only for Authority
Request to allow appropriate association of the private consortium partners with the overall brand for the airport along with Authority branding
As per query 361
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752
DCA, Part III, Article 10, Page 62
Concessional Agreement
We understand that the nature of grant to the underlying land is in the form of a license. However, given the long tenure of the agreement with the right to construct immovable property, by virtue of the Supreme Court judgment in R.N Kapoor v. Associated Hotels of India, the grant would nonetheless tantamount to a lease.
Accordingly, please clarify the basis on which the Authority is suggesting that the transaction in the nature of the license.
Further, given the legal position, as well as in order to enable financing, we would request grant of a lease in lieu of a license.
However, the authority should grant exemption of all the stamp duty in the interest of the project.
License for the land is updated as lease. The land would be leased by the Authority to the Concessionaire for the Concession Period.
753.
DCA, Part III, Article 10, Para 10.2.5, Page 63
Concessional Agreement
The license, access and right of way to the Concessionaire shall subject to existing rights of ways and right of the: (i) persons executing the pre-development works, until its successful completion; and (ii) Project Affected Persons at all times during the Concession Period, in accordance with the Government Resolution.
Please provide us with all relevant details of the licenses and rights of way granted to project affected persons.
We would request you to provide us copies of the various agreements executed with respect to the pre-development works in order to enable us to assess the timelines associated with works.
Please confirm that the rights to Project Affected Persons do not have no impact on any material portion of the Site. In the event of any such impact, the Authority would need to suitably indemnify the Concessionaire.
Refer query 560
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756
DCA, Part III, Article 10, Para 10.2.10 and 10.3, Page 64
Concessional Agreement
A specific confirmation has been sought in the clauses from the Concessionaire in relation to the due inspection of the scope the pre-development works and the suitability of Site to the Project.
Please note that all the obligations regarding the pre development works and the procurement of Site should lie with the Authority. We would therefore request the deletion of the clauses.
Further, in addition to the above, we request that following confirmations should be specifically provided by the Authority in the Concession Agreement:
(i) the Concessionaire shall not be liable for consequences arising on account of predevelopment works and construction of Airport (as per the plan) for example, flooding, litigations, etc.
If the pre-development works are delayed beyond the COD, the Concession Period would be extended by the time period by which the pre-development works are delayed beyond COD
757.
DCA, Part III, Article 10, Para 10.3.2 and 10.3.4, Page 64
Concessional Agreement
The Authority has reserved the right to provide up to certain percentage of the total land after the Appointed Date. However, in case of a delay / failure to handover land, the only remedy available with the Concessionaire is seeking extension of the Concession Period, that too, at the option of the Authority. Authority cannot have the right to determine the consequences of its own default
We would request provision of 100% of the land / right of way as a condition precedent. In case the Authority intends to retain the right to provide certain percentage of land after Appointed Date, there should be clear penal consequences, such as damages or suspension of Concession Fee during the period of failure by the Authority.
Refer query 91
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758
DCA, Part III, Article 10, Para 10.4, Page 65
Concessional Agreement
The clause provides that the existing rights of way, easements, privileges, liberties and appurtenances to the Site shall not be deemed to be Encumbrance.
Request that the language be deleted. The exclusion in effect removes the obligation on the Authority to make available the Site free from all Encumbrances.
As per query 15
759.
DCA, Part III, Article 10, Para 10.6, page 65
Concessional Agreement
The clause provides that the Concessionaire shall bear all costs and charges for any special or temporary right of way required by it in connection with access to the Site, including those from the Project Affected Persons. Any costs associated with such access shall be to the account of the Concessionaire.
Please confirm the extent of costs associated with such special or temporary rights.
Further, the Concessionaire will not be responsible for providing the access of site to Project Affected Persons. Request Authority to delete reference of Project Affected Person.
As per query 379
765.
DCA, Part III, Article 12, Para 12.9, Page 74
Concessional Agreement
Pre-development works related issues:
Please confirm that the equity portion of the pre-development work would also be included in tariff determination by the AERA. In case of equity, please confirm the rate of return to be assumed by AERA;
(i) The mechanism of conversion of cost of pre-development work into equity is not clear. As request in query 21 above, request for the deletion of this mechanism and instead request all Authority’s Share to be against actual subscription by Authority.
(ii) Request Authority to provide the cost of pre-development work during the Bid Stage and any cost over and above should be incurred by Authority and should simply be a cost to the
(i) Authority would provide tangible and intangible inputs into the project such as land acquisition, pre-development works, R&R etc. These are the investments of the government in the project. (ii) Authority would carry out the pre-development works. (iii) Authority would carry out the pre-development works. (iv) As per RFP
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Authority.
(iii) Please provide an itemized break-up of costs towards the Pre-development Works;
(iv) Please delete the relevant portion of Clause 12.9.2 which provides that any amount or expenditure in excess of amount prescribed by Authority shall be borne directly by Concessionaire. (v) Request Authority to provide confirmation whether the Pre-development work incurred will be considered as part of the capital expenditure for the purpose of determination of tariff by AERA.
783.
DCA, Part IV, Article 24, Para 24.4.1, Page 114
Concessional Agreement
Restriction on city-side development and land-use
As per Clause 24.4.1, the city side development cannot be used for commercial not related to airport. However, the proviso allow all commercial development without any restriction on area adjacent to Airport.
We request Authority to clarify: (i) whether there is any restriction on city side development (ii) Area earmarked for commercial development related to airport where restriction is applicable. (iii) Area earmarked for commercial development not related to airport.
Query 573
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785.
DCA Part IV, Article 26, Para 26.1, page 119
Concessional Agreement
Revenue share payment to start from date of execution of Concession Agreement, whereas Clause 27.2 states that the Revenue share payment to start from 10th Anniversary of COD.
We request Authority to modify the Clause 26.1 by deleting the reference of payment of Revenue share from date of execution of Concession Agreement.
Revenue share is from 10th year. Error would be corrected
790
DCA, Part IV, Article 29, Page 126;
Concessional Agreement
Restrictions on commissioning of Competing FacilityAs per the clause the Government is having right to commission the competing facility after 15th Anniversary of Appointed Date.
The concessionaire is required to incur huge capital expenditure for Phase 1 and Phase 2 with aggregate passenger capacity of 18mn per annum. We suggest that Authority should link the commissioning of competing facility with the passenger number rather i.e. upon reaching 18 MN passenger capacity.
Further, Authority should give Right of First refusal to the existing Concessionaire for any competing Airport with in 150 km radius which is in-line with all major private airports in India.
Request Authority to modify the Clause 29
“Government Instrumentality shall commission or operate or cause to be commissioned or operated, any Competing Facility after Bhogapuram Airport achieve 18 MN passenger per year.
We also request Authority to provide Right of First Refusal (ROFR) to the Concessionaire for any future competing Airport proposed by Govt. within 150 km radius.
As per query 811
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792
DCA, Part V, Article 33, Para 33.6.2, Page 137
Concessional Agreement
The clause provides that if, after the appointment date, any force majeure event occurs, after the COD of the phase, whereupon the Concessionaire is unable to collect aeronautical charges despite making best efforts or it is directed by the Authority or any Government Instrumentality to suspend the collection thereof during the subsistence of such force majeure event, AERA shall consider the impact of such force majeure event and provide appropriate remedies.
Please note that inability of the Concessionaire to collect aeronautical charges will directly impact the ability of the Concessionaire to make payments of the concession fee and the revenue share, therefore, we would request that the clause be suitably modified to state that payment of premium and concession fee would be suspended during the subsistence of the force majeure event. This would be in addition to appropriate adjustment by AERA in the manner contemplated by the Agreement.
As per RFP
811.RoFR for new airport
Concessional Agreement
Protection for competing asset as provided for other major PPP airports in India.
We request that no new airport should be permitted to be established within 150 kms of the radius of the Airport.
Alternatively, we propose a 10% RoFR in line with that provided for MIAL, DIAL, GHIAL and BIAL for any airport within the 150 km radius.
The provision of 150 km radius is provided by the Greenfield Airport Policy of GoI. The RoFR provision may be extended as per MIAL.
812 General
Concessional Agreement
We request that all Ground Risks of the land/ site boundary (including but not limited to pollution, utilities, archaeology, project affected persons, religious mausoleums such as temples, chapels, mosques, etc.) shall remain with Authority and not be transferred to the Concessionaire.
The Authority will provide water, electricity and approach roads up to the boundary of the airport. The Authority will ensure R&R of the project affected persons. Any archaeological finds will be the property of the GoI. For site related pollution, the bidders are advised to carry out independent tests over and above the data provided by the Authority. The Authority would make efforts to relocate any religious
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structures in the Site before handing over. Post handing over of the Site, the Authority is not responsible for any religious structures which may come up post-handover of the Site to Concessionaire.
814
DCA, Part I, Article 1, Page 31
Project is defined to include “…. separately identified terminals for domestic passengers and international passengers ….” This definition could be interpreted to exclude the option of developing an integrated domestic and international terminal which is preferable from an infrastructure efficiency perspective and provision of a more seamless transfer passenger product.
We suggest deletion of “with separately identified terminals for domestic passengers and international passengers” from the definition of the Project. The current definition of the Project implies that separate domestic and international passenger terminals are required.
Refer query 44
817.
DCA, Part III, Article 10, Paragraph 10.2.5 (b), Page 63
The license, access and rights of way to the Concessionaire are subject to the rights of Project Affected Persons at all times.
TRIL believes that BIACL should take responsibility for PAP. We request deletion of Paragraph 10.2.5(b).
Refer query 560
818
DCA, Part III, Article 10, Paragraph 10.2.10, Page
Paragraph 10.2.10 requires the Concessionaire to accept a number of risks associated with the Pre-Development Works.
TRIL’s position is that Pre-Development is the responsibility of BIACL. We request deletion of 10.2.10.
If the pre-development works are delayed beyond the COD, the Concession Period would be extended by the time period by which the pre-development works are delayed beyond COD
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63
827.
DCA, Part III, Article 17, Paragraph 17.1.1 (h), Page 85
The Concessionaire is obliged to ensure that the obstacle limitation surfaces of the Airport and the approach and take-off areas are free from obstruction.
Whilst the Concessionaire is likely to be a member of the NOC Committee, it will have some influence on the control of obstacles; it will not have full control and so cannot “ensure” by itself that surfaces are not breached. Therefore we suggest Paragraph 17.1.1 (h) is amended as follows: “As part of the NOC Committee advise to ensure that the obstacle limitation surfaces of the Airport ….”
Would be per GSR 751 (E) notification of MoCA dated 30 Sep 2015 or as amended from time to time.
834
DCA, Part III, Article 18, Paragraph 18.8.1 (a), Page 97
A reserved area within the terminal building is required for the Authority.
The space within the passenger terminal should be reserved for core operational functions only. We request BIACL to delete paragraph 18.8.1 (a). See also item 22 below.
Refer query 834
835.
DCA, Part III, Article 18, Paragraph 18.12.9, Page
If 80% of car parking slots are on average occupied during 8 peak hours for any continuous period of 6 months the Concessionaire will need to add capacity.
“8 peak hours” is not defined. Is this 8 peak hours per day? Is this any 8 peak hours in a 24 hour period? Or a continuous 8 hour period within a 24 hour period? Could BIACL clearly define “8 peak hours”?
8 peak hours per day
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100
839.
DCA, Part III, Article 22, Paragraph 22.7.3 and 22.7.4, Page 110 & 111
In addition to the ASQ (or similar) survey BIACL may conduct a sample survey of user satisfaction annually. In the event of an unfavorable outcome (as defined in clause 22.7.3) the Concessionaire will need to reimburse BIACL for the cost of the survey.
ASQ is the industry standard and globally recognized survey of airport customer satisfaction. Therefore, we believe that there is no need for BIACL to conduct another survey. We request BIACL to delete paragraphs 22.7.3 and 22.7.4 from the Concession Agreement.
Refer query 171
841.
DCA, Part V, Article 36, Paragraph 36.1.1 (g), Page 145
See item 20 above.
We believe that measurement of IATA LoS C should not form part of the Service Quality Requirements and the Service Quality Requirements defined in Annex I should be redefined. We therefore request BIACL to delete paragraph 36.1.1 (g).
Sub-clause (g) is removed
842
DCA, Schedule A, Annex I, Page 176
Site for Airport - Not Defined
BIACL should detail the location & boundary (coordinates) of the site along with the access details with a detail drawing/plan in concession agreement and should not provide any reference of TEFS report.
Since TEFS is just a preliminary reference document and not binding on authority in accordance with RFP clause 2.1.2 (Page 14)
Complete details of Co-ordinates etc. already provided in TEFS.
843.DCA, Schedule A,
Master Plan for the site.The master Plan provided in the TEFS report is as proposed by the consultant based on which the study was conducted. Has BIACL approved
a) Master plan has been reviewed by technical committee and suitably
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Annex II, Page 177
the TEFS report or suggested any changes or modifications to the same.
BIACL should provide the details of ‘Schedule A & B” of concession agreement, and should not provide any reference of TEFS report.
Since TEFS is just a preliminary reference document and not binding on authority in accordance with RFP clause 2.1.2 (Page 14)
modified / revised incorporating comments / suggestion thereof.
845.
DCA, Schedule B, Annex I, Page 179
Pre-development works
BIACL should provide all the details of the site along with the topographical study report and the defining the works to be undertaken as pre-development works and the capex envisaged for these works.
a) Already provided in TEFS report b) 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.
846
DCA, Schedule B, Annex II Page 180
City Side Development. BIACL should provide all the details of the City Side Development. As per TEFR
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849.
DCA, Schedule I, Annex I, Item 1, Page 194
Transfer Process – MCT for 80% of transfer passengers to be 60 minutes for INT/INT and DOM/DOM transfers and 75 minutes for INT/DOM transfers.
Could BIACL please clarify how ‘minimum connect time’ is to be measured?
To be decided on mutual consultation based on terminal layout, security concerns etc.
861.
DCA, Schedule I, Annex I, Item 1, Page 195
The proposed Service Quality Requirements sets out a proposed measure for the runway system – delays to arriving and departing flights, measured in terms of average annual delay per aircraft assuming provision of international standard ATC procedures and equipment as per the CNS/ATM Agreement.
As currently defined this measure could see the Concessionaire being fined for a whole variety of aircraft delay reasons which are beyond the Concessionaire’s control. Aircraft ground delay is the combination of many factors including late passengers, aircraft technical faults, adverse weather conditions, industrial action by ATC staff etc. We request BIACL to delete the measure ‘Runway system – Delays to arriving/departing aircraft’ at Schedule I, Annex Me, Item 1, and page 194.
The measure would be adjusted for delays outside the control of the Concessionaire.
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862
DCA, Schedule I, Annex I, Item 1, Page 195
The proposed Service Quality Requirements sets out vehicle parking target average times to find a space and exit the car park (95% of passengers take less than 5 minutes). This measure is also referred to in Schedule L, Paragraph 2.2.4.
The measurement mechanism is not clearly defined. We request BIACL to clarify the definition of ‘Vehicle parking’. Alternatively, this measure could be replaced with the ACI ASQ measure ‘Parking Facilities’. Likewise we request BIACL to modify Schedule L, paragraph 2.2.4.
‘Vehicle parking’ shall broadly mean and not limited to, passenger / visitors / staff vehicles, taxis, buses and other vehicle coming to the airport. IATA Service Norms C to be followed.
863.
DCA, Schedule I, Annex I, Item 1, Page 195
The proposed Service Quality Requirements sets out a measure for the maximum waiting time for taxis. This measure is also referred to in Schedule L, Paragraph 2.2.8.
Taxi queuing time is not in the direct control of the Concessionaire and is subject to the vagaries of taxi supply and demand in the local area. We request BIACL to remove ‘Taxis’ from the Schedule I, Annex I Service Quality Requirements. Likewise we request BIACL to remove Schedule L, paragraph 2.2.8.
Refer query 497
864
DCA, Schedule I, Annex I, Item 1, Page 195
The proposed Service Quality Requirements sets out a measure for seating availability at gate lounges of 80% of the aircraft capacity.
Closed gate lounges may or may not be the proposed design solution. If permitted, open gate rooms might be preferred. Nevertheless this is more of a design issue. A more appropriate measure would be the ACI ASQ ‘Comfort of Waiting/Gate Areas’. We request BIACL to replace the proposed gate lounge seat based measure with the ACI ASQ ‘Comfort of Waiting/Gate Areas’ measure.
As per Query 235
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865.
DCA, Schedule I, Annex I, Item 1, Page 195
The proposed Service Quality Requirements sets out a measure for landside access of 95% of vehicles have delay less than 5 minutes on the terminal frontage road.
The measurement mechanism is not defined. Could BIACL please clarify the definition of ‘Landside access’ and whether this relates to the terminal kerbsides?
‘Landside access’ relates to the terminal frontage roads / terminal kerbsides
866
DCA, Schedule I, Annex I, Item 2, Page 194 and 195
In addition to the proposed Service Quality Requirements measures specified by BIACL at Annex I, there is a ‘subjective’ service quality measure proposed which is the ACI ASQ ‘Overall satisfaction with the airport’ score, with the requirement that the airport is in the top 20 percentile of all airports in its category in the world. At Article 22 paragraph 22.7.1 there is a similar requirement but an additional requirement to ensure that the overall rating is maintained at 4.5 or above within 5 years from the Phase I COD for the remainder of the Concession Period. A summary of the ACI ASQ Survey is provided at Appendix C below.
Schedule 1, Annex I Items 2 and Article 22, paragraph 22.7.1 should be consistent. Based on Schedule I, Annex I, Paragraph 2 (pages 195-196), it appears that the ACI ASQ overall satisfaction with the Airport score will be computed using only those factors that in the reasonable control or influence of the Concessionaire. These factors include ‘ground transportation to/from airports’ which arguably is not in the direct control of the Concessionaire. If the overall satisfaction with the Airport measure is computed using selected measures and the overall measure is then compared to the overall scores achieved at other airports to check whether Bhogapuram Airport is in the top 20 percentile of all airports in its category in the world, then the comparison is unlikely to be on a ‘like for like’ basis. We request BIACL to amend Schedule I, Annex Me, and Item 2 as follows: “The subjective quality of service shall be measured on the parameter of “overall satisfaction with the airport” on the ACI ASQ Survey to be conducted every quarter. The benchmark score for the parameter “Overall satisfaction with the airport shall be at least equivalent to such score that the airport is identified within the top 20 (twenty) percentile
As per Query 540
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of all airports, in its appropriate size category in the world. The Concessionaire ….. Of the Agreement.” We also request BIACL to remove ACI ASQ item b. (ii) Ground transportation to/from airports, from the list of ASQ measures to be included in the subjective quality of service overall measure. And we request BIACL to clarify how the Bhogapuram Airport subjective quality of service overall measure can be consistent with overall quality of service measures at other airports when the list of specific measures that make up the overall measure score may be different.
867.
DCA, Schedule L, Paragraph 2.2.7, Page 203
The User Charter says that waiting areas will be planned to ensure at least 40% of the ‘Peak Hour capacity’ are provided comfortable seats.
This specific User Charter commitment is not clearly defined and it is not clear how this relates to the proposed Service Quality Requirement for gate-lounges to have seating or 80% of aircraft capacity (albeit we suggest that this measure is replaced with a measure from the ACI ASQ Survey). We request BIACL to delete Schedule L, Paragraph 2.2.7.
As per query 235
868
DCA, Schedule A, Paragraph 2.1 & 2.2, Page 175
The Concessionaire hereby acknowledges, confirms and accepts that the land forming part of the Site is good and sufficient from all parameters to undertake the development and implementation of the Project.
Request authority to confirm Runway orientation & location is fixed or any change is acceptable. To understand & accept this condition In principal approval is needed for the project.
In-principle approval of MoCA has been obtained for Bhogapuram International Airport on 26 Sep 2016
869.
TEFS Report - 0.2.4 EIA
TEFS
The demarcation of CRZ - From this study it was confirmed that the nearest point of the boundary of proposed airport, from the high tide line or the costal line was at minimum distance of 671m.
We request BIACL to share High Tide level & High flood level during Tsunami & HudHud cyclone in 2014
As per government of India's CRZ notification "The high tide line means spring high tide Line". In general high
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Study
tide line means high tides that occur with periodic frequency but does not include storm surges in which there is a departure from the normal or predicted reach of the tide due to the piling up of water against a coast by strong winds such as those accompanying a hurricane or other intense storm. The tide levels during tsunami and Hudhud can be obtained from IMD.
870
TEFS Report - 0.2.5 EIA Study
TEFS
We request BIACL to share EIA Study conducted for Bhogapuram airport to evaluate Cost associated with environment management plan and also allow bidders for additional queries pertain to the same.
Final report approved by MOEF can be shared when available.
871.
TEFS Report - 0.4 Planning Parameters
TEFS We request BIACL to share detail OLS Study
report conducted for Bhogapuram airport Will be provided.
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872
TEFS Report – 5.4.6 Metro Access
TEFS
We request BIACL to provide Study report conducted for Metro connectivity for proposed Bhogapuram airport
No study conducted so far for this purpose.
873.
TEFS Report – 7.4 Cost Estimate
TEFS
The items marked with (C) are to be borne by concessionaire · Import taxes, tariffs or equivalent - ©· Labor cess, WCT and Service tax etc. - ©· Legal fees, design fees, finance cost, etc. - ©· Cost associated with environment management plan - (C)Finish and finishing for tenants area (cargo, catering, and hangars, etc.) - (C)
We request BIACL to provide details exemption on Taxes for Bhogapuram airport to evaluate Cost.
Refer applicable tax laws, notifications, govt orders, policies of the GoAP and GoI.
874
TEFS Report – 7.4 Cost Estimate
TEFS
The items marked with (G) are to be borne by Government: · Cost of obtaining service connections from state authorities for electricity/water supply/telephone etc. - (G)· Cost of Land, Cost of Obstruction removal and shifting of utilities - (G)· Cost associated with resettlement and rehabilitation - (G)Site development cost associated with facilities outside airport boundaries - (G)
We understand that the cost will be borne by BIACL and will not be loaded on project.
Cost of obtaining service connections from state authorities for electricity/water supply/telephone etc. - the Authority will provide provision of water, electricity and approach roads up to the boundary of the Site. The cost of getting the connections for supply of utilities will be borne by the Concessionaire. All others as per RFP
880TEFS Report - 0.9
TEFS
The State Govt. should issue a notification for limiting heights of new structures within the Obstacle Limitation Surfaces indicated associated with airport development.
We request BIACL to issue a notification for limiting heights of new structures within the Obstacle Limitation Surfaces indicated
As per query 827
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WAY FORWARD
associated with airport development and also ensure & monitor No development with heights which will affect future operation at the proposed airport.Request to inform the bidders about such notification before financial bid.
881. General
What are the obligations on the bidder in terms of the R&R package (if any)? Is there any assured commitment to the Project Affected Persons from the concessionaire side?
Will be provided by Authority
882 General
BIACL should ensure availability of enough construction materials like sand, aggregates etc. for Airport project in all phases since non-availability of resources would have a significant impact on capex.
BIACL to share report on resource planning conducted considering major development around Airport project.
Bidder shall undertake due diligence and accordingly plan for resources.
884 General Please provide all available information and clarity on airspace capacity and
interaction with existing VIZAG Airport and any limitations thereof.
BIACL should confirm that the existing airport will be closed for commercial operations on CoD of Bhogapuram International airport.BIACL to share detail study conducted in this respect of airspace capacity and interaction with existing VIZAG Airport.
As per MoCA MoM of meeting held on 28 Dec 2015, the existing airport in Vizag will be closed. The Concessionaire has to develop SOP for air space management.
887. Clause In the event The O&M criterion may be allowed to be met by the Concessionaire through an As per query 613
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2.2.3 (c) page no. 19 of RFP Vol I
the Bidder does not have the relevant O&M Experience, it shall enter into an agreement with an entity 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
appropriate tie-up with an experienced O&M entity or by recruiting/positioning adequate O&M professionals with required qualifications and experience to meet the O&M obligations under the Concession Agreement in line with the guidelines given in the Planning Commission Model Concession Agreement for Greenfield Airports.
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terminated.
888
Annexure V O&M Experience of Bidder
O&M Experience of Bidder Part A & Part B
We understand in case the bidder doesn’t meet the O&M experience criterion at the time of bidding, he can meet the same after award of concession before the COD and an undertaking to this effect can be given at the time of submission of bid.
Please confirm.
As per query 613
893.Clause 1.1.2 Vol I
The selected Bidder shall incorporate a company under the Companies Act, 2013 prior to execution of the Concession Agreement (the “Concessionaire”) and transfer 26% (twenty six per cent) equity of the Concessionaire to the Authority and/or its nominee(s).
Does the 26% equity need to be transferred only to BIACL or will it be shared by any other entity including AAI. Kindly clarify
The equity component of the Authority is 26%. It is up to the Authority to decide the use of this equity share.
894 Clause 1.2.7 Bids are
invited for the Kindly clarify whether the annual Gross Revenue includes revenues only from airport or will it include revenues from city side real estate development (non- Refer relevant AERA
provisions
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(a) Vol I
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
aeronautical revenues) as well?
895.Clause 1.2.8 Vol I
The Concessionaire shall be entitled to levy and charge tariffs from users of the airport in accordance with the applicable laws.
Whether the BIACL will fall under the tariff regulation as set out by AERA from the COD itself or will there be any moratorium period before AERA's purview/ jurisdiction sets in.
The tariffs would be under AERA regulations from the beginning
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896
Clause 2.2.1 (d) Vol I
Conflict of interest arisen out of engagement of advisors
Kindly publish the information regarding all the advisors engaged by the authority in respect of the project including technical, traffic, financial, legal and transaction advisors.
Refer query 21
903.Clause 4.1.2 Vol II
Applicable Permits
Kindly provide the approval and permissions granted in respect of the project from Defence/EFM/MOEF/CRZ/ manpower sanction letter for Airport Security/CNS-ATM provision from AAI etc. Kindly share copies of such permits obtained.
Will be provided
905. Clause 5.4.1 (C) Vol II
an irrevocable undertaking that the rights vested in the Authority and the Project Affected Persons, shall not be abridged, abrogated or in any manner affected by any act done or purported to be done by
Request Authority to share the details and scope of understanding entered with PAP and rights granted to PAP therein.
Will be provided
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the Concessionaire or any of its Associates or Affiliates;
907. Clause 5.11 Vol II
The Concessionaire shall not, either directly or through Associated Firms, or in any other manner acquire control or interest in the operations or services of any other airport situated within a radius of 150 (one hundred and fifty) kilometers from the Airport such that its share exceeds 25% (twenty five per cent) of such control or interest in the operations or services of
Request Authority to clarify whether the airline operations shall stand closed from the existing airport on the date of COD and no further civil air traffic operations including General and Corporate Aviation shall be permitted at the existing airport? REQUEST Authority to include the closure of all civil air traffic at the current airport on the date of COD of BIA.
Does this restriction shall apply for Regional Airports or Low Cost Airports as planned/ or that may come up for bidding in future? Kindly Clarify.
Also it shall be ensured that no new airport comes up within the 150 Km radius till the BIA achieves a minimum of 25 Mn passengers as per the norms.
As per query 811
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that airport. The Concessionaire shall also ensure and procure that no person who controls or operates any other airport situated within a radius of 150 (one hundred and fifty) kilometers from the Airport shall acquire control or interest in the operations or services of the Airport such that the share of such person exceeds 25% (twenty five per cent) of such control or interest in the operations or services of the Airport
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909.Clause 17.2 Vol II
Electricity and Water Supply
It is requested that the same shall be Conditions Precedent to the Authority and Authority shall cause its respective agency to ensure allocation and provision of required supply of electricity and water at the ear marked locations, preferably at the battery limit of the proposed airport as per the approved Master Plan for the airport.
The Authority shall provide electricity and water connection up to the boundary of the airport.
911.Clause 24.5 Vol II
Floor Space Index Please specify the FSI ear marked for city side development. FSI: 1 .5
912Clause 28.3.2 Vol II
Shared Till Approval Kindly provide the copy of the approval letter for the same. Will be provided
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914Road Connectivity
Link road from Vizag City to the proposed site for Airport
Kindly indicate the plan of action and the indicated timeline for completing the same. Are they any plans for metro/light rail connectivity?
Approach from Vizag city is through NH-5. Link road from NH-5 to airport boundary shall be constructed by government as part of pre development works. Beach Corridor is also being developed to connect Bhogapuram up to Vizag.
915.Tax exemptions
Exemptions provided by AP Government
Kindly provide details of various tax exemptions provided by AP Government to promote air traffic
Kindly refer AP Civil Aviation Policy and other relevant policies, Govt notifications etc.
916
Customs and Excise duty
Exemptions for various import of Capital Goods and equipments for airport Construction under Customs and excise acts
Please indicate the approvals for waiver/exemptions in respect of the import of Capital goods and equipments as received from Ministry of Finance, GoI in respect of the BIA project.
Kindly refer various govt orders, notifications, laws and its amendments from time to time
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917.
Development Plan for Vizag city and region
Development Plan for the Vizag city and its outer limits as set out therein
Kindly share the approved DP copy of the Master and Development Plans for Vizag city, urban agglomeration and the region the extent of limits of each geography.
May be obtained from Visakhapatnam Urban Development Authority
918
Multi -modal connectivity plans
Muti-modal transport connectivity plan for the Vizag city as per the Development Plan for Vizag city
Kindly provide the copy of the same and provide implementation timelines for the same so that on the date of COD, connectivity to the airport is established.
Further, this will be done by the State Government on its own and at no time to be included in the airport project.
May be obtained from Visakhapatnam Urban Development Authority
923. Clause 4.1 Conditions
Precedent
Time Lines for fulfilling Conditions Precedent may be increased to 270 days and submission of performance security may be increased to 90 days. Damages may be reduced to 0.05% of performance security for each day of delay.
May be considered for timelines.
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
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928 Article 25 Financial
Close Prescribed time limit for financial close is very less. It should be minimum 180 days.
Timeline to fulfill Conditions Precedent by Concessionaire has been increased to 150 days;
Timeline for Financial closure has been increased to 180 days
931. General
Existing Visakhapatnam Airport (Civil Enclave)
A categorical assurance may be please be given by BIACL that on or before the COD of the proposed airport at Bhogapuram, the operations at the existing Visakhapatnam will be closed for good under the ‘Representations & Warranties’.
refer MoM of MoCA meeting held on 28 Dec 2015 which provides assurance of closure of existing airport in Vizag
933. General
Due date for bid submission.
Due date for bid submission may please be extended by minimum 3 months. Due date for bid submission is now 15:00 hours of 20 Dec 2016
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934 General Security
As security by CISF is mandatory, In the event of shortfall in security component share due to the Concessionaire from the PSF collected from the passengers, the same shall be compensated by the Authority.
As per AERA norms
935. General Earth work &
minerals
As all the earth excavated within the project site to be used for the project, no separate quarry licensing or royalty shall be levied by any of the Government agencies on the same. Similarly, the Authority should facilitate provision of required permits/license for quarrying the earth or stone or minerals for the use in the proposed project and the same should be fully exempted from payment of ‘Royalty’ to the state government.
As per applicable laws
936 General Stamp Duty. Stamp Duty on entire project transactions including concession, sub-leases, sub-
licenses etc should be exempted fully.
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.
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