BUSINESS
Contract for 25 years from 2011; GVK-Zurich, France-Turkey consortia lose contest.
Infrastructure major GMR has won a bid to construct up a new terminal and manage the Male International Airport in Maldives, beating two other contenders - a consortium of Aeroport De Paris, France and TAV of Turkey; a Zurich Airport-GVK Airport Developers consortium and the GMR - MAHB consortium GMR will take control of the airport in the first quarter of 2011 and will get 3 years to complete the project. The new terminal will replace the existing one.
GMR will then operate the airport for 25 years.
“We won the project after a tight contest. Our mandate is to expand the airport from the current capacity of 2.6 million to 3 million passengers in the first phase and then to 5 million in the second phase. In fact, this particular airport is a high-quality facility with tourists arriving from Europe and south east Asia.
The quality of passengers makes this project an attractive opportunity for us,” Sidharth Kapur, GMR group chief financial officer - airports, told DNA Money.
The airport is situated on Huhule Island in the politically stable archipelago of Maldives in the south-west of India.
While refusing to share the capital expenditure plans on the airport, Kapur said, “We have been working on this project for the last 10 months and we have done a detailed analysis. We have found to be attractive even in terms of enhancing shareholder value.”
The bidding for the airport was done on five parameters set by the Maldivian authorities.
Apart from upfront payment, four modes of revenue share were the bidding criteria. The bidding process was overseen by IFC, Wahington.
“TAV and French Airport were next to us coming close to our bidding,” Kapur said.
GMR has agreed to pay $78 million upfront, 1% of the total profit in the first year (until 2014) and 10% of the profit from 2015 to 2035.
The company also agreed to pay 15% of fuel trading revenues in the first four years and 27% from 2015 to 2035.
Turkey’s TAV Airports Holdings Company and French Airports De Paris Management together reportedly offered $7 million for upfront payment, 31% of the total profit until 2014 and 29.5% of the total profit for the remaining years. The companies offered 16.5% of profits from fuel trade.
GVK and Zurich reportedly offered $27 million as upfront payment, 27% of the total profit in the first four years and 9% of the profit from 2015 to 2035. The consortium agreed to pay 9% of fuel revenues.
“More than the upfront payment, revenue share was the key factor (behind the win),” Kapur said.
Delhi residents defy firecracker ban, illuminate night sky with Diwali celebrations
'Since I've retired...': Rohit Sharma reacts after Mumbai Indians retain him for IPL 2025
Diwali 2024: How to get rid of acidity, bloating, constipation post Diwali binge?
IND vs NZ, 3rd Test Dream11 prediction: Fantasy cricket tips for India vs New Zealand match
IPL 2025: What is the remaining purse and RTM cards for all teams ahead of mega-auction?
Meet Indian man who secured job at Elon Musk's Tesla after sending...
'Isse zyada sundar...': Viral video captures aerial view of Diwali celebrations in Noida, WATCH
THIS company got richer by Rs 29878 crore on Diwali day due to...
Delhi's air quality deteriorates to 'very poor' category, likely to worsen after festival
IPL 2025: Rishabh Pant released by Delhi Capitals, CSK retains MS Dhoni as...
Meet woman, who quit NCPI as COO, now set to lead India's largest...
Viral: Businessman gifts Rs 1 crore Rolex watch to contractor for his...
Post-Diwali hangover? 5 easy tips to detox the liver
Pushpa 2: Allu Arjun, Rashmika Mandanna share film's NEW poster to wish fans on Diwali
Gautam Adani's companies set to supply 6500 MW of power to THIS state
WTC 2023-25 points table update after South Africa clean sweep Bangladesh 2-0 in Test series
Meet woman, college dropout who earns Rs 1494000 monthly, works just 4 hours a day, she is...
Why KL Rahul decided to part ways with Lucknow Super Giants ahead of IPL 2025 retention deadline?
Sebi issues Rs 154 crore demand notices to Anil Ambani's companies, asks them to pay within...
IND vs NZ: Jasprit Bumrah to miss third India vs New Zealand Test? Report says star pacer is....
What is Seasonal Affective Disorder? Why it happens in winter?
New Hezbollah chief Naim Qassem open to truce with Israel, says, 'we accept but…’
BSNL continues to rise, deploys over 50000 4G sites with Tata Group company in India's most...
'Either this or nothing': Elderly couple dances at Mohit Chauhan's concert, WATCH viral video
'That's so cheap': Sana Makbul CRITICISES pap after he tells her 'mazze nahi aa rahe' in viral video
Indian, Chinese troops at LAC exchange Diwali sweets after border disengagement
Dawood Ibrahim was fan of this superstar, invited him for tea, confessed a murder to him, then…
NEET entrance 2025 exam to happen online? Here's what high-level panel suggests
Jadeja to enter IPL auction? CSK eying THIS star player as MS Dhoni's successor
Ratan Tata once surprised his dog trainer at Bombay VT: 'You hold the pup, I’ll take...'
Woman finds bundle of old Rs 500 and Rs 1000 notes during Diwali cleaning, netizens call it...
IPL 2025: List of players set be retained on deadline day, CSK, RCB, MI will retain...
Kartik Aaryan says his film Bhool Bhulaiyaa 3 doesn't need cameos: 'Hume humaari...'
Meet man, who secured AIR 2644 in JEE, did B.Tech from IIT Kanpur, has now started doing...
Noida: Stunning drone footage captures Diwali celebrations, watch viral video
Is stock market open or closed on Diwali? Know details here
Don’t Move on Netflix movie review: Psychological thriller with enjoyable moments
Cricketer Ben Stokes' house burgled by masked robbers, England captain shares harrowing details
Diwali delights: Bengaluru man surprises mom with Apple iPhone 15, viral video wins internet, watch
'Divine festival of lights...' PM Narendra Modi extend his wishes on festival Diwali
Diwali 2024: Dos and don'ts, subh muhurat, rituals and more
Delhi pollution: National capital's air quality dips to 'very poor' on Diwali, AQI hits...
Varun Dhawan finally reveals daughter’s name on Amitabh Bachchan’s KBC 16: ‘We named her…’
Elon Musk is hiring Hindi tutors for his firm xAI, offering pay up to Rs...
When Abhishek Bachchan broke his silence on divorce rumours with Aishwarya Rai: ‘Will you let me…”
Triupati Laddo row: Andhra Pradesh govt appoints BR Naidu as new chairman of Tirupati temple board
Meet man who left his IT job to build Indian brand, competes with Domino's, Pizza Hut, he is...
Diwali 2024: Know puja vidhi, shubh muhurat, significance, rituals and more
Meet man, whose father is a taxi driver, clears UPSC with AIR...