Concession agreement for pvt airports soon

The government is finalising a model concession agreement for all greenfield airport projects to be developed by private companies. The agreement will be in place in the next two weeks.
“This model is basically a transparent allocation of rights and obligations to the private developer. It will make the private party aware of the airport project before it bids for it,” said a senior official in the civil aviation ministry. The document will include broad guidelines regarding the area of land that will be used and some details regarding traffic projections for the place. While the basic framework would remain the same for all the projects, some of the details will vary depending on the project.
“Finer details like revenue sharing will, however, be worked out after the bidding process and will not be a part of the model concession agreement,” said the official.
20/03/08 Anirban Chowdhury/Business Standard

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Categories: Airports Mar 2008, Merchant Airports Mar 2008, New Mar 2008