New Delhi: The risks involved in the development of the Chhatrapati Shivaji International (CSI) Airport, Mumbai, were not “appropriately transferred” to the developer Mumbai International Airport Ltd (MIAL) the Comptroller and Auditor General has said. MIAL, is a consortium led by the GVK group.
“Though the project cost more than doubled to ?12,380 crore from ?5,826 crore, the concessionaire did not appear to have faced financial vulnerability as the funding gap was being largely absorbed by passengers through the levy of a Development Fee though such a fee was not there in the Operation, Management and Development Agreement (OMDA),” the Government auditor said in its latest report on ‘Implementation of Public Private Partnership project at Chhatrapati Shivaji International Airport, Mumbai,’ which was tabled in Parliament on Friday.
The OMDA was signed on April 2, 2006 between the Airports Authority of India (AAI) and MIAL.
The report points out that the absence of a review clause and re-negotiations appear to allow MIAL the right to operate the airport for 60 years with the terms and conditions frozen in the OMDA.
18/07/14 Business Line
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“Though the project cost more than doubled to ?12,380 crore from ?5,826 crore, the concessionaire did not appear to have faced financial vulnerability as the funding gap was being largely absorbed by passengers through the levy of a Development Fee though such a fee was not there in the Operation, Management and Development Agreement (OMDA),” the Government auditor said in its latest report on ‘Implementation of Public Private Partnership project at Chhatrapati Shivaji International Airport, Mumbai,’ which was tabled in Parliament on Friday.
The OMDA was signed on April 2, 2006 between the Airports Authority of India (AAI) and MIAL.
The report points out that the absence of a review clause and re-negotiations appear to allow MIAL the right to operate the airport for 60 years with the terms and conditions frozen in the OMDA.
18/07/14 Business Line
