BergerWorld: 4th Quarter 2006

Chhatrapati Shivaji International Airport (BOM) is the largest airport in South Asia. Located in Mumbai, India's most populated city, BOM accommodates nearly 18 million passengers and over 400,000 tons of cargo per year. Located in Delhi, the nation's capital, Indira Gandhi International Airport (DEL) is the country's second largest airport, its principal domestic hub and a major international gateway. In 2006, DEL handled over 10 million passengers. Together, the two airports accommodate more than 50 percent of India's air traffic and are forecast to handle as many as 187 million passengers by 2040. Because the airports are presently nearing capacity, the government of India requested bids from international consortia to expand and operate the facilities. The Berger Group was selected by Reliance Energy to serve as its advisor and to manage the preparation of their bid for the concessions.

Berger reviewed each airport's existing operations and traffic, and prepared detailed forecasts to determine the necessary expansion needs to accommodate growth. Berger also conducted assessments of each facility's needs to meet international standards and prepared master development plans. As part of the bid, CAPEX and OPEX estimates were prepared for the concession period. Business plans for the airports were then developed using benchmarks achieved at comparable facilities. The business plans included aeronautical and commercial revenue estimates; options for the future development of cargo and logistics facilities, on-site hotels, parking garages, retail areas and other commercial activities; and the appropriate role of a new airport concession in the construction and management of the proposed facilities.

Five airports in Trivandrum, Goa, Lucknow, Mangalore and Madurai, which combined serve a population of over seven million, have initiated plans to invite private-sector participation in the development of their facilities. The Berger Group, in association with Airports Consulting Vienna and Intercontinental Consultants and Technocrats Pvt. Ltd of India (ICT), was commissioned by AAI to serve as Global Technical Advisor (GTA), and to prepare action plans for the private-sector participation in the development of the five airports. The proposed developments entail upgrading terminals, landside facilities, passenger services, cargo and other commercial facilities, including restaurants, banks and shops.

The services were divided into three phases. During phase one, the Team analyzed and evaluated each airport's current and future capacity, prepared investment plans and assessed options for increasing private participation. During the second phase, the Team reviewed specific plans for new construction or expansion to terminals as well as commercial, service and regulatory facilities, and prepared detailed designs for each airport. The Team also prepared marketing plans to promote private participation. In the final phase, investor profiles and contract documents and designs, including benchmarks and criteria to measure the on-going performance, were refined.

The Berger Group, in association with ICT, was also commissioned by AAI to serve as GTA for the city-side development of five additional airports located in Bhopal, Indore, Nagpur, Vishakapatnam and Trichy. The Team began the assignment by conducting interviews with airport officials, staff and users, as well as key public and private stakeholders, including Chambers of Commerce, tour and travel operators, state and central government officials and municipal authorities, to ascertain airport requirements. The GTA then provided the five airports with economical and efficient, 20-year phased airside and landside master plans, including anticipated traffic growth, technical parameters for terminal facilities and buildings, as well as related airside requirements and cost estimates. In addition, the Team recommended options for addressing capacity constraints to improve service standards for passengers and procedures for reducing potential environmental impacts, including noise and air pollution from airport operations and new construction sites.