Airports Authority of India Rajiv Gandhi Bhavan Safdarjung Airport New Delhi - 110 003 India

Introduction

Airports Authority of India (AAI), a corporate body constituted under the Act of Parliament i.e. AAI Act, 1994 by merging the International Airports Authority of India and the National Airports Authority with a view to accelerate the integrated development, expansion and modernisation of the operational, terminal and cargo facilities at the Airports in the country conforming to international standards. It controls and manages a total of 120 airports in India.

Corporate Mission

Progress through Excellence and Customer Satisfaction with world-class Airports and Air Traffic Services fostering Economic Development.

Financial Highlights

A continuous profit making organisation, AAI generated a revenue of Rs.1591.27 Crores and reported a net worth of Rs.1417.23 Crores during the year 1998-99.

Objective

AAI invites sealed tenders from reputed concessionaires for the development and running of:

1. `Additional Duty Free Shops' at International Airports in India viz. Indira Gandhi International Airport, Delhi; Chhatrapati Shivaji International Airport, Mumbai; Thiruvananthapuram; Anna International Airport, Chennai and Netaji Subhash Chandra Bose International Airport, Calcutta.

2. `Jewellery Shops' including sale of high quality watches in the Departure/Transit areas of the International Terminal Buildings at Chhatrapati Shivaji International Airport, Mumbai; Thiruvananthapuram and Anna International Airport, Chennai.

Financial Terms

In respect of both the tenders as mentioned at (A) & (B) above, space licence fee and annual gross turnover related royalty shall be payable to AAI as per following:

Space Licence Fee
1. @ US $ 32.00 per sq.m. per month during the first year of the licence agreement, compoundable by 10% per annum during the subsequent years of the licence agreements.

   Royalty

2. In addition to the space licence fee as mentioned at (i) above, prospective tenderer(s) shall have to offer a fixed percentage of the annual gross turnover subject to following:
   
   1. In respect of the licence for `Additional Duty Free Shops', a minimum of US $ 25,000,000.00 is fixed by AAI as guaranteed annual turnover for the purpose of computation of annual gross turnover. Royalty shall be payable to AAI at the rates to be quoted by the tenderer on the said guaranteed annual gross turnover of US $ 25,000,000.00.

   2. In respect of the licence for `Jewellery Shops', a minimum of US $ 2,200,000.00 is fixed by AAI as guaranteed annual turnover for the purpose of computation of annual gross turnover. Royalty shall be payable to AAI at the rates to be quoted by the tenderer on said guaranteed annual gross turnover of US $ 2,200,000.00.

Period of Licence

1. In respect of the `Additional Duty Free Shops' proposed at all the International Airports as mentioned at (A) above, the licence shall be granted for a period of 5 years under single licence agreement.

2. In respect of the `Jewellery Shops' proposed at all the International Airports as mentioned (B) above, the licence shall be granted for a period of 5 years under one or more licence agreement(s).

Selection Criteria

1. `ADDITIONAL DUTY FREE SHOPS'
   The tenderers should have minimum 5 years' experience of operating Duty Free Shops in India and or abroad with yearly turnover of not less than Rs.700,000,000 (US $ 16,666,667) during the last financial year.

2. `JEWELLERY SHOPS'
   The tenderers should have minimum 2 years' experience of operating a jewellery shop in India and/or abroad with yearly turnover of not less Rs.700,000,000 (US $ 16,666,667) during the last financial year.

(A) & (B) In respect of `Additional Duty Free Shops'/`Jewellery Shops', the tender should be accompanied with the following:

1. List of Duty Free Shops or Jewellery Shops, as the case be, operated by the tenderer and the period of operation.
2. Balance Sheet and Profit and Loss account for the last 5 or 2 years in case of `Additional Duty Free Shops' or `Jewellery Shops' respectively as the case be.
3. Certificate of Registered/Chartered Accountants showing adequate financial resources.
4. List of Managerial and Trade Personnel to be deputed for operation of Duty Free Shop(s)/Jewellery Shop(s) with ability to maximize sales at competitive prices and to provide a wide range of merchandise/items (both Indian and foreign products).
5. Detailed background and structure of the tenderers' firm / company/organisation.

Tender documents can be obtained between 1000 hrs. to 1500 hrs. on all working days from 3-02-2000 to 14-02-2000 against the payment in Cash of Rs.5000.00 (non-refundable) from the office of

Schedule for Receipt and Opening of Tender

The tender documents duly completed in all respects containing Technical Bid in Envelope `A' and Financial Bid in Envelope `B' shall be received by the office of the Executive Director (Commercial) at the above mentioned address upto 24-02-2000 by 1500 hrs. and Technical Bid in Envelope `A' opened on the same day at 1600 hrs. The Financial Bid in Envelope `B' of the Technically qualified bidders shall be opened on 10-03-2000 at 1100 hrs.

Specific Condition

1. In case of ex-licensee(s)/existing licensee(s) of AAI, Tender Documents will be issued/licence shall be granted after settlement of all the outstanding dues by such licensee(s), except the dues which form a part of any arbitration case.

2. AAI reserves the right to reject any or all the tenders without assigning any reasons.

Executive Director (Commercial)

The Hindu