PPP in Airport DevelopmentCochin International Airport

Introduction:
The Airport Authority of India (AAI) The draft policy on Airport Infrastructure of December 1997 Cochin International Airport Limited (CIAL)first airport in India to be built with public private participation Government of Kerala (GOK) and the airport service providers

Joint Venture:
Formation of Cochin International Airport Limited (CIAL) Land Acquisition Land Compensation

Building the Airport:

Phase I 1. construction of the runway and 2. terminal buildings required for intl. and domestic flights Phase II 1. Other terminal buildings 2. approach roads

Financial Resource Mobilisation:

CIAL and HUDCO (Housing and urban development corporation): a. HUDCO sanctioned a term loan of Rs 250 million at 16.5 %. GOK sanctioned Rs 10 million towards equity in March 1995. b. The government contributed the next installment of Rs. 50 million to equity in July 1996. Private placement efforts brought in Rs. 150 million as equity. c. enhancing the equity participation of GOK to 51%.

Capital Structure:
The total project cost was expected to close at Rs 3400 million. Rs 3208.5 million had been raised through equity participation (Rs 900 million out of which Rs 789.3 had been paid up) Loans (Rs 2169.2 million) and Interest free deposits (Rs 250 million). Out of the loans, Rs 1527 million (including Rs 144.9 million as interest accrued) was from HUDCO at an average interest rate of 16.34 %.

Continued.
CIAL had an authorized capital of Rs. 900 million and a paid up capital of Rs 789. 3 million. Airport services providers (Air India, Bharat Petroleum Corporation Limited, State Bank of India and Federal Bank) -Rs 212.5 million as equity. NRI directors and their relatives: Rs 141.4 million. 6160 Indian residents: Rs 44.8 million 3880 NRIs were equity holders: Rs 54.0 million respectively. Two banks, IOB and Dhanalskshmi Bank Ltd. Together: Rs 7.5 million as equity.

Thank you