Legal
framework
Concession agreement
The Government of India has granted the exclusive
right and privilege to BIAL to carry out the development, design, financing,
construction, operation and management of the airport for a period of thirty
years from airport opening date with an option to extend the concession for
another 30 years.
No new or existing airport will be permitted to
operate as a domestic or international airport within 150 kilometres. The
Government of India, represented by the Ministry of Civil Aviation, is committed
to equal treatment and non-discrimination of all international airports and to
renew the bilateral agreement constantly.
The
concession agreement recognizes that BIAL may carry out any activity or business
in connection with handling of aircraft, passengers, baggage and cargo at the
airport. BIAL may at any time grant the service provider rights to any party for
the purpose of carrying out such activities on such terms and conditions as are
reasonably appropriate.
Shareholders agreement
A shareholders agreement was signed between the
Karnataka State Industrial Investment and Development Corporation Limited, the
Airports Authority of India, Siemens Project Ventures, Unique Zurich Airport,
Larsen and Toubro Limited and Bangalore International Airport Limited on 23
January 2002.The purpose was to develop an airport with private sector
participation at Devanahalli near Bangalore in the state of Karnataka, India as
a greenfield project. The agreement specified the percentage of issued and paid
up share capital of BIAL as well as its break up between the private and state
promoters. Private promoters would hold 74% of the equity while the state
promoters would hold the remaining 26%.
Operation and management services
agreement
An operation
and management services agreement was executed between Unique Zurich and
Bangalore International Airport Limited in April 2005. Under this agreement,
Unique will provide, procure and coordinate the provision of operation,
management and maintenance services to the new Bangalore International Airport.
The aim will be to ensure that the new Bangalore International Airport is
operated and managed as a world-class, state-of-the-art, international
airport.
State
support agreement
An agreement
was signed between the Government of Karnataka and Bangalore International
Airport Limited on 20 January 2005 wherein the former will provide financial
support to improve the viability of the new airport project and enhance the
bankability of the initial phase. In pursuance of this, the Government of
Karnataka appointed agency, the Karnataka State Industrial Investment and
Development Corporation has provided the airport site to BIAL free from all
encumbrances under the Land Lease Agreement. Also, a state support agreement of
Rs. 350 crores would be made available by the Government of Karnataka to BIAL
for the purpose of this project.
EPC
agreement
An agreement
was executed on 11 March 2005 between BIAL and the EPC contractors - Larsen and
Toubro, Siemens Limited and Siemens AG, under which the latter will design,
procure, construct and complete the new Bangalore international airport project
on a lump sum, turnkey basis.
Land
lease agreement
A Land Lease
Agreement was executed on 20 June 2005 between the Karnataka State Industrial
Investment and Development Corporation (KSIIDC) and BIAL under which KSIIDC, the
owner of the airport site of approximately 4000 acres, will lease it out to
BIAL.
CNS/ATM
agreement
A CNS/ATM
agreement was signed in April 2005 between the Airports Authority of India (AAI)
and BIAL under which the former is responsible for the provision of air traffic
services.
Financing agreement
A common agreement was signed on 11 March 2005
between BIAL and ICICI Bank under which Rupee facilities to the tune of Rs. 735
crores would be provided by the latter towards the new Bangalore International
Airport project.
