1. GMRs Terminal 3 for Delhi Airport: A successful Project Execution Model for Public-Private Partnership Initiative? Case Presented by: Himanshu Vashisht Rakesh M G Sagar Bhatt Sandhya Sharma

2. Why Terminal 3? Need of International standards Infrastructure to support Economic growth Entry of International and Low cost Private Airlines as a result of liberalization Requirement of technological up-gradation to cope with the raising air traffic Lack of passenger facilities, runways and parking base for aircrafts Revamp the tarnished image of Delhi Airport 3. Who built it? DIAL (Delhi International Airport Private Limited), A joint venture of Indian Government and GMR Group (Public Private Partnership) GMR (Grandhi Mallikarjuna Rao) is Bangalore based leading Infrastructure group which includes Power, Road, Airport and Urban Infrastructure Development. 4. What is PPP? A Public-Private Partnership is a contractual agreement between a public agency (federal, state or local) and a private sector entity. Through this agreement, the skills and assets of each sector (public and private) are shared in delivering a service or facility for the use of the general public. In addition to the sharing of resources, each party shares in the risks and rewards potential in the delivery of the service and/or facility. 5. Sectors where PPP Model is used Transportation Water/Waste water Treatment Urban Development Energy Financial Management Social Services 6. Sector wise Advantages PUBLIC Legal Authority Protection of Procurement Policies Broad prospective/balance the competing Goals to meet public needs Personnel dedicated but constrained Capital resources 7. Contd PRIVATE Management Efficiency Newer Technologies Workplace Efficiencies Cash Flow Management Personnel Development Shared Resources 8. Synergy Maximizes the use of each sectors strength Reduces development risk Reduces public capital investment Mobilizes excess or underutilized assets Improves efficiencies/quicker completion Better environmental compliance Improves service to the community Improves cost effectiveness Shares resources Shares/allocates risks 9. Terminal 3 at a Glace Features Details Foundation Stone Laid on February 17, 2007 by Sonia Gandhi Inaugurated July 3, 2010 by Hon. PM Manmohan Singh Used for All international Flights and full service domestic flights Cost 127 Billion Rupees Commercial Operation starts from July 28, 2010 International Flights November 14, 2010 Domestic Flights Total Levels 9 Floor Area 502000 square meter (8th largest) 10. Features Details Passenger capacity 34 million per year Aerobridges 78 ( 3 are exclusively for A380) Elevators 63 Escalators 34 Automatic Walkways /Travelator 92 which are 118m long..longest in Asia . 8 are inclined Immigration counters 95, 49-outbound : 46 Inbound Check In counters 168 11. Features Details Baggage Handling Advanced 5-level-in-line baggage handling system , 12800 bags /hour Rooms 100 transit hotel rooms 68 domestic: 32 international Parking Seven-level air conditioned parking for 4300 cars Retail space 20000 square meters 12. The Suppliers Items/Products/Services Suppliers Air- conditioning Carrier India Electrical Products and systems ABB Group Different types of fans Systemair , a leading ventilation company Preferred currency exchanger Thomas Cook Caterers Ambassadors Skychef , Chef Air , Taj Sats , Oberoi Flight Services , Sky Gourmet Catering Pvt Ltd, Club one air Fuelers BPCL, HPCL, IOC Ground handlers NACL, GlobeGround India , Airworks India , Cambata Aviation , Livewel Avaition Services Pvt Ltd , Concord Aviation Pvt Ltd 13. Items/Products/Services Suppliers Set up of Duty Free outlets A consortium of ARI, IDFS and DIAL for 10 years Baggage Handling system Siemens Substation Package Arevas Transmission and Distribution Division (T&D) India Ltd Neutral Host Shared Communication Solution Quippo Telecom Infrastructure Limited (QTIL), with Ericsson IT Infrastructure Wipro for ten years Roof Infrastructure and services Geodesic Techniques Private Limited Prefabricated Walls and False Ceilings around the terminal Saint Gobain Gyproc 14. Items/Products/Services Suppliers Telephone and mobile services Bharti Airtel Carpet Material Brintons , UKdeveloped in Pune ( worlds largest commercial carpet order from single buyer ) Civil work Design HOK Engineering and development Consultancy Mott Macdonald Landscaping Work EDAW and Beyond built Smoke Detectors and sensors US- Based Company 15. PPP model may provide profits to the private players through deals offered by government High Toll fees Critics stated instead of spending Rs127 billion on the construction , it could have been used for safety in 40 Indian airports which does not have safety licenses . Funds could also have been used for railway network PPP involves high agency cost and low performance The Limiting Factors 16. PPP Projects have long development period More complicated Contract renegotiation Contd 17. How to overcome limitations? Statutory and Political Environment Organized Structure Detailed Business Plan Guaranteed Revenue Stream Stakeholder Support Pick Your Partner Carefully 18. THANK YOU