The Airports Authority of India (AAI) has selected PricewaterhouseCoopers India as its transaction adviser for the privatization of six airports.
“AAI has recently appointed PwC as consultant and transaction advisor for undertaking the leasing of six AAI-owned airports, namely, Bhubaneswar, Varanasi, Amritsar, Raipur, Indore and Trichy under public, private, partnership (PPP),” an AAI spokesperson told Inframation.
The spokesperson added that the AAI is now in in the process of securing approval from the federal government for inviting bids from potential investors and is targeting the end of June to launch the tender.
The AAI called for bids to select a transaction adviser on 31 October last year.
The six airports generated a combined profit of INR 2.5bn (USD 35m) in the last financial year through 31 March 2019. “We expect to get about INR 10bn annually for these airports after we hand them over to private operators,” an AAI official referring to the Authority’s expected revenue share had told Inframation at that time.
This is India’s third phase of privatization of its airports. The first phase was when Delhi and Mumbai were privatized in 2006.
The government then failed to attract bidders in multiple attempts and subsequently made a few changes last year that attracted their attention. Instead of gross revenue sharing as the case of Mumbai and Delhi airports, the concessionaire is now expected to quote a fee per passenger that it will pay the AAI.