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| HIAL Achieves Financial Closure |
| 22 Aug. 2005, Hyderabad |
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| The new airport project at Shamshabad, Hyderabad being developed by HIAL has achieved financial closure on 22nd August, 2005.
The debt totalling Rs.960 Crores was tied-up with IDFC as the lead lender of the consortium. The other participating banks include Allahabad Bank, Bank of Baroda, Canara Bank, IDBI, Oriental Bank of Commerce, State Bank of Hyderabad and Vijaya Bank.
The debt syndication for the project has been done by the in-house project finance team of GMR Group.
The project with a debt-to-equity ratio of 1.2:1 has GMR, MAHB, AAI and GoAP as its equity partners.
The shareholding of the partners is as follows,
GMR Infrastructure Limited - 63%
Malaysia Airport Holdings Berhad - 11%
Airports Authority of India - 13%
Government of Andhra Pradesh - 13%
With the project cost totalling around Rs.1663 Crores with an additional contingency of Rs.97 Crores.
The financing structure for the project is as under,
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Equity |
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Rs.378 Crores |
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Debt |
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Rs.960 Crores |
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Interest Free Loan from State |
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Rs.315 Crores |
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State Support as Grant |
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Rs.107 Crores |
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| The details of the amounts sanctioned by the participating banks / institutions are as follows, |
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| S. No |
Lender name |
Type of facility |
Commitment (Rs. crores) |
| 1. |
Allahabad Bank |
Rupee Term Loan |
120 |
| 2. |
Bank of Baroda |
Rupee Term Loan |
110 |
| 3. |
Canara Bank |
Rupee Term Loan |
100 |
| 4. |
Industrial Development Bank of India Limited |
Rupee Term Loan |
100 |
| 5. |
Infrastructure Development Finance Company limited |
Rupee Term Loan/ Non funded |
200 |
| 6. |
Oriental Bank of Commerce |
Rupee Term Loan |
110 |
| 7. |
State Bank of Hyderabad |
Rupee Term Loan |
120 |
| 8. |
Vijaya Bank |
Rupee Term Loan |
100 |
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The tenor for the repayment of the loans from the opening of the new airport is 16 years.
The project being a Public-Private Partnership initiative, Government of Andhra Pradesh, is providing a cash grant of Rs.107 crores. The interest free loan of Rs.315 Crores from the state government is repayable during the operations of the project.
With the signing of the financing documents, all the major milestones have been achieved and the notice to proceed to the EPC Contractors will be issued during the week. The airport will commence operations within thirty months after issuing the notice to proceed.
About HIAL:
Hyderabad International Airport Limited is a public private partnership initiative between the GMR Group, Malaysian Airports Holding Berhad, Airports Authority of India and the Government of Andhra Pradesh.
Vision:
To establish Hyderabad International Airport in the global aviation map and thereby contribute to the prosperity and development of the region.
Mission:
To build, finance, operate and maintain a Greenfield airport with service standard levels and infrastructure on par with any global benchmark, thereby enhancing shareholders value.
Project Scope:
The scope includes,
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Development of the project on a BOO framework in line with international standards with an opening capacity of 7 million passengers per annum. This has been increased from 5 million to meet the future growth in the traffic. |
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Runway, taxiway and aprons to accommodate wide body aircraft including the new generation aircrafts such as A380, |
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Aviation hydrant system, roads, drainage system, security fence and gates, |
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Airfield ground lighting system, fire station and equipment, |
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Cargo terminal building, ground handling workshops and other miscellaneous buildings. |
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ATC tower with adjacent technical building |
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Fully operational terminal building area of over 100,000 sq. mtrs., including: |
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Building structure, |
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All civil and finishing works, |
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Electrical and mechanical installations, |
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Lifts and escalators, |
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10 passenger boarding bridges and 20 remote parking bays. This was increased from 4 remote parking bays and 10 passenger boarding bridges. |
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Baggage handling system, |
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Check-in and immigration counters increased to 60 and 18 to facilitate comfortable passenger flow, |
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Information technology and security systems, |
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Furniture, signage and associated works |
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Developing various aeronautical and non-aeronautical facilities in association with expert concessionaires. |
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Air Traffic Scenario in Hyderabad
In the year 2004-05 the air traffic grew by over 28% from the previous year to touch almost 3 million passengers. The growth has been around 31% for domestic and 23% for international passengers in the above mentioned duration. The trend is expected to continue for the next few years and is projected to touch 5 million at the time of opening of the airport in the first quarter of 2008.
Currently the airport at Begumpet handles 10 international airlines apart from the domestic airlines adding upto with over 120 traffic moments per day.
With more foreign airlines such as KLM and British Airways expected to commence in the near future, there is tremendous opportunity for the city to capitalise on the same to make Hyderabad a fast growing 'HUB' in the region.
Milestones of the Project:
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Submission of Project Bid – December, 2000 |
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Selection as Preferred Bidder – May, 2001 |
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Selection as Developer – July, 2003 |
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Signing of Shareholders, State Support, Land lease Agreements – September, 2003 |
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Rehabilitation completion and acquisition of land – May and June, 2004 |
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Commencement of Boundary Wall Construction – June, 2004 |
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Signing of Concession Agreement - December, 2004 |
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Award of Site Preparation Works contract – Jan, 2005 |
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Foundation Stone Laying ceremony – Mar, 2005 |
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Award of Passenger Terminal Building and Airside & Landside Works - August,2005 |
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Financial Closure – August, 2005 |
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Hyderabad - A Natural Hub |
| Hyderabad's geographic location makes it a strategic hub for domestic and international air traffic. |
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A model in public-private participation |
| The Rajiv Gandhi International Airport is a model public-private partnership project that will set benchmarks for future initiatives in infrastructure development. |
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