Date:10/04/2006 URL: http://www.thehindu.com/2006/04/10/stories/2006041019140300.htm

Karnataka - Bangalore

Siemens, L&T to get additional airport work

P. Manoj

The first phase of the work is being redesigned now

The redesign will help BIAL to handle 11 million passengers
Originally, the traffic was estimated to be 4.5 million passengers

Additional cost arising out of redesign will be financed through market borrowings

Bangalore: Strategic investors Larsen & Toubro (L&T) and Siemens Group will get a big chunk of the additional work arising out of redesigning of the first phase of the international airport at Devanahalli to accommodate higher traffic.

The first phase of the airport, to become operational in April 2008, is now being redesigned to handle about 11 million passengers annually, up from the original estimate of 4.5 million passengers.

After detailed discussions spread over two meetings, the Board of the Bangalore International Airport Limited (BIAL) on Friday finalised that portion of the additional works necessitated by the redesign which will be assigned to the existing engineering, procurement and construction (EPC) contractors — Larsen & Toubro and Siemens Group's Industrial Solutions and Services (I&S) — and those that are to be awarded through an open competitive bidding process.

BIAL had originally awarded two EPC contracts, one estimated at Rs. 550 crore to L&T and another valued at Rs. 326 crore to the Siemens Group.

"The board agreed on Friday that the expansion work on the terminal building will be completely done by the existing EPC contractors, L&T and Siemens. This is an absolute technical necessity. This portion of the additional work cannot be assigned to a different contractor," an official said.

However, the extra work pertaining to extension of taxiways and parking area can be awarded through competitive bidding, he added.

The additional cost of about Rs. 450 crore arising out of the redesign will be financed through market borrowings. "The equity contribution from the project promoters and the support from the State Government will remain the same. There will be no change in this," he noted. The redesign will increase the project cost from the initial level of Rs. 1,411.79 crore.

The redesign involves increasing the size of the terminal building by about 30 per cent, extending the runway to accommodate more flights besides enlarging the taxiway layouts and landside infrastructure.

Private promoters Siemens Projects Ventures and Larsen & Toubro hold 40 per cent and 17 per cent stake respectively in BIAL, the special purpose vehicle that is developing the first green-field private sector owned and operated airport in the country.