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CIAL
Special Purpose Vehicle: Cochin International Airport Ltd.( CIAL)
PPP MODEL
Build Own and Operate(BOO)
The government grants the right to finance, design, build, operate and maintain a project to a private
entity, which retains ownership of the project. The private entity is not required to transfer the facility back
to the government. Effectively, after the concession period, the airport is under the ownership of CIAL
PPP STRUCTURE
The CIAL is a green field airport with a BOO (Build Own and Operate
structure). The shareholding pattern is as follows
Govt. of Kerala: 13%
Central Government: 13%
NRIs, Financial Institutions, Airport Service providers and the public: 74%
QMV-CIAL
Microsoft Excel
Worksheet
NATURE
MITIGANT
POLITICAL RISK
REVENUE RISK
OPERATING RISK
BIAL
Special Purpose Vehicle: BIAL International Airport Ltd.( BIAL)
PPP MODEL
Build Own and Operate(BOOT)
The private sector designs and builds an asset, operates it, and then transfers it to the Government when
the operating contract or the concession period ends, or at some other pre-specified time. The private
partner may also subsequently rent or lease the asset from the Government.
PPP STRUCTURE
State Promoters
Private Promoter
KSIIDC
13%
Siemens
40%
AAI
13%
17%
17%
TOTAL
26%
74%
After the operations started, GVK bought 12% from Zurich airport (maximum equity allowed to be sold by Zurich airport under
the agreement) and 17% from L&T after the construction phase started giving GVK 29% stake in BIAL. Later on GVK acquired
14% from Siemens making GVK the largest stake holder in BIAL at 43% equity holding.
ICICI was a lead arranger giving Rs 7.36 billion loan amounting to 50% of estimated cost. Further 20million were to be
provided commercially in case of cost over runs.
QMV-BIAL
Microsoft Excel
Worksheet
NATURE
MITIGANT
MARKET RISK
COMPLETION RISK
SUPPLIER RISK