UP Cabinet approves proposal to award Jewar Airport contract to Zurich Airport

11 Dec 2019 CW Team

As a final go-ahead, keeping in mind the recommendations and bid offerings, the Uttar Pradesh Government has given its approval to the proposal that allows ZAI to construct and operate the upcoming airport.

Earlier, the financial bids were opened before representatives of bidders at the Noida International Airport (NIAL) office and the bidder was selected on the basis of the highest bid as per Premium per Passenger (PAX). ZAI came out on top as it quoted the highest bid of Rs 400.97 PAX.

Reportedly, the decision to approve the contract awarded to ZAI was taken up at the UP cabinet meeting on December 10.

It is expected, as stated in reports, that the contract for the airport will be signed with the company soon, so as to begin construction and other works early next year. The government, will, however, issue a conditional letter of award to the company by the end of this week. A final contract will be issued upon completion of the security clearance by the Union Ministry for ZAI – which it is estimated to undertake in January 2020.

5,100 acre (2,063 hectares) has been acquired for the airport project and the environmental clearance has been obtained for what is slated to be one of the biggest airports in Asia. It will be designed, developed and operated under a 40-year concession period and the capital investment in the first phase of the project is expected to be about $650 million during the construction period of nearly four years. The first phase is expected to be able to accommodate around 12 million passengers per year.

Outbidding Indian companies such as DIAL and Adani, Zurich Airport International AG (ZAI) had been awarded the contract to design, develop and operate the international airport at Jewar in Gautam Buddha Nagar in Noida, in November. The Swiss-based developer was put up before PMIC (Project Monitoring and Implementation Committee) on December 2 – where the committee recommended that the company be awarded the contract.As a final go-ahead, keeping in mind the recommendations and bid offerings, the Uttar Pradesh Government has given its approval to the proposal that allows ZAI to construct and operate the upcoming airport. Earlier, the financial bids were opened before representatives of bidders at the Noida International Airport (NIAL) office and the bidder was selected on the basis of the highest bid as per Premium per Passenger (PAX). ZAI came out on top as it quoted the highest bid of Rs 400.97 PAX.Reportedly, the decision to approve the contract awarded to ZAI was taken up at the UP cabinet meeting on December 10. It is expected, as stated in reports, that the contract for the airport will be signed with the company soon, so as to begin construction and other works early next year. The government, will, however, issue a conditional letter of award to the company by the end of this week. A final contract will be issued upon completion of the security clearance by the Union Ministry for ZAI – which it is estimated to undertake in January 2020. 5,100 acre (2,063 hectares) has been acquired for the airport project and the environmental clearance has been obtained for what is slated to be one of the biggest airports in Asia. It will be designed, developed and operated under a 40-year concession period and the capital investment in the first phase of the project is expected to be about $650 million during the construction period of nearly four years. The first phase is expected to be able to accommodate around 12 million passengers per year.

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