2.  PPP Projects ◦ Re structuring of Brownfield Airports (Delhi & Mumbai Airports) ◦ Greenfield Airports (Hyderabad & Bangalore Airports)  AAI Projects ◦ Kolkata & Chennai Airports ◦ Non Metro Airport Projects ◦ Greenfield Airports (NER Region – Pekyong, Itanagar, Chietu Apts)

3.  Projection of requirement  History of the project  Preliminary Estimate for in principle approval  Preparation of detailed project report  Availability of Budget provision  Formulating a proposal of AA/ES

4.  Freezing of capital expenditure  Forecast of Annual cash flows for computation of IRR/ERR  Financial evaluation of the proposal based on IRR/ERR  Adequacy of IRR

5.  Projects not meeting the desired IRR  Requirements for taking up such projects due to socio-economic rationale  Plan outlay funding of such projects through govt grants  Levy of UDF/reimbursement of operating cost to cover the viability gap

6.  Internal Resources  Govt. Budgetary Support  Govt. Grant  Borrowings (incl. External Commercial Borrowings)

7.  Financial concurrence on the proposal  Approval of administrative authority as per DOP. ◦ Project costing upto Rs.30 cr. are approved by various authorities upto Chairman. ◦ The projects costing more than Rs.30 cr but upto Rs.500 cr require approval of AAI Board. ◦ Projects costing more than Rs.500 cr require govt. approval. ◦ Projects involving GBS/Grant require approval of the Govt/Planning Commission.

8.  Preparation/approval of NIT  Publication of NIT  E-tendering

9.  Pre-qualification criterion is fixed considering specific AAI requirements.  The PQ criterion should ensure not only good quality of work but competition in bids.  It needs to be ensured that PQ criterion is not tailor made to suit specific party.  PQ criterion normally entails the turnover of the party in the past, the size of works executed, credentials and experience of the executing engineers etc.  Specification for the work proposed to be executed should be such that the competition is ensured.  NIT being a public document should be carefully drafted to ensure interest of AAI.

10.  Publication of NIT  E-tendering in accordance with CVC guidelines  Freezing of Justified Cost  Evaluation of Technical Bids strictly in accordance with NIT  In case of delay in finalization of technical bids the justified cost to be updated before opening of the financial bids  Evaluation of Financial Bids  Acceptance of tender and award

11.  Measurement of work done – quantity / quality  Preparation of bill – amounts payable with respect to SOQ and recoveries  Scrutiny of the running bills by Finance officer with reference to contract  Payment of bills in time to avoid interest payments

12.  Only those deviations/extra items which are essential for the completion of the works but not provided in the SOQ  In case the deviation/extra items involves execution of works which results in increase in the AA/ES amount beyond the permissible limits, the prior approval of the competent authority needs to be obtained.  The deviation/extra items should not be on account of works which are not part of the approved AA/ES.  Time and cost over-run needs to be monitored on regular basis to avoid the same.

13.  The items/specification in the original NIT should not be allowed to be substituted which tantamount undue benefits to contractor.  The substitution should not result in dilution of quality of work.

14.  The availability of site and the required drawings needs to be ensured to avoid delay.  The progress of the work needs to be monitored with reference to time line drawn for completion of the project  Any delay foreseen in completion of the project, the matter needs to be taken up at higher levels for resolution of the issues.  Payment on account of escalation needs to be avoided.

15.  Certification of completion with respect to SOQ  Quality of work completed  Requisite warranties/guarantees to be obtained from contractor  Finalization of bill