Larsen & Toubro (L&T), is one of the dominant player in the airport construction industry, is set to win contract to build the Navi Mumbai International Airport. The board of City and Industrial Development Corporation (CIDCO), the planning authority, recently made an announcement to consider the contract.
A tender was introduced to choose the best suitable engineering procurement and construction (EPC) contractor was floated last August, 2018. A source said L&T has been selected for the construction work. The contract size is not yet disclosed and the award will take place following government approvals. “We are yet to award the EPC contract and will share an update in due course,” said a spokesperson of GVK, which is developing the Navi Mumbai airport. A CIDCO spokesperson did not respond to an email query.
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An L&T spokesperson confirmed its participation in the bid but did not elaborate or gave specific details about the contract. L&T is the project contractor for ongoing expansion works at Bengaluru, Delhi, and Hyderabad airports.
Navi Mumbai airport has been heavily involved in couple of delays and cost escalation over issues related to land acquisition and environment issues. The airport was being planned to handle 10 million passengers in the phase one, but the terminal will now be built to handle 20 million passengers.
The first phase project cost is pegged at over ~14,000 crore and is being funded through equity investment and ~10,300-crore long-term debt. While the state of Maharashtra hopes the airport will be ready by mid-2020, CRISIL in its recent study had reported that in May-end had said operations are expected to start in 2023.
Site clearances and complexity is one of the biggest challenge. One of the first tasks of the contractor will be to raise the ground level to 8.5 metres and laying utilities. These would need to be carried out before the construction of runway and other infrastructure. The contract scope covers cut and fill works, construction of terminal, airfield works, including runway, apron, ancillary buildings, multi-level car park, GVK had said in its bid notice last August, 2018.
Pre-development work for the project was started in June 2017. This included flattening a hillock, reclaiming marsh land and diverting a river. CIDCO, which has been carrying out this work, has increased the land level to 5.5 metres.
The Ulwe river has been diverted outside the airport boundary and the channel widened to 60 metres.
A source said the river diversion work would be completed in a week’s time, while the work of laying underground power cables is expected to be completed by December-end.
More than 85 per cent of project-affected villagers have been relocated and the rest are expected to vacate by June, 2019. Ten villages have been impacted by the project and number of impacted families is around 2,600. CIDCO has offered plots to those whose houses and land have been acquired for the project. Those who lost their land have been given 22.5 per cent developed plots as compensation in vicinity of the airport.