NOTICE INVITING TENDER

Introduction

CIAL is the airport operator and owner of Cochin International Airport located in central Kerala, India.  Cochin International Airport is the first airport built under Public Private Participation (PPP model) in India and commenced it’s operation from 1999. It is the first airport in the world to fully run on solar power.   Cochin International Airport has achieved a total of 7.77 million passenger movement during 2015-16 out of which 4.64 million are international and 3.12 million domestic passengers. International passengers are mainly Non-Resident Keralites/Indians working/living abroad visiting their family, tourists etc.

CIAL is now gearing up for the major step to  open its state-of-art new international terminal, CIAL Terminal 3, which has a peak hour capacity of around 4,000 passengers and 1.5 million sq.ft of terminal area. CIAL has allocated around 33000 sq.ft of total area for Duty Free operations designed for providing a global shopping experience.

CIAL’s duty free operations commenced in 2002. From a very humble beginning during 2002-03, the duty free business has rapidly grown to such an extent that it is the major driver of growth and revenue for the company. For the FY 2015-16, duty free has significantly contributed to the total revenue of CIAL.  In 2013, CIAL constructed a state-of-art warehouse (approximately 4800 sqm) with required office area in the Airport premises to support its duty free operations. 

CIAL as part of its business strategy, during 2016, incorporated a wholly owned public limited subsidiary company, “CIAL Duty free and Retail Services Limited” ( CDRSL) under Companies Act 2013, with the main object of carrying out the business of Duty Free and Retail operations at Cochin International Airport.  CIAL subsequently hived off its duty free business and entrusted the same to CDRSL with effect from 01^st June 2016. 

CDRSL, as part of its gesture to take duty free business to new heights, intends to grant Concession to Develop, Operate and Maintain Duty-Free Retail Outlets (the "Concession”) at designated Locations within the new Terminal 3 of Airport, and has decided to carry out the competitive bidding process for selection of a Bidder to whom the Concession may be awarded (the "Concessionaire”). Brief particulars of the Concession Tender/RFP are as follows.

Tentative Schedule:

Eligibility Criteria:

The Bidder may be a single entity or a group of entities (the “Consortium”), coming together to implement the Concession.

Technical Capacity: For demonstrating technical capacity and experience ("Technical Capacity”) the Bidder (in the case of Consortium, the Lead Member) and/or its Associate shall satisfy each of the following criteria, as on the date of issue of RFP:-

(i)            Bidder (or its Associate) shall have an operating experience (India or Abroad) of at least five (5) continuous years in duty free business.

(ii)           Bidder (or its Associate) shall have presence in three (3) International Airports (India or Abroad) out of which two (2) airports should have individually handled at least five (5) million international passengers in any year during the previous three (3) years. 

(iii)          The bidder shall not have any pending, active or previous legal actions against any of the Airport Operator / Landlord with whom an agreement for duty free operations are / were in existence; which prevents the bidder from submitting the bid, executing the Concession Agreement, or fulfilling the conditions of concession.

Financial Capacity :  The Bidder (or its Associate) shall have a turnover of not less than INR.5000,000,000  (Indian Rupees Five Thousand million only ) in any three (3) preceding financial years from the business of operating duty free business in India or overseas.

Special conditions:

CDRSL has an ongoing duty-free business at Cochin Airport. Concessionaire has to purchase the balance stock of CDRSL as on the actual commencement date of duty free business by concessionaire and ensure uninterrupted duty free products sales and services to the international passengers of Cochin International Airport. 

Concessionaire also has to avail the Warehouse, office space, video walls, portrait video facilities, etc. on rental basis, as determined by CDRSL.

Minimum Annual Guarantee (MAG)

In respect of first Concession Year, MAG is USD 13,188,745 (USD Thirteen Million One Hundred Eighty Eight Thousand Seven Hundred Forty Five only)   and for the subsequent Concession Years, one hundred and ten percent (110%) of the Minimum Annual Guarantee of immediate preceding Concession year is applicable. Minimum Monthly Guarantee (MMG)   shall mean the absolute amount on a monthly basis, computed by dividing MAG for a Concession Year by twelve

Concession Fee:

Concession fee for a particular month shall be the Minimum Monthly Guarantee (MMG)  or  quoted percentage for revenue share of monthly Net  Sales whichever is higher.  The minimum percentage to be quoted on turnover is 40 %.

Sealed Tenders are invited on behalf of Managing Director - CDRSL, from reputed Duty Free operators to Develop, Operate and Maintain duty free outlets at the new Terminal 3 of Cochin International Airport.   

CIAL/CDRSL also welcome all potential bidders to visit our location and facilities at new international Airport Terminal (T3) in this regard. 

Contact details.

Mr. Jacob T Abraham

Assistant General Manager (Retail Business)

Cochin International Airport Ltd.

Mobile: 9539701535

Telephone: +91 (0)484 2610275

Email: jacob@cial.aero