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Government sees red over 'Swiss challenge system'

Thursday, 28 Aug 2008
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The civil aviation ministry has raised objection over the Swiss challenge system which allows an inclusion of a clause in the RFP sent to real estate companies. This allowed GMR a right to match the lowest bid and take the contract without participating in the bidding process. Henceforth, private airport developers under the PPP model will not be able to get additional contracts in and around the airport that are part of the original project (like real estate development) by merely matching the lowest bidder without participating in the bidding process. 

The government recently shot down an informal proposal from the GMR-led consortium Delhi International Airport Ltd (DIAL) that would have enabled GMR to win the contract for the real estate and hospitality district at the airport in this manner. DIAL plans to lease out 45 acres of the airport land area to real estate and hospitality companies through a competitive bidding process.

 

 

 

 

 

 

 

 

 

 

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