Mumbai, July 4: The City and Industrial Development Corporation (Cidco) has received 250 international bids for the 12 projects to be set up in Navi Mumbai at an estimated cost of over $2 billion. Friday is the last date for receiving the bids. Processing of these bids will begin from Monday (July 6).

Reliance Infrastructure, Larsen & Toubro, Siemens, Tata Industries, Ispat Industries, Mahindra & Mahindra and others are competing with international giants to develop a second city, barely 50 km from Mumbai. International bidders include Dong Aha Construction & Industrial Co (South Korea), All Ataiba & Garg Construction (Abhu Dhabi), Societe de Constructose (French), Parson International USA, Centre & Burgess (USA) and Pell Frischman & Prabhu (London).

Kotak Mahindra, Daiwa Europe and De Vanshis are in competition for forming a consortium of international financiers.

The shortlisting is expected to be completed by August after which Cidco will invite financing bids from September. Given the interest shown by global construction companies, international financiers might also troop in large numbers, observers say.

The aggregate cost of these 12 projects is estimated to be over US $2 billion at 1995 prices. However, by the time they are set up after around five-six years the cost is likely to go up by an average of 10 per cent a year.

Despite this, international bidders are believed to have shown keen interest in the development of the country's next commercial and financial centre after Mumbai.

Cidco had marketed these projects in mid-February during the state-sponsored `Advantage Maharashtra' jamboree. Projects will be set up by a special purpose vehicle (SPV), which will be considered to be in the private sector. All these projects will take the two most preferred routes build-own-operate-transfer (BOOT) and build-own-operate (BOO).

SPVs will have Cidco and international equity participation in the ratio of 26:74. Cidco will offer the land in its possession as its equity component in each SPV, while the balance will have to be funded by the selected international partner.

Four of these projects will be set up by two SPVs. The new domestic airport (costing around $490 million) and the international exhibition centre ($86 million) would be considered as one project. The Sagar Sangam Water Transport Terminal ($71 million) and the international convention centre ($314 million) would be the other one.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.