Page 133 - DMGT521_PROJECT_MANAGEMENT

Project Management

Notes
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Case Study GMR’s Terminal 3 for Delhi Airport: A Successful
Project Execution Model for Public-Private

Partnership Initiatives

his case study discusses the infrastructure deficit in India and how the country was
trying to overcome this problem with the help of the Public Private Partnership
T(PPP) model. The case details the ‘Terminal 3 for Delhi Airport’ project to explain
the role and importance of PPP in overcoming infrastructure deficit. It also explains the
different features of Terminal 3 (T3) which go to make it a world class airport terminal. In
the end, the case study covers the limitations of the PPP model. The case study helps to
understand the role of PPP and provides scope for discussions on how to overcome the
limitations of PPP. It also provides ample scope for discussing how T3 was completed in
just 37 months and what the upcoming infrastructure projects can learn from this project.
This case is meant for MBA/MS students as a part of their Project Management curriculum.
Issues
 Understand the importance of Public-Private Partnership initiatives, especially in
emerging markets, to bridge the infrastructure deficit.
 Understand the salient features of Delhi Airport’s Terminal 3 (T3) project and analyze
all the features that have contributed to the completion of T3 project in a record 37
months.
 Discuss and debate what T3’s record completion in 37 months means for PPP
initiatives and what best practices this project execution offers for future PPP
initiatives in the infrastructure sector.
On July 14, 2010, the first flight touched down at India’s newly built Terminal 3 (T3) of
Delhi airport, the swankiest and largest in the country, opening a new chapter in the
history of the airport and the Indian Aviation Industry. It was around 4:40 pm (IST) when
the first commercial flight, the Air India flight from John F Kennedy International Airport,
New York, touched down on the runway to be greeted by water cannon salutes from both
sides. The 220 passengers and 18 crew members of AI-102 flight were warmly welcomed
by the airport senior officers and staff and treated as special guests. They posed for media
cameras and received gifts and certificates for being the first group of passengers to arrive
at T3. Sunil Gupta (Gupta), Director of an IT firm in New York, who was among the first
passengers, said, “The old terminal was shabby and barely had basic facilities. This one
looks good and is up to international standards.”

Not too long ago, Delhi airport had been known for its poor management and poor
passenger services. Underinvestment in airport infrastructure since independence was a
major cause for concern. Lack of funds and the expertise to develop and maintain the
growing airport infrastructure needs of the country forced the government to invite private
players to participate in infrastructure development under Public Private Partnership
(PPP). It was in January 2006, that a consortium led by the GMR Group won the bid to
develop the airport. Very soon, the PPP initiative yielded results, with two terminals

being renovated and one new runway and terminal 1D being opened up for commercial
operation (Refer to Exhibit I for different terminal of Delhi airport). However,
Contd...

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