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    Background

    Green Field Airport

    Greenfield Airport means a new airport which is built from scratch in a new location because the

    existing airport is unable to meet the projected requirements of traffic. The word Greenfield

    originates from software engineering, meaning a project which lacks any constraints imposed by

    prior work.

    The Indian government on April 24, 2008, promulgated the Policy for setting up of Greenfield

    airports. The Policy seeks to put in place detailed guidelines for establishment of new Greenfield

    airports, procedure for approval of such proposals.

    Greenfield airports at Hyderabad and Bangalore are in operation. Greenfield airports at Goa,

    Navi Mumbai, Kannur (Kerala) and Pakyong (Sikkim) are in the process of being set up.

    There are proposals to set up Greenfield airports in Bijapur, Shimoga, Gulbarga and Hassan(Karnataka), Chakan, Sindhudurg (Maharashtra) and Karaikal (Puducherry).

    The detailed project report (DPR) for Greenfield airport projects mainly requires clearances

    which are to be followed with the study of salient features of detail report. The clearances and its

    approving agencies are as follows:

    Ministry of Civil Aviation, Government of India -Clearance to establish the new airport.

    Director General of Civil Aviation-: Final approval for the site and license to operate the

    new airport.

    Ministry of Defence - No objection certificate (NOC) to establish the new airport.

    Ministry of Environment and Forest-: Environment clearance and approval for use of the

    forest land for non forest purposes.

    Department of explosives - No objection certificate (NOC) for location of the aviation

    fuel depot.

    Other Approvals and Clearances once the project awarded-: Municipal permissions,

    Permissions from Water, Power, Sewerage Departments, Permissions with respect to

    road connectivity, linkage infrastructure, Transport, Security etc.

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    Significant features of DPR

    Forecasts

    The forecasts provide the basis for estimating the type, level and approximate timing for airport

    capital investments, and for assessing the environmental and fiscal consequences associated with

    the required improvements and levels of traffic (Passenger& Cargo).

    The following approach is used for long-term, medium and short-term traffic forecasts

    LONG-TERM MEDIUM SHORT-TERM

    The survey results are

    aggregated by country and

    world region;The passenger traffic for

    each country is further

    broken down to form countryto region traffic flows and

    figures are cross-checked

    against historical trends and

    data from other sources;Results considered

    reasonable become inputs

    into the model.

    The medium-term forecast is a

    bottom-up model based on

    regressions prepared at a countrylevel.

    The regressions are based on

    annual data (traffic and economicdevelopment) and broadly speaking

    if the regressions and the survey

    results are similar the surveys are

    kept, but if important differencesemerge, analyses are undertaken to

    see which one is most likely to be

    correct.

    Short-term forecasts are

    based on the projected

    monthly airline capacitydevelopment;

    the team assumes a load

    factor to derive trafficfigures.

    Air Traffic: Peak & Average, Design Parameters

    The air traffic can be seen as a strong statistical correlation between the annual traffic, peak daytraffic and peak-hour traffic which can be calculated on the basis of international and domestic

    traffic.

    A peak hour international traffic based on simultaneous operation of two flights on thebasis of load factor.

    A peak hour domestic traffic based on simultaneous operation of two flights on the basisof load factor.

    The passenger terminals, the parking bays on the apron and the car park on the city side are

    planned for development on a modular basis so that as the peak hour traffic picks up and reaches

    approx. 80% of the built capacity on a steady basis and additional capacities can be programmed

    for construction.

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    Design parameters include:

    International and domestic commercial Aircraft Operations,

    Cargo Aircraft and Other Type of Aircraft Operations,

    Total Terminal Commercial Passengers, Transit Commercial Passengers,

    International Aircraft Peak Hour and Domestic Aircraft Peak Hour,

    International and domestic departure Aircraft Peak Hour,

    International and domestic Arrival Aircraft Peak Hour,

    International Departure Passenger Peak Hour, Domestic Departure Passenger Peak Hour,

    International, domestic and total Arrival Passenger Peak Hour,

    International and domestic Loaded Cargo (tonnes), etc

    Aircraft Mix

    Aircraft mix is an index of aircraft with different performance characteristics. The aircraft mix

    represents the percentage of aircraft in each aircraft class: Small, Large, and Heavy. One of the

    most important factors affecting the airport runway capacity is the aircraft mix. The performance

    specifications of aircraft, such as approach speed, separation requirements between successive

    aircraft, and runway occupancy time, all play important roles in airport runway capacity

    estimation.

    Airport Location & Accessibility

    Airport location can be determined through:-

    Broad determination of land required - Runway length, runway orientations and

    number of runways

    Evaluation of factors affecting location - aviation activity, development of

    surrounding areas, atmospheric conditions, accessibility to ground transport,

    topography, environment, availability of utilities.

    Site inspection

    Land Use, Master Plan for Air & Land sides

    Phase-wise Preparation of Master Plan(mentioned below) and the year in

    which master plan will be fully accomplished meeting all norms

    DGCA/ICAO/IATA//BCAS//NBC/BEE//MHA/MOCA/MOD/IMD requirements.

    Land requirement and land use plan.

    Nature of land to be acquired vis--vis private Government and any

    rehabilitation/relocation involved etc.

    Annual passengers handling capacity for each phase of master plan.

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    Airside Operational

    Area

    Contains runway, parallel taxiway, isolation bay, aprons etc and all

    of their associated obstacle clearance areas and air navigation and

    landing facilities related to the runway operations

    Terminal Area: Contains passenger terminals for international and domestic travel,

    car parks, airport hotel, business centre and all other commercialpublic facilities.

    Airport Technical Area Contain all technical support facilities (telecommunication,

    aeronautical information, electrical centre, fire station, etc) requiredto operate the airport.

    Cargo Terminal Area to accommodate air cargo functions both airside and land side

    Aircraft Maintenance

    Area

    For all technical functions related to aircraft maintenance and

    associated activities. Aircraft apron, hangars and ancillary technicalbuildings will be essential components of this area

    General Aviation Area Intended to accommodate all general aviation activities, e.g. smallcharter aircraft, parking lot and other facilities for general aviation

    operation would be developed by the Airport developer or througha concessionaire

    Phases of Development

    The airport development master plan can be staggered across several phases.

    For example, in case of Navi Mumbai Airport,the development of the airport facilities is planned

    as follows:

    Phase 1 (2013-14 to 2016-17): airport is initially designed with a level of service adequate to

    satisfy the demand of 10 million passengers. This is accomplished by providing NMIA with one

    runway and one processing terminal building with one associated pier for both domestic and

    international passengers

    Phase 2 (2017-18 to 2021-22): airport is designed to meet the demand for 25 million

    passengers. In this phase, an additional runway is built to meet airside demand along with one

    processing building with one associated pier for both domestic and international passengers

    Phase 3 (2022-23 to 2026-27): airport is designed with a level of service adequate to satisfy a

    45 million passengers demand by adding a parallel pier within the terminal building complex so

    one handles domestic and the other international passengers.

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    Phase 4 (2027-28 to 2031-32): The airport is ultimately designed with a level of service

    adequate to satisfy a 60 million passengers demand by providing NMIA with additional boarding

    gates and apron area to satisfy the additional demand.

    Environmental Impact Assessment

    Primary survey consists of physical environment (air quality, noise quality, land

    environment etc), biological environment (diversity of flora and fauna, current use of

    natural resources etc) and socio-economic environment (land use patterns, demographic

    details etc).

    Secondary survey includes soil department, geology department, ground water

    department etc.

    Full details of each survey items are determined to match with the acceptable permissible

    standard values.

    Cost Estimates

    The cost is estimated in different phases. For instance, In case of Navi Mumbai airport,

    according to CIDCO, the total cost of the airport will be about Rs.9,970 crores. The development

    will be stretched in 4 phases, viz, Phase-1 (200812), for a planned capacity of 10 mpa which

    would cost Rs.4,200 crores; Phase-2 (20152017), for augmenting the capacity to 20 mpa,

    which would cost Rs.1,896 crores. Phase-3 (20202022) for additional capacity of 10 mpa

    would cost about Rs.1,600 crores and finally Phase-4 (20262028) will further increase the

    capacity to 40mpa at an estimated price of Rs.2,272 crores.

    Typical costs at different phases include: land development cost, land cost, airside works,

    landside works & other works, terminal & other buildings and non aeronautical area

    Reclamation Cost, Retaining Wall, Off-site Infrastructure, Land Cost, Runways, Instrument

    Landing System, Airfield Lighting, Taxiways, Terminal Apron, Long Term Parking Apron,

    General Aviation Apron, Hangars Apron, Cargo Apron, Perimeter Fence, Access Road at

    Terminal, Hangars Building Parking, Cargo Building Parking, Cargo, General Aviation

    Terminal, Hangars Building Unit, Power Station, Technical Building, Catering Building.

    Internal Rate of Return, Business Plan, Model, Debt-Equity Ratio

    Strategic elements of project financing include an understanding of project screening, value-for-

    money analysis, and risk mitigation & allocation. Technical elements of project financing

    include an understanding of the data and relevant assumptions, sensitivity analyses, tariffs,

    projecting cash flow, NPV & IRR returns, and cost of capital all critical to building and

    interpreting the actual financial model.

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    If the IRR is higher than the rate of return on alternative investments, then the project is a good

    investment. In the same way, A high debt/equity ratio generally means that a company has beenaggressive in financing its growth with debt. This can result in volatile earnings as a result of the

    additional interest expense.

    Understanding the strategic and technical components of Project Finance is absolutely critical forindividuals involved with planning and financing infrastructure development.

    Documentation for Inviting Proposals

    Disclaimer

    Brief Overview

    Letter of Invitation (Bid invitation Notice)

    Definitions and Abbreviations

    Instructions to Bidders (ITB)

    Schedule of Requirements (SOR)

    Technical Specifications (TS)

    Financial Requirements

    General Conditions of Contract (GCC)

    Special terms of Contract

    Price Schedule

    Bid Forms, Annexure and other formats