PUBLIC-PRIVATE PARTNERSHIPS

Though projects in the range of 500 crores,1000 crores or even more than that was earlier handled by government departments but they always lacked with timely delivery and quality of projects. This was because of lack of planning and even because of lack of modern day tracking of projects. Now this gap was merged with the entry of a private player. There are glaring examples that this model has been a big success, be it RGIA of Hyderabad or modernization of Delhi and Mumbai airports, each of these projects has been a big success.

VARIOUS FEASIBLE ALTERNATIVE PPP MODELS

DESIGN-BUILD(DB)

BUILD-OPERATE OWN(BOO)

BUILD-OPERATE TRANSFER(BOT)

BUILD-OWN-OPERATE-TRANSFER(BOOT)

BUY-BUILD-OPERATE(BBO)

The Rajiv Gandhi International Airport Hyderabad

Inaugurated : 14th March ,2008

Commenced operations: 23rd March ,2008

Developed by : GMR Hyderabad

Development

The airport project is a public-private joint venture between GMR Group, Malaysia Airports Holdings Berhad and both Government of Andhra Pradesh and Airports Authority of India (AAI). GMR Group holds 63% of the equity, MAHB 11%, while the Government of Andhra Pradesh and Airports Authority of India each hold 13%.

Design and construction began in September 2005 and the airport was opened in March 2008.

Development

The total cost of the project is INR 24.7 Billion.] The airport is being built on an area of 5,400 acres (22 km2).

The airport is designed by the London architecture firm Arup, which also designed Dubai Terminal 3

First phase

105,300 m2 (1,133,000 sq ft) Terminal 1, handle 12 million passengers per annum. Terminal 1 has 12 contact and 30 remote

stands for aircraft parking. Other buildings, including the air traffic

control tower, Technical Building, cargo hangars (100,000 tonnes capacity), maintenance hangars, utilities under a combined area of 35,000 m2 (380,000 sq ft) have also been developed.

A 1500 car parking lot in front of Terminal 1 is operational for the convenience of passengers and visitors to the airport. A hotel has also been constructed in this phase.

Second phase

Terminal 1 will be expanded to an area of 250,000 m2 (2,700,000 sq ft) to cater to the growing demand.

The terminal building will have 54 stands for aircraft parking. The low cost terminal will also be expanded to its full capacity of 1.5 m passengers per annum.

A second runway, needed before commencement of Terminal 2, will be constructed. An increase in established facilities such as hotels, offices, cargo and maintenance facilities will be undertaken. The total developed area at the end of this phase will be approximately 470,000 m2 (5,100,000 sq ft).

Final phase

The airport will reach its full maturity after the third phase. An additional floor area of 430,000 m2 (4,600,000 sq ft) will be developed bringing the total built-up area to 900,000 m2 (9,700,000 sq ft).

The ultimate master plan provides for a capacity of 40 million passengers per annum with the accompanying air and ground facilities. Further acquisition of land to the north and south will allow expansion of a third and fourth runway on demand.

SALIENT FEATURES

Aircraft bays: 60

Aerobridges: 12

Baggage Handling System: 4-level In-line baggage screening system X-ray

Cargo capacity: > 100,000 tonnes/year

INDIA’S FIRSTS

India's longest runway at 4260mIndia's tallest air traffic control tower at 70m.India's first LEEDS approved terminal.India’s first greenfield airport

Awards and accolades

Hyderabad International Airport was ranked fifth Best Airports Globally by Airports Council International.

Number one airport in 5-15 million passenger category by the Airport Council International in a worldwide conducted survey.

Center for Asia Pacific Aviation’s (CAPA) newly instituted award in the category, “Best Airport Environmental Performance of the Year”.

Retained the number one position for the second year in a row among 49 airports handling 5-15 million passengers per annum (mppa), Indira Gandhi International Airport came fourth in a group of 19 airports in the 25-40 mppa category.

The rankings were done on the basis of a global airport services quality (ASQ) survey by the Airports Council International (ACI) of 153 airports, including 6 Indian ones.

What is Greenfield projects?

A greenfield project is one which is not constrained by prior work.

It is constructing on unused land where there is no need to remodel or demolish an existing structure. 

GREENFIELD vs BROWNFIELD

Revenue and Income summary

Break-up of revenue

Particulars 31-march-2009 31-march-2008

Gross operating revenue

1968.74 1061.65

Other revenue 18.35 3.33

Total gross revenue

1987.09 1064.98

Less: fee paid to airports

271.98 --

Net revenue 1715.11 1064.98

EBIDTA 562.08 456.36

Interest 144.14 130.27

Depreciation 283.23 106.12

Taxes 41.46 12.51

Profit After Tax 241.77 93.61

RELEVANCE AND STRATEGIC FIT OF THE PROJECT

Hyderabad is centrally located and within a two hour flying time to all the major cities in India and 4 hours from major cities in the Middle East and South East Asia.

The city has the potential not only to become one of the main hubs in India while also handling traffic between the East & West.

The proliferation of IT companies has earned Hyderabad the reputation as India’s second Silicon Valley.

The city is also a major centre for biotechnology and pharmaceutical companies.

Among the MNC'S who have a presence in Hyderabad include: Microsoft, Oracle, GE, IBM, Deloitte, HSBC, Baan and Indian corporates like TCS, Infosys, Wipro and Satyam.

PROJECT PROGRESS AND EFFECTIVENESS

• Currently there are 16 international airlines and 11 domestic airlines operating from Hyderabad flying to over 35 destinations.

• The airport is handling about 250 flights and 20,000 passengers every day.

EFFICIENCY OF RESOURCE USE

• Built on a waste piece of land• All the facilities required have been taken care of in

minimum utilisation of space• Link roads constructed from city• Fully Ready by deadline- efficient use if time

EFFECTIVENESS OF MANAGEMENT ARRANGEMENTS

• Government is going for a PPP model in each and every project.

• There are various types of risk associated with PPP

project and each risk has a different risk mitigation

strategy to it.• Financial Reports say it all.

IMPACT ORIENTATION AND SUSTAINABILITY OF THE PROJECT

• There has been consistent increase of contribution of

infrastructure to Indian GDP.• Initially it contributed only 5% of GDP in 2006 and

2007 but later it increased to 7.5%.• GMR posted a 79.3% YoY growth in Q3FY09 on

account of addition of Hyderabad airport

Arrival & Departures outside the Airport

Airport Check in Counters

Retail Outlets

Food Outlets

The Airport Control room

Airport V IP Lounges

Expansion plan

The second phase will create an additional area of 430,000 square metres taking the total built-up area to 900,000 square metres

The number of passengers is expected to go up to 8.4 million and the number of flights per day to 300-350 during the first year of operations.

THANK YOU