Issuu on Google+

PPP in Syria PPP Workshop Damascus Airport Case Study

01/28/13

1


01/28/13

Case study 2


Airport Privatisation activity is increasing after a period of standstill Examples

• • • • • • • • • • • • •

• • • • • •

Rome Düsseldorf Brisbane Melbourne Perth Naples

• • • • •

Athens Copenhagen II JFK IAT Toronto Bolivia

Number of Privatizations

9 8 7 • • • •

6 • BAA

5

• • • • • • •

Costa Rica Mexico I Mexico II Maraba , Brasil Montevideo Dominican Rep (4)

Argentina Australia II Berlin Santiago de Chile London Luton South Africa Stewart , NY

• • • • • • •

Newcastle Cyprus ANA, Portugal Sea Frankfurt Schiphol Brussels

Hamburg Zurich Mexico III Beica , Ethipia Honduras 1 Cali , Colombia Lima, Peru

• • • • • •

• • • • •

Isla Margarita Malta Montego Bay Prestwick Tansania • • • • • • • • •

Sydney Bangalore Bogota Barranquilla Cali Phnom Penh

Brussels Guayaquil Tirana Cairo Luxor Abu Simbel Hurghada Sharm El Sheikh Assuan

Vienna II Birmingham London City Indianapolis

• Copenhagen I • East Midlands

Belfast

4 • Vienna I • Pittsburgh

3 2 1

01/28/13 1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

3

2002

2003

2004

2005


01/28/13

4


01/28/13

5


Revenue Mix Projections 50 Ground Handling

Cargo Charge

Landing & Take-off

Non-Aero Income

Traffic - PAX

1,5

30 1,0 20 0,5

10

0

2005

01/28/13

2007

2009

2011

2013

2015

2017

2019

2021

6

2023

(Mil. PAX)

(Mil. EUR)

40

2,0

PAX Charge


News from abroad Brunner of BIAL explains that the International Air Transport Association (IATA) rates airports on a scale of one to five on 27different parameters, like accessibility, parking facilities and ease of check-ins. Some of the best airports, like Changi and Zurich, are in the range of 3.9 to 4.1. "In India, the best rating that any airporthas managed to achieve until now is only 2.6," he says. "According toour agreement, BIAL has to achieve a minimum rating of 3.5 for the new international airport. If we do not achieve this, we are obliged to return the airport to the government." My comments: While speaking to the liaison for corporate communications with BIAL, Mr R Mithun, he informed me that BIAL has three years to achieve the required IATA rating. At least as quality conscious customers / end-users we can be assured that since such a damocles' sword is hanging on BIAL - they will have to perform to International standards. Wharton Article Bengalor Praja

01/28/13

7


News from abroad EGYPT. Fraport - Frankfurt Airport Services Worldwide - has won the international bid for a contract to manage Cairo International Airport in Egypt. Fraport received the maximum evaluation points in its bidding process for the Cairo contract as well as for a simultaneous bid for managing five Egyptian regional airports. Under the bidding rules, a company may only be awarded one of the two projects. From the outset, Fraport had indicated its preference for managing the Egyptian capital’s international gateway. Fraport’s management contract will run for eight years. Under the terms of the contract, Fraport is not required to invest in the either the Egyptian airport company or Cairo’s airport infrastructure. Also this month, The French airports operator Aéroports de Paris was awarded the management contract for Egypt's five regional airports.

01/28/13

Frankfurt wins Cairo International Airport management contract Author: Trevor Lloyd-Jones Source: BI-MEPublished: 17 December 2004

8


About Regional Airports

01/28/13

9


Damascus Airport by Fed Kaprotz 19 January 2007 Customer Rating : n/a Damascus airport has two faces. The arrivals hall and the baggage reclaim hall really need some work as it looks as though they are falling apart. The baggage carousels in particular are too worn. However, baggage reclaim was fast. The departures area is slightly different from other airports, in that only the passenger can go to the area with the check-in desks. Check-in can be very slow, even with short lines of people. Thankfully, they don't seem to be too bothered about overweight luggage. Everyone needs to pay a departure tax before passport control - don't forget this! Then, before you get to your gate, you can access some shops selling newspapers, tobacco and coffee. Damascus Airport by Hani Al-Ahdal 6 May 2006 I was happy with the acceptable duty free with good prices, arrival at immigration is terrible with long queues and people cutting through the lines with ease - expect a minimum of 40 minutes to pass the immigration desks specially at peak hours. The security check at the departure hall is chaotic and it may be wise to use your shoulders to shrug your way through. Check in counters are acceptable depending on your airline. Damascus Airport by Steven Geerling 2 January 2006 Ride from city to airport should not cost more than 200 Syrian pounds in a metered taxi. Airport was quiet at that moment which could not prevent the chaos at the first security checkpoint. Passport checked four times (including immigration and check-in). Although I had an e-ticket with LH and OS, it turned out that DAM is not an e-ticket station and could not accept this. Airline staff at check-in phoned the Austrian office downtown trying to solve the problem but they couldn't change it either which meant that I had to buy a new ticket for the DAM-VIE leg. VIE-AMS could be continued on the eticket again although not without more hassle at VIE itself. Airline-staff courteous and friendly. Executive Lounge is roomy with good food and several liquors (it's still an islamic country). Prices in the duty-free shops looked okay. Don't know about the toilets which have been mentioned in previous comments.

01/28/13

10


The Airport Quality Service Audit (AQSA) is tailored to the individual client requirements and needs, with the central focus applying a detailed analysis to all areas of Product and Service standards that passengers experience across the airport environment. The airport experience is made up of numerous service chain factors - some the direct responsibility of airlines, some the airport operator - but all integrating into a single experience for the customers. There are very few parts of the airport process which could be assigned as the responsibility of any single organisation. To take a simple example, time spent at check-in is partly the responsibility of airports (as infrastructure / information providers) and partly the responsibility of the passenger (who may arrive early or late for check-in, or visit catering facilities before checking in) - but it is predominantly the responsibility of airlines who specify reporting times at check-in and influence the check-in process time (sometimes via handling agents) by specifying staffing levels, the form of the transaction, and product differentiation. AQSA uses a chronologically constructed travel experience analysis for all passenger types - in each area of the airport environment. Stage I comprises the "stand alone" evaluation of prevailing product and service delivery standards. Skytrax investigate every aspect of product and service in the front-line arena that passengers experience - under the many different travel modes. Every aspect of Passenger Travel Perspective is evaluated in the Audit - arrivals, transit, departures - first time customers, experienced travellers, leisure and business customers, disabled passengers. All customer profiles are applied to Skytrax quality evaluation applied to each product and service sector. Ease of terminal navigation, transportation facilities, immigration systems, leisure, business, washroom facilities, staff service and language skills, shopping malls - with the integration of official functions with product and service being delivered by an airline operating from the airport. As highlighted in the World Airport Audit subject index, Skytrax provide airport operators with the most detailed and encompassing analysis of Customer Service functions available in today's market. Audit studies are conducted by Skytrax personnel over an intensive period - project duration dependant on size and complexities of the airport terminal(s).

01/28/13

11


Involvement of the private sector in Regional Airport Operations and Services Airports Operations and services

Malta, Chyprus

Algeria, Egypt, Marocco

Lebanon, Israel, Turkey

Jordan, Syria, Tunisia

Catering

x

x

x

x?

Fuelling services

x

x

x

x?

X

X

x

X

2 ground handling operator BOT concession contracts

Flag carrier in competition with private operators

Operation of duty free shops Parking garages Ground handling

01/28/13

nd

Flag carrier

12


01/28/13

13


From 2005 EU Blue Paper

01/28/13

14


PPP options‌

Works & Services Contracts

Management & Maintenance Contracts

Operation & Maintenance Concessions

Build Operate Transfer Concessions

High

Low Extent of private sector participation

01/28/13

Full Privatization

15


Understanding the motivation of the public and private sector as well as the lenders‘ one is key for any PPP Public Sector  

 

Enhancing the ability to raise capital Transferring responsibilities and risks Improving airport infrastructure and customer service Increasing efficiency of airport construction and operation Know–how transfer Privatisation proceeds (concession fees, tax income)

01/28/13

Private Sector  

Strategic objectives (e.g. market entry) Maximizing investor returns via sustainable growth, operational efficiency and commercial opportunities Limit the project risks to those which can be managed by the private sector

3

Lenders 

Proper risk allocation among the parties through a balanced financing structure Being repaid according to schedule while being adequately compensated for the risks which remain with the lender Assuring competent airport management and market environment for the project (as part of risk mitigation)

16


PPP options‌ Types of Contract

Asset Capital ownership Investment

O&M

Commercial Duration Risk (yrs)

Service Contract

Public

Public

Private & Public

Public

1-2

Management Contract

Public

Public

Public

Public

3-5

Lease

Public

Public

Private

Private

8-15

Concession

Public

Private

Private

Private

25-30

BOT / BOOT

Public & Private

Private

Private

Private

25-30

01/28/13

17


01/28/13

18


01/28/13

19


Damascus airport case study