ADPI AIRPORTS ARABIA CONFERENCE Fritznathan BRUCE Head of
Business Development Middle East
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WHO WE ARE
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More value creation ADPI is a private engineering and
architecture company that designs, manages and supervises private
and public airport projects throughout the world 100% Member
Company of AEROPORTS DE PARIS The largest airport operator in the
world Constant technology watch Capitalize on 60 years
international experience Certified ISO 9001 since 2003
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WHO WE ARE Our field of expertise ADPI is a private engineering
and architecture company that designs, manages and supervises
private and public airport projects throughout the world Passenger
Terminal Buildings Maintenance & Cargo Airport Ancillary
Buildings Air Navigation & Control Airside & Landside
Infrastructure Special Airport Systems Airport Cities
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OUR ACTIVITIES
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Synergy of our activities Building Engineering &
EnvironmentAirport & Urban PlanningInfrastructure Engineering
Special Airport Systems Air Navigation Engineering Architecture
From Airportsto Cities GovernmentPrivate
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OUR ACTIVITIES A comprehensive range of solutions Projects
Airport Master Plan Terminals Maintenance and Cargo Airport
buildings Corporate offices Infrastructure Airside and Landside Air
navigation control Special Airport Systems, IT, BHS and Technical
Equipment Urban development/Airport Cities Urban buildings,
skyscrapers, malls Sports Facilities Services Traffic Forecast and
programming Operational and Financial consulting Feasibility study
Expertise (IT, BHS, ATC) Design: architecture & engineering
Design: urban planning Value engineering and Design review ICAO
IATA Compliance check / Permitting Construction supervision
Complete project management Commissioning
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OUR REFERENCES Main references LIBYA TRIPOLI Tripoli
International Airport ALGERIA ALGIERS Houari Boumdine International
Airport COLOMBIA BOGOTA El Dorado International Airport SAUDI
ARABIA JEDDAH King Abdulaziz International Airport FRANCE PARIS
Roissy / Charles de Gaulle International Airport RUSSIA MOSCOW
Moscow Sheremetyevo International Airport CHINA CHONGQING Chongqing
International Airport CHINA BEIJING New Beijing International
Airport SOUTH KOREA SEOUL Incheon International Airport CHINA
SHANGHAI Incheon International Airport UNITED ARAB EMIRATES DUBA
Duba International Airport QATAR DOHA New Doha International
Airport UNITED ARAB EMIRATES ABU DHABI Abu Dhabi International
Airport
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PUBLIC PRIVATE PARTNERSHIP CHALLENGES & OPPORTUNITIES
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Challenges & Opportunities Private Investment in Airports
is increasing Driven by strong growth within the ATI Pressure on
airport infrastructure to adapt to growing demand and changing
technology Governments turning to private sector to meet
investments /operational requirements for airports expansion
Governments facing dilemma of: 1.How to finance airport facilities
to meet growing demand, on limited public funds? 2.How to improve
service levels at airports? 3.How to operate airports to maximize
commercial potential PPP
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PPPs Attraction PRIVATE SECTOR Growth in passenger traffic
leading to improved profit margins resulting from economies of
scale Limited foreign exchange risk since airports generate
substantial revenues in hard currencies Potential for improved
airport amenities and increased airport revenues Introduces
operating efficiencies and improves Fnancial Performance Potential
for real estate development and other non- aeronautical services
PPP PUBLIC SECTOR Perceived reduction in risks to airport- related
project development Transfer risk and/or responsibility in an
operation Access to private sector financing freeing Government
budgets for social sectors Introduces operating efficiencies New
revenue streams for Governments
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PPPs Risks Allocation PRIVATE SECTOR Permissions / Regulations
/ Authorizations Government Liaison / Political Issues Financial
Support Force Majeure PPP PUBLIC SECTOR Design / Construction
Testing / Commissioning Operating Performance Project Management
Business Analyst (Finance Coordination) Technology Trends
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PPPs Development Stages PPP Identification and details of the
existing terminal, airfield and facilities Forecast of Passengers,
Cargo Airport Platform Revenue Analysis (Gap!!) Production of
Airport Conceptual Plan Terminal Capacity Optimization and
Facilities sizing study Long Term Airport Development Plan (10-20
years) Production of Platform Master Plan ( Pax, Cargo, Facilities
development plan)
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PPP CASE STUDIES
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PPP JORDAN Queen Alia International Airport, Amman
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PPP JORDAN To support the business plans of the national
airline and strengthen Jordan's role as a gateway to the Near East,
the project consists in developing a new terminal to triple the
airport's capacity The government wanted the airport to have a
unique and grandiose architecture to reflect the country's
modernity Objectives of the project The government's constraints
and objectives The government called on the private sector above
all to secure the completion of the construction and operation, of
this unique project in terms of scale for the country: The new
terminal is the largest and most complex building in the country,
requiring the contribution of an experienced builder Growth in
traffic had led to deteriorating quality of service, requiring the
intervention of a first-class international operator Albeit not
wanting immediate remuneration, the government wanted to benefit in
part from the creation of value Identification of market conditions
To identify the market conditions, the government used the services
of a group of advisers: IFC (World Bank) as chief adviser and
financial adviser Legal adviser, technical adviser, etc. Operators,
builders and financial investors showed their appetite for the
industrial project, subject to economic conditions and to the risk
being spread out Access to bank funding required coverage of the
political risk to ensure viable financing IFC proposed a political
risk cover model (B loan) to attract commercial banks
Slide 17 135% of existing traffic), building (>USD 500
million), and meet certain financial criteria Bids were then
selected on the basis of two criteria: Validation of the technical
bid (pass or fail) Selection of the best economic bid
(income-sharing percentage) Selection process 5. Experience of the
Queen Alia Airport of Amman in Jordan">
PPP JORDAN The agreement contains most of the partnership's
formative elements: 25-year concession/BOT Transparent pricing
(indexed on inflation) Clear obligations regarding the investment
programme and the quality of service objectives A precisely
demarcated scope of licensed services High degree of managerial
independence for the operator but stringent reporting and public
accountability obligations A package of reassuring government
guarantees for the investors and banks An "income-sharing"
remuneration model for the government Privatization model A
pre-qualification stage firstly enabled the government to Confirm
the interest of the potential candidates Rule out candidates having
no experience in operations (>135% of existing traffic),
building (>USD 500 million), and meet certain financial criteria
Bids were then selected on the basis of two criteria: Validation of
the technical bid (pass or fail) Selection of the best economic bid
(income-sharing percentage) Selection process 5. Experience of the
Queen Alia Airport of Amman in Jordan
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PPP JORDAN Aroports de Paris Management is the airport
operator. Its roles and responsibilities are formalized by contract
under an Operation & Maintenance Agreement (O&M). In this
respect ADPM provides AIG with key positions (COO, Operations
Director, Maintenance Director, Safety/Quality Director and
Commercial Director) provides technical support using both ADPM
back office resources and the skills of ADP experts. provides
training in all airport areas, drawing on the same resources (ADP
Group) Additional support from ADPM was provided to bring the
airport into service (ORAT) Long-term technical assistance Multiple
objectives The technical assistance objective aims to Ensure
compliance with the contractual requirements laid down in the
O&M agreement See that the necessary measures are taken to
achieve the financial targets And provide support for daily
management (board of directors, preparing budgets, etc.) 5.
Experience of the Queen Alia Airport of Amman in Jordan Securing
entry into service - ORAT In accordance with its practices,
Aroports de Paris Management performed a service to ensure the New
Terminal opened smoothly and within the required deadline The
opening of the new Amman Terminal (with a capacity of 7 Mpax) went
faultlessly and smoothly during the night of 20 to 21 March 2013.
The ORAT team was disbanded 2 months later
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PPP JORDAN Airport traffic Project description Strategy backing
the project Investment 4mpax in 2006 - 7 mpax in 2014 25-year BOT
of Amman Queen Alia Airport (Jordan) 2007 - 2032 Tourism
development Open skies and Arab free trade agreements Royal
Jordanian growth strategy $750m Key Features QAIA- Summary
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PPP CASE STUDIES CASE STUDIES MAURITUS ISLAND AIRPORT
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Case Studies for the 2 nd Airports Arabia Conference Mauritius
Island Sir Seewoosagur Ramgoolam International Airport. New
Passenger Terminal Operated by Aroports de Paris Management (ADPM)
via ATOL Architect : ADPI / 56 900 sqm with 8 500sqm for Retail/8
Contact with 1 stand for A380. Capacity : 4,5 millions passagers.
Project Cost( supported by ATOL) : 300 millions USD
