India Infrastructure Development Opportunities and Challenges. A presentation by

Transcription

1 India Infrastructure Development Opportunities and Challenges A presentation by

2 FINANCING REQUIREMENTS Sectors Infrastructure Investments MN US$ Airports Irrigation Ports Energy Railways National Highways Others- Telecom, Tourism, SEZs, Townships, Supporting Urban Infra, Water & Sanitation, State & rural roads, Logistics etc. Total 8,889 17,778 11, ,000 66,666 48,888 76, ,664 Funding requirements during the Eleventh Five Year Plan

3 Contracting Opportunity Sectors Construction component Airports Irrigation Ports Power Nuclear Power Railways Roads Tourism Thermal Hydro Urban Infrastructure 42% 80% 50% - 20% 70 % 30 % 42 % 100 % 55 % 60 % Source- CRISINFAC

4 Responsibility INFRASTRUCTURE ROADS CENTRE STATE PORTS CENTRE- MAJOR STATE- MINOR AIRPORTS CENTRE- AAI METRO RAILS CENTRE STATE Opportunities. POWER WATER CENTRE STATE STATE CITY

5 INFRASTRUCTURE ROADS PORTS AIRPORTS METRO RAILS POWER Opportunities. WATER

6 Fact file ROADS India has a dense road network which covers 3.3 million kms and includes 0.2 million kms of highways. India s road network carries close to 70% of the country s freight traffic and 85% of its passenger traffic National Highways account for only 2% of the total network but accounts for 40% of the total traffic. Of the total 65,000 kms of national highways, only 9% are four-lane, 56% are two-lane, and 35% are single-lane. Traffic on roads growing at 7-10% per annum Type National Highways State Highways Major District Roads Village & Other Roads Total Length Source- National Highways Authority of India KM 65,569 1,31,899 4,67,763 26,50,000 33,15,231 Of Total 2% 4% 14.1% 79.9% 100%

7 ROADS NHAI was constituted in 1995 for implementation of Road Projects. NHAI is a AAA rated Entity in the Debt Markets Modes of Road sector development by NHAI Through construction contracts- Govt. Funded Through Annuity based projects on PPP Model Through Toll based BOT projects on PPP Model

8 ROADS GQ 5846 Kms NSEW 7300 Kms

9 ROADS NHAI Roadmap Since 1997 Stage Description Length Mode Km Phase I Connecting 4 Metros referred to as GQ Govt. funded- 90% (2 lane 4 lane) PPP- 10% Phase II North South & East West Corridors 7300 Govt. funded % PPP % Phase III Interconnection of Phase I & Phase II 10,000 PPP- 100% Phase IV Port Connectivity 500 Govt. funded- 100% Phase V Phase I revisited 5800 PPP- 100% (FROM 4 laning 6 laning of GQ) Phase VI Expressways 1000 PPP- 100% 8 Corridors

10 ROADS Characteristics of Phase V (carried forward from Phase I) All projects on BOT basis. Total length of around 5800 Km. Total number of projects 44 valued at US $ 10 Bn. 8 Projects at prequalification stage, valued at US $ 1.8 Bn Projects cleared by the centre - overall grant +10 % Most projects expected on concession premium i.e. on revenue sharing basis Concession Period 20 years (including construction phase)

11 INFRASTRUCTURE ROADS PORTS AIRPORTS METRO RAILS POWER Opportunities. WATER

12 PORTS Fact file India has 13 major and 185 minor and intermediate ports, along 7,000 kms of coastline. Seaports handle 95% of India s foreign trade in volume terms and 70% in value terms. Major ports accounted for 75% of the total cargo traffic of 345 million tons in F2004. During F1996-F2006, average cargo traffic growth was 20% and 7% at small ports and major ports, respectively. Low productivity at Indian ports primarily due to operational & labour inefficiencies, high tariff rates & poor hinterland connectivity and lack of capital investments Source- Ministry of Shipping, Road Transport & Highways

13 PORTS Asia Rising Momentum of growth in Developing Asia has shown an uptrend with Indian economy at No. 2 position after China Asia's share of world trade more than doubled during Asia's share of world trade (%) Share of World trade defined as (total exports + total imports)/(world exports + world imports)

14 PORTS Trend of Traffic - INDIA ERA Period Major Ports (MN T) Non- Major Ports (MN T) Total (MN T) CAGR (%) Pre-Liberalisation To To To To Pre-Private Sector Participation To To To To Post- Private Sector Participation To To To To Projected Traffic To To To To

15 PORTS All India Traffic in last 5 Years (Million Tons) PORT Kolkata & Haldia Paradip Visakhapatnam Ennore Chennai Tuticorin Cochin New Mangalore Mormugao Mumbai JNPT Kandla All Major Ports Non Major Ports Traffic includes all cargo including bulk and containers; 1 Container (TEU) is taken as 15 Tons

16 PORTS Port wise projected Traffic vis-à-vis Capacity (Million Tons) Port Present capacity (as on 31/03/06) Projected traffic (as on ) Required capacity (at 130% of the projected traffic) Capacity Gap KOLKATA & HALDIA PARADIP VISAKHAPATNAM ENNORE CHENNAI TUTICORIN COCHIN NEW MANGALORE MORMUGAO MUMBAI JNPT KANDLA TOTAL

17 PORTS Container Traffic (Million TEUs) Year (Mn TEUs) % of the Container Traffic is handled at JNPT port- Mumbai Port

18 PORTS Summary of Projects to Increase Capacity and Capability PROJECT TYPE Deepening NO. OF PROJECTS 25 COST (US$ MN) 1400 Berths Equipment Connectivity Others Total

19 PORTS Proposed Funding Pattern For Port Infrastructure Projects Project Head No. of Projects Budgetary Support Internal Resources Private Investment Others Total Deepening of channels/ berths, etc Construction/ reconstruction of berths/ jetties, etc Procurement of Equipments, etc Rail and Road connectivity works Others Total

20 INFRASTRUCTURE ROADS PORTS AIRPORTS METRO RAILS POWER Opportunities. WATER

21 Fact file AIRPORTS Major four airports at Mumbai, Delhi, Kolkatta & Chennai account for 63% of India s passenger traffic & 78% of its freight traffic. AAI has started the modernization process of airports with Mumbai, Delhi, Bangalore & Hyderabad airports With a 24.3% growth in passenger traffic & 9.6% growth in cargo handled (Source: AAI) over the previous period (FY05), India is amongst the fastest growing aviation markets. Category FY06 FY05 % Y/Y Aircraft Movements (in '000) International % Domestic % Total % Passengers (in Million) International % Domestic % Total % Cargo (in '000 tons) International % Domestic % Total % Source: Airports Authority of India

22 Source: CRISIL (S&P s Indian arm) AIRPORTS

23 AIRPORTS GDP v/s Total Traffic Year Passanger Traffic Growth %, yoy Cargo Traffic Growth %, yoy Traffic Growth % GDP Growth %, yoy Multiple (Traffic Growth over GDP) International benchmark for Traffic Growth is times GDP growth

24 Airport Growth Story

25 AIRPORTS Airport Development Fund Requirements USD 8.85 bn

26 AIRPORTS

27 AIRPORTS

28 INFRASTRUCTURE ROADS PORTS AIRPORTS METRO RAILS Opportunities. POWER

29 METRO RAILS IN INDIA Government Funded Kolkata Metro Rail (One of the oldest running Metro rail systems in India) Mumbai Metropolitan Rail system (existing) Delhi Metro Rail Bangalore Metro Rail On PPP Format Hyderabad Metro Rail (Line I, II & III) Kochi Metro Rail Mumbai Metro Rail (Phase I, II & III) Delhi Airport Metro Rail Link Chandigarh monorail (planned) Chennai monorail (planned)

30 Bangalore Metro Rail METRO RAILS IN INDIA The Bangalore Metro is the proposed mass-transit rail system for the city of Bangalore. The agency responsible for its implementation is Bangalore Mass Rapid Transit Ltd (BMRTL). The Delhi Metro Rail Corporation] (DMRC) are the general consultants for the project. A project report envisages a 33km elevated and underground rail network with 32 stations for Phase I of the project. The proposed gauge is standard gauge unlike the broad gauge on the Delhi Metro network. On 25 April 2006 the Indian cabinet approved the project, which is now budgeted at more than 54.5 billion rupees (about US$1.2 billion). The work is scheduled to be completed by The EPC Contracts and E&M Contracts are at the Bid stage Source- BMRTL

31 Kochi Metro Rail METRO RAILS IN INDIA State Government of Kerala has initiated the process of selecting the prospective concessionaire and invited EOI/ RFQ from eligible national and international entities for the purpose of developing Kochi Metro Rail project on BOT basis. Length Concession period kms on Alwaye Petta stretch of Kochi city 30 years Construction period 4 years ( ) Total estimated cost US$ 600 MN (May 2005 prices) The EOI/ RFQ were invited for the project Three Bidders have been short-listed, official announcement is awaited GAMMON is amongst the short-listed parties in Consortium with BEML & IDFC Source- KINFRA

32 Hyderabad Metro Rail METRO RAILS IN INDIA Project Features: Concession of 35 years including 5 years of construction period. Bid Parameter: Min. Viability Gap Funding 3 corridors totaling km: Line 1:Miyapuri to Chaitanyapuri /L.B Nagar km Line 2:Jubilee Bus Station to Falaknuma km Line 3:Habsiguda/ Tarnaka to Hitec City km One combined bid for all three packages Package I Package II Package III Package Line 1 & 3 Line 2 Line 1,2 & 3 Corridor Source- KINFRA

33 Mumbai Metro Rail METRO RAILS IN INDIA Master Plan is to develop the Metro in 3 Phases Total Length as per Master Plan Km Total Cost as per Master Plan 4.35 bn $ Phase I year ( ) Versova - Andheri Ghatkopar (under implementation)- LINE 1 Colaba - Bandra Charkop- LINE 2 Bandra - Kurla Mankhurd- LINE 3 Length Km Km Km Total Source- MMRDA Km

34 Mumbai Metro Rail METRO RAILS IN INDIA Phase II ( ) Charkop - Dahisar Ghatkopar Mulund Length 7.5 Km 12.4 Km Phase III ( ) BKC - Kanjur Marg via Airport Andheri(E) - Dahisar(E) Hutatma Chowk Ghatkopar Sewri Prabhadevi Length 19.5 Km 18.0 Km 21.8 Km 3.5 Km Source- MMRDA

35 METRO RAILS IN INDIA Airport Link Mass Rapid Transit Systems Delhi International Airport Link Bangalore International Airport Link Hyderabad International Airport Link Cochin International Airport Link

36 INFRASTRUCTURE ROADS PORTS AIRPORTS METRO RAILS Opportunities. POWER WATER

37 POWER Fact file India has a power shortage of 12% at peak level. Govt. of India has set up a target of 100,000 MW capacity addition over to contain power shortage. Ongoing huge Investments in Transmission & Distribution required to augment the planned generation capacity and overhauling the outdated & inefficient infrastructure Hydro power opportunity being given renewed thrust. More than 35% of the planned capacity addition during the tenth plan is in hydro power. Source- Ministry of Power

38 POWER Power capacity creation Period Eighth Plan period Ninth Plan period Tenth Plan period (E) Eleventh Plan period (E) Target 30,538 40,245 41,100 60,885 Actual / implied requirement 16,422 19,165 35,000 66,985 Hydro Power capacity creation Year to 31 March Hydro Total % of total Capacity in March , ,046 25% Tenth plan ( ) target 14,393 41,100 35% Likely addition in tenth plan 10,800 31,900 34% Eleventh plan ( ) target 22,420 60,896 37% Source- Ministry of Power, Planning Commission

39 POWER Total installed capacity Sector MW %age State Sector 71, Central Sector 43, Private Sector 13, Total 1,28,432 Source- Ministry of Power, Planning Commission

40 POWER Fuel MW %age Total Thermal Coal 84,400 69, Gas 13, Oil 1, Hydro 33, Nuclear 3, Renewable 6, Total 1,28,432 Source- Ministry of Power, Planning Commission

41 POWER High Voltage Transmission Capacity Capacity MVA Circuit KM 765/800 KV -- 2, KV 91,052 73, KV 1,52, ,901 HVDC 3,000 5,872 Source- Ministry of Power, Planning Commission

42 INFRASTRUCTURE ROADS PORTS AIRPORTS METRO RAILS Opportunities. POWER WATER

43 WATER Urban WSS Investment required for meeting the MDG

44 Challenges in Privatisation Projects Pre Bid/ Award Post Bid/ Award Challenges. Project feasibility PPP structure offered Willingness to pay License Agreement Credibility of Client Financial Closure Environmental issues Engineering challenges Mechanisation Operational efficiency Revenue collection

45 THANK YOU