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Development of Amusement Park (Including Snow Park) in Shilparamam, Visakhapatnam on PPP Basis

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Development of Amusement Park (Including Snow Park) in Shilparamam, Visakhapatnam on PPP Basis PROJECT INFORMATION MEMORANDUM/FEASIBILITY REPORT Development of Amusement Park (including Snow Park) in Shilparamam, Visakhapatnam on PPP Basis For Andhra Pradesh Shilparamam Arts, Crafts & Cultural Society (APSACCS) Vijayawada, Andhra Pradesh October, 2018 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam TABLE OF CONTENTS Disclaimer ............................................................................................................3 1. INTRODUCTION........................................................................................4 1.1. Background of AP Shilparamam....................................................................................4 1.2. The Objectives of the Report..........................................................................................7 1.3. Methodology of Assessment ...........................................................................................7 2. TOURISM & AMUSEMENT INDUSTRY IN INDIA ............................8 2.1. Industry Overview ..........................................................................................................8 2.2. Market Size.....................................................................................................................8 2.3. Indian Amusement Industry – Market Trends................................................................9 2.4. Popular Amusement Parks in India .............................................................................10 3. TOURISM & AMUSEMENT INDUSTRY IN ANDHRA PRADESH 11 3.1. Overview of Andhra Pradesh.......................................................................................11 3.2. Tourism Sector in Andhra Pradesh..............................................................................14 3.3. Amusement Sector in Andhra Pradesh.........................................................................14 3.4. Investment Climate.......................................................................................................15 3.5. Partnership Summits ....................................................................................................16 4. DEMAND ASSESSMENT ........................................................................17 4.1. Tourism Sector in Visakhapatnam ...............................................................................17 4.2. Type of Visitors Frequenting Visakhapatnam..............................................................17 4.3. Amusement Sector in Visakhapatnam ..........................................................................18 4.4. Growth Potential..........................................................................................................18 5. PROJECT PROPOSAL ............................................................................22 5.1. Site Location and Connectivity ....................................................................................22 5.2. Site Inherent Resources................................................................................................22 5.3. Market Study and Configuration of the Project...........................................................23 5.4. Positioning on the Site .................................................................................................25 5.5. Land Use & Development Controls .............................................................................26 5.6. Proposed Site Plan.......................................................................................................29 5.7. Block Cost estimates (Assumptions) ............................................................................29 5.8. Basic Market Value of the Land & Lease Rentals .......................................................30 6. FINANCIAL ASSESSMENT & BUSINESS PLAN...............................31 1 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam 6.1 Project cost assumptions..............................................................................................31 6.2 Means of finance ..........................................................................................................32 6.3 Revenue Assumptions...................................................................................................32 6.4 O& M Assumptions ......................................................................................................33 6.5 Other Assumptions .......................................................................................................33 6.6 Revenue projections .....................................................................................................33 6.7 Projections of O & M costs..........................................................................................34 6.8 Project Profitability .....................................................................................................34 6.9 Viability Ratios.............................................................................................................34 7. IMPLEMENTATION STRUCTURE......................................................36 7.1. Institutional Structure ..................................................................................................36 7.2. Payments to APSACCS ................................................................................................36 2 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam Disclaimer The information contained in this Project Information Memorandum/Feasibility Report document (the “PIM”/ the “FR”) or subsequently provided to Bidder(s), whether verbally or in documentary or any other form by or on behalf of the Authority or any of its employees or advisors, is provided to Bidder(s) on the terms and conditions set out in the Request for Proposal (RFP) and such other terms and conditions subject to which such information is provided. The purpose of this PIM/FR is to provide interested parties with information that may be useful to them in making their financial offers (Bids) pursuant to the RFP. This PIM/FR includes statements, which reflect various assumptions and assessments arrived at by the Authority in relation to the Project. Such assumptions, assessments and statements do not purport to contain all the information that each Bidder may require. This PIM/FR may not be appropriate for all persons, and it is not possible for the Authority, its employees or advisors / Project Advisors to consider the investment objectives, financial situation and particular needs of each party who reads or uses this PIM/FR. The assumptions, assessments, statements and information contained in the PIM/FR, may not be complete, accurate, adequate or correct. The various assumptions and assessments arrived at by the Authority in this PIM/FR are based on the Authority’s and its Project Advisor’s independent assessment. Each Bidder should, therefore, conduct its own investigations and analysis and should check the accuracy, adequacy, correctness, reliability and completeness of the assumptions, assessments, statements and information contained in this PIM/FR and obtain independent advice from appropriate sources. The Authority, its employees and advisors / Project Advisors make no representation or warranty and shall have no liability to any person, including any Applicant or Bidder under any law, statute, rules or regulations or tort, principles of restitution or unjust enrichment or otherwise for any loss, damages, cost or expense which may arise from or be incurred or suffered on account of anything contained in this PIM/FR or otherwise, including the accuracy, adequacy, correctness, completeness or reliability of the PIM/FR and any assessment, assumption, statement or information contained therein or deemed to form part of the PIM/FR or arising in any way for participation in this Bid Stage. The Authority also accepts no liability of any nature whether resulting from negligence or otherwise howsoever caused arising from reliance of any Bidder upon the statements contained in this PIM/FR. The Authority may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the information, assessment or assumptions contained in this PIM/FR. 3 Project Information Memorandum / Feasibility Report on Development of Amusement Park including Snow Park in Shilparamam, Visakhapatnam 1. INTRODUCTION 1.1. Background of AP Shilparamam Consequent to Re – organization of the erstwhile State of Andhra Pradesh into State of Telangana and Residuary State of Andhra Pradesh and thereby bifurcated the Shilparamam Arts, Crafts & Cultural Society (SACCS) between the two States, the Andhra Pradesh Government decided to register ‘The Andhra Pradesh Shilparamam Arts, Crafts & Cultural Society’ as a separate Society for the State of Andhra Pradesh. Accordingly, “The Andhra Pradesh Shilparamam Arts, Crafts and Cultural Society (The APSACCS)” has been registered as a society on 5th July, 2018 under the Andhra Pradesh Societies Registration Act., 2001 by the Registrar of Societies Vijayawada (East) with its office situated at 54-16-1/18C, Road No. 2/ Central Excise Colony Loyola College Road / Vijayawada, Krishna District, Andhra Pradesh. The APSACCS has crafts villages in various key locations of Andhra
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