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Kotappakonda Aerial Ropeway Project”

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Kotappakonda Aerial Ropeway Project” Project Report on Development of “Kotappakonda Aerial Ropeway Project” c KOTAPPAKONDA AERIAL ROPEWAY PROJECT Volume II- Project Information Memorandum Department of Tourism, Government of Andhra Pradesh 2015 1 Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode TABLE OF CONTENTS TABLE OF CONTENTS ........................................................................................................................................ 2 1. INTRODUCTION ............................................................................................................................................ 3 1.1. OBJECTIVE OF THIS PROJECT REPORT ............................................................................................................. 3 1.2. EXECUTIVE SUMMARY ............................................................................................................................... 3 1.3. PROJECT DETAILS...................................................................................................................................... 4 2. PROJECT DETAILS .................................................................................................................................... 7 2.1. PROJECT BACKGROUND ............................................................................................................................. 7 2.2. LOCATION AND DEMOGRAPHIC DETAILS OF THE REGION .................................................................................. 9 2.3. PROJECT SITE ......................................................................................................................................... 11 2.4. PROJECT NEED ....................................................................................................................................... 12 2.5. STAKEHOLDER ANALYSIS ........................................................................................................................... 12 3. PROJECT DESIGN ................................................................................................................................... 13 3.1. DESIGN CONSIDERATIONS AND ASSUMPTIONS .............................................................................................. 13 3.2. DESIGN OPTIONS .................................................................................................................................... 14 3.3. PROPOSED DESIGN/ TECHNOLOGY ............................................................................................................. 15 3.4. DETAILED COMPONENTS .......................................................................................................................... 17 3.5. MINIMUM DEVELOPMENT OBLIGATIONS ..................................................................................................... 23 3.6. MINIMUM SERVICE OBLIGATIONS ............................................................................................................... 25 4. PROJECT FINANCIALS ............................................................................................................................ 26 4.1. METHODOLOGY ..................................................................................................................................... 26 4.2. DEMAND ESTIMATION ............................................................................................................................. 26 4.3. PROJECT COST BREAKUP .......................................................................................................................... 28 4.4. REVENUE ASSUMPTIONS .......................................................................................................................... 29 4.5. OPERATING ASSUMPTIONS ....................................................................................................................... 29 4.6. PROJECT FEASIBILITY ............................................................................................................................... 29 5. ANNEXURE ........................................................................................................................................... 30 5.1. REVENUE COMPUTATIONS........................................................................................................................ 30 5.2. INDICATIVE P&L STATEMENT .................................................................................................................... 32 5.3. PROJECT PROFITABILITY COMPUTATION ....................................................................................................... 33 2 Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode 1. INTRODUCTION 1.1. OBJECTIVE OF THIS PROJECT REPORT The Department of Tourism, Government of Andhra Pradesh, proposes to develop an aerial ropeway on Kotappakonda Hill, on Public Private Partnership (PPP) basis. The site of the project, Kotappakonda temple on Kotappakonda Hill, is situated in Guntur district, in the State of Andhra Pradesh. Approximately 5,000 tourists and pilgrims visit the holy site each day, and approximately one lakh per day during the festival of Mahashivratri (in February-March). Since the temple is difficult to access via the stairs, especially for differently abled, infirm and aged visitors, an aerial ropeway to facilitate access to the temple, to be setup on a public private partnership basis has been proposed. In addition to facilitating ease of access, the ropeway would also promote the destination for religious tourism, and enable integrated development of the project site, in line with the overall tourism developmental vision of the Government of Andhra Pradesh. This project report has been prepared to analyze the techno-commercial feasibility of the aerial ropeway and provide an overview of the investment opportunity in this project. 1.2. EXECUTIVE SUMMARY 1.2.1. PROJECT SYNOPSIS The project proposed is installation, commissioning and operations of an aerial ropeway in Kotappakonda. Kotappakonda is situated in the Guntur District of Andhra Pradesh and is famous for its Shiv temple. The temple receives close to 5,000 pilgrims daily with the numbers doubling or even trebling in the month of November. The peak season for tourist footfall is the Mahashivratri week when more than 2 lac pilgrims visit the temple. 3 Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode The Government is now focusing on leveraging this high tourist footfall to develop additional attractions in and around the area. The Aerial Ropeway is one such attraction which would not just make the access to the temple easier, but also act as a local tourist attraction. 1.3. PROJECT DETAILS 1.3.1. PROJECT SITE The main project components which require land are provided below. 1. Lower Terminal Station 2. Upper Terminal Station 3. Towers The lower terminal station is proposed to be located at the entrance to the Ganpathi temple. The Revenue Department has already allotted Ac.1.00Cents Land in Survey.No. 290 of the village Kondakavaru. For the upper station, the land will be provided by the Endowments Department for an extent of Ac.0.60 Cents near the Nandini guesthouse. Details for land site are provided in subsequent sections. FIGURE: SITE LAYOUT Upper terminal Lower terminal The land for the lower terminal, upper terminal and towers shall be provided by the Government of AP for a period of 20 years on lease, subject to the Public Private Partnership guidelines of the State of Andhra Pradesh. 4 Page Design, Engineering, Development, Construction, Testing, Commissioning, and Operation & Maintenance of a Ropeway System at Kotappakonda Temple in Andhra Pradesh under Public Private Partnership (PPP) Mode 1.3.2. PROJECT TECHNOLOGY The bare minimum design of the ropeway system that has been assumed for the purposes of this project is a pulsating jigback (fixed) installation. However, given the seasonality of the demand at Kotappakonda, the financial feasibility has been undertaken assuming a monocable jigback system with detachable gondolas. The project developer, based on his cost and demand analysis, may choose to propose a more technically feasible aerial ropeway technology as well if he so chooses, provided it be technologically superior to a pulsating jigback (fixed) installation. The reasons for selection of the Monocable Jigback System (Fixed) as a minimum design system is elaborated in subsequent sections. 1.3.3. PROJECT COST The total civil works estimates with the estimated components and prepared conceptual layout amounts to INR 3.73 cr. The Plant and Machinery estimates for a monocable jigback system amount to approximately INR 6 cr. The indicative cost heads are as follows: Cost Head Amount (INR) Civil Works (Upper and Lower stations) 37,373,372.36 Plant & Machinery (Upper/Lower stations & Towers) 60,000,000 Total Project Cost 97,373,372.36 1.3.4. PROJECT MEANS OF FINANCE The Project is assumed to be financed by 100% promoter funding, with no funding from commercial banks envisaged. 1.3.5. KEY PROJECT APPROVALS & REGULATORY
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