Egis: Bengaluru Mumbai Economic Corridor Plan

Connect

The Team that made Chennai Metro a success story

Egis: Member of French Delegation Focusing on Infrastructure Developments in Telangana, Hyderabad, Andhra Pradesh, India

July 2015

India The Team that made Chennai Metro a success story

Chennai is the fourth-largest city in The Chennai Metro Rail is launched on India with a population of about 8 million. June 29, 2015. Tami Nadu’s Hon. Chief The city generates around 11 million trips Minister Ms.Jayalalitha inaugurated the in a day, with about 6 million vehicular Metro Rail service between Koyambedu trips. Chennai Metropolis has been grow- and Alandur metro stations. ing rapidly and the traffic volumes on the roads have also been increasing enormously. The broad scope of work for Egis included: To address this massive increase in road traffic in Chennai Metropolis, the Govern- •Preparation of bid designs, bid doc- ment of Tamil Nadu decided to uments and providing all necessary implement the Chennai Metro Rail assistance in bid evaluation, negotia- Project. tions (if necessary) and award of design and build contracts Chennai Metro Rail Limited (CMRL) was •Review and proof-checking of the entrusted with the execution of the detailed designs submitted by the project. CMRL’s biggest challenge was contractors to set up a team of global experts who could understand the challenges and •Construction/ erection supervision offer global standard solutions that are at all levels including contract ad- cost effective, timely and scalable. ministration, safety, quality and environmental aspects, co-ordination, To execute a project of such a large review/ monitoring of works of all scale, a consortium under the leadership consultants, suppliers and manufac- of Egis was roped in as General turers, plan for O&M, framing of O&M Consultant. Manuals

•Testing and commissioning

“Chennai Metro has been an extremely satisfying project for Egis due to the sheer complexity that helped us bring the best of global technology, experience and knowledge to offer the most sustainable solution under the given set of constraints. Egis is really elated and proud to play a key role in this project.”

Mr. Ashish Tandon, MD, Egis in India Bengaluru Mumbai Economic Corridor (BMEC): Sustainable Development Plan The Department of Industrial Policy and Promotion (DIPP) of the Ministry of Com- BMEC Region- an ambitious vision for future economy: merce and Industry, has initiated ambitious projects and proposals for pro- •BMEC’s region spreads across two moting economic development in India, major states of Karnataka and Maha- especially to enhance Secondary Sector rashtra contribution to GDP to 25%, by creating •On an average 30% of the total area sub-national territories with industrial of the respective states and around nodes. Towards this goal, the Govern- 40% of their population fall within the ment of India (GoI) intends to develop the BMEC Region Bengaluru Mumbai Economic Corridor •The corridor is delineated around (BMEC), among other corridor regions. three main infrastructure networks, the existing National Highway 4 Egis is Consultant to the Delhi Mumbai (NH4), which connects Bengaluru Industrial Corridor Development City to Mumbai City, existing Ben- Corporation, which is appointed as the galuru-Mumbai Rail link & Dab- project nodal agency by DIPP, GoI for hol-Bengaluru Gas Pipeline preparation of the Perspective Plan for •The overall length of the corridor is the BMEC Region along with CRISIL and around 1,000 km and covers an area IAU. of around 143, 000 sqkm and with an existing population of around 79.8 million, with 41.5 million falling under As a regional plan this project provides a the core area of the corridor region framework for the government to be an •The projected population in the enabler to attract private investment in BMEC Region for 2041 is around manufacturing, mainly through provision 123.4 million and the induced em- of large scale regional trunk infrastructure ployment due to BMEC is expected and through development of Greenfield to be around 23 million Industrial Nodes. •It is estimated that the industrial investment in the BMEC Core region Here, for the first time in the domain of itself will cross 115,000 million USD industrial infrastructure based regional by 2041 planning, the department has mandated Green & Sustainable development objectives at the very upstream level. The As a regional plan this project provides tradeoffs are mostly between social, a framework for the government to be an economic and environmental concerns. enabler to attract private investment in manufacturing, mainly through provision Overall objective of this mandate is to promote economic development, which of large scale regional trunk is environment friendly & Inclusive, which infrastructure and through development integrates transport infrastructure & of Greenfield Industrial Nodes. industrial development and which adopts green vision. Balancing Trade-offs: Highlights of BMEC Perspective Plan Proposal: For this ambitious project hinged upon industrial node development & large The perspective plan, through de- scale trunk infrastructure, our questions tailed assessment and subsequent interaction with the stakeholders has are about trade-offs identified ten potential locations for •How concerned should we be about our development of Industrial Node-cum- environment Or how much environmen- Mega city, within the BMEC Region, tal degradation should we tolerate if it to fulfil the estimated industrial de- allows us to have a higher GDP? mand of the region. •Can the city-regions of the BMEC be BMEC Perspective Plan has also competitive, inclusive and sustainable, identified various infrastructure gaps all at once? These are not mutually & certain crucial infrastructure devel- exclusive development objectives opments which need to be addressed •How could we meet the original project in order to achieve the above-men- objectives of the mandate at a Regional tioned economic projections, bene- Scale? fits and to facilitate establishing the industrial nodes. This includes: Achieving a balance between •Development of Ports economic growth orientated •Port connectivity development and environmental •Enhancement of various road & rail sustainability, Industrial development and projects across the region Inclusivity, were the major •Development of power infrastructure challenges and these challenges were •Provision of water, establishment & met by adopting the following eightfold •Upgradation of airports etc. strategies, which attempts to adopt a Middle Path towards achieving a “Globally Competitive & Sustainable Development”:

•Balance with Nature •Optimization of resource utilisation (land, water, energy etc.) •Inclusive development •Land Management Strategies •Transit Oriented Development •Promoting BMEC as a Green Corridor •Multilevel Stakeholder Consultation •And finally, POLICY INSTRUMENTS FOR SUSTAINABLE DEVELOPMENT for all downstream projects Balance with Nature: the BMEC’s perspective plan.

Although the objective was to develop an Industrial Corridor to enhance economy, A GIS based Locational Suitability achieving it by, protecting natural Assessment was carried out to identify ecosystems, conserving the environment and minimising any possible impact on an appropriate location for developing environment, remained as the prime industrial nodes within focus of the perspective plan. The the delineated region following were some of the key measures adopted as part of the perspective plan towards achieving the same: Optimal Node Size: Estimation of land demand as per planning norms requires •Regional Level Environmental Suitability ideal size of industrial node to be Assessment was carried out to carefully between 90 and 120 sqkm. National exclude environmentally sensitive areas Manufacturing Policy demands a min- from the corridor region. Based on this, imum node size of around 50 sqkm. entire Western Ghats, which is rich in However, with limited land available for bio-diversity and acts as a watershed development, with constrains on mobilis- for majority of the rivers in the region, is ing land and to meet client’s objectives alienated with sufficient buffer from the of land optimization, following alternative delineation of BMEC region modalities were explored. •With more than 56% of the core region I.Assessment & estimation of industrial under single crop, fallow land, waste land land requirement were carried out for & mining category, the delineated BMEC each of the identified potential industrial region covers predominantly areas with sectors, for each of the districts of the relatively less fertile, unproductive lands region. This determined the specific land with special focus on areas which are requirement for each node, rather than relatively less dependent on farm / agro arriving at conventional ball park esti- based activities mates which are generally on the higher •A GIS based Locational Suitability side Assessment was carried out to identify II.Concepts of flatted factories/Stacked an appropriate location for developing factories rather than sprawling industrial industrial nodes within the delineated layouts are proposed for possible indus- BMEC region. This assessment ensured trial sectors that the location of industrial nodes are III.Greenfield-Brownfield Integration: The not in proximity to environmentally sensi- proposed Greenfield Industrial nodes tive areas and land where the soil condi- are strategically planned to be located tion permitted double and multi-cropping in proximity to existing industrial clusters in order to promote efficiency and econ- Optimisation of Resource Utilisation: omy of scale. This would also facilitate in sharing of resources, infrastructure & Optimal consumption of resources, various industrial facilities like, logistic especially land, water and energy, is hubs, supply chain, vendor establish- another major parameter which ments, Urban Infrastructure etc. This is influenced sustainable development of expected to optimise consumption of land, water & energy production, but also in resource optimi- IV.Compact industrial nodes: it was also sation, through minimal & multipurpose recommended to have number of com- utilisation of land, reuse of water and pact smaller industrial nodes of 25 to 50 production of energy without consump- sqkm, rather than large scale centralised tion of fresh resources. industrial nodes of more than 50 to 150 sqkm Based on the above-mentioned strategies to optimise land utilisation, BMEC was proposed to have 10 smaller industrial nodes with an area ranging from 25 to 50 sqkm, which were located in close proximity to existing industrial areas and also in close proximity to each other to form clusters, which facilitates sharing of infrastructure.

Productive Infrastructure: Egis has innovated technologies that synergize the use of physical infrastructure, otherwise passive, for active production of energy. “WIND IT” is one such innovation where wind turbines are installed on Telecom Towers, where energy produced is in turn used for telecom equipment needs. Several other innovations include the solar mountain by Elioth, to support energy positive food production and the energy positive foot bridge, in the Netherlands. Egis has also developed technology innovations for waste to energy proposed here in the BMEC PP. Use of waste water sludge with refuse derived fuel to support farming through production of manure. RDF as fuel for cement manufacturers are some innovations. BMEC was proposed to have 10 smaller industrial nodes with an area ranging With majority of BMEC region, best suit- from 25 to 50 sqkm , which were located ed for harnessing wind & solar energy, majority of the above-mentioned produc- in close proximity to existing industrial tive infrastructure concepts are recom- areas and also in close proximity to each mended as part of the perspective plan. other to form clusters, which facilitates This integrated multipurpose infrastruc- sharing of infrastructure. ture facilities, not only act as an infrastructure which facilitates in resource Optimisation of Water Consumption: Inclusive Development: • Optimisation Reducing the of unit Water consumption Consumption: of water by improving the efficiency in manufacturing process by The economic growth & development in •Reducing the unit consumption of at least 1/5th of the current usage BMEC Perspective Plan is proposed to • water Increasing by improving efficiency thein utilization efficiency of water in by at leastmanufacturing 30% by using cooling process water by towers at least and other ensure equitable development across energy1/5th retrofits of the current usage the region with additional stimulus for • •Increasing Around 30% efficiency of the industrial in utilization water demand of relatively less developed region & to is strategizedwater by toat be least meet 30%through by use using of treated cool - enhance existing agro based economy of wastewatering water for industrialtowers and process other like ashenergy handling the region. (inretrofits case of thermal power plants); washing of ores Key Components of Inclusive develop- etc. •Around 30% of the industrial wa- • Utilizing the treated water available from the ment: STPster of demand urban areas, is forstrategized industrial usage to be is expectedmet to throughfulfil around use 40% of of treated industrial wastewa water demand- • ter for Smart industrial water networks process for Industrial like ash water supplyhandling would also(in improvecase of the thermal efficiency power of water usageplants); by minimising washing UFWs of ores& other etc. water losses • •Utilizing Implementation the treated of rain water water availableharvesting can alsofrom bring the down STPs the total of urban domestic areas, & industrial for water demandindustrial by another usage 5 to is10% expected to fulfil • around Improved 40% efficiencyof industrial in agriculture water sector wa- terdemand utilization, through Micro Irrigation/ Drip Irriga- tions•Smart schemes water can reduce networks the agriculture for Industrial demand of the region by 30%. The water saved can be utilised to water supply would also improve the meet drinking water supply demand of urban areas/ megacitiesefficiency and Industrial of water water usage demand by minimis- •Additional 23 million employment to • ing UFWs Reducing & water other losses water due lossesto existing irri- be generated as proposed BMEC Per- gation•Implementation system by improving of rain irrigation water canal har infra- - spective Plan, is expected to create job structure,vesting to canreduce also the lossesbring to down less than the 20% total from opportunities to the growing demand of existingdomestic level of & more industrial than 60%. water This water demand saved in non-agriculture workforce of around 8.26 agricultureby another sector 5 is to expected 10% to fulfil the demand of million (5.5 excluding Pune district) in the drinking water supply demand of urban areas/ meg- •Improved efficiency in agriculture region, which has grown at the rate of acitiessector and Industrialwater utilization, water demand through 32.7% during 2001-2011 OptimisationMicro Irrigation/ of Water Consumption:Drip Irrigations • schemes Reducing can the reduce unit consumption the agriculture of water by •2.4 million (i) agricultural labourers (of improvingdemand the of efficiency the region in manufacturing by 30%. The process by total 4.7 million (ii)) in BMEC region, with at least 1/5th of the current usage water saved can be utilised to meet no agricultural land, will get an opportuni- • Increasing efficiency in utilization of water by ty to become a part of formal at leastdrinking 30% by water using coolingsupply water demand towers ofand ur other- energyban retrofitsareas/ megacities and Industrial employment sector with higher per capita • water Around demand 30% of the industrial water demand income is strategized•Reducing to bewater meet lossesthrough usedue of totreated exist - •Industrial node cum megacities pro- wastewatering irrigation for industrial system process by likeimproving ash handling posed in relatively less urbanized (inirrigation case of thermal canal power infrastructure, plants); washing to of ores districts (less than 22% of Urban Pop- etc.reduce the losses to less than 20% ulation) and proposed industrial devel- • from Utilizing existing the leveltreated of water more available than from 60%. the STPs of urban areas, for industrial usage is expected opment (other than node) in other less This water saved in agriculture sec- urbanised districts, ensures access to to torfulfil is around expected 40% of to industrial fulfil thewater demand demand higher order social infrastructure facilities • of drinking Smart water water networks supply for Industrial demand water of supply would also improve the efficiency of water urban areas/ megacities and including health and education to its rural usage by minimising UFWs & other water losses Industrial water demand hinterlands • Implementation of rain water harvesting can •The proposed economic development is expected to enhance the Per Capita In- industrial & infrastructure requirement come of the BMEC especially in thirteen would be predominantly met through the (13) districts of the region, which are above-mentioned categories and below their respective state’s average government lands, without impacting the Per Capita Income. Industrial Nodes cum 28% double crop, irrigated & productive mega cities are proposed in Eight (8) dis- category lands. Majority of the industrial tricts, out the total 14 districts of BMEC Node locations were also located within region which are below their respective districts which has more than 50% of the State’s average Per Capita Income, out land under above-mentioned categories of which three (3) are considered to be priority Nodes. This indicates that the Integrating Agrarian Economy with development will enhance the economic Manufacturing through Agro development of relatively less developed Processing Industry: districts of the state •Proposed Human Resource Develop- •The BMEC corridor will provide employment & capacity building strategies of ment opportunities to the local population the region and the demand for 23 million through identified employment intensive workforce by 2041, would ensure devel- industries such as textile, agro & food opment of skilled human resource within processing, engineering, etc. the region, creating opportunity to the •The region scores high in terms of agro local population products. Maharashtra ranks first in the •With more than 13%(iii) of the region country for its fruits cultivation, Sangli under Waste land, Fallow land and Min- is one of the leading grape producing ing Land category and around 43% of districts in the country. Bedgi chilly of the region under Single Crop catego- Karnataka is one of the hottest chilli ry, majority of the land requirement for species being produced, which is pop- ular for its oil extracts used as base for various products. Kolhapur & Belagavi With more than 13% of the region under has prominent sugarcane cultivation Waste land , Fallow land and Mining Land with sugar industries. Hence, demand based development of agro processing category and around 43% of the region industries with establishment of world under Single Crop category, majority of class infrastructure, which would open the land requirement for industrial & avenues for agriculture produce & agro infrastructure requirement would be pre- processed products, to local & export markets, remained as the primary focus dominantly meet through the above-men- of the Industrial based economic devel- tioned categories and government lands, opment of BMEC, which complements & without impacting the 28% double crop, enhances the existing agriculture base of the region irrigated & productive category lands. •India has emerged as one of the key Majority of the industrial Node locations sourcing destinations for agri–based were also located within districts which raw materials required for Nutraceutical has more than 50% of the land under industry. Around six districts of BMEC region are identified for development of above-mentioned categories Nutraceutical industries •Agro processing sectors’s share in Transit Oriented Development Plan: BMEC accounts for 14% of the total investment in BMEC region, with expected The DIPP has also strongly emphasized employment more than 1 million jobs and the need for Transit Oriented Develop- a turnover of approximately USD 31,000 ment as a backbone for the region. Rail million by 2040-41 and road based transit coupled with last mile connectivity at local levels, serves Land Management Strategies: the BMEC Region’s industrial nodes.

Although the consumption of land is The region is structured through network optimized through various strategies, of Dedicated Freight Corridors, High mobilising these lands for development Speed Rail Links and Green Field is still a bigger challenge. Various Expressway and the proposed industrial strategies were adopted to mobilise land nodes cum cities area proposed all along to minimise direct land acquisition these transportation corridors process, in order to promote participatory The Ports, which are located on the economic development of the western coast and are physically sepa- landowners and also to optimise rated from the region by Western Ghats, Government’s investments in land would be connected through spur lines. acquisition.

Some of the key strategies are: The region is structured through with network of Dedicated Freight Corridors, •Availability of large contiguous gov- High Speed Rail Links and Green Field ernment land parcels or cluster of government land parcels in proximity, Expressway and the proposed industrial within the identified potential taluks, nodes cum mega cities area proposed all were assessed & identified to locate along these transportation corridors the sites for proposed industrial nodes •Balance areas were proposed to be mobilised through, Land Polling Schemes, which allows the land own- er to retain certain portion of the land in proximity or within the node •Various schemes of Public Private Partnership modes that allow the landowners to have revenue- share and certain stake in the overall development; allowing the landowner to have business opportunities in non-processing zones etc. were also explored and recommended as part of the perspective plan BMEC as a Green Corridor: advantage to use Gas based power generation which is considered to be As explained above, with sustainability relatively a green energy when com- as one of the key Vision, BMEC is also pared to other solid or liquid fossil fuel envisioned as a Green Corridor. Hence, based energies. As per the BMEC’S the establishment of Green Industries, power sector perspective plan, 17% use of Green Energy, optimisation of (8400 MW) of the additional power de- water consumption, maximum utilisation mand of the region for next 25 years is of LNG, and minimising use of fossil fuel proposed to be met by gas based pow- based transportation modes etc. are er plants. Around 12 gas based power some of key measures adopted to plants with an average capacity of 700 ensure BMEC being developed as Green MW is proposed to be set up in the Corridor. The following are some of the BMEC region by 2041, of which 8 are in key facts which support the same: Karnataka and 4 in Maharashtra •With both the BMEC states having im- mense potential in terms of wind, small hydro power (SHP) and solar energy, the power perspective proposes that around 23% (11040 MW) of the region’s additional power demand till 2041, can be met though renewable energy sources. This will be over and above the 17% share of power to be achieved through Gas based power plants •With stringent measures, by adopting Recycle & Reuse of water, through •Green industries including services sec- establishment of STPs, CETPs, BMEC tor are expected to account for 23% of region’s water consumptions levels are total investment in BMEC region, 18% of proposed to be reduced, which would industrial units and 13% of the industrial optimise the fresh water demand of the turnover in 2040-41 region •Green industries along with services sector will have an optimum land requirement and expected to account for only 4% of land in overall BMEC region. With both the BMEC states having im- These industries will not have high em- mense potential in terms of wind, small ployment intensity while catering to only hydro power (SHP) and solar energy, the 2% of the overall employment in the power sector perspective of BMEC, pro- region • Industries which are considered as poses that more than 23% (11040 MW) green for this analysis includes biotech- of the region’s additional power demand nology, solar PV, robotics, biometrics and till 2041, will be met though renewable gas-based industries •With predominant part of Dabhol-Ben- energy sources. This will be over and above galuru Gas Pipeline running across the the 17% share of power to be achieved corridor region, the region has the through Gas based power plants Multilevel Stakeholder Consultation: choice could be made between stacked factories or flat sprawling factories; or The process has most importantly whether factories should use steel and involved engagement with multiple glass structure for future flexibility of stakeholders. These include ministries function given the context of footloose at central and state government levels, economies or should they build using government departments at District, cement concrete- these decisions must Taluk and Village levels; town and coun- be made depending on the quantum of try planning offices of various districts in GHG emissions for short, medium and the two states; industrial development long term sustainability benefits. authorities, line departments, representa- tives of international finance institutions, Further, the Perspective Plan propos- industrialists – large and medium sized es the mandatory use of a tool such as through the work of our partner, CRISIL EGIS Tendem empreinte® for measuring who conducted detailed market assess- level of sustainable development for all ment of growth potential; exploring inter- downstream projects in BMEC est of industrialists for green innovation; Region. For example, the decision extensive field visits by the planning regarding size of dam and reservoir team and engagement with intermediar- involves social-environmental versus ies that facilitate land mobilization and economic costs. Making LCA and Ten- industrial development. dem empreinte® mandatory for downstream will help understand tradeoffs for

Policy Instruments for implementaion growth versus social concerns and the of Sustainable Development: environment.

Finally making mandatory, SUSTAIN- This project is in progress. The next ABILITY POLICY INSTRUMENTS for stage involves preparation of master plan project implementation: for one node, which will involve demon- stration of these eight key strategies. Life Cycle Analysis (LCA) allows meas- urement of per unit GHG emissions i) As per the 32nd round of the NSS about 51.37 per cent of across production systems. For example, the agricultural labour households did not own any land ii) PCA, census of India, 2011 LCA could be conducted for production iii) EGIS analysis of LULC data provided by MRSAC, GoM & of buildings. For industrial buildings a KRSAC and DoI, GoK Egis: Member of French Delegation visiting Telangana, Hyderabad, Andhra Pradesh on Urban development and Renewable Energy The region encompassing Hyderabad, Telangana, Andhra Pradesh in India offers a lot of development potential in and around it.

To explore possibilities in the field of urban development and renewable energy, a French delegation comprising of eminent members, met the key officials in the region.

Egis, as one of the leading French companies in the field of urban development and renewable energy, was elated to be invited to be part of the delegation.

The delegation was led by H.E. Mr Paul HERMELIN, Special Representative for Economic Relations with India and joined by H.E. Mr François RICHI- ER, Ambassador of France to India, among other prominent members. Egis Road Operation India (EROI). awarded O&M Services Contract (Toll & Incident Management) for Jetpur Somnath Tollways Private Limited (JSTPL)

Jetpur Somnath Tollways Private Limited has implemented the 124 Km long BOT (JSTPL), a project promoted by Uniquest project on NH-8D connecting Jetpur and Infra Ventures Private Limited, awarded Somnath in the state of Gujarat with Two O&M Services Contract (Toll & Incident Toll Plazas (10 Lanes each). Management) to Egis Road Operation India (EROI). The commercial operations started on 7th May 2015. Uniquest Infra Ventures Private Limit- ed (Uniquest) is a joint venture of UEM Uniquest is currently prequalified to bid Group Berhad (a wholly owned sub- for several road projects in India. It is sidiary of Khazanah Nasional Berhad also seriously exploring more and more – the investment arm of Government of acquisition opportunities. Uniquest Malaysia), through its subsidiary PLUS envisions long-term investment in via- Expressways International Berhad and ble infrastructure projects in India with IDFC Limited. The share holding pattern focus on operational excellence, risk is Uniquest: 48%, PLUS: 26%, IDFC: management and corporate governance. 26%. Uniquest has built a team of committed professionals with deep Jetpur Somnath Tollways Private Limit- expertise in investment management, ed (JSTPL): Uniquest has got majority execution and operation of infrastructure equity stake (74%) in Jetpur Somnath projects Tollways Private Limited (JSTPL) which

Salient aspects of O&M Contract awarded to EROI are:

Scope: Toll, Route Patrolling and Incident Management Duration: Three years (Two years with one year automatic extension) Q&A A candid conversation with Sudhir Rajeshirke, Head, Aviation, India about his views on the aviation sector in India

Where are the growth opportunities in infrastructure in Tier 2 and Tier 3 cities the airports industry? What are the needs to be assessed rigorously. current infrastructure constraints that are driving this growth? So how does the demand for airports Amongst several factors, the growth of in Tier 2 and Tier 3 cities fit into the airports is primarily driven by the popula- Government’s vision of building 50 tion density, size of catchment area and low cost airports in such cities? the economic prosperity of the region. That depends on the way we view We find such need for airport infrastruc- airport infrastructure. If you want to pro- ture typically in Tier 1 cities in India, less vide mere connectivity, then upgrading in Tier 2 cities and minimally in Tier 3 the existing airstrips would suffice lead- cities. Although in the last decade, ing to limited CAPEX investment. several cities have moved from Tier 2 to However, if you want to develop as Tier 1 category. So there is a need for airport with passenger terminal and increasing the capacity of existing airport associated facilities, then viability of the infrastructure in Tier 1 cities. Hence we airport needs to be assessed. But will have the proposed airports in Navi airlines fly to such cities if their operating Mumbai which will support growing costs are not covered without sufficient passenger demand in Mumbai Metro- passenger traffic? In addition, as most of politan Region and Mopa in Goa. In the airports are now planned to be addition, airlines in India are consistently funded under PPP mode, the financial adding new aircraft to their fleet which viability of the airport in a Tier 2 or Tier create a demand for parking space in 3 city from private bidder’s perspective Tier 1 city airports where the airlines are needs to be supported either via VGF, based. Hence the existing infrastructure grants or tax breaks. is in dire need for expansion. However, demand for airport So how can you make this vision possible? The PPP model was implemented with The solution is not easy, but not great success in privatizing major Indian impossible either. Rather than up grad- airports. Although there were issues with ing a small existing airport and waiting the model, steps are taken to address for demand to build up, planning should them in the next phase of privatization. be carried out to create an infrastructure Today, airports in New Delhi, Mumbai, within a city to create a self-sustaining Hyderabad and Bengaluru are operating demand for an airport. An example of at world class service standards. Com- such exercise is planning of airport panies are bringing airport management cities. In developing countries, the airport models which were not implemented city concept is being used as an urban before. However, PPP also depends on planning tool to plan and accommodate capacity of private (typically infrastruc- strong economic and population growth. ture) companies to raise equity and debt Nodes of excellence such as tourism and funding, which is a constraint. industrial cities can be planned which can better accommodate an airport as a part of an overall transportation Nodes of excellence such as tourism and ecosystem. Such ‘airport cities’ drive industrial cities can be planned which can demand for quality infrastructure such better accommodate an airport as a part as business parks, hotels, recreation centers, parks etc. For this one needs of an overall transportation to define an application of the airport city ecosystem. concept that is appropriate for the region thereby increasing nonairline rev- Companies are over leveraged and enues, and mitigating the risk of uncer- banks don’t have unlimited money to tain Government funding in terms of VGF lend to infrastructure companies as funds or grants. are prioritized for other infrastructure sectors such as roads and highways, How is Public Private Partnership power etc. Hence companies interest- (PPP) model of development driving ed in investing in airports are looking for the airports business and are there new ways to raise cash such as going any constraints in this model? public or tapping into international bond markets. But overall, PPP model will continue to drive growth and service quality implementing them would ease the of Indian airports. development efforts. Second issue is en- How do you perceive the development vironment clearances. Aviation projects of aviation sector in the next five to take years to achieve suitable clearanc- ten years? es from local and national agencies. And The first round of airport privatization un- third is development of a comprehensive der PPP model was initiated in 2004 and civil aviation policy which takes into con- subsequently New Delhi, Mumbai, Ben- sideration the interests of all stake hold- galuru and Hyderabad were privatised. ers such as airlines, airport Now we are seeing a second phase of operators and investors and passengers. privatization efforts in which greenfield Such policy is critical overall develop- airports are planned in Navi Mumbai and ment of the sector and balancing Goa and four other brownfield airports interests of all stakeholders is an ex- would be developed under operations, tremely difficult task. However, India’s management and development model. civil aviation sector has progressed well There is a major interest to develop since 2004 when aviation grew rapidly in airport in Dholera as well. Hence the India and I am hopeful that if the momen- second round of development has begun tum continues, we will see removal of and will continue to drive the aviation major roadblocks in the development of industry in the next five to ten years. aviation sector.

There are however few key issues that need to be addressed before the devel- As most of the airports are now planned opment efforts achieve a certain level of to be funded under PPP mode, the finan- success. One is land acquisition – large cial viability of the airport from private tracts of land are required for develop- bidder’s perspective needs to be support- ment of a greenfield airport and increasing the capacity of brownfield airport. ed either via VGF, grants or tax breaks. Clear land acquisition policies and

World OTOYOL As, the concessionaire Egis signs a contract to towards the Turkish General provide incident Directorate of Highways (“KGM”). response services in The Gebze-İzmir project is a toll motorway procured by the Turkish General Directo- Sydney area rate of Highways under a Build, Operate and Transfer (BOT) Model. This project is the largest BOT project in Turkey up to now.

It includes 420 km of motorway (2x3 lanes) between Gebze (on the North shore of İz- mit Bay) and İzmir, as well as a 3,000m suspension bridge crossing İzmit bay, From the 1st of October 2015, Egis will three tunnels with an approximate cumu- provide incident response services for 3 lative length of 6km and 20 toll stations. years on the Lave Cove Tunnel and the M2 motorway in Sydney, Australia.

Tollaust, a subsidiary of Transurban Group, the major player in managing private motorways in Australia, which is the concessionaire in charge of the The project is implemented in two operation and maintenance of these two phases: motorway sections, assigned the management of incident response services to •The first phase from km 0 (Gebze) to km Egis. 58 includes the 3,000m Izmit bay suspension bridge which is one of the longest ~ suspension bridges in the world by the length of its central span (1,550m). The Turkey: Start of the level of traffic for the first phase is expected to be about 40,000 vehicles per day. contract for the operation •The second phase includes the remain- ing 362 km of motorway between km 58 and maintenance of the and Izmir, two tunnels of 1,700m and Gebze-Izmir motorway 1,020m as well as the ring road of Bursa, the fourth largest city in the country.

The contract for the operation and Egis is a 50% shareholder of the oper- maintenance of the Gebze-Izmir ating company Gebze İzmir İşletme ve motorway in Turkey has just come into Bakım (GİİB). The other 50% are hold by force for a period of 22 years. Egis is the shareholders of the concession in charge of pre-operational services, company. operation, maintenance and toll management of the motorway for GİİB is in charge of the operation, maintenance and toll management of the motor- Chairman of the Board of Directors for the way. GİİB is also in charge of pre-opera- “Grand Paris”project. tional services needed for the opening to traffic of the motorway. After a first stage ~ of definition of the operator’s needs, the purchase of vehicles and equipment, the Australia: Egis opens to recruitment and training of staff and the development of the whole operating doc- traffic the tunnel and umentation will follow. urban motorway Legacy The operation of the first phase will start Way in Brisbane at the end of 3.5 years of works at the be- ginning of 2016 and the second phase is expected to be in operation mid-2020. The urban motorway Legacy Way, located in Brisbane in Australia, has just With the start of this contract, Egis been open to traffic by Egis. Egis is re- strengthens its presence in tunnel and sponsible for the operation and main- motorway operation, maintenance and tenance of the project for 10 years on tolling activities in Turkey. Egis is in par- behalf of Transcity. ticular in charge of the operation of the The Legacy Way expressway is approx- Eurasia Tunnel (a 5.4km twin-deck tunnel imately 7 km long, including one 4.6 km under the Bosphorus strait). long twin-tube tunnel connecting the Western Freeway with the Inner City By- ©OTOYOL A S / © Alberto Tortola pass. The Legacy Way traffic forecast is 34,200 vehicles on an average weekday ~ rising to 50,800 in 2026. News from the Milan UTIP Brisbane City Council (BCC) awarded the 2015 Congress Legacy Way project to Transcity JV in De- cember 2010. Transcity JV is responsible for the design, construction, operation and Egis took part in the 61st UTIP World maintenance of the Legacy Way project Congress and Exhibition which was held for 10 years. Transcity JV includes Accio- in Milan from 8 - 10 June 2015. It’s the na Infrastructures S.A. of Spain (40%), most important professional international BMD Constructions Pty Ltd. of Australia event on public transport and mobility. (30%) and Ghella S.p.A. of Italy (30%). With its slogan “working for mobility for Under the contract signed on 21 June more than 50 years”, the Egis stand dis- 2013, Egis Road Operation Australia is played the Group’s expertise in transport responsible for the operation and main- projects for large metropolitan areas and tenance works of the Legacy Way for 10 confirmed its positioning with regards years as the sole subcontractor of Trans- the mobility of tomorrow. The highlight of city JV. Egis’s involvement was the cocktail event held at the stand in the presence of Nico- The project includes: las Jachiet who welcomed Philippe Yvin, •two separate parallel road tunnels, one network ( Corridor Dresde – Wroclaw-Cra- for the eastbound traffic and one for the covie-Lviv).This motorway section , which westbound traffic, each one with two lane was formerly free, has been upgraded to carriageways and connected by cross meet the standards of toll motorways. passages every 120mwithout any lay-by or breakdown bay; It includes the following equipment, which •tunnel portals on the Western Freeway is designed, installed and maintained by at Toowong and on the Inner City Bypass the EGSTRA (Egis and Strabag) consor- at Kelvin Grove; tium : •tunnel management system, fire safety, mechanical and electrical systems, venti- lation systems; •68 toll lanes on 13 toll plazas monitored •adaptations of existing roads to connect by one operation center, the tunnels to the existing network; •80 pairs of Emergency Roadside Tele- •a free flow electronic tolling system (not phone located along the 162 km of the part of the contract). motorway and managed by GDDKiA.

This new success consolidates Egis’ po- Our missions: sition both in Australia and in tunnel operation and maintenance. Egis currently After designing and installing the equip- operates 50 tunnels worldwide for a total ment, Egis was tasked for 3 years of the length of 47 km. maintenance of all the fixed operating ~ equipment. The A4 motorway from Since 2015, Egis has been in charge of 2 distinct contracts: Wroclaw to Katowice, •Until December 31, 2018 ( 43 months) Poland : maintenance of fixed operating equipment (telecommunication and traffic management systems) for the Opole branch Maintenance of fixed operational of GDDKiA equipment and tolling systems •Until November 2nd, 2018 (41 months) : contracts. maintenance of the tolling system for the Warsaw branch of GDDKiA Project overview:

Egis is in charge of the maintenance of fixed operating equipment (telecommunication and traffic management systems) and tolling system on the A4 motorway Wroclaw–Katowice in Poland.

The 162 km motorway between Wroclaw and Katowice is part of the transeuropean Copyright: Egis

Copyright and photocredits: Cover: Chennai Metro Pics ©Egis; Engineers ©ThinkStock; Men in Suits ©French Emabassy, India Chennai Metro story - picture of Ashish Tandon: ©Egis BMEC Story - All pictures ©ThinkStock French Delegation to Telangana - ©French Emabassy, India EROI - ©Egis Q&A picture of Sudhir Rajeshirke - ©Egis; Brazaville Congo_©EGIS-AERCO-Ph Guionie; PFO Airport_©EGIS-HERMES Response Service in Sydney - ©Zetter Turkey - Gebze - ©Alberto Tortola A4 Poland - ©Egis

Egis in India - Corporate Head Office

13/6, SSR Corporate Park, 8th Floor, Sector - 27 B, Delhi-Mathura Road, Faridabad, Haryana - 121003, India; Email: [email protected] T: +91-129-42651000; F: +91-129-4050892 www.egis-india.com