EU funded projects in BiH

Mostar Airport

BACK

PROJECT DETAILS

Sectors
EU Acquis chapters Enterprise and industrial policy
Programme Funding Year 2008, 2012
Value €503,686
Periods of implementation 2012, 2013
Locations MOSTAR

Results

- Gap Analysis for Mostar International Airport, identifying obsatacles for further expansion of the airport and growth of air traffic services. The Analysisi has considered: 1) Based on te detailed screening of all relevant components, a list of gaps in the Airport's functionality would be produced taking into account: (i) Immediate gaps which may restrict operations, present the safety and security risk, or disable the Airport from obtaining a permanent license for its operations. (ii) Future gaps that are expected to occur with the gradual increase of operations of the Airport, indicatively: a. With the increase of the passenger traffic above 100,000 passengers a year, b. With the increase of the passenger traffic above 150,000 passengers a year, c. With the increase of the passenger traffic above 250,000 passengers a year, d. With the increase of the passenger traffic above 350,000 passengers a year, e. With the increase of the passenger traffic above 500,000 passengers a year. (iii) Future gaps that are expected to occur due to required maintenance interventions or expected replacement of equipment, or adding new equipment, or maintenance or upgrading of the infrastructure of the Airport. The gap prognosis shall be made in 5-years increments staring from moment 0 (now, and after 5, 10, 15, 20, 25, and 30 years) with the objective to leave the airport after 30 years of exploitation in sound functional and safe condition. 2) All identified gapare mapped by taking into the account whether the rectification would be mandatory and immediate in the foreseen period, or could be delayed, including the period of delay to be considered. In this manner, each gap identified was associated with a corresponding level of priority for rectification. 3) Rectification actions concerning all identifiedps were mapped in order of sequence, clearly indicating possible interconnections between the particular actions, and to indicate streamline of smooth implementation without delays to be created by overlaps or incomplete actions. 4) All actios were assessed in terms of the investment needed to rectify particular gap and bring the Airport in functional and safe operational condition. All these activits were elaborated separately for: (i) Airport and its operations, (ii) Air traffic control and its scope of operations. This is due to a separate responsibility for management of the facilities and separate potential sources of financing to be allocated to remove the identified gaps. The final result has presented: (i) Gap analysis for the Mostar International Airport. (ii) Investment plan for the period of forthcoming 30 years 2013-2033. - Business plan, including: (i) Business plan(s) for the Mostar International Airport. (ii) Marketing plan(s) for the Mostar International Airport focussed on pricing and positioning of the Airport. (iii) Financial plan(s) for the period of forthcoming 30 years 2013-2033. The purpose of the assistance was: (i) To assess business opportunities for the Mostar International Airport, (ii) To asses market opportunities for the Airport, (iii) To establish financial plan and cash flow prognosis for the Airport in short-term, mid-tem and long-term period. The assignment shall consider: 1) Detailed screening of the Mostar International Airport in terms of the business development of the Airport, taking into account: (i) Business opportunities in tourism sector in Medjugorje and the rest of the region gravitating to Mostar Airport. (ii) Business opportunities of the airport, determined by the SWOT analysis concerning the airport, and inputs of the preceding assistance, e.g. the investment plan for the Airport. 2) Preparation of the business plan(s) based on the previous screenings and the investment plan, taking into account prospective increase in traffic at the airport, indicatively in the following increments: (i) With the increase of the passenger traffic above 100,000 passengers a year, (ii) With the increase of the passenger traffic above 250,000 passengers a year, (iii) With the increase of the passenger traffic above 500,000 passengers a year. 3) Limited market analysis in terms of the components to be considered, to result with the document of the marketing plan: namely, out o 4 * P (PPPP), "packaging" would not be considered relevant at this stage (however, may be relevant on the course of designing the extension of the Airport's passenger terminal building), and "promotion" would be left under the discretion of the future public-private partnership (PPP) partner, or the potential concessioner. Consequently, the full focus of the marketing plan would be on positioning of the airport (in fact determining the clients of the airport) and pricing, to establish the potential revenue of the Airport. 4) Financial plan, including the cash flow prognosis, introduced through a digital tool to be made available to the beneficiary and enable follow-up and simulations in case of the substantial change of the conditions relevant for the result of financial planning. This comprehensive elaboration has indicated potential for growth of the MIA to 1.8 MPAX until year 2030, and over 600 jobs on the airport solely. Accordingly, other oportunities in developing tourism have emerged. - Tender dossier for concessioning of the Airport / PPP The assignment has resulted in 2 sets of tender dossiers: (i) One set of tender dossier for slection of the most advantageous partner in Public Private Partnership (PPP), (ii) One set of tender dossier for slection of the most advantageous concessioner for airport operations. Those 2 tender dossiers were compiled based on the previous inputs (gap analysis and investment plan, and the business plan), and the analysis on the most advantageous modality of PPP and concession arrangement, to be compiled in a form of a separate book. The assignment considered the following mandatory activities listed below: (i) Review the preceding documents, namely gap analysis and the business plan (ii) Denition of pros and cons to arise out of the potential PPP or concession arrangements concerning the future operations of Mostar International Airport. The focus should be given to possible effects on the owner of the Airport, the City of Mostar. In particular, difference between a permanent PPP arrangement and limited duration arrangement in terms of risks and benefits was considered and elaborated by the consultant. (iii) The effects on the future oMostar Airport were presented as short term effects, mid term effects and long term effects. The long terms effects were considered those that would appear after 30 years of PPP or after re-possession of the airport following expiry of the concession period. (iv) Defiition of potential realistic revenue margins for the City of Mostar, to be expected from the respective arrangements. Based on the preceding inputs, a realistic margin of PPP/concession revenue was established, but also risks addressed, in particular in case of PPP. Coverage of loses, or guarantees for operational capacity of the Airport were not considered acceptable under this assignment in case of concession award. Both tender dossiers were made and delivered to the City of Mostar Administration. They: (v) ade a clear recommendation on the most advantageous modality of changing the ownership status of the airport and its operational setup in airport management terms. The concession arrangement was recommend with no reservation at all. (vi) 2 tender dossiers were prepared, one for PPP, and the other for concession award, with a clear reservation concerning PPP arangement, considered undoubtfully unfavourable. It was stressed there would be a very narrow, few years only, window of oportunity for implementation.

SUMMARY

The cluster considers 3 separate asignments, and presentation of results of these assignments at the end. Total cost: approximately 0.5 MEURO.

RESULTS

- Gap Analysis for Mostar International Airport, identifying obsatacles for further expansion of the airport and growth of air traffic services. The Analysisi has considered: 1) Based on te detailed screening of all relevant components, a list of gaps in the Airport's functionality would be produced taking into account: (i) Immediate gaps which may restrict operations, present the safety and security risk, or disable the Airport from obtaining a permanent license for its operations. (ii) Future gaps that are expected to occur with the gradual increase of operations of the Airport, indicatively: a. With the increase of the passenger traffic above 100,000 passengers a year, b. With the increase of the passenger traffic above 150,000 passengers a year, c. With the increase of the passenger traffic above 250,000 passengers a year, d. With the increase of the passenger traffic above 350,000 passengers a year, e. With the increase of the passenger traffic above 500,000 passengers a year. (iii) Future gaps that are expected to occur due to required maintenance interventions or expected replacement of equipment, or adding new equipment, or maintenance or upgrading of the infrastructure of the Airport. The gap prognosis shall be made in 5-years increments staring from moment 0 (now, and after 5, 10, 15, 20, 25, and 30 years) with the objective to leave the airport after 30 years of exploitation in sound functional and safe condition. 2) All identified gapare mapped by taking into the account whether the rectification would be mandatory and immediate in the foreseen period, or could be delayed, including the period of delay to be considered. In this manner, each gap identified was associated with a corresponding level of priority for rectification. 3) Rectification actions concerning all identifiedps were mapped in order of sequence, clearly indicating possible interconnections between the particular actions, and to indicate streamline of smooth implementation without delays to be created by overlaps or incomplete actions. 4) All actios were assessed in terms of the investment needed to rectify particular gap and bring the Airport in functional and safe operational condition. All these activits were elaborated separately for: (i) Airport and its operations, (ii) Air traffic control and its scope of operations. This is due to a separate responsibility for management of the facilities and separate potential sources of financing to be allocated to remove the identified gaps. The final result has presented: (i) Gap analysis for the Mostar International Airport. (ii) Investment plan for the period of forthcoming 30 years 2013-2033. - Business plan, including: (i) Business plan(s) for the Mostar International Airport. (ii) Marketing plan(s) for the Mostar International Airport focussed on pricing and positioning of the Airport. (iii) Financial plan(s) for the period of forthcoming 30 years 2013-2033. The purpose of the assistance was: (i) To assess business opportunities for the Mostar International Airport, (ii) To asses market opportunities for the Airport, (iii) To establish financial plan and cash flow prognosis for the Airport in short-term, mid-tem and long-term period. The assignment shall consider: 1) Detailed screening of the Mostar International Airport in terms of the business development of the Airport, taking into account: (i) Business opportunities in tourism sector in Medjugorje and the rest of the region gravitating to Mostar Airport. (ii) Business opportunities of the airport, determined by the SWOT analysis concerning the airport, and inputs of the preceding assistance, e.g. the investment plan for the Airport. 2) Preparation of the business plan(s) based on the previous screenings and the investment plan, taking into account prospective increase in traffic at the airport, indicatively in the following increments: (i) With the increase of the passenger traffic above 100,000 passengers a year, (ii) With the increase of the passenger traffic above 250,000 passengers a year, (iii) With the increase of the passenger traffic above 500,000 passengers a year. 3) Limited market analysis in terms of the components to be considered, to result with the document of the marketing plan: namely, out o 4 * P (PPPP), "packaging" would not be considered relevant at this stage (however, may be relevant on the course of designing the extension of the Airport's passenger terminal building), and "promotion" would be left under the discretion of the future public-private partnership (PPP) partner, or the potential concessioner. Consequently, the full focus of the marketing plan would be on positioning of the airport (in fact determining the clients of the airport) and pricing, to establish the potential revenue of the Airport. 4) Financial plan, including the cash flow prognosis, introduced through a digital tool to be made available to the beneficiary and enable follow-up and simulations in case of the substantial change of the conditions relevant for the result of financial planning. This comprehensive elaboration has indicated potential for growth of the MIA to 1.8 MPAX until year 2030, and over 600 jobs on the airport solely. Accordingly, other oportunities in developing tourism have emerged. - Tender dossier for concessioning of the Airport / PPP The assignment has resulted in 2 sets of tender dossiers: (i) One set of tender dossier for slection of the most advantageous partner in Public Private Partnership (PPP), (ii) One set of tender dossier for slection of the most advantageous concessioner for airport operations. Those 2 tender dossiers were compiled based on the previous inputs (gap analysis and investment plan, and the business plan), and the analysis on the most advantageous modality of PPP and concession arrangement, to be compiled in a form of a separate book. The assignment considered the following mandatory activities listed below: (i) Review the preceding documents, namely gap analysis and the business plan (ii) Denition of pros and cons to arise out of the potential PPP or concession arrangements concerning the future operations of Mostar International Airport. The focus should be given to possible effects on the owner of the Airport, the City of Mostar. In particular, difference between a permanent PPP arrangement and limited duration arrangement in terms of risks and benefits was considered and elaborated by the consultant. (iii) The effects on the future oMostar Airport were presented as short term effects, mid term effects and long term effects. The long terms effects were considered those that would appear after 30 years of PPP or after re-possession of the airport following expiry of the concession period. (iv) Defiition of potential realistic revenue margins for the City of Mostar, to be expected from the respective arrangements. Based on the preceding inputs, a realistic margin of PPP/concession revenue was established, but also risks addressed, in particular in case of PPP. Coverage of loses, or guarantees for operational capacity of the Airport were not considered acceptable under this assignment in case of concession award. Both tender dossiers were made and delivered to the City of Mostar Administration. They: (v) ade a clear recommendation on the most advantageous modality of changing the ownership status of the airport and its operational setup in airport management terms. The concession arrangement was recommend with no reservation at all. (vi) 2 tender dossiers were prepared, one for PPP, and the other for concession award, with a clear reservation concerning PPP arangement, considered undoubtfully unfavourable. It was stressed there would be a very narrow, few years only, window of oportunity for implementation.