KAKINADA DEEP WATER PORT CASE STUDY
1. Project Description
This case study revolves around the Kakinada Deep Water Port which is a part of the Kakinada Port situated in the east coast of the southern state of Andhra Pradesh. This port henceforth referred to as KDWP is a part of the Kakinada Port. Apart from the KDWP, the Kakinada Port also houses the Kakinada Anchorage Port and the Kakinada Fishing Harbor and Ship-Breaking Unit. This project of KDWP was initially started by the Government of Andhra Pradesh in the year 199. However it was privatized, in an attempt to establish the Public Private Partnership (PPP) by Government of Andhra Pradesh in 1999.
PPP Structure:
The model adopted for this project is “Operate Maintain Share and Transfer …show more content…
However over the course of the years due to the involvement of the PPP model different stakeholders have joined in the project.
The major stakeholders include:
• Government of Andhra Pradesh
• Kakinada Seaports Limited (KSPL) which was the private entity that was operating the port. The Kakinada Seaports Limited was floated as a Special Purpose Vehicle (SPV) by M/s International Seaports Pte Ltd (ISPL).
Fund Commitment and Arrangement:
• The project KDWP was initially constructed by GoAP at a total cost of ₹293 crore. Out of this ₹293 crore, ₹242 crore was given as a loan by the Asian Development Bank.
• This project was carried out in different …show more content…
Risk Identification
Risks Allocated in the KDWP Project as mentioned in the case:
As per the case, the risks in the project are allocated in five major sub divisions namely:
I. Pre-Operative Risks: As the name suggests this risk is concerning the risk that might arise before the project actually takes off. It includes:
a) Delays in land acquisition
b) External linkages in terms of connecting roads. It is important that the existing facilities are in good condition otherwise it would lead to obstruction in the progress of the project and eventually the project would be delayed.
c) Financing risks that the private entity (KSPL) faced because of the unfavorable conditions of the concession agreement which lead to certain delays in the financial closure.
d) Social risks which included unrest and strikes by the employees of the Kakinada Anchorage Port.
II. Construction Phase Risk: The risks that emerged during the construction phase of the new berths. These risks include:
a) Design risk was high for this project which was bared by the private company as it involved getting the project approved by the government.
b) Construction risk was high as the company had to provide performance
1. Project Description
This case study revolves around the Kakinada Deep Water Port which is a part of the Kakinada Port situated in the east coast of the southern state of Andhra Pradesh. This port henceforth referred to as KDWP is a part of the Kakinada Port. Apart from the KDWP, the Kakinada Port also houses the Kakinada Anchorage Port and the Kakinada Fishing Harbor and Ship-Breaking Unit. This project of KDWP was initially started by the Government of Andhra Pradesh in the year 199. However it was privatized, in an attempt to establish the Public Private Partnership (PPP) by Government of Andhra Pradesh in 1999.
PPP Structure:
The model adopted for this project is “Operate Maintain Share and Transfer …show more content…
However over the course of the years due to the involvement of the PPP model different stakeholders have joined in the project.
The major stakeholders include:
• Government of Andhra Pradesh
• Kakinada Seaports Limited (KSPL) which was the private entity that was operating the port. The Kakinada Seaports Limited was floated as a Special Purpose Vehicle (SPV) by M/s International Seaports Pte Ltd (ISPL).
Fund Commitment and Arrangement:
• The project KDWP was initially constructed by GoAP at a total cost of ₹293 crore. Out of this ₹293 crore, ₹242 crore was given as a loan by the Asian Development Bank.
• This project was carried out in different …show more content…
Risk Identification
Risks Allocated in the KDWP Project as mentioned in the case:
As per the case, the risks in the project are allocated in five major sub divisions namely:
I. Pre-Operative Risks: As the name suggests this risk is concerning the risk that might arise before the project actually takes off. It includes:
a) Delays in land acquisition
b) External linkages in terms of connecting roads. It is important that the existing facilities are in good condition otherwise it would lead to obstruction in the progress of the project and eventually the project would be delayed.
c) Financing risks that the private entity (KSPL) faced because of the unfavorable conditions of the concession agreement which lead to certain delays in the financial closure.
d) Social risks which included unrest and strikes by the employees of the Kakinada Anchorage Port.
II. Construction Phase Risk: The risks that emerged during the construction phase of the new berths. These risks include:
a) Design risk was high for this project which was bared by the private company as it involved getting the project approved by the government.
b) Construction risk was high as the company had to provide performance