An expert eye can add significant value to an investment simply by knowing what is absolutely required as part of the early phases of development and what can be deferred to a later date when the airport is more able to fund capital expansion. As capital expenditure has such a disproportionate impact during this time airports, sponsors and lenders need to have confidence in financial projections in order to ensure investment plans are optimised, deliverable and financeable.
Enhanced governance and control
Mott MacDonald helps set up airport projects in a way that ensures management and control is inherent from its inception. Strategic cost planning informs corporate objective setting, providing realistic programme and cost expectations and assuring predictability, certainty, operational efficiency to optimise capital investment and value for money. As part of airport planning and design, we prepare cost plans, cashflow forecasts, value engineering commentary, risk analyses and life cycle costs. The client is therefore in command of the broadest perspective possible concerning both capital and whole life costs. We adopt a combination of top down and bottom up approaches to cost planning utilising relevant benchmarking techniques such as:
- Knowledge of recent infrastructure programmes at airports worldwide
- Understanding of upcoming policy and political factors
- Understanding how airports and airlines can optimise their ground and terminal operations to avoid or delay capital expenditure
Why engage strategic cost planning?
- Improved, informed and auditable investment decisions
- Realisation of opportunities and mitigation of risk
- Improved mapping of investment/value
- Increased certainty of delivery
- Optimised airport performance and value
- Increased certainty of outturn cost
- Corporate visibility of performance
- Demonstrable best value achieved
- Delivery strategy aligned to business needs
- Identified assumptions, scope gaps and interfaces
- Cost expenditure planning and estimating
- Independent commercial due diligence and peer reviews
- Value for money analysis
- Heavy and operational maintenance budget projections
- Asset management
- Gap analysis and forecasted risk reviews
- Risk assessment strategic planning
Rome Airport, Italy
We facilitated a master plan validation workshop that saved the client the need to spend over US$1.2BN (19%) of the capital programme while delivering the operational enhancements required by the airport.
3rd Istanbul Airport, Turkey
We provided a peer review and capital investment planning support in the phased development of a master plan stage cost plan for the proposed 150M passengers per annum airport, with operational support facilities, constructed over four phases.
Gatwick Airport, UK
We put forward a scheme that cut capital investment by over 40% (US$640M) and refocused the remaining spend on delivering operational improvements in congested areas such as check-in and security. This focused on improving service levels, increased airport resiliency and enhanced retail yields at the same time.
South East Airports hub study, UK
We prepared concept study cost plans both on airport and off-airport infrastructure for numerous proposed development sites to inform our client of the competitive position and differentiation strategy of their scheme in relation to the alternate proposals.
London Heathrow Airport, UK
We implemented a consistent, controlled and robust approach to the cost planning process while assuring compliance with governance procedures for many complex projects including main and cargo road tunnel refurbishment, runway resurfacing, A380 stands, fuel farm, T4 baggage reclaim, T3 pier 5 capacity, T3 refurbishment and T5 luxury.
Macau International Airport, Taipei Macau
We prepared cost estimates for the new 55,000sq m terminal building and associated support and ancillary facilities, airfield and landside infrastructure including rehabilitation of existing runway, taxiways and access roads, utility and services infrastructure, land reclamation and sea defences.
Ibrahim Nasir International Airport, Republic of the Maldives
We prepared the 25-year capital investment and heavy maintenance plans on behalf of the investors for the phased development with an ultimate capacity of 30M passengers per annum including expansion, remodelling and refurbishment of the existing terminal, a new terminal and associated aprons, forecourts and surface access to deliver the requirements of the concession agreement.
Juan Santamaria Airport, Costa Rica
Challenging and commenting upon the adequacy of the budgetary costs included in the annual project capital expenditure plans (2010-2014), including the financial model and cash flow. We proposed the use of runway starter extensions to overcome the need to extend the runway end safety area, saving US$10M in earthworks.