Early results for EGNOS Aviation CBA for South Africa/SADC

Size: px

Start display at page:

Download "Early results for EGNOS Aviation CBA for South Africa/SADC"

Hilda Gibson
5 years ago
Views:

1 Early results for EGNOS Aviation CBA for South Africa/SADC ESESA Workshop 2 nd 3 rd March 2011 ESESA is a project co-funded by the EU 7th FP and South Africa Page 1

2 Agenda Presentation objectives CBA for AFI CBA for South Africa CBA for SADC Overview Page 2

3 Scope & objectives of this presentation The Aviation CBA for AFI was performed by L.E.K. Consulting in Milan, Italy for the EC and is based on the analysis of secondary sources and on interviews in order to update the previous ISA cost benefit studies ESESA has used this CBA model to estimate aviation benefits for South Africa/SADC This presentation contains the early results of the aviation CBA for South Africa and SADC Page 3

4 Agenda Project objectives CBA for AFI CBA for South Africa CBA for SADC Overview Page 4

5 CBA for AFI benefit & cost categories ISA is expected to guarantee higher safety and operational efficiency to the AFI region Increase in safety through the reduction in the number of Controlled Flight Into Terrain (CFIT) occurrences ISA CBA in the Aviation field Benefits WACC Cost savings from both installation and maintenance of traditional ground based navigational aids (Navaids) Improvement of Automatic Dependent Surveillance - Broadcast (ADS-B) Increase in operational efficiency through the reduction in the number of Delays, Diversions and Cancellations (DDCs) Aircraft equipage Costs/ Investments Airport procedures Ground infrastructure deployment and operation/ maintenance activities Page 5

6 CBA for AFI - Overall result For the African aviation ISA benefits will amount to c. 1.7b, with respect to required investments of c. 359m Cumulated undiscounted benefits and costs & investments ( ) Millions of Euro 1,800 1,600 1,400 1,200 1, , DDC Navaid s ADS-B Benefits ISA will provide a series of benefits to the African aviation industry in terms of: - increased safety thanks to the reduction of CFIT occurrences - ADS-B system improvement - phasing out of traditional navigational aids - DDC occurrence limitation Costs & investments ,180 Benefits CFIT Costs & investments Procedures Equipage Infrastructures ISA deployment will require a series of expenditures: - ground infrastructures - aircraft equipage - airport procedures Page 6

7 Agenda Project objectives CBA for AFI CBA for South Africa CBA for SADC Overview Page 7

8 CBA for SA Overall results For the South African aviation ISA benefits will amount to c. 108m, with respect to required investments of c. 131m Undiscounted Benefits (Meuro) Undiscounted Costs (Meuro) 120,0 107,9 140,0 131,1 100,0 80,0 60,0 40,0 20,0-77,7 19,9 4,4 5,9 DDC Navaids ADS-B CFIT Total 120,0 100,0 80,0 60,0 40,0 20,0-95,5 35,1 0,5 Equipage Procedures Infrastructure Total Page 8

9 CBA for SA Accumulation of benefits vs costs The economic value of the ISA benefits will be lower than the investments necessary for its deployment and running costs undiscounted costs and benefits (Meuro) 140,0 120,0 100,0 80,0 60,0 Total costs Total benefits 40,0 20, Page 9

10 CBA for SA Accumulation of benefits vs costs Two scenarios have been identified considering different dates for full penetration of APV procedures and leading to different net benefit results Page 10

11 CBA for SA Additional benefits The following additional benefits are not included in the existing CBA model: General improvement of safety in the aviation sector in SA due to the introduction of SBAS Possibility to open new runway ends (which was previously not economically viable, estimated between for SA) Industrial growth and economic growth Benefits for other sectors, like precision agriculture, rail, road, maritime,..etc are not included. Page 11

12 Agenda Project objectives CBA for AFI CBA for South Africa CBA for SADC Overview Page 12

13 CBA for SADC Overall results For the SADC aviation ISA benefits will amount to c. 487m, with respect to required investments of c. 192m Undiscounted Benefits (Meuro) Undiscounted Costs (Meuro) 600,0 500,0 400,0 300,0 200,0 100,0-486,5 260,4 176,1 9,0 41,1 DDC Navaids ADS-B CFIT Total 250,0 200,0 150,0 100,0 50,0-192,3 138,3 52,5 1,4 Equipage Procedures Infrastructure Total Page 13

14 CBA for SADC Accumulation of benefits vs costs The economic value of the ISA benefits will be higher than the investments necessary for its deployment and running costs undiscounted costs and benefits (Meuro) 600,0 500,0 400,0 300,0 200,0 Total benefits Total costs 100, Page 14

15 CBA for SADC Accumulation of benefits vs costs Two scenarios have been identified considering different dates for full penetration of APV procedures and leading to different net benefit results Page 15

16 CBA for SADC Integration and Economic development Now only 37 % of African territory is closer than 250km from an airport equipped with ILS. With SBAS 87 % of Africa will be closer than 250km from such main or regional airports. Page 16

17 Agenda Project objectives CBA for AFI CBA for South Africa CBA for SADC Overview Page 17

18 Overview All results Overview of results for all three CBA s Page 18

19 CBA for SADC Detailed benefits vs costs Detailed undiscounted costs and benefits for all three CBA s Page 19

Rabat (Morocco), 7 November 2017 COST BENEFIT ANALYSIS (CBA) FOR SBAS COVERAGE ACROSS GCC, YEMEN AND IRAQ

1 Rabat (Morocco), 7 November 2017 COST BENEFIT ANALYSIS (CBA) FOR SBAS COVERAGE ACROSS GCC, YEMEN AND IRAQ Contents 2 CBA s rationales and methodology CBA from the perspective of ANSPs CBA from the perspective