Task 5.
Analysis of capital construction costs
5.1
5.2
5.3
This function will be undertaken in consultation with
Government, Master Plan consultant and Civil Engineering Design
consultant. Capital outlays will be incurred from the start of
construction and continue after the initial stages of the
Airport are in operation. The phasing of the construction
programme will be reviewed to arrive at a preliminary schedule
of cost payments over the construction period.
The schedule thus achieved will be subject to a number of
variable factors escalation in equipment costs,
slippages, delays in construction, equipment supply and
inflation, all of which affect cash flow forecasts.
Assumptions in respect of such factors will be formed, in
consultation with Government, Master Plan consultant and Civil
Engineering Design consultant, after undertaking an initial
breakdown of the overall project cost into major constituents
such as reclamation and civil works, equipment supplies, labour
and services. The impact of these factors on individual
elements and on the project as a whole will be ascertained and
this information will form part of the sensitivity analysis.
The capital cost will be analysed to coincide with the
consideration of financing sources. The phasing of the
Airport construction from the detailed design/engineering
stage, through land acquisition and reclamation, civil
works, construction and commissioning of the first runway,
procurement and installation of equipment and finally to
the construction and commissioning of the second runway
will be examined for financing purposes. The major items
of capital expenditure within each stage will be isolated
and a view taken as to a likely construction and
procurement programme.
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