PROJECT FINANCE

CASE STUDY : GANGAVARAM PORT

SUBMITTED TO : Dr. Seerisha Nanduri

BY :
Albert Dominic
Rejoice John Abraham
Swathi P
Akanksha Prasad
Paromita Bhatacharya
Soundharya
Ramu
 PESTEL ANALYSIS
RISK CATEGORY POTENTIAL RISK FACTORS RISK
SCORE BY
CATEGORY
POLITICAL 1. Connectivity to national highway (high risk) 5
2. Connectivity to railway which is not in its jurisdiction
ECONOMICAL 1. Debt is high, equity is low (moderate risk) 3.5
2. Government being equity holder.
3. Tariff collected is sufficient only for compensating debt to
private shareholder where government is not getting any
profit
SOCIAL 1. Acquisition of land from the people. (moderate risk) 3
2. Settlement of disputes and compensation to the land owners.

TECHNOLOGY 1. Awarded with “infrastructure deal of the year” in the asia 1

region (low risk)
ENVIRONMENT 1. Air pollution due to release of coal, release of harmful gases 4
which leads to hazard disease for people. (high risk)
2. Dumping of chemicals into sea pollutes marine and fisheries

LEGAL 1. Pollution control measures are not followed. 2

2. Jobs for fisher men is not given which is a legal contract
made before commencement. (low risk)
TOTAL 18/30
 CANVAS FRAMEWORK

1. INITIATIONS –
 Gangavaram Port was conceptualized in the year 1994. The first round of bidding was
conducted in the year 1996, which was rejected by GoAP as speculative.

2. PLANNINGS –
 A reputed consultant was appointed for feasibility study.
 Comprehensive feasibility study was prepared in the year 2001.

3. EXECUTIONS –
 Second round of International competitive bidding was conducted and Mr.D.V.S Raju was
selected to develop the port by GoAP in the year 2002.
 The task of project preparation and procurement was delegated to APIIC.
 80 different issues aroused during the contract finalisation stage, Major issues such as land
valuation, equity investments etc, these issues were solved between 2002 – 2004.

4. CLOSURE –
 Financial closure was made in the year 2005. The deal was awarded Asia-Pacific
regions ‘Infrastructure Deal of the year’ by Thomson’s project Finance
International.
 The construction of the port was completed in the April 2008.ssss
 WORK BASED STRUCTURE-

GANGAVARAM PORT

PHASE 1 PHASE 2 PHASE 3

CAPACITY: 35 MTPA CAPACITY: 45 MTPA CAPACITY: 100 MTPA

FIRST BERTH FORTH BERTH INFRASTRUCTURE

IRON ORE FACILITIES
HANDLING COAL

FIFTH BERTH ROAD CONNECTIVITY

WITH VARIOUS STATES
SECOND BERTH MULTIPURPOSE
HANDLING COAL
SIXTH BERTH PORT-BASED
MULTIPURPOSE INDUSTRIAL CLUSTER,
POWER AND REFINERY
THIRD BERTH SEVENTH BERTH PLANTS..
HANDLE CONTAINER
MULTIPURPOSE
AND OTHER CARGO