New Civil Engineer AirportsInmarsat, London

18 May 2017

Content

• Where Dublin airport is currently

• North Runway – the story so far

• Procurement status

• What next

Dublin Airport – the story so far

14thBEST CONNECTED

AIRPORT IN EUROPE

MILLION

PASSENGERS

27.9 No.1 BUSIEST ROUTE IN EUROPE

No. 2 IN THE WORLD

AIRLINES

37+11%PASSENGER GROWTH

VERSUS PREVIOUS

PERIOD

15,700JOBS DIRECTLY

SUPPORTED BY

DUBLIN AIRPORT

180DESTINATIONS

+2,200DEPARTING FLIGHTS PER WEEK

Source: Dublin Airport, January 2017

DUBLIN-LONDON

OVER

2010 2011 2012 2013 2014 2015 2016

1 -2.1 0.3 0.4 1.1 1.5 3.3 2.9

2 18,431 18,741 19,100 20,167 21,712 25,050 27,907

3 -10% 2% 2% 6% 8% 15% 11%

-10%2%

2%

6%

8%

15%

11%

-15%

-10%

-5%

0%

5%

10%

15%

20%

15.0

17.0

19.0

21.0

23.0

25.0

27.0

29.0

Passengers

(m

illio

ns)

Dublin Airport has seen six years of consecutive growth to 27.9m in 2016

Source: Dublin Airport 2017

Continuing Growth with 14 new Routes & Services 2016

• Athens – Greece

• Cancun – Mexico

• Cluj – Romania

• Hamburg – Germany

• Hartford, Connecticut – USA

• LA – USA

• Montego Bay – Jamaica

• Montpelier – France

• Newark, New York – USA

Pisa – Italy

• Sofia – Bulgaria

• Vancouver – Canada

• Vigo – Spain

• Murcia - Spain

The

FASTESTgrowing major airport in

EUROPE

11.5%VS

5.1% European average

Source: ACI Europe and Dublin Airport 2016

Abolition of Air

Travel Tax in

2014

Ryanair growthexisting and new

routes

Competitive

short haul fares

Transatlantic

growthnew routes, new and

existing operators

... key growth drivers

Transfer Growth

1.2m passengers

in 2016

Traffic Growth

19 new routes

4 new airlines

A Key Economic Enabler

Critical piece of national

infrastructure enabling growth

Contributes 20% of Fingal’s

employment

Total economic impact

97,400 jobs

GDP: €7bn = 4%

Facilitates Foreign Direct

Investment

Gateway for island of Ireland

Connectivity

Direct flights to 180 destinations in 40 countries on 4 continents

Tourism/Travel

Local economic impact: 16,000

direct jobs

GDP: €1.3bn

20% Economic Value Added in

Fingal

Dublin Airport – On Campus Employment

Source: Intervistas Economic Impact Study, Dublin Airport 2015

We Need the Capacity that North Runway will Deliver

For summer 2017:

• 86% of slots between 0500 and 0000(local time) are utilised

• Full or nearly full for arrivals at 0900,2200 (local)

• Full or nearly full for departures at 0600,1600 (local)

• Full or nearly full for total movements at0600, 0800, 0900, 1000, 1100, 1200,1600, 1700, 1800, 1900 (local) (1700 –1900 Full)

Significant other capital projects delivering enhanced capacity

• Adding bussing

lounges and

departure gates and

other terminal

enhancements

Significant other capital projects delivering enhanced capacity

• Adding stands

and taxiways on

airfield

VISION Be the Best Performing

Airport

in Europe

Content

• Where Dublin airport is currently

• North Runway – the story so far

• Procurement status

• What next?

• Aer Ríanta developed a plan for a parallel runway system in the 1960’s.

• By 1972 this was in the County Development Plan – protecting surrounding land use.

• 1989 – First parallel runway delivered.

North Runway History

North Runway History

“The process to

develop the second

runway at Dublin

Airport will

commence, to ensure

the infrastructure

necessary for the

airport’s position as a

secondary hub and

operate to global

markets without

weight restrictions is

available when

needed.”

National Aviation Policy,

2015.

Year Development

1970s Incorporated in successive County Development Plans since the

1970s.

2005 Planning application lodged.

2007 Permission granted – 2 challenging conditions attached.

2008 Passenger numbers reach 23.4m., economic decline starts.

2009 Project put on hold.

2009-10 Passenger numbers fall by 5m.

2011-12 Fragile return to growth: passengers +2% p.a.

2014 Passenger growth of 8%.

2015 Growth of 15%: Passenger numbers reach 25m.

2016 National Aviation Policy endorses runway project.

2016 Decision to proceed with North Runway.

North Runway – Benefitting the Entire Economy

By 2043, North Runway will facilitate:

– 31% increase in connectivity

– New services to US, Africa, Far East

– €2.2bn growth in GDP

– 31,200 new jobs (7,000 of those by

2023; 1,200 during development)

North Runway Location and Technical Details• Parallel to the existing

Runway 10/28

• Separation between the

centrelines of 1690m.

• 60m wide plus pavement of

7.5m each side

• CAT III B instrument landing

system.

• Served by a parallel taxiway

to the south.

• Rapid exit taxiways to serve

each runway direction

• Taxiway separations

designed to accommodate

larger aircraft.

• Airfield and approach lighting

that permit automatic landing

in low visibility conditions

• A satellite fire station

• A perimeter road with a 6m

carriageway

• External road diversions

IAA as the Competent Authority

• EU regulation

598/2014

• Application of the

Balanced Approach to

Airport noise

• September 2016 – IAA

designated as the

Competent Authority

• Statutory Instrument

awaited

• Further public

consultation

Construction UnderwayConstruction Package 1

This initial phase of the project includes:

• Removal of hedgerows

• Tree felling

• Topsoil stripping

• New road construction

• Services diversions

• Compound formation

• Erection of site security fencing

96

A0 maps issued by request

Stakeholder Engagement

1067

client records on database

1450 email correspondence

between daa and

external stakeholders

207local residents met with (in a group

or individually) by daa

111Elected Representatives

have been met with (in a

group or individually) by

daa

59Parliamentary

Questions

raised in Dail

424

media articles relating to North

Runway

666 subscribers to

North Runway

project updates

696

correspondence via letter

with external stakeholders

15

public consultation and scheme

information days

6

community liaison

group meetings

30

staff briefings

38,000

leaflets dropped to

local communities

15,000

pieces of

consultation

material printed

YOU WILL NEVER DO

ENOUGH

Content

• Where Dublin airport is currently

• North Runway – the story so far

• Procurement status

• What next?

Procurement - Business Objectives

• Best possible technical solution

• Comply fully with OJEU legislation

• Early engagement of the market

• Harness extensive design expertise

• On time delivery

• Best value solution: fit for purpose runway, within budget/lowest & fixed cost

• Effective risk transfer

North Runway work packages breakdown

• Engine test Site – traditional client design and contract

• Site Clearance & Services Diversions including substantial

archaeological investigations - traditional client design and contract

• Building Insulation Scheme –

management contract

• Main Contract Works – D&B

Method of Procurement

• Objective needs to consider business requirements/expected outcomes

• Completion criteria form the basis of approach e.g. detailed design or

performance spec (ERD*)

• ‘Trinity’ of sourcing

* Employer’s Requirements Document

Contract Type

• Different types e.g.

o NEC (c) – collaborative

o FIDIC (yellow) amended – “all” risks transfer e.g. D&B

• Amount of risk we transfer (all/more/less)

• How we intend to manage variations

• daa Practice – generally use heavily amended FIDIC for D&B

Contract Form

• D&B (Design &Build)

o Time/schedule

o Scope (ERD driven)

o Resources required

• Traditional (Employers Design)

• Management contract

Commercial Model

• Fixed fee lump sum

• Gross Max Price (GMP)

• Target pricing

• Cost reimbursement – actual costs incurred

• Bill of quantities + O/H’s

Procurement Option Chosen

• Design and build– Fastest route to market

– Detailed Employers Requirements

– Reference design that deals with the big design issues/facilitates planning submission

– Access to multiple design teams

• Call for competition/shortlisting of tenderers

• Preconstruction services agreement with tenderers requiring compliant responses

• Competitive dialogue process allowing positive engagement with Tenderers

• Fixed price lump sum following competitive dialogue process during which:– Employers requirements are fully interrogated and understood

– Contractors design has been developed to demonstrate compliance

– Risks are fully understood and mitigated where possible

• FIDIC Yellow book conditions of contract; well known international form of contract and used

in Ireland

• Fits with Regulatory framework and airline expectations regarding fixed price

Main Contract Works - Interfaces• Decommissioning of existing operational facilities

– Aircraft parking stands

– Engine test facilities

• Existing physical taxiway system

• Integration with future known developments

– Taxiways

– Stands

– Control systems

– Electrical infrastructure

– New ATC control tower

– Drainage systems

• Integration with existing systems

– AGL lighting and control systems

– CCTV and security

• Defining the restrictions on delivery

– Mostly landside site

– Airside element requires controlled access and compliance with airport operational procedures

• Amendments to Airport documentation, operating procedures, manuals etc

Headline Programme

2017 2018 2019 2020 2021

Early enabling works

Engine Test Site

Main contract works

Procurement

Construction

Commissioning

ORAT

Building insulation

Package

Learnt to Date

• Run a good pre-qualification process for D&B consortia

• Be clear on risk transfer; mitigate where possible

• Ring fence scope; avoid change

• Spend time defining the interfaces and close the gaps

• Meticulously plan the physical integration of the Runway into the existing infrastructure

• Leave sufficient time for developing documentation for Regulatory submissions in design and

at completion

• Engage the Customer to ensure they know what they need to do to take on the Runway

• Plan for ORAT and start the process early

34

Price, Cost Certainty and Value Considerations

Price, Cost Certainty & Value Considerations

• Ultimately, Price will be set by the market

• Cost certainty and value can be mutually exclusive (can be a heads or tails decision)

• Cost certainty “models” require the supplier to evaluate risk before implementation and

include these in the tendered costs. Once included in a fixed price lump sum model there is

no opportunity to recover these costs at a later point - The risk is sold

• Risk evaluation can heavily distort the final tendered costs – broad range depending on the

suppliers evaluation of the level of risk transferred (primarily driven by prior knowledge)

• Allocation of these risk costs also distort cost analysis and make commercial negotiations

difficult – some suppliers will refuse to provide cost breakdowns (dichotomy of the transfer all

risk contractually v. commercial negotiations to remove cost of risk)

Thank You