1. World-Wide CNS/ATM Systems Implementation Conference
Building a Business Case for CNS/ATM Implementation in the ASECNA Region of Africa
World-Wide CNS/ATM Systems Implementation Conference
May, 1998
Presented by Dr. Upali Wickrama
Chief, Forecasting and Economic Planning, ICAO

2. ASECNA Current Capabilities ASECNA Future Plans ASECNA Business Case
ASECNA Background
Stakeholder Relationship
ASECNA
Current Capabilities
ASECNA
Future Plans
ASECNA
Business Case

3. ASECNA General Information
16 Member states
16 million sq. km of area
25 Major international airports
160,000 Flights
5 Millions passengers
5,000 Staff
100 Airports (regional & domestic

4. Total Revenues

5. Distribution of User Charges

6. Total Expenses

7. Implementation Plan Cost/ Benefit Business Cases Financial Community
Economic
Viability
Business
Cases
Provider/User
State
Sub-regional
Regional
Financial
Community

8. Summary of Results from Case Studies

9. Financial Institution Airspace ATC Service Users Providers Major
Stakeholders
Other
A/C manufacturers
ATM Equipment supplies
Major Stakeholders

10. ASECNA Future Plans
Capital Investment Plan for ( ) for CNS/ATM
Modernization

11. CNS/ATM Modernization (Ground Side by ASECNA)
ASECNA Business Case
Communications
Additional VSAT, VHF Voice/Data Link, ATN
Navigation
WAAS/EGNOS, LAAS at 24 airports
CNS/ATM Modernization (Ground Side by ASECNA)

12. ASECNA Business Case Surveillance ATM Two en route SSR, ADS
Automation related to CNS modernization

13. CNS/ATM Modernization (Avionics by Airlines)
ASECNA Business Case
Communications Avionics
VDL/TDMA, CPDLC
Navigation Avionics
WAAS/LAAS
Surveillance Avionics
ADS
CNS/ATM Modernization (Avionics by Airlines)

14. Key Assumptions 1999 - 2004 Implementation period: Cost of capital:
Life cycle:
User charges:
Fee added to the cost:
Satellite lease costs:
7 per cent
15 years
To resume in 2005
10 per cent
0.45/kilobit

15. Key Assumptions (cont.)
Traffic growth rate:
Movement and Flight hours
Rate of return:
No cost savings assumed for decommissioning:
5 %
3.5 %
10% -

16. Business Case Results for Service Provider (ASECNA)
Expenses
Business Case Results for
Service Provider (ASECNA)

17. ASECNA Cash-flow Profile
Business Case
ASECNA Cash-flow Profile
Revenue (User fees)
Revenue (Less Operating Expenses)
Equipment
Investment
Pay-out Period

18. Business Case Results for Service User (Airlines)
Expenses
Business Case Results for
Service User (Airlines)

19. Business Case Airlines Cash-flow Profile Revenues
Revenues (Less Operating Expenses)
Equipment Investment
Pay-out period

20. Risks Exchange rates Schedule Traffic growth Rate of return
Efficiency rates

21. Stages of the Business Case

22. Conclusion
Methodology enhanced beyond cost-benefit to develop Business Cases
This assessment may require updating after consultation with ASECNA, IATA & Financial Institutions
Once the Business Cases are co-ordinated, an integrated Financial Plan can be established

23. Conclusion (cont.)
Investment for some components are substantial for both service provider & user
Multinational planning & co-ordination among various States, sub-regions & regions are essential in order to minimize costs, ensure compatibility and avoid duplication of effort, for the efficient implementation of the system