Infrastructure Planning, Procurement, and Finance of Western Sydney Airport (Case Study Sample)
the task was to write an essay to assess the business case and procurement strategy for that project and will examine public perceptions of risks and opportunities. to research and answer the questions in the assessment brief and provide suggestions and proposals.source..
Infrastructure Planning, Procurement, and Finance of Western Sydney Airport
Western Sydney airport
Western Sydney as a city and region has faced a lot of challenges such carrying about a half of the Sydney's population and having few job opportunities to serve the population. The federal government projected that building of an airport in the region would spur the economic growth and create job opportunities. The project as well faces challenges of infrastructural planning, procurement strategy and infrastructure finance. However, for the project to run all the said infrastructures had to be obtained to facilitate the construction of the airport, (Merom & Close, 2003).
The paper is addressing how the company has done infrastructure planning procurement and financing of the project. The infrastructure which includes transport infrastructure, energy infrastructure and telecommunication infrastructure have facilitated proper operation of the Western Sydney project. Thus the entire infrastructure of the Western Sydney had to be improved. The transport network that flows well brought about easy movement into and out of the airport.
The method of procuring the materials is also a critical aspect. The procuring team adopted the best procurement method to obtain the best materials for the project. These include but not limited to building a successful procurement strategy; which explains how the team build successful strategy for procuring materials. Supplier relation management system as a strategy helped the firm to relate with the suppliers and come up with the best supplier.
The entire project needed to be financed. There are different methods of financing that the management of the Western Sydney airport project used. They include government funding and Corporate or On-Balance Sheet Finance. Federal government of Australia used best methods for efficient project financing.
Western Sydney is a multicultural and dynamic region. Currently is the home for nearly a half of Sydney population. However, only about 30 per cent of jobs are found in the region. Western Sydney economy is the third largest economy in Australia, and its population is expected to grow with more than one million in 2030s. Due to this, the government had to increase its economic growth project in a mid to cub the fast growing needs of employment.
Demand for air travel services in region of Sydney is increasing at a very high rate with projections that it will double in the next about 20 years and the growth will continue to increase. Sydney airport would therefore not accommodate this high demand. The Sydney government had to construct the Western Sydney airport to counter the highlighted aspects.
This case study therefore seeks to come up with a study report pertaining the infrastructure planning, procurement, and finance of Western Sydney airport. It will assess the business case and procurement strategy for the project and will look into public perception on opportunities and risks.
Infrastructure planning is an important part of the local development framework process. This planning policy points out that in order to build a sustainable community, the government need to not only provide employment opportunities and housing alone, (Miller, 1995). But also ensure that the entire process of development comprises necessary social and physical infrastructure too. It's well known that in Western Sydney that the city transporting infrastructure needs more investment. This is also very true in other parts of the whole world. Why do we have more projects not under construction?
The direct argument is many countries and states suffer from insufficient fund. However, in most cases its lack of proper allocation of the available resources and disagreement on what should be done. For the Western Sydney project to gain momentum, various parties have been aligned. Some of these parties are the organizations that depend on the transport network in Western Sydney to link them to suppliers, customers and even the planners in the government in charge of building those trade channels. These infrastructure factors includes but not limited to;
Transport infrastructure for Western Sydney airport comprises of bridges leading to the airport, roads, and transporting vehicles. There has been a concrete plan by the government of Australia to create a more prosperous and strong Western Sydney by investing around $3.0 billion over the next ten years in main infrastructure upgrades that will leave Western Sydney a better region economically, (Short & Kopp, 2005).The infrastructure plan of Western Sydney involves transport linkages and major roads that will basically capitalize on gaining economically from building of an airport in Western Sydney, while boosting local economy of the region.
The investments have relieved pressure on already existing transport and other infrastructure and unlock the capacity of the economy in the region by slashing down travel time, creating more local jobs and easing congestions on the roads. Some of the programmers include; upgrading of The Northern Road to at least four lanes from Jamison Road to Narellaan, building of new West-East motorway to the airport from The Northern Road to The M7 Motorway.
Energy infrastructure includes transmission facilities, distribution of power, and generators to serve as a back in case of power shortage. The Western Sydney airport project needs enough sources of energy to serve not only the airport project but also the entire region. Currently the New South Wales (NSW) electricity grid is the only supplier of power in the region, (Hensher & Ellison, 2012). The Australian government therefore had to invest heavily on the energy infrastructure so that the project could not run out of energy as well. The projected airport in Western Sydney has attracted more inhabitants to occupy the job opportunities that will be created by the said project. This hence has created a need for more supply of energy to meet the rising demand.
An efficient telecommunication infrastructure is a very critical aspect of any organization. In any firm there is a need for frequent exchange of information from one department to another or to the rest of the world (Lenzen & Foran, 2004). Telecommunication infrastructure allows a rapid exchange of information among individuals in different locations of a business and even links them to others in any part of the world.
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