Scheme of Project

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■Review of the Financing Scheme (Land Development)

In August 2001, to ensure the stable implementation of the 2nd phase project and its viability, the national and local governments formulated a proposed scheme designed to achieve a reduction in the total construction costs. With regard to the costs for land development, according to the proposed scheme, approximately 140 billion yen will be reduced through cost cutting efforts by KALD. Nevertheless, interest-free funds will not change from the original scheme and construction worth 100 billion yen will be conducted via a phased approach after service of Runway B is begun (2007). Therefore, the ratio of interest-free funds will be increased from 55% to 63% (70% when Runway B is in service).

Numbers in billion yen

Major Efforts in Cost Reductions
■Procurement of lower price materials
・Securing large scale sand supply pits for land reclamation closer to the new airport construction site to reduce shipping costs.
・Using imported sand or alternative materials for ground improvement work (sand drain method).
■Efficient construction work
・Using large, highly efficient barges and conducting nighttime construction work for greater construction efficiency.
・Making maximum use of a Global Positioning System (GPS) and the latest information technology for more precise construction control.

Through the review of the second phase work scheme, the proportion of interest-free loans has improved and it is estimated that the profitability of Kansai International Airport Co., Ltd. will improve considerably.