Beruflich Dokumente
Kultur Dokumente
Structure of Presentation
Objectives of Session
Define Project
Introduce Project Life Cycle
Components of Project Life Cycle
Role of Contracting in Project Life Cycle
Introduction to Contracting
What is a Project?
A Project is a set of coordinated activities, with definite
starting and finishing points, undertaken by an individual or
organization to meet specific objectives within defined
schedule, cost, and performance parameters
4
Source: BS 6079 Guide to Project Management. Elsevier
Project
Identification
Monitoring &
Evaluation
Project
Scoping
Implementation
Contracting
Project
Planning &
Preparation
Appraisal
Project
Structuring
Public
Consultation
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
Project Scoping
Introduction
Project
Identification
Project Scoping
Project Planning &
Preparation
Project Appraisal
Public
Consultation
Project Structuring
Time
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
Budget
Project
Scope &
Quality
Resource
Project Scoping
Introduction
Project
Identification
Project Scoping
Project Planning &
Preparation
Project Appraisal
Public
Consultation
Project Structuring
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
Project Appraisal
Public
Consultation
Project Structuring
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
Project Appraisal
Introduction
Project
Identification
Project Scoping
Project Planning &
Preparation
Project Appraisal
Public
Consultation
Project Structuring
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
10
Public Consultation
Introduction
Project
Identification
Project Scoping
Project Planning &
Preparation
Project Appraisal
Public
Consultation
Project Structuring
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
11
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
12
Design
Finance
Construct
O&M
Ownership
EPC Trunkey
EPC
Item Rate
Service
Contract
Management
Contract
Public Ownership
Lease
Concession
BOT/
BOO
Divest
Private Ownership
13
Source: Sustainable Urban Transport Planning Toolkits for Public Private Partnership in Urban Transport, 2008, Ministry of Urban Development
Contracting
What is a Contract?
Contracts, as defined by CPWD Works Manual,
2003, is when two or more persons have common
intention communicated to each other to create
some obligation between them, there is said to be
an agreement. An agreement which is enforceable
by law is a Contract.
16
17
What is a Contract?
18
FIDIC Guidelines
Handbooks
FIDIC Conditions of Contract for Plant and Design/Build, the (New Yellow
Book)
FIDIC Conditions of Contract for EPC Turnkey Projects, the (Silver Book)
Legal Framework
Indian Contracts are governed by statutory law, which may require contracts
to be put in writing and executed with particular formalities. The Indian
Contract Act of 1872 contains the law relating to contracts
ICA deals with the general principles of contracting.
It is not the entire law relating to contracts.
If the ICA has a provision pertaining to an issue it has to be followed. ICA
is exhaustive to that extent.
If ICA is silent on a particular issue, Common Law principles can be used.
ICA also deals with certain special contracts such as guarantee,
indemnity, bailment, pledge, and agency.
Other acts governing the contracts are:
Negotiable Instruments Act 1881
The Indian and Arbitration and Conciliation Act 1996
Sale of Goods Act 1930
21
Methods of Procurement
There are various methods of procurement, some of which include:
1. International Competitive Bidding
2. National Competitive Bidding
3. Limited International Competitive Bidding
4. Shopping
5. Direct Contracting
6.Procurement from Specialized Agencies
7.Procurement in Loans to Financial Intermediaries
8. Performance-based Procurement
9.Procurement under Disaster and Emergency Assistance
22
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
23
Technical
Short-listing
Financial
Opening
Queries/
Response
Financial
Evaluation
Short listing
Amend bid
document
Issue of LoI
Issue of RFP
Pre bid
meeting
Negotiation
and Contract
Signing
24
Modes
Urban Rail Transit
Project Scoping
Project Planning &
Preparation
Project Appraisal
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
Public
Consultation
Project Structuring
MultiMulti-level Parking
Projects
Public Bicycle
Scheme
Bus
depots/Terminal
depots/Terminal
and workshops
Network
Improvement
25
Contract Management
Introduction
Project
Identification
Project Scoping
Project Planning &
Preparation
Project Appraisal
Public
Consultation
Project Structuring
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
Contractor bonus
Professional assistance
Liquidated damages
Time period
Good Communications
26
Project Scoping
Project Planning &
Preparation
Project Appraisal
Public
Consultation
Project Structuring
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
Monitorin
g
Evaluatio
n
Annual
Monitoring
Report
27
Project Scoping
Project Planning &
Preparation
Project Appraisal
Public
Consultation
Project Structuring
Bid Process
Management
Project
Implementation
Monitoring and
Evaluation
28
29
Questions??
Thank You!
You!
33
34
Feasibility
Report
Detailed Project
Report
Options Considered and Comparison of Feasible Options - Preliminary technical & financial
assessment
Evaluation and Conclusion- Gives Recommendations - is the project technical and financially
feasible and does it warrant a DPR to be made
Project Financing - Financial Viability & Sustainability Project Benefits Assessment (Social Cost-Benefit Assessment) - Risk Management
Framework
Conclusion - Detailed Design Drawing and Technical Specification ; Cost and Revenue
Estimates
35
36
37
What is DPR?
Detailed project report is a complete document for investment
decision-making, approval, planning whereas feasibility study report is
a base document for investment decision-making. Detailed project
report is base document for planning the project and implementing the
project.
It provides a detailed technical and financial analysis of each of the
project component. The report provides various alternative approaches
to a project and identifies an optimum, feasible technical and financial
solution.
38
Components of DPR
Broad Components of a DPR:
Least cost Analysis: To identify the best and cost-effective solution; usually
economical to adopt a technology already applied elsewhere.
Structures and Civil Works: To bring out type of designs and site development
that should be followed during implementation. Quality, quantity, cost
estimates, etc. of materials required should be detailed.
39
40
Contents of a DPR
Project Background
Introduction - City Profile
Sector background context & broad project rationale
Project Definition, Concept and Scope
Existing Situation
Traffic and Transportation Characteristics in the City
Existing Issues and Policy
Project Details
Detailed Design of Project
Project Cost
Project Implementation Framework
Project Institutional Framework
Project Financial Structuring and Phasing
Project O&M framework and planning
Project Financing
Financial Viability & Sustainability
Project Benefits Assessment (Social Cost-Benefit Assessment)
Risk Management Framework
Conclusion
41
42
43
44
45
46
47
48
Financial &
Economic
Appraisal
Phasing and Estimated (Amount/Share) cost of the Project, O & M Cost and
Financial Sustainability
ULB/Parastatal share (financial); Funding Pattern for Capital cost and to meet
O&M expenditure
Project proposals shall present the cost-benefit analysis incorporating a life-cycle
cost analysis
Technical feasibility and selection of a least life-cycle cost should be based on
financial and economic viability parameters
For ULB/parastatal agency-sponsored projects, DSCR (incl. sinking & revolving
fund), should be at 1.
The cost- benefit analysis for individual projects of Rs.50 crores or more shall
demonstrate a positive Net Present Value (NPV) and an ERR equal to or above the
appropriate opportunity cost of capital.
For projects undertaken by Special Purpose Vehicle (SPV) on a Public-Private
Partnership (PPP):
Internal Rate of Return (IRR) greater than the cost of capital raised for the
project.
Proposal shall demonstrate financial viability based on a targeted IRR of at
least 200 basis points above cost of capital. DSCR should not be less than
1.25.
Project should provide an Economic Rate of Return (ERR) greater than the cost
of capital and the proposed minimum
49
Institutional
50
51
Questions??
52
Thank You!
You!
53
55
Investments (Rs.
Rs. Crores)
Street Infrastructure
1,67,218
Public Transport
2,02,628
8,520
Parking
1,943
5,000
1,000
2,000
Total
3,88,308
56
57
Means of Finance
Cities identify urban transport projects; essential for improving urban mobility
PPP
Public Funding
Traditional Means of
Finance
At National/State Level
General budget funding
National level funding (like JnNURM)
Financial Institution/ Banks
At Local Level
Advertisement
Fare box revenue
Alternative Means
of Finance
Dedicated Urban Transport Fund
Parking, toll plaza
Congestion pricing
Cess on fuel, private vehicle
taxation/ green cess on existing
private vehicles
Property development/ TOD
Land value capture/ Betterment
charges/ Vacant land tax
Municipal bonds
Carbon Finance
58
Sources of Funding
Development Finance
Institutes
Commercial Banks
Long-term
Infrastructure Bonds
External Commercial
Borrowings
Multilateral Funding
Private Equity
59
Innovations in Financing
Indian Context
60
Implementation Options
Case Studies
Sources of Revenue
Hyderabad
Metro (VGF)
Delhi Airport
Express
(Revenue Share)
Multilevel Parking
Projects
Sarojini Nagar
Market, Delhi
Ramniwas
Gardern , Jaipur
Parking Charges
Commercial
development
Advertisements
61
Implementation Options
Case Studies
Sources of Revenue
Public Bicycle
Scheme
Rental revenue
Advertisements
(Integrated with
development of a
transit network)
Bus
depots/Terminal
depots/Terminal
and workshops
Land by Government
Development preferably on PPP
Amritsar
Ludhiana
Manali
Network
Improvement
Toll tax
Advertisement
BusBus-QueueQueueShelter
Bus Q Shelters in
Delhi (DTC)
Advertisement
62
63
Revenue from additional FAR and levy of cess on transaction : Rs 432 crores
in 5 years
Revenue from cess of 5% of the market value : Rs 1250 crores in 5 years
64
65
PPP Models
S.No.
S.No.
Format
VGF Model
Structure
Annuity Model
Grant During
Operation
Private sector would bear 100% of project cost and collect the revenue as well.
Government would provide an equal amount of revenue shortfall grant every year
Property
Development by
Private Sector
66
Projects
Concessionaire
Hyderabad
Metro (VGF
Model)
Mumbai
Metro - VAG
Corridor
(VGF Model)
Mumbai Metro
One Pvt. Ltd.
Joint Venture of
Reliance Energy
Ltd and Veolia
Transport of
France
Project
cost
16378
2356
VGF
Rs.
Rs. Crore
1458
(9% Total
Project
Cost)
650
(28% of the
Total
Project
Cost)
Revenue
Share (pa)
Means of Finance
Equity
Debt
Nil
21%
(Rs.3440
crore)
crore)
70%
(Rs.11480
crore)
crore)
Nil
22%
(Rs.513 crore)
50%
(Rs.1194
crore)
67
68
Source: Thiruvananthapuram City Roads Improvement Project, Transport Infrastructure, PPP India, Ministry of Finance, GoI
69
70
Introduction to RRTS
Selected Corridors for Study
Delhi Gurgaon Rewari Alwar (158
Kms)
Kms) [DGRA - Project Corridor]
Delhi Ghaziabad Meerut (67 Kms)
Delhi Sonipat Panipat (89 Kms)
Estimated Capital Cost : Rs 32,141 crores
over 5 years
Estimated O&M expenses
2017 : Rs 794 crores
2021: Rs 2,376 crores
2041: Rs10,558 crores
71
RRTS - Objectives
To provide fast, safe, reliable, comfortable and rapid transport of
commuters between RNCR and NCTD
To decongest NCT Delhi by dedicated high speed rail connectivity to
Rewari, Alwar and industrial growth centers in Haryana
Collection / Dispersal of RNCR commuter traffic at major O/D points like
ISBTs, Rly stations, and metro stations
Will result in significant financial and economic benefits to the States
Will speed up the development in the RNCR region with rapid passenger
connectivity
72
73
Direct
Advertisement
License Fees from station assets
Status of capture
Captured in terms of fare,
advertisement revenue, and license
fee from kiosks, stalls, and other
assets
74
Station
PANCHGAON
30
DHARUHERA
22
BTK
28
MBIR
60
REWARI
40
BAWAL
30
SNB
125
KHAIRTHAL
28
ALWAR
28
Total
391
TOD
LOCATIONS
75
Summary of Revenue
2017
Revenue sources
2021
2031
2041
2046
Revenue (Rs.
Rs. Crores)
995
1583
4090
9237
12801
62%
Advertisement
17
51
101
162
194
1%
License Fees
11
20
29
34
0%
Carbon Credit
99
133
185
1%
794
2792
5412
36%
1911
4570
9807
9428
13029
100%
Fare Box
Total
14000
12000
10000
Net Revenue From TOD
8000
Carbon Credit
License Fees
6000
Advertisement
4000
Fare Box
2000
76
0
1
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
2012
2013
2014
2015
2016
2838
6016
9565
10139
3583
2838
0
-2838
6016
0
-6016
9565
0
-9565
10139
0
-10139
2017
2021
2031
2041
2046
3583
794
794
2376
2376
5573
6879
10558
10558
5911
8303
0
-3583
1911
1911
1117
4570
4570
2195
9807
9807
2928
9428
9428
-1130
13029
13029
4726
10.55%
77
Under such circumstances, project structuring becomes the crucial issue for successful implementation
of the project
PSUs
Contribution
Rs. Crore
15%
4900
15%
4900
Senior Debt (Term loan from Multi Laterals 1.9% pa, 30 yrs)
45%
14678
2%
728
5%
1633
5%
1633
8%
2611
5%
1581
100%
32664
Total
80
State Govt.
(MoUD, IR and
(Delhi, Haryana,
NCPRB)
50%
MRT Fund
& Infra
Bonds
Cess on
Transactio
ns
Rajasthan)
Private Sector
50%
Share holder
Agreement
Company
Banks / FI
Concession
NCRTC
Revenue
Share
R&R
and Ops.
Company (Pvt.)
Lenders
Land Acquisition
Bridges and
Stations Bldgs.
Revenue
- Fare
- Ad
- License
- TOD
Technology
SPV
Loan Agr .
Alignment &
Formation
Lenders
EPC Contracts
(JICA /WB/
ADB)
Civil Maintenance
sub - contract
P - Way, Traction
and Power
Rolling Stock
Rolling Stock,
E&M
Maintenance
sub - contract
Signaling and
Telecom
81
Utilities
Construction
O&M
Property Dev.
Attractiveness
SPV
Higher
SPV
SPV
SPV
Private
SPV
Moderate
VGF
Private
Private
Private
Limited
Annuity
Private
Private
Private
Limited
Grant During
Operations
Private
Private
Private
Limited
SPV
SPV
Private
Limited
Private
Moderate
Private
82
Lessons Learned
Understand the various options in Project financing
Know the problems and challenges in selection of appropriate options for
Project implementation
Know the various Public Private Partnership Models
Understand the advantages and limitations of PPP including various PPP
models
Understand the reason for PPPs an attractive option to governments
Know the basic structure of a PPP arrangement
Understand the latest PPP Process in India - National Public Private
Partnership Policy 2011 (Draft)
83
Questions??
84
Thank You!
85
87
88
Contracting Options
EPC / Cash Contract Mode: State Undertaking / SPV intend to
create / upgrade the facilities Design Parameters fixed by Administrative Department (AD)
Bids are called on BOQ / Item Rate Contract basis
Supervision with AD
Funds for development to be arranged by the AD
89
PPP
An arrangement between the public and private
sectors with clear agreement for delivery of public
infrastructure and/or public services, revenue and
risk sharing.
BENEFITS
Post-Commissioning Services
Higher Accountability
Government Support
90
Source: http://ecurrentaffairs.in/blog/special-article-on-epc-mode-vs-ppp-mode-for-national-highways/
Contracting Options
PPP Mode:
Mode developing facilities through offering the project to Private Sector
Player (PSP), by giving it the right to earn revenues / user charges from the
project, for a defined concession period
a) Management Contract (O & M)M) Contractual arrangement for the management of a part or whole
public facility or service by the PSP.
Capital investment is typically not the primary focus in such
arrangements
Revenue retained by the AD, the PSP gets a fixed fee for O & M
91
Contracting Options
c) Lease Contracts
Asset is leased by AD to PSP
Involves building an asset, transferring it to the Govt and leasing it back
PSP delivers the service and collects user charges, intern may offer a
fixed fee to the AD
d) Build Operate Transfer (BOT
(BOT/
BOT/ BOOT) Contracts
Design frozen by the AD
The bidding Parameter can be Concession Period / Annual Concession
Fee / Upfront Premium / Revenue Share
Private partner has the responsibility for construction and operations
Ownership is with the private partner for the duration of the concession
For example, Ludhiana, Amritsar & Jalandhar Bus Stands
92
Contracting Options
e. DesignDesign-BuiltBuilt-FinanceFinance-OperateOperate-Transfer (DBFOT
(DBFOT)
DBFOT)
PSP responsible for designing, financing, construction, and operations
Bidding Parameter can be Concession Period / Annual Concession Fee /
Upfront Premium / Revenue Share
Sub-leasing rights with the PSP for the concession period
Right to Escrow the revenue for raising the Finances.
Mohali Bus Stand, Himachal Bus Stands (Una, Hamirpur, Parwanoo)
Most Preferred mode of development appropriate risks transferred to PSP
93
94
Primarily Government funded except in case of high density and above ground construction
where PPP maybe feasible with VGF
Public Sector Model; Revenue Share Model; PPP Model
MultiMulti-level Parking
Projects
Public Bicycle
Scheme
Bus depots/Terminal
depots/Terminal
and workshops
Land by Government
Development preferably on PPP
Network
Improvement
BusBus-QueueQueue-Shelter
Private Sector Party (PSP) develop Bus-Q-Shelters by undertaking Construction, Operation &
Maintenance and Transfer (BOT) to Government agency thereafter. The Concessionaire would
be permitted to earn revenue from advertisement; Kiosk and Toilet will have to pay
Concession Fee
95
Urban Rail
Transit
In a PPP model, full or partial projects are implemented by the private sector and the capital and operation
expenditure is recovered either through right to revenue streams or through annuity payments by the
Government .
Revenue Share Model : In case the system is exceedingly viable, the project can be bid out to design, build,
finance, and operate (DBFO) the system. SPV can be created with equity contribution from State/ Central
Government or private parties. This SPV would promote/implement the project as owner. Some of these
arrangements could be in the form of PPP whereby some part of the risks and revenues are shared.
Scope of the Project
Tenure of Contract
Role of the Contractor (Construction, Designing, Financing, O&M)
Salient
Features of
Contract
96
Bus Rapid
Transit
System / City
Bus Service
By Government on a PPP basis, where either or both Government and private sector share
revenue risks
Development of infrastructure on a EPC contract
Operations and Maintenance preferably on PPP with revenue risk with Government /private
Permits to private buses for public carriage
Management contract
Net Cost Contract
Gross Cost Contract
Scope of the Project
Tenure of Contract
Role of the Contractor (Construction, Designing, Financing, O&M)
Salient
Features of
Contract
97
MultiMulti-level
Parking
ProjectsProjects- On
Street
Parking/ At
Grade/ MultiMultilevel Parking
Off-Street Parking Concession: The Concessionaire is selected through a bidding procedure. By defining the
minimum concession conditions in the contract, the ULB may incorporate some provisions for the
improvement of the property, as well as other related obligations
On-Street & Off-Street Parking Concession: A concession for both on- and off-street parking can be granted
simultaneously
DBFOT: The ULB provides land (which is municipal property) for the project. The private investor is responsible
for designing, organizing, financing, and constructing the required infrastructure and facilities, based on
previous studies or projects.
Infrastructure provisioning by Private sector on BoT basis or development of facility by Government
on EPC basis
Operations and Maintenance preferably on PPP with revenue risk with Government /private
Scope of the Project
Tenure of Contract
Role of the Contractor (Construction, Designing, Financing, O&M)
Salient
Features of
Contract
98
Salient Features
of Contract
99
100
101
Name of
Project
Project Area
Components
8 acre
(Rs 15 Cr2001)
Manali Bus
Terminal,
Himachal
Pradesh
4 acre
(Rs 100 Cr2012)
Zirakpur Bus
Stand , Punjab
1 acre
(Rs 4 Cr)
Ludhiana Bus
Terminal,
Punjabi
35 bus bays
30 idle paring
Local bus bays
426 MLCP
passenger concourse
STU office space
Mode of
Development
BOT Mode
Remarks
Concession Period was
bidding parameter
BOQ was fixed
Sources of Revenue were
limited.
DBFOT Mode
(EPC/ Cash
Contract)
Scale is small
Limited Revenue Sources
Further to be Converted in
O & M contract
102
Name of Project
Project
Area
8.5 acres
(21.35 Cr)
Components
Mode of
Development
BOT
103
Name of Project
Project Area
250 Parking
lots at Level 2
Kolkata Car
Parking system
Market
complex with
200 shops at
Level 1
Project Cost :
Rs 36 crores
Components
Mode of
Development
BOOT for a period of
20 years
Simplex
pays the KMC, 5% of
the gross annual
revenue earned from
parking for the
concession
period of twenty
years.
104
Name of
Project
Bus Q
Shelters in
Delhi (DTC)
Project Area
400 Bus Q
Shelters at
various
locations in
Delhi
Components
Construction of Bus- Q- Shelters
Operation and Maintenance of Bus- QShelters
The essential services to be provided by the
Concessionaire.
Collect revenues during concession period
through advertisements and pay
Concession Fee as indicated in their
financial proposal
Transfer of Bus- Q- Shelters to DTC in sound
condition at the end of Concession Period.
Pay shifting/relocation/dismantling charges
@ Rs. 50000/- (Rs. Fifty thousand only) per
BQS to DTC in respect of existing BQS.
A uniform rate of Rs. 50000/- per existing
BQS will be paid by the concessionaire
irrespective of whether the BQS is actually
relocated/dismantled/scrapped.
Mode of
Development
105
106
Contracting Framework
107
Source: Case Study Development Oo Modern Bus Terminal at Amritsar Transport Infrastructure, Infrastructure Development
Department : Government Of Karnataka
Number to be defined
Number to be defined
Area in Sqmt
Area in Sqmt
Number to be defined
Area in Sqmt
108
Area in Sqmt
Area in Sqmt
Number of Beds
10
Area in Sqmt
11
Seating capacity
12
BOT office
Area in Sqmt
13
Area in Sqmt
14
Toilets
Number to be defined
15
Number of ECS
16
Number of ECS
17
Number of Seats
18
Canteen / Restaurants
Area in Sqmt
19
Dormitory
Number of Beds
109
20
Slope to be defined
21
Wheel Chairs
Number to be defined
22
Number to be defined
23
Area in Sqmt
24
Area in Sqmt
25
Area in Sqmt
26
Dustbins
27
Display Boards
Number to be defined
28
Digital Clock
29
Area in Sqmt
30
110
Area in Sqmt
Number to be defined
Number to be defined
Area in Sqmt
Dormitory
Number of Beds
Area in Sqmt
Number to be defined
Workshop Shed
Size in sqmt
10
Area in Sqmt
11
Area in Sqmt
12
Area in Sqmt
111
Lessons Learned
112
Lessons Learned
Some of the lessons / shortfalls experienced in the bid out bus stand
projects on DBOT/ DBFOT mode have been categorized as related to:
A.
Project Structure
B.
Concession Agreement
C.
Design Approval
113
Lessons Learned
A.
contd. 2
i.
ii.
114
Lessons Learned
iii.
contd. 3
Traffic Surveys :
115
Lessons Learned
iv.
contd. 4
Ground coverage for the bus stand project should be ideally be not
more than 40%
116
Lessons Learned
contd. 5
iv.
VFM analysis for the Project should determine the range of viable
bids which should further be internally approved by the
Concessioning Authority and considered while deciding / negotiating
the financial bids
117
Lessons Learned
B.
contd. 6
Lessons Learned
ii.
contd. 7
Bid Parameter:
For Bus Stands projects where viability depends on commercial
Concession Period:
Should be determined by keeping in view the following:
Lessons Learned
contd. 8
iv.
Lessons Learned
contd. 9
Fee Structures:
v.
Lessons Learned
vi.
contd. 10
Eligibility Criteria:
Criteria:
In addition to the guidelines given in MCA, certain criteria have
been found to increase the participation in the bidding process.
These are:
122
Lessons Learned
contd. 11
C.
123
124
BOT Model
Under the BOT contract, the private
party will be responsible for
designing, engineering, financing,
procuring and constructing the road
during the construction period.
During the operation period, it will
be responsible for managing
operation and maintenance of the
project road until the end of the
concession period.
125
126
127
128
129
130
Source: Thiruvananthapuram City Roads Improvement Project, Transport Infrastructure, PPP India, Ministry of Finance, GoI
131
132
133
Questions??
Questions??
134
Thank You!
You!
135
137
1950-1980
Private Sector
Public Sector
1980 onwards
138
139
Net Cost
Gross Cost
Net Cost
140
141
Public Domain
Planning
Infrastructure
Development
Operation
142
Monitoring
Regulation
Types of Contracts
Less Regulation
Public Monopoly
Gross Cost Contract
Service Contract
Franchises
Concessions
Quantity Licenses
Quality Licenses
Open Market
ParaPara-Transit
Competition in the Market
143
Type of contract
Service Contracts
Cost Plus
Gross Cost
Net Cost
Area Based
Route Based
Route Based
Kilometerage
Cost
Minimum
Cost
Cost per
Passenger
Operators are
repaid based on the
cost per passenger
e.g. Santiago (Chile)
e.g. London
(before 1993)
Area Based
Min. Subsidy/
Max. Premium
Operators states minimum
subsidy required or maximum
premium offered to the
authority
e.g. London
(after 1993)
Surat, Rajkot, Indore,
Vadodara, Jodhpur, Delhi-Blue
Line, Delhi Metro Feeder,
Bhopal
144
145
Cons
Contracting is simple
146
Cons
148
149
150
Cons
151
152
153
154
Performance standards
Reporting obligations
155
Quality Indicators
Possible quality indicators
Fleet utilization
Vehicle utilization
Up-keeping of the bus
Adherence to schedule, punctuality
Crew behavior, driving practices
Customer information
Customer service
Equipment, special services
Rate of accidents
156
158
No
Component
Operation
Construction of
Stations / Corridor
/ Fly overs
Buses
Bus Operator
Service Provider
Sky Walks
Parking
Management
PMC.
Janmarg/
Operator
Maintenance
Presently
under Defect
Liability Period
Bus Operator
Operator overseen
by Janmarg
Hardware elements
like Sliding
doors/turnstiles
Supplier
Janmarg /
Service
Provider
Janmarg / Service
Provider
Supplier
through AMC
Advertisement
Rights
Licensee
Licensee
Janmarg
Licensee
House Keeping
Janmarg
Service
Provider
Landscaping
Janmarg
Licensee
Licensee
159
160
Source : Janmarg, Ahmedabad
161
162
163
164
165
Lack of infrastructure
166
Absence of Fare
policy
167
168
Inadequate
operations
routes
planning
169
Before Contracting
Identification
Identification of viable/unviable
routes and formation of clusters
Have
Have a business plan ready
(expenditure vs revenue~
affordability ~type of bus)
Identification
Identification of suitable PPP
model depending on
route/cluster viability
Provision
Provision of depot land &
infrastructure for maintenance
Exclusive
Exclusive administrator in SPV
with no additional charge and
longer tenure
Minimum
Minimum staffing in SPV for
monitoring and regulation
During Contracting
Fare
Fare revision & its
implementation mechanism
in place
Compensation
Compensation against
concessions
Concession
Concession period design
life of the bus
Include
Include all components of
cost inputs while revising the
cost/km (Gross cost)
Provision
Provision of Initial Moratorium
period (4(4-6 months)months)- Net cost
Link
Link incentives/penalties with
Service quality parameters
170
1. Government-owned/DMRC Model
2. BOT/PPP Model
3. Hybrid Model
172
Government-Owned model
State Govt.
Multilateral
Funding
Agency
GOI
Loan
SPV
173
CONS
174
Chennai Metro
Jaipur Metro
Mumbai Monorail
175
PPP/BOT Model
Concessioning Authority
Grant/VGF
Concession
Agreement
Transfer at the
end of
Concession
Period
176
CONS
177
Hyderabad Metro
Concessionaire : L&T
Cumulative Length: 71.16 km
Project Cost: Rs 12132 Cr.
Govt. Grant: Rs 1458 Cr.
Concession Period: 35 years (with extension for 25 years)
Govt. owns Golden Share in SPV- one representative on Board with affirmative powers
Real Estate Development at:
3 Depots : Total cumulative area- 11.61 Lakhs sqm.
25 Stations: Total cumulative area- 5.57 Lakhs sqm.
Automatic Annual Fare Revision linked with WPI
Revenue Share with Govt: (Ceiling 10%)
Period
0.5%
1%
23rd onward
1.5%
178
The image part with relationship ID rId3 was not found in the file.
179
Hybrid Model
Concessioning Authority
To construct part of the
system comprising civil
works or pay in cash to
the concessionaire
against construction of
the system to this extent
Concession
Agreement
Transfer at the
end of
Concession
Period
180
CONS
Part investment is still required by the
Government
O&M and part investment kept with the Interfacing risk-part developed by Govt.,
PSP-thereby harnessing their efficiency in same needs to be done in a time-bound
these areas
manner
Operational Risk transfers to PSP
Political risk largely mitigated due to
significant government involvement
181
Questions??
Questions??
Thank You!
You!
185
Procurement
As per the Procurement Bill 2012 of Indian Government, procurement or
public procurement means the acquisition of works, goods or services by
a procuring entity, and includes all stages of the process of acquisition, by
purchase, lease, license or otherwise, of works, goods or services,
beginning with the process for determining the need for such acquisition
and ending with completion and expiry of the procurement contract or
framework agreement, but does not include any acquisition without
consideration, and procure or aprocured shall be construed
accordingly.
186
Procurement
As per the Procurement Bill 2012:
Bill apply to Ministry or Department of the central Government, any Central
Public Sector Undertaking (50%), or authority or society or trust or
autonomous body (by whatever name called) established or constituted
under an Act of Parliament or a body owned or controlled by the Central
Government.
Bill shall not apply to procurements, which are less than INR 50 lakhs,
emergency procurements made for disaster management, and
procurement for the purpose of national security.
States Government should follow their own acts and regulations for procurement of good and
services
187
188
Source: CRISIL Risk and Infrastructure Solutions Limited.
189
Type of Contracts
190
Types of Contracts
Firm fixedfixed-price (Lump Sum) contracts
Price is not subject to any adjustment based on Contractors cost
experience
Maximum risk and full responsibility on the Contractor
Maximum incentive for the contractor to control costs
Highly suitable for works and services where
Adequate price competition exists
Reasonable price comparisons are available
FixedFixed-unitunit-price contracts
Contract provides for upward or downward revision of the contract price
based upon actual quantities of work performed
Procurer needs to provide adequate field force to verify actual quantities of
work performed
Highly suitable where quantities cannot be determined with reasonable
accuracy prior to actual work
191
Types of Contracts
Combined firmfirm-fixed/unitfixed/unit-price
This is a variation on a lump sump contract where a unit-rate price is offered
for some of the items for which quantities cannot be determined in advance
with reasonable accuracy
FixedFixed-price with price adjustment
Contract provides for the upward or downward revision of the contract price
upon the occurrence of certain contingencies that are beyond the control of
the contractor and are specifically defined in the contract
Use of this type of contract is appropriate when serious doubt exists as to the
stability of the market or labor conditions that will exist during an extended
period of contract performance.
It may also be appropriate when contingencies that would otherwise be
included in the contract price can be identified and covered separately by a
price adjustment provision.
192
Types of Contracts
TimeTime-andand-materials contracts
Contract provides for the procurement of goods and services on
the basis of direct labor hours at specified hourly rates and
materials at cost including, when appropriate, material handling
charges.
The charge for direct labor at specified fixed hourly rates
includes wages, overhead, general, and administrative expenses,
and profit.
It is used when it is not possible at the time of placing the
contract to estimate the extent or duration of the work or to
anticipate costs with any substantial accuracy.
193
Types of Contracts
CostCost-reimbursement contracts
This generic category of contracts provides for payment to the
contractor of allocable and allowable costs and a fee (profit).
Cost-reimbursement type contracts are suitable for use when the
nature and complexity of the procurement are such that the cost of
performance cannot be estimated with any accuracy
As this type of contract gives a minimum incentive for efficient
performance, provision must be made for appropriate surveillance to
provide reasonable assurance that wasteful methods are not being
used.
Such contracts are used only after a finding that such method of
contracting is likely to be less costly than other methods, and it is
impractical to secure the necessary goods or services without the use
of this type of contract.
194
Types of Contracts
Incentive contracts
Incentive contracts are designed to harness the profit motive to
stimulate the contractor to perform at a lower cost, to produce a
better product or service, or to cut down lead time in delivery dates.
Care must be taken to ensure that the contract is so structured that
any contract options are fair from both the contractor and the
Procurer's point of view.
Indefinite delivery task contracts
The basic purpose of a Task Contract is to provide an in-place
contractual arrangement with a competitively selected Contractor
that is ready, willing, and able to undertake a number of jobs, or
individual tasks, of the nature described in the contract statement of
work.
195
196
Procurement Process
197
198
199
Methods of Procurement
200
Methods of Procurement
1. International Competitive Bidding
2. National Competitive Bidding
3. Limited International Competitive Bidding
4. Shopping
5. Direct Contracting
6. Procurement from Specialized Agencies
7. Procurement under BOO/BOT/BOOT Concessions and similar private sector
arrangements
8. Performance-based Procurement
9. Procurement under Loans Guaranteed by Bank
10. Community Participation in Procurement
11. Procurement under Disaster and Emergency Assistance
201
202
203
204
Shopping (International/National)
Shopping is a procurement method based on comparing price quotations
obtained from several suppliers, usually at least three, to assure
competitive prices
It is an appropriate method when
Direct Contracting
Direct contracting without competition (single source) may be an
appropriate method under the following circumstances:
There is an existing contract which might be extended for related
goods and services
The equipment compatible with existing assets of the procurer is
available only from a single supplier
The required equipment is proprietary
The contractor responsible for a process design requires the
purchase of critical items from a particular supplier as a condition of
a performance guarantee.
In exceptional cases, such as in response to natural disasters.
206
207
208
Performance-based Procurement
Also called as Out-based Procurement refers to competitive procurement
processes resulting in a contractual relationship where payments are made
for measured outputs instead of the traditional way where inputs are
measures :
Provision of services to be paid on the basis of outputs
Design supply, construction (or rehabilitation), and commissioning of a
facility to be operated by the borrower
Design, supply, construction of a facility and provision for its operation
and maintenance for a defined period after its commissioning
209
210
211
LIB will be the norm for procurement of goods with minimum bidding
periods ranging from one to two weeks
212
Swiss Challenge
The private entity submitting the unsolicited proposal is termed as the
Original Project Proponent (OPP).
After the government evaluates the proposal submitted by the OPP, if it
finds merit in the proposal, it throws the project open for competing
proposals from other parties.
The other parties are expected to match or better the terms of OPPs
proposal. The OPP is given a chance to match or better any competing
proposal on par with the original proposal.
This method is suitable in situations where:
The OPPs proposal has substantial merit
There are objective parameters for comparison between the OPPs
proposal and competing proposals
213
214
E-Procurement
215
What is E-Procurement
E-Procurement is a solution designed to electronically handle the process of
public tender for the acquisition of specialized goods, works, and consulting
services that are of high value and low volume.
volume Introduction can be phased
and provides wide exposure to e-GP at low incremental cost.
Disclosure
Download
Clarification
Upload
Opening
Tracking
216
E-Procurement - Components
E-Purchase
E-Tendering
Registration
Tender Notice
Store coding
Tender enquiry
Technical Particulars
Bid submission
Evaluation of Bids
Bid opening
E-Payments
Supply Order
Bill submission
Inspection
Processing
Dispatch Details
Payments
Receipt Details
Debit Adjustments
Status
Complaints
217
E-Procurement - Benefits
Government
Anti-corruption
Increased number of suppliers
Better integration and interaction
between governments
Transparency Professional procurement
monitoring
Higher quality of procurement
decisions and statistics
Political return from the public
Lower prices
Efficiency
Costs
Time
Supplier
Public
Access to public
procurement information
Open the government market
Monitor public expenditure
information
to new suppliers
Stimulation of SME participation Have a say
Government accountability
Improved access to public
procurement information
Government accountability
Lower transaction costs
Staff reduction
Improved cash flow
Simplification/ elimination of
repetitive tasks
Simplification/ elimination of
repetitive tasks
Communication
anywhere/anytime
Communication
anywhere/anytime
Redistribution of fiscal
expenditure
Communication
anywhere/anytime
218
Strategic Framework*
Awareness Raising
Capacity Building
Policy
&
Guidelines
CountryCountrybased
work
Procurement
Operations &
Monitoring
Harmonization
219
* As per World Bank Report on ELECTRONIC GOVERNMENT PROCUREMENT,October 2003
Selection of
Consultants/Contractors
220
Selection of Consultants
Selection of Consultants
221
222
Issue of RFP
Elimination
Project Scope
Contracts
Option 2
(RFQ + RFP)
Issue of RFQ
Elimination
Submission of RFP
Consortium Formation
Shortlisting
Technical Proposal
Final Commercial Offer
Receipt of RFQ/Issue RFP
Submission of RFP
Consortium Formation
Shortlisting
Project Scope
Contracts
Technical Proposal
Final Commercial Offer
Option 3
EOI + RFP
Issue of EOI
EOI
Submission of RFP
Consortium Formation
Shortlisting
Project Scope
Contracts
Technical Proposal
Final Commercial Offer
Option 4
EOI + RFQ + RFP
Issue of EOI
EOI
Submission of RFP
Consortium Formation
Shortlisting
Project Scope
Contracts
Technical Proposal
Final Commercial Offer
Source: Sustainable Urban Transport Planning Toolkits for Public Private Partnership in Urban Transport, 2008, Ministry of Urban Development
223
Option 2
(RFQ + RFP)
Bidders characteristics
Bidder universe is well-defined
and limited
Option 3
EOI + RFP
Option 4
EOI + RFQ + RFP
224
Risk Structuring/Mitigation
225
Risk Assessment
Risk may be defined as:
the chance of a loss
uncertainty of loss
possibility of loss
uncertainty
hazard
dispersion of actual from expected results
possibility of an occurrence of an undesirable contingency
a condition in which a possibility of a loss exists
probability of a cash flow outcome different from the one
projected
226
Identifying Risks
The first step in managing and allocating risk is to identify all risks
associated with a project. Risks are usually identified by reference to
generic risk categories and/or risks based on different phases of the
project.
Commissioning Risk
Construction Risk
Design Risk
Environmental Risk
Financial Risk
Operating Risk
Performance Risk
Technology Obsolescence
Risk
Upgrade Risk
227
228
Risk Assessment
Types of Risk
Operating: Technical
Environmental
Operating: Cost
Political
Operating: Management
Force Majeure
Participant
Completion
Supply
Market
Infrastructure
Foreign Exchange
Engineering
Syndication
Funding/Interest
Legal
229
Cost driver
Allocation
Grantor
Concre
Design Risk
Construction Cost
Site Risk
Construction Cost
Construction Risk
Construction Cost
Revenue Risk
Performance Payment/Toll
O&M Risk
Performance Risk
External Risk
Political Risk
Default Risk
Government Budget
Strategic Risk
Shared
230
231
Name of work
2.
Name of Division
Engineering Division..Municipality
Type of Contract
3.
Pre-Proposal Date
6.
Tender Form
7.
8.
9.
10.
11.
232
Sd/
Sd/(Executive Engineer,.)
233
234
Name of work
2.
Name of Division
Engineering Division..Municipality
3.
4.
Rs. 28,49,145/-
5.
Earnest Money
6.
Tender Form
7.
8.
Last date of application for purchase of tender paper 01/11/2012 (up to 4.30pm)
9.
235
236
Evaluation Criteria
237
239
Contract Management
240
Contract Management
Contract management can be defined as the steps that enable both the contracting
authority and the economic operator to meet their obligations within the contract
in order to deliver the objectives set by the contract.
Key to the process of successful contract management is the recognition that
procurement officers must plan, do, check, and act. (PDCA)
Plan stage refers to the phases prior to
the award of the contract.
Do stage refers to the activity of the
economic operator throughout the life of
the contract.
Check refers to the checks and controls
that are introduced to monitor
performance.
Act refers to the activities necessary to
ensure that any performance that has
moved out of line is brought back within
the required parameters.
241
Contract Management
Contract management activities can be broadly grouped into three areas,
which span the do, check, and act stages of PDCA
Service delivery management
Relationship management
Contract administration
Service delivery management ensures that the service is being delivered at
the required level of performance and quality, as per the contract. Service
delivery management considers performance and manages risk through the
do, check, and act stages of PDCA.
Relationship management seeks to keep the relationship between the
economic operator and the contracting authority open and constructive,
aimed at resolving or easing tensions and identifying potential problems at
an early stage, while also identifying opportunities for improvement.
Contract administration handles the formal governance of the contract
and changes to documentation during the life of the contract.
242
243
244
Questions??
245
Thank You!
246