Transcript 1-012 - Template

MANAGING PPPs
Institutional Framework for Contract
Management and Monitoring
Vivek Aggarwal
MD MPRDC
Connecting People Through Quality Infrastructure
Madhya Pradesh Road Development Corporation
Incorporated as wholly owned State Govt. Company under
Companies Act 1956, in July 2004.
‘Highway Authority’ for State Highway.
 Upgrades, Constructs and Strengthens the total length of
State
Highways.
 Develops projects in the State on Public Private Partnership
basis.
 The Hon’ble Chief Minister of Madhya Pradesh is the
chairman, Hon’ble Minister of Public Works Department & the
Chief Secretary are the Vice Chairmen, the Principal
Secretaries of the Finance dept., Forest Dept., Urban
Administration & development and Mining Dept. are the
members of the Board.
 MD, MPRDC is also one of the director.
Our Projects
Invite private investment by providing grant / premium
to / by the concessionaire on competitive bidding
Our Projects
Category/Model
Cost (Crores)
Ongoing
BOT (Toll)
16053
BOT (Toll + Annuity)
3260
BOT (Annuity)
4578
ADB
4159
Regular Contract
1689
ROB/RUB
1645
Border Checkpost
1094
OMT
45
Building Works
165
Projects in Pipeline
ADB Loan IV
3000
4 Lanning Of 3 State Highways
on BOT (Toll)
4500
Grand Total
40188
Our Projects: Cost Share in Crores of Rupees
BOT(Annuity),
4578
ADB, 7159
Others, 2949
RC, 1689
BOT(Toll And
Annuity), 3620
BOT(Toll), 20553
Project Development
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Identification of project.
Feasibility StudyBy feasibility Consultant selected through
open bidding.
Financial AnalysisIn house
Tender Documentationbased on Model documents.
Approval of SLECChaired by the Chief Secretary GoMP.
Cabinet Approval.
Approval of VGF from Empowered Institution of GoI.
Bidding
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Two stage bidding.
RFQ & RFP
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e-tendering.
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Pre-bid Conference at each stage.
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Tender Evaluation CommitteeChaired by Technical Advisor MPRDC.
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Tender CommitteeChaired by the Chief Secretary GoMP.
PS PWD, PS Finance & MD MPRDC are members.
Approves the bid.
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LOA is issued on the day on which bid is approved.
Contract Milestones
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The Concession Agreement has to be signed within 45 days from the
date of issue of LOA.
SPV is needed to be incorporated for signing the
Concession Agreement.
Concurrence on the incorporation of SPV is
accorded by MPRDC after examination by the
Company Secretary.
Financial Closure within 180 days of signing of Concession
Agreement. Upon failure, damages @0.1% of Performance
Security upto120 days & 0.2% for further 80 days.
Conditions Precedent to be fulfilled by
Concessionaire
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Submission of Performance Security within 180 days from the date of
signing of contract.
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Execution of the Escrow Agreement.
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Execution of the Substitution Agreement.
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Procurement of all Applicable Permits relating to environmental
protection and conservation of the Site.
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Execution of Financing Agreement.
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Legal opinion of the Legal Counsel on the concession.
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Upon failure to meet Conditions Precedent, damages for delay
@ 0.2 % of the Performance Security for each day,
subject to a maximum of 20% of Performance
Security.
Conditions Precedent to be fulfilled by MPRDC
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Procurement of Right of Way to the site.
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Procurement of Environmental Clearance.
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Procurement of GAD from Railway.
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Upon failure to meet Conditions Precedent, damages for delay
@ 0.1 % of the Performance Security for each day,
subject to a maximum of 20% of Performance
Security.
Pre-Construction Activities
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2.
3.
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5.
Land Acquisition
Environmental Clearances
Approval of Designs
Utility Shifting
Mobilization of Man & Machinery
at the site.
Pre-Construction Activities
• Land Acquisition and Environmental Clearances are planned and
executed well in advance.
• Chief General Manager at Head Office & Divisional Manager
coordinate with District Administration.
• NOC of State Forest Department, permissions for utility shifting,
tree cutting permission etc are procured before Appointed
date.
Financial Closure
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Conditions Precedent are fulfilled before Financial Closure.
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State Support Agreement is executed amongst the State Government,
MPRDC & the Concessionaire.
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Most of the projects of MPRDC have achieved Financial Closure in spite
of nationwide scenario of Infrastructure sector wherein Financial
Closures have become difficult.
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MPRDC facilitates Concessionaires to achieve Financial
Closure.
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Appointed Date is the date of Financial Closure or the date of
start of work which ever is earlier.
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Escrow mechanism is followed for all deposits &
withdrawals.
Milestones during Construction Period
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Project Milestone- I: 180th day from Appointed Date.
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Project Milestone- II: 365th day from Appointed Date.
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Project Milestone- III: 600th day from Appointed Date.
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Scheduled date for completion of Project is 730th day
from Appointed Date.
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In the event of failure of achieving project milestone,
damages payable is 0.1% of Performance Security until such
milestone is achieved.
Monitoring during Construction
 Monitoring of Project by Independent Engineer.

Appointed through open bidding as per Concession
Agreement.
 Regular monitoring by MPRDC officers.
 Change of Scope & Extension of Time (EOT)
 There is a Advisory Committee comprising of Technical
Advisor, Chief Engineer (BOT), DGM (Technical),
DGM (BOT), Concessionaire, Independent
Engineer & Divisional Manager.
 Advisory Committee examines the proposals of
the Concessionaires & make the recommendations.
 MD decides with the approval of BOD.
Ensuring Quality
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3-tier system of checking
• PMC of Concessionaire
• Independent Quality Control Engineer
• Officers of MPRDC
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Quarry approval after thorough testing.
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Field & lab testing is mandatory as per the norms of MORTH.
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Use of Graders for maintaining the camber at sub grade/GSB level.
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Crushed GSB
• Layer -1 (drainage) Coarse graded Grade-I.
• Layer -2 Close graded Grade-II.
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WMM in place of WBM with pavers.
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Use of Sensor Paver in place of mechanical paver for BT works.
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Use of RMC plant in place of normal concrete mixers.
Dispute Resolution
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Conciliation
 Amicable settlement through mediation of Independent Engineer.
 Referring the dispute to the Secretary PWD & the Chairman of BOD of the
Concessionaire for amicable settlement.
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Arbitration
 Arbitration by a Board of Arbitrators.
 There shall be a board of 3 arbitrators of whom each party
shall select 1, and the 3rd arbitrator shall be appointed by
the 2arbitrator so selected.
 Arbitration in accordance with the rules of
Arbitration.
Post COD Contractual Issues
• Maintenance
 Annual Maintenance Programme
 Roughness Test & BBD (Benkelman Beam Deflection) Test
 Monitoring by Chief Engineer(Maintenance) & Divisional
Manager.
 Road Data System
 Penalty for non-compliance
• Toll Collection MPRDC ensures toll collection with the help of District
Administration.
 Standardized software for automation
• Premium/ O&M Grant
 As per Concession Agreement.
• Road Safety
 Through Accident Response System.
Our Strengths
•
Concessionaire’s faith in MPRDC due to transparency in bidding process.
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Lender’s faith in MPRDC ensuring Financial Closure of BOT Projects.
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Deployment of Supervision and Quality Control Consultants with
international expertise.
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Deployment of capable construction agencies with introduction of
advance machineries and equipments.
• Adequate Budget provision for Annuity &VGF payments by the
State Government.
• Annuity payment along with bonus on due date.
Our Strengths
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Outsourcing of Expertise.
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Consultants are appointed for Feasibility Report/DPR and Supervision of
Construction.
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Experts like Legal Advisor, Chartered Accountant, Company
Secretary, Environment expert, MIS expert, Road Data System Engineer are
engaged in house.
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In-house financial analysis.
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Planning is done well in advance at the head office level.
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Fast decision making.
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Political commitment & support.
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Concessionaires are treated as partner.
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Bills are cleared in 2 to 4 working days.
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All Stake holders are facilitated.
Accident Response System
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Implementation of ARS system on PPP mode is probably a first in the
world.
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State wide implementation of ARS will be first in country.
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ARS to address safety requirements in the larger perspective.
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Technical Assistance through ADB for capacity building in road safety.
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Accident Response System & Traffic Management Centre in
Madhya Pradesh including operation & maintenance for 5
years with estimated cost of Rs.12.50 crores has been proposed.
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A Road Safety Cell is created in MPRDC.
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MPRDC has engaged an agency for ARS on Annuity basis.
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ARS includes centralized call centre, GIS based automatic
vehicle tracking system (AVTS), Computer aided
dispatch system, Traffic Management Centre.
Innovative Financial Models
1.
BOT (Toll + Annuity) Model
2.
BOT (Annuity) Model
3.
Deemed Shadow Fee Model
4.
OMT Model
Innovative Financial Models
Projects
Cost (Crores)
24 Border Checkposts
1094
35 ROBs / RUBs
1645
State Highway Fund
GoMP has enacted the Madhya Pradesh Rajmarg Nidhi Adhiniyam 2012 to
provide for the establishment of a Fund for investments in the highways &
infrastructure projects of the State.
Corpus of the Fund is 125 Crores (approx).
Executive Committee under the Chairmanship of Chief Secretary to
administer the fund.
Sources of Fund
Application of Fund
All payments of Premium
For Maintenance and Repair of Highways
Proceeds towards encashment of Performance
Security or Bid Security
For Meeting any Development Cost of Highway
or Infrastructure Project
All returns on investments made out of the
Fund
For Project Preparation, Pre Tender Activities,
Cost towards Utility Shifting, Land Acquisition
A country has to pay for its roads.
Whether it has them or not, it pays
more for those it does not have.
So Lets Have them…..
Connecting People Through Quality
Infrastructure