Transcript 1-012 - Template - Road
Operation, Maintenance & Tolling in Road Sector
:
Potential, Progress & Way Forward
Perspective of Madhya Pradesh
Vivek Aggarwal MD MPRDC
Connecting People Through Quality Infrastructure
Road Network of Madhya Pradesh
National Highways State Highways Major District Roads Village Roads 4709 10966 19574 91789 24089 1442.81
10966 67700 (PMGSY)
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 Ongoing BOT (Toll) BOT (Toll + Annuity) BOT (Annuity) ADB Regular Contract ROB/RUB Border Checkpost OMT Building Works Projects in Pipeline ADB Loan IV 4 Lanning Of 3 State Highways on BOT (Toll) Grand Total Cost (Crores) 16053 3260 4578 4159 1689 1645 1094 45 165 3000 4500 40188
Our Projects: Cost Share in Crores of Rupees
BOT(Annuity), 4578 Others, 2949 ADB, 7159 RC, 1689 BOT(Toll And Annuity), 3620 BOT(Toll), 20553
BOT Models
1.
2 3.
4 5.
OMT Model BOT (Toll) Model BOT (Toll + Annuity) Model BOT (Annuity) Model Deemed Shadow Fee Model
• • • • • • MPRDC has envisaged to take up roads on OMT (Operate Maintain & Transfer) mode under Public Private partnership.
Above roads are developed by MPRDC through ADB funding/Budgetary Support of the State Government.
15 such roads are identified by MPRDC amongst which 3 roads are awarded on Premium & 1 is under tender stage. Concession Period – Project specific, normally 9-12 years Concessionaire to undertake management, operation & maintenance of Highways Augmentation of facility to be done
• • • • • Construction, monitoring and inspection by Independent Engineer.
Remuneration, cost & expenses of Independent Engineer to be paid by the Concessionaire in four six monthly installments.
Concessionaire to pay Concession Fee to the Authority.
Concession Fee is the bidding parameter.
This fee to increase by 10% per year as compared to the immediately proceeding year.
• • • • • • • Concessionaire can seek O&M support also.
User Fee - pre-decided, increase on the basis of WPI Toll on only commercial vehicles.
Passenger vehicles are exempted from toll.
Escrow mechanism for fund flow.
Capital cost for road improvement along with maintenance of roads.
Cost to be incurred on Land Acquisition & Utility Shifting will be borne from State Highway Fund.
• • • • Conditions Precedent to be satisfied by the Concessionaire within 45 days from the date of Concession Agreement and prior to COD: Submission of Performance Security.
Execution of Escrow Agreement.
Legal opinion of the Legal Counsel on the concession.
Procurement of Right of Way to the Site within 30 days notice given by the Concessionaire upon providing Performance Security.
COD within 45 days from the date of Concession Agreement.
In case of delay, damages @ 0.2% of Performance Security for each day.
• • Provision for Change of Scope.
Force Majeure i.
Act or event which is beyond the reasonable control of the affected party.
ii.
Affected Party is unable to prevent by exercising due diligence & Good Industry Practice.
iii. has Material Adverse Effect on the Affected Party.
i.
Types of Force Majeure: Non-Political Event ii.
Indirect Political Event iii. Political Event
Effects of Force Majeure on Concession Prior to COD period for achieving COD shall be extended by a period equal to the duration of Force Majeure event.
After COD: • • Concession Period shall be extended in proportion to the loss of fee on a daily basis, if daily toll collection is less than 90% of average daily fee.
Loss of 25% in collection of fee as compared to Average Daily Fee for 4 days entitles the Concessionaire to extension of 1 day in the Concession Period.
Initiatives of MPRDC - BOT(OMT)MODEL
TYPES OF FORCE MAJEURE
Non-Political Event Indirect Political Event boycotts etc.
ACTS
Act of God, epidemic, adverse weather conditions, earthquake, landslide, cyclone, flood, strikes, Act of war, industry or state wide strike, civil commotion, political agitation
ALLOCATION OF COST AFTER COD TERMINATION PAYMENT
Party shall bear their respective Force Majeure Cost & neither party shall require to pay to the other party any cost.
50% of debt due less insurance cover payable to the concessionaire Force Majeure cost shall be reimbursed by MPRDC to the concessionaire.
Amount equal to the debt due Payable to the Concessionaire Political Event Change in Law, unlawful revocation of any clearance, license, permit, authorization, NOC, consent, approval of exemption required by the concessionaire.
Force Majeure cost shall be reimbursed by MPRDC to the concessionaire.
Amount equal to the debt due payable to the Concessionaire NOTE: - Upon Occurrence of Force Majeure prior to COD, the parties shall bear their respective cost & no Party shall pay to other party any cost.
Initiatives of MPRDC - BOT(OMT)MODEL
Termination & Termination Payment
Termination Termination Payment
Termination for Concessionaire Default During Construction Period: Amount equal to 50% of debt due.
Termination for Authority Default i.
ii.
Debt Due Product of Average Daily Fee multiplied by 60.
9 10 11 12 1 2 3 4 5 6 7 8
S. No.
13 14 15
Projects identified for OMT
Name of Road
Bhopal-Vidisha Road Vidisha-Kurwai Road Sagar-Rehli Road Tikamgarh- Orchha Road Jabalpur-Amarkantak Road Mandla- Kanha Road Khargone- Barwani Road Barwah- Damnod Road Badnawar- Thandla Road Pachor- Shujalpur- Ashta- Kannod Road Budhi-Rehti-Nasrullaganj-Khategaon Bela- Govindpur- Churhat Road Nagod- Jasso- Sahela-Mohindra- Amarganj Road Porsa- Mohgaon- Seondha Road Lukwasa-Ishagarh- Chanderi Road
Total SH. No.
SH-18 SH-19 SH-15 SH-11A SH-22 SH-38 SH-26 SH-38 SH- 18 SH-41 & 51 SH- 22 SH-18 SH-52 SH-19 SH-10
Length (in Kms.)
36.15
74.6
42.2
78.4
221.8
59 85.2
60 78.8
127.4
87.40
56.6
104.7
77.4
73.4
1263.05
OMT Projects
S.N
O
1 2
NAME OF ROAD S.
H.
N O.
38 Badwah Dhamnod Badnawar Thandla 18
LENGTH (in KM)
60
CAPITAL COST (in CRORES)
18.49
NAME OF CONCESSIONAIRE
Agroh Infra
PREMIUM (Per Year)
2.07 Cr.
78.8
8.68
Eagle Infra 0.35 Cr.
3 Budhni-Rehti Nasrullaganj Khategaon 22 87.40
5.50
Madhav Infracon 2.52 Cr.
226.2
32.67
4.94
OMT Project Under Tender Stage
1
S.NO
NAME OF ROAD
Bela-Govindhgarh Churhat Road 18
S.H.
NO.
LENGTH (in KM) CAPITAL COST (in CRORES)
56.60
12.20
• • • • • •
Our Strengths
Concessionaire’s faith in MPRDC due to transparency in bidding process.
Lender’s faith in MPRDC ensuring Financial Closure of BOT Projects.
Most of the projects of MPRDC have achieved Financial Closure in spite of nationwide scenario of Infrastructure sector wherein Financial Closures have become difficult.
MPRDC facilitates Concessionaires to achieve FinancialClosure.
Deployment of Supervision and Quality Control Consultants with international expertise.
Deployment of capable construction agencies with introduction of advance machineries and equipments.
Our Strengths
• Adequate Budget provision for Annuity &VGF payments by the State Government.
• • • • • • • Annuity payment along with bonus on due date.
Outsourcing of Expertise.
Consultants are appointed for Feasibility Report/DPR and Supervision of Construction.
Experts like Legal Advisor, Chartered Accountant, Company Secretary, Environment expert, MIS expert, Road Data System Engineer are engaged in house.
In-house financial analysis.
Planning is done well in advance at the head office level.
Fast decision making.
Our Strengths
• Political commitment & support.
• Concessionaires are treated as partner.
• Bills are cleared in 2 to 4 working days.
• All Stake holders are facilitated.
• 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.
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 All payments of Premium Proceeds towards encashment of Performance Security or Bid Security All returns on investments made out of the Fund Application of Fund For Maintenance and Repair of Highways For Meeting any Development Cost of Highway or Infrastructure Project For Project Preparation, Pre Tender Activities, Cost towards Utility Shifting, Land Acquisition
Accident Response System
• • • • Implementation of ARS system on PPP mode is probably a first in the world.
State wide implementation of ARS will be first in country.
ARS to address safety requirements in the larger perspective.
Technical Assistance through ADB for capacity building in road safety.
• • • • 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.
A Road Safety Cell is created in MPRDC.
MPRDC has engaged an agency for ARS on Annuity basis.
ARS includes centralized call centre, GIS based automatic vehicle tracking system (AVTS), Computer aided dispatch system, Traffic Management Centre.