MPRDC

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MANAGING PPPs

Institutional Framework for Contract Management and Monitoring

Vivek Aggarwal MD MPRDC

Connecting People Through Quality Infrastructure

MPRDC

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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.

Madhya Pradesh Road Development Corporation

MPRDC

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Invite private investment by providing grant / premium to / by the concessionaire on competitive bidding

Our Projects

Our Projects

MPRDC

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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

MPRDC

55

ADB, 7159

RC, 1689

BOT(Toll), 20553

BOT(Toll And Annuity), 3620

Others, 2949

BOT(Annuity), 4578

MPRDC

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Project Development

Identification of project. Feasibility Study-

By feasibility Consultant selected through open bidding.

Financial Analysis- In house

Tender Documentation- based on Model documents.

Approval of SLEC- Chaired by the Chief Secretary GoMP.

Cabinet Approval. Approval of VGF from Empowered Institution of GoI.

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MPRDC

Bidding Two stage bidding.

RFQ & RFP

e-tendering.

Pre-bid Conference at each stage.

Tender Evaluation Committee- Chaired by Technical Advisor MPRDC.

Tender Committee-Chaired by the Chief Secretary GoMP.PS PWD, PS Finance & MD MPRDC are

members.Approves the bid.

LOA is issued on the day on which bid is approved.

MPRDC

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Contract Milestones

• 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.

MPRDC

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Conditions Precedent to be fulfilled by Concessionaire

Submission of Performance Security within 180 days from the date of signing of contract.

Execution of the Escrow Agreement.

Execution of the Substitution Agreement.

Procurement of all Applicable Permits relating to environmental protection and conservation of the Site.

Execution of Financing Agreement.

Legal opinion of the Legal Counsel on the concession.

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.

MPRDC

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Conditions Precedent to be fulfilled by MPRDC

Procurement of Right of Way to the site.

Procurement of Environmental Clearance.

Procurement of GAD from Railway.

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.

MPRDC

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Pre-Construction Activities

1. Land Acquisition2. Environmental Clearances3. Approval of Designs4. Utility Shifting5. Mobilization of Man & Machinery

at the site.

MPRDC

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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.

MPRDC

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Financial Closure

• Conditions Precedent are fulfilled before Financial Closure.

• State Support Agreement is executed amongst the State Government, MPRDC & the Concessionaire.

• 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 Financial Closure.

• Appointed Date is the date of Financial Closure or the date of start of work which ever is earlier.

• Escrow mechanism is followed for all deposits & withdrawals.

Milestones during Construction Period

• Project Milestone- I: 180th day from Appointed Date.

• Project Milestone- II: 365th day from Appointed Date.

• Project Milestone- III: 600th day from Appointed Date.

• Scheduled date for completion of Project is 730th day from Appointed Date.

• In the event of failure of achieving project milestone, damages payable is 0.1% of Performance Security until such milestone is achieved.

MPRDC

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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.

MPRDC

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Ensuring Quality• 3-tier system of checking

• PMC of Concessionaire• Independent Quality Control Engineer• Officers of MPRDC

• Quarry approval after thorough testing.

• Field & lab testing is mandatory as per the norms of MORTH.

• Use of Graders for maintaining the camber at sub grade/GSB level.

• Crushed GSB• Layer -1 (drainage) Coarse graded Grade-I.• Layer -2 Close graded Grade-II.

• WMM in place of WBM with pavers.

• Use of Sensor Paver in place of mechanical paver for BT works.

• Use of RMC plant in place of normal concrete mixers.

MPRDC

Dispute Resolution

• 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.

• 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.

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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.

MPRDC

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Our Strengths

• Concessionaire’s faith in MPRDC due to transparency in bidding process.

• Lender’s faith in MPRDC ensuring Financial Closure of BOT Projects.

• Deployment of Supervision and Quality Control Consultants with international expertise.

• 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.

MPRDC

Our Strengths• 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.

• Political commitment & support.

• Concessionaires are treated as partner.

• Bills are cleared in 2 to 4 working days.

• All Stake holders are facilitated.

MPRDC

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.

MPRDC

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Innovative Financial Models

MPRDC

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1. BOT (Toll + Annuity) Model

2. BOT (Annuity) Model

3. Deemed Shadow Fee Model

4. OMT Model

Innovative Financial Models

MPRDC

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Projects Cost (Crores)

24 Border Checkposts 1094

35 ROBs / RUBs 1645

State Highway Fund

MPRDC

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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 FundAll 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

MPRDC

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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