Bidding Template

Bidding template

Project location: -

Raipur to Bilaspur, State of Chhatisgarh

Project offer: -

4 – laning of the existing road

Length of project: -

117.00 km

Type of Project: transfer)

DBFOT

(Design,

build,

finance,

operate,

Preliminary cost estimates EPC cost: –

Rs. 672 Cr.

Total cost: –

Rs. 840 Cr. Approx. (add 25% to the EPC cost, includes contingencies, IDC, financing costs, preconstruction expenses, etc.)

Design of project: -

to be provided by consultant

Final cost estimate: -

to be provided by the consultant and estimation by concessionaire

Estimated time for construction: – to be determined Concession period: -

to be determined

Toll rates: -

to be determined

Minimum IRR: -

12%

Debt: Equity ratio: -

70:30 (assumed in RFP)

Growth in traffic volume: -

5% p.a (assumed)

Eligibility criteria – •

Technical capacity

•

Financial capacity

The applicant over the past () years  has paid for, or received payments for, construction of Eligible Project(s); and/or  paid for development of Eligible Project(s) and/ or  Collected and appropriated revenues from Eligible Project(s) such that the sum total of the above is more than Rs. () Crores () (the “Threshold Technical Capability”).

The Applicant shall have a minimum Net Worth (the “Financial Capacity”) of Rs. () () at the close of the preceding financial year. In case of a Consortium, the combined technical capability and net worth of those Members, who have and shall continue to have an equity share of at least 26% (twenty six per cent) each in the SPV, should satisfy the above conditions of eligibility; provided that each such Member shall, for a period of 2 (two) years from the date of commercial operation of the Project, hold equity share capital not less than: (i) 26% (twenty six per cent) of the subscribed and paid up equity of the SPV; and (ii) 5% (five per cent) of the Total Project Cost specified in the Concession Agreement. •

O&M Experience The Applicant shall engage an experienced O&M contractor or hire qualified and trained personnel for operation and maintenance of the project in conformity with the provisions of the concession agreement.

Pros and Cons Pros • • •

Equipment and manpower mobilized for the REL can be used for this project without any additional expenditure A regional office can be established at Raipur to oversee the construction and O&M of projects and save on the overhead costs A large pool of talented manpower can be developed to be deployed on all the projects and also complement each other

Cons •

Concentration of projects in a particular region means overdependence on the economic progress of Raipur