Punjab Infrastructure Development Board
Chandigarh Aug 20, 2008
Development of Punjab Habitat Centre at Mohali Pre-bid Meeting Aug 20, 2008 Punjab Infrastructure Development Board
Habitat Centre • It should provide finest convention facilities and should be able to host premier cultural and entertainment events • It should cover a wide range of activities that would maximize the effectiveness of individuals and institutions • It should have a variety of restaurants with elaborate menu options • The principal resolve should be restore environment and ecology to reflect a balanced, harmonious and improved way of life
Conceptual Idea Built Configuration
To be designed to achieve Platinum LEED rating from Green Building Council- India
Iconic Structure to reflect the image of Punjab
The drawing shown is for illustrative purpose only. Actual design may be different
Site Details…1 • Location – Sector 68 • Area – 4.787 acres of prime land • Adjoining Municipal Council Building • Surrounded by roads on two sides • Proposal to develop adjoining road into urban expressway within Mohali by GMADA in order to provide fast airport connectivity • Proposed IT Park located in the plot opposite Municipal Building
Site Details…2 Mohali City Centre
About 2 Kms
Mohali Stadium
About 2 Kms
Proposed International Airport at Mohali
About 7 kms
Chandigarh Railway Station
About 10 kms
Proposed IT Park
Opposite
Location
Proposed Site
Location
Sector –68 Proposed Site for Habitat Centre
Area – 4.787 acres
Municipal Bhavan
General Development and Control Regulation • Land Use – Habitat Centre • Floor Area Ratio (FAR): 1:3 • Maximum Ground Coverage: 40% • No height restriction subject to clearance from Air Force and other relevant authorities
Project Brief…1 • Project Structure : Design, Build, Operate, Transfer • GMADA Area(About 10% of BUA): – Certain Facilities would be built and handed over to GMADA free of cost immediately after construction – Interiors of GMADA area would be done by GMADA at its own cost – Operation & Maintenance of GMADA area would be under GMADA – Design and Architecture of GMADA Area shall be consistent with the overall design and concept
• Concessionaire Area: Certain minimum development obligations
Project Brief…2
• Concession Period: 35 years (including construction period) • Construction Period : 2 years extendable to maximum 3 years • Bid Parameter : Upfront Concession Fee • Annual Concession Fee : 5% of Upfront Consideration with inflation-linked escalation every year
Project Brief…3
• Upfront Concession Fee payable in two tranches: – Tranche 1: 50% within the stipulated time of the issue of Letter of Intent – Tranche 2: 50% within 6 months of the execution of Concession Agreement
• Annual Concession Fee payable on the Compliance Date
Project Brief…4
• Project Development Fee (Rs. 1 Crore) payable within 3 weeks of issue of LOI • Lease Rental : Rs. 50000 p.a. payable on the date of signing of Lease Deed
Project Brief…3
• Concessioning Authority: Greater Mohali Area Development Authority (GMADA) • Developer: SPC formed by the Private Sector Participant (Selected Bidder) • Confirming Party: The Selected Bidder
Project Implementation
15
Development Brief…1 • The spatial, infrastructural and aesthetical demands of all facilities should be blended well with the aesthetics, design, energy conservation concepts, ecofriendliness and green building architecture. • Detailed design should conform to the prevalent building bye-laws and development regulations • The design should also conform to ‘LEED INDIA – Green Building Rating System, Abridged Reference Guide- For New Construction & Major Renovations (LEED – NC) Version 1.0’ such that the Project gets “LEED – Certified” rating under the Rating system.
Development Brief…2
• Scope of Work • Conceptualization, Planning, Designing, Detailing, Construction and Implementation of the Project Facilities and Support Facilities • Carry out Minimum Development Obligations • Technical and Financial Closure • Marketing of the Project.
Development Brief…2
• Scope of Work • Routine and Periodic Maintenance of Project Components in Developer Area; and Common Areas • Operation & Management of Project Facilities in Developer Area • Transfer of Project Facilities to GMADA at the end of Authorization Period as prescribed in RFP
Essential Facilities with the Concessionaire • Business Complex - banks and corporate offices, which will twine as an integral part of the overall Habitat Centre (2,33,600 sqft minimum)
• Art Gallery/Exhibition Space (5000 sqft minimum)
Pictures shown are for illustrative purpose only. Actual design may be different Pictures shown are for illustrative purpose only. Actual design may be different
Essential Facilities with the Concessionaire • Conference and Banquet Halls (47250 sqft minimum)
• Administration Block (4500 sqft minimum)
• Support Facilities, Parking and On-site Infrastructure
Pictures shown are for illustrative purpose only. Actual design may be different Pictures shown are for illustrative purpose only. Actual design may be different
Optional Facilities with the Concessionaire • Lodging and Boarding Facility (indicative area1,22,700 sqft ) •
10% of the total rooms shall be reserved for GMADA at a concessional rate of Rs. 1000/per day subject to an increase of 10% every two years
• Ethnic/High-end Shopping (indicative area -31050 sqft )
Pictures shown are for illustrative purpose only. Actual design may be different Pictures shown are for illustrative purpose only. Actual design may be different
Essential Facilities to be Transferred to GMADA…1 • Conference & Banquet Facility
( Area 3500 sqft)
• Health Club, Swimming Pool, Filtration Plant and Changing Rooms (18000 sq.ft) • Restaurants (3 nos) • Restaurant 1 (2500 sqft) • Restaurant 2 (4600 sqft) • Restaurant 3 (4000 sqft)
Pictures shown are for illustrative purpose only. Actual design may be different
Essential Facilities to be Transferred to GMADA…3 • Library & Resource Centre (Area: 8500 sqft) • Family Hall (Area 9000 sqft) • Activity Rooms (3 x 2500 sqft) • Open Space for Club Activities
(7000 sqft)
• Area in Administration Block (1500 sqft)
Pictures shown are for illustrative purpose only. Actual design may be different Pictures shown are for illustrative purpose only. Actual design may be different
Bidding Process PIDB & IL&FS IDC
Notice Inviting Proposal
PIDB & IL&FS IDC
Issue of RFP document
PIDB & IL&FS IDC
Pre Proposal Conference
Private Sector Parties
Submission of Technical & Financial Proposal
PIDB & IL&FS IDC
Evaluation of Technical & Financial Proposal
Concessioning Authority & PIDB Selected Bidder PIDB& IL&FS IDC Concessioning Authority & Selected Bidder & PIDB
Issue of Notice of Award Compliance of Preconditions Finalization of Concession Agreement Execution of Concession Agreement
Proposal Requirement…1 Each Bidder shall submit only one proposal Special Purpose Company to be mandatorily incorporated by the preferred bidder/bidding consortium Maximum number of members/partners in consortium, partnership or joint venture allowed is limited to 5, including the Lead Member Lead Member of Consortium shall hold at least 51% equity in the SPC. Other members shall hold at least 10% equity in the SPC at all times during a period which shall not be less than eight (8) years from the date of signing of the Concession Agreement.
Proposal Requirement…2 Period of Proposal Validity:
180 days from Proposal Due Date
Amount of Proposal Security:
Rupees One Crore Only in form of Demand Draft/ Bank Guarantee from a scheduled bank (not being cooperative bank)
Amount of Project Development Fees:
Rupees One Crore only
Proposal
(As per Volume 1: Section1- Part 6 of RFP) Outer Envelope Envelope A : Capability Statement Envelope B: Technical Proposal Envelope C: Financial Proposal
No of Copies of Proposal:
Original + 2 Copies
Concession Period:
35 years; inclusive of construction period of 2 years extendable by max 1 year in two blocks of 6 months each subject to payment of additional premium (i)First extension – 5% of Upfront Concession Fee (ii)Second extension – 10% of Upfront Concession Fee
Outer Envelope • • • • • • •
• •
Covering Letter/Application as per Appendix A1 of Section II, Volume I of RFP Checklist of submissions as per Appendix A2 of Section II, Volume I of RFP Bid Security Letter of Undertaking that the Bidder is not barred from participating in such projects as per Appendix A3 Section II, Volume I of RFP. Project Undertaking as per Appendix A4 of Section II of Volume I of this RFP. An undertaking to pay the Project Development Fee as per Appendix A5 of Section II of Volume I In case of Bidder being a Consortium: Consortium Agreement duly signed by all members of the Consortium as per Appendix A6 of Section II, Volume I Power of Attorney and nominating one member as Lead Member of the Consortium as per Appendix A7 of Section II, Volume I Power of Attorney for the Bid Signatory as per Appendix A8 of Section II, Volume I of this RFP. Envelopes 1, 2 and 3 as mentioned earlier containing Capability Statement, Technical Bid and Price Bid.
Envelope 1: Capability Statement •
General Information of the Bidder (Appendix B1 of Volume 1 Section II)
•
Financial Data (Appendix B2 of Volume 1 Section II)
•
Development/ Construction Experience Details (Appendix B3 of Volume 1 Section II)
Envelope 2: Technical Proposal •
Undertaking by the Bidder as per Appendix C1 of VolumeI - Section II
•
A copy of the RFP document duly signed on each page
Envelope 3: Financial Proposal •
Price Bid and Letter as per Form of Bid Letter as per Appendix D1 of Volume 1 Section II
Key Features of the Concession Agreement
• Conditions Precedent of the Concessioning Authority – Hand over vacant possession of the site – Execute Project Site Lease Deed – Procure change in land-use, if required – Appoint Independent Engineer – Constitute Maintenance Board – Issue necessary notifications /Government orders, if required, regarding implementation of the Project Pictures shown are for illustrative purpose only. Actual design may be different
Key Features of the Concession Agreement
• Conditions Precedent of the Concessionaire – Make all applications at its cost and procure Applicable Permits – Provide notarized true copies of its constitutional documents and board resolutions authorizing the execution, delivery and performance of the agreement – Achieve Financial Closure and provide notarized true copies of the Financing Documents – Procure approval of DPR by the Independent Engineer – Procure Environment Clearance – Confirm in writing that all representations and warranties forming part of the agreement are true and correct
Pictures shown are for illustrative purpose only. Actual design may be different
Key Features of the Concession Agreement
• Obligation to Satisfy Conditions Precedent – Each party shall make reasonable efforts to comply with CP within 180 days of execution of Concession Agreement – If CP are not met by the Concessioning Authority, both Upfront Concession Fee and Construction Performance Security shall be refunded in full, provided there are no other outstanding claims on the Concessionaire – If CP are not met by Concessionaire, Performance Security will be forfeited by the Concessioning Authority – The parties may, by mutual agreement, extend the time for fulfilling Conditions Precedent
Pictures shown are for illustrative purpose only. Actual design may be different
Key Features of the Concession Agreement
• No Lease/ Sub-lease of Project Site – The Concessionaire shall not sub-lease the whole or any part of the land comprising the Project Site, leased to it by Concessioning Authority under the Project Site Lease Deed, to any person in any form or under any arrangement, device or method. This is an essential condition of this Agreement, the breach of which shall constitute an Concessionaire Event of Default
Pictures shown are for illustrative purpose only. Actual design may be different
Key Features of the Concession Agreement • Project Monitoring – Concessioning Authority shall, within 6 months of Execution of CA, appoint a consulting firm/company having requisite experience as an Independent Engineer through a competitive bidding process (QCBS) – Role: Review, approve and monitor at the design phasen and construction phase – Concesionaire will have a right to shortlist 3 from a list of 5 shortlisted by CA – CA shall bear the fees and costs of IE
Pictures shown are for illustrative purpose only. Actual design may be different
Key Features of the Concession Agreement
• Project Maintenance Board – To be constituted within 15 days of COD – Will comprise: • • • •
A nominee of CA A nominee of Concessionaire Independent Engiineer Such other members as the Concessioning Authority may determine
– Role: Monitor operations and maintenance of the Project
Pictures shown are for illustrative purpose only. Actual design may be different
Key Features of the Concession Agreement PERFORMANCE SECURITY 1. Construction Performance Security a. Amount – Rs. 10 Crore as Bank Guarantee from a Nationalized/Scheduled Bank and enforceable in Mohali/Chandigarh b. Validity – Till the issuance of Construction Completion Certificate 2. Operations Performance Security a. Amount – Rs. 5 Crore as Bank Guaranatee to be paid one month prior to Scheduled Completion Date, or COD whichever is earlier b. Validity – Until the issue of Vesting Certificate in favour of the Concessioning Authority. c. Enhancement: 15% escalation every 3 years.
Key Features of the Concession Agreement COMPENSATION ON TERMINATION 1. Termination due to Political Force Majeure Event or CA Event of Default •
Upon termination due to a Non Political Force Majeure Event by the Concessionaire or Concessioning Authority, the CA shall pay to the Concessionaire by way of Termination Payment an amount which is higher of: – Aggregate Depreciated Historic Cost (DHC) of the tangible and movable assets of use to the CA Less any amount due from the Concessionaire and insurance claims claimed or received; – AND – Debt due
•
Performance Security shall be returned, provided there are no other outstanding claims on the Concessionaire
Key Features of the Concession Agreement COMPENSATION ON TERMINATION 2. Termination due to Non-political Force Majeure Event •
Concessioning Authority shall refund the Performance Security to the selected bidder
3. Termination due to Concessionaire Event of Default •
CA shall forfeit and retain the Performance Security
Queries
1.What happens if there is a holiday or other event like BAND etc. in other states? 2.Why there is so heavy amount as Bid Security, Project Development Fee & Construction Performance security for the land measuring 4.7 acres as compared to MOHALI & PATIALA Bus Terminals? These as well as Operations & Maintenance performance security should be revised. 3.Is there any Minimum Upfront Concession fee? 4.What is the tentative schedule for opening of BIDS? 5.How & who will be maintaining GAMADA/PIDB area handed over to them after construction? 6.What will be the number of Banquet halls in Concessionaire control are of 47250 sq. ft.? 7.Is there any minimum number of offices in head “OFFICE COMPLEX”? 8.No Restaurants is provisioned for the bidder/concessionaire, Why? You should allow at least one Restaurant to be run by concessionaire for the concession period. 9. Is there any minimum area defined for parking & support facilities? 10.Are there any specifications for ON Site Infrastructure as well?
11.GAMADA/PIDB should book rooms at least 3-4 days in advance otherwise there could be any problem regarding availability of rooms as one day notice is very short duration? 12.Validity of BID Security Should be 180 days? 13.Can you please elaborate ESCALATION in Annual Concession Fees? 14.You have mentioned 2 types of Annual Fees to GAMADA vi a vis Annual Concession Fees & Annual lease Rental. One should be waived off / eliminated from list. 15.You have mentioned 21 days in Numerals while 15 Days in words on page 36 of Volume I: Section I – Instructions to Bidders to deposit the Project Development Fees to PIDB. Can you correct & clarify the correct time period? 16. Concession period defined on page 36 of Volume I: Section I – Instructions to Bidders is 33 years whereas it has been defined 35 years elsewhere. Could you please check & correct?
17.Could you please reserve some memberships offered for Punjab habitat Centre for Bidder / Concessionaire? 18.Could you explain Point (d) of article 4.5.1 on page 20 of Volume I: Section I – Instructions to Bidders? 19.Is there any provision for the Concessionaire to get Share in Revenue Receivable to GAMADA/PIDB from the Facilities to be handed over to them soon after the construction? 20.When Concessionaire is supposed to build Boarding & Lodging Facilities that means a hotel of 3 star rating or above then we need to run Restaurants, Banquets & Health club etc. Therefore it is requested to give Restaurants, Swimming pool & Health Club Facilities under the control of Concessionaire. In turn revenue sharing or Privileged Membership could be mutually decided between Concessionaire & GAMADA/PIDB 21.As per the Draft Concession agreement page No 18 the Environment Clearance is the liability of the Concessionaire. Our view is that the liability of the same should be of the client
Thank You
