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MPRDC

Operation, Maintenance & Tolling in Road Sector : Potential, Progress & Way Forward Perspective of Madhya Pradesh. MPRDC. 1. Connecting People Through Quality Infrastructure. Road Network of Madhya Pradesh. Category. Total Length ( in Km).

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MPRDC

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  1. Operation, Maintenance & Tolling in Road Sector: Potential, Progress & Way Forward Perspective of Madhya Pradesh MPRDC 1 Connecting People Through Quality Infrastructure

  2. Road Network of Madhya Pradesh Category Total Length ( in Km) PWD MPRDC MPRRDA 4709 - 1442.81 - National Highways National Highways National Highways National Highways National Highways 4709 4709 4709 4709 - - - - 1442.81 1442.81 1442.81 1442.81 - - - - State Highways State Highways State Highways State Highways State Highways 10966 10966 10966 10966 10966 - - - - - 10966 10966 10966 10966 10966 - - - - - Major District Roads Major District Roads Major District Roads Major District Roads Major District Roads 19574 19574 19574 19574 19574 17317 2257 - - - - - Village Roads Village Roads Village Roads Village Roads Village Roads 91789 91789 91789 91789 91789 24089 24089 24089 24089 24089 - - - - - 67700 (PMGSY) 67700 (PMGSY) 67700 (PMGSY) 67700 (PMGSY) 67700 (PMGSY) Total 127038 127038 127038 127038 127038 41671.50 41406 41671.50 41671.50 41671.50 14665.81 14400.31 14400.31 14400.31 14400.31 67700.00 Total Length ( in Km) Category Total Length ( in Km) Category Total Length ( in Km) PWD PWD MPRDC MPRRDA Category Category Category Category Category Category Total Length ( in Km) Total Length ( in Km) Total Length ( in Km) Total Length ( in Km) Total Length ( in Km) Total Length ( in Km) Total Length ( in Km) Total Length ( in Km) Total Length ( in Km) PWD PWD PWD PWD PWD PWD PWD PWD PWD MPRDC MPRDC MPRDC MPRDC MPRDC MPRDC MPRDC MPRDC MPRDC MPRDC MPRRDA MPRRDA MPRRDA MPRRDA MPRRDA MPRRDA MPRRDA MPRRDA MPRRDA Category Category Total Length ( in Km) PWD MPRDC Category Total Length ( in Km) PWD Category Total Length ( in Km) Category 17317 17317 17317 17317 2257 2257 2257 2257 MPRDC Total Total Total Total 67700.00 67700.00 67700.00 67700.00 2

  3. 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. MPRDC

  4. Our Projects Invite private investment by providing grant / premium to / by the concessionaire on competitive bidding MPRDC 4

  5. Our Projects MPRDC 5

  6. Our Projects: Cost Share in Crores of Rupees MPRDC 6

  7. BOT Models MPRDC 7

  8. Initiatives of MPRDC - BOT(OMT)MODEL MPRDC • 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 8

  9. Initiatives of MPRDC - BOT(OMT)MODEL MPRDC • 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. 9

  10. Initiatives of MPRDC - BOT(OMT)MODEL MPRDC • 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. 10

  11. Initiatives of MPRDC - BOT(OMT)MODEL MPRDC • 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. 11

  12. Initiatives of MPRDC - BOT(OMT)MODEL MPRDC • Provision for Change of Scope. • Force Majeure Act or event which • is beyond the reasonable control of the affected party. • Affected Party is unable to prevent by exercising due diligence & Good Industry Practice. • has Material Adverse Effect on the Affected Party. • Types of Force Majeure: • Non-Political Event • Indirect Political Event • Political Event 12

  13. Initiatives of MPRDC - BOT(OMT)MODEL MPRDC 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. 13

  14. Initiatives of MPRDC - BOT(OMT)MODEL MPRDC 14

  15. Initiatives of MPRDC - BOT(OMT)MODEL MPRDC Termination & Termination Payment 15

  16. Projects identified for OMT MPRDC 16

  17. OMT Projects MPRDC 17

  18. OMT Project Under Tender Stage MPRDC 18

  19. Our Strengths MPRDC 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. 19

  20. 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. MPRDC 20

  21. 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. MPRDC 21

  22. State Highway Fund MPRDC 22

  23. Accident Response System MPRDC 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. 23

  24. 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….. MPRDC Connecting People Through Quality Infrastructure 24

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