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: - DBFOT (Design, build, finance, operate,

transfer)

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, pre-
construction 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 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”).

• Financial capacity
 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