GOVERNMENT OF RAJASTHAN

Business Opportunities in
Highways Development in
Rajasthan

1
 GLIMPSES

Geographically the Largest State of

India
Population : 68.5 million
Administration : 33 districts and & 7
divisions
Culturally Vibrant, exotic state
Temperature Varies from 8 to 46
Rainfall: 100 mm to 650 mm
annually,
Rich in minerals, Petroleum, Coal &
Marble.

2
Road Network in Rajasthan

Length
Category
S. No. (Kms) Percentage
National
1
Highways 8,016 3.80
2 State Highways 15,509 7.35
Major District
3
Roads 6,416 3.04
Other District
4
Roads 29,013 13.76
State Road Density : 61.62 km. per 100 sq. km.
5
National Village
Road Roads
Density : 148 km. per 1001,51,944
sq. km 72.05
Total 2,10,898 100.00

3
Rajasthan State Highways Development
Programme (RSHDP)
Government of Rajasthan envisage to Develop Road Network
Consisting all SH, MDRs & other important roads consisting of
20000km with support of Private Entrepreneurs;
The Program has been named as Rajasthan State Highways
Development Program (RSHDP);

RSHDP envisages Integrated Development of Highway Network in the

State;

The Program consist of 3 Phases;

A Multi Mode Development Model has been adopted;

The total estimate cost is INR 70,000 Crore;

Implementation time horizon 5 Years

4
RSHDP: Program Phasing

PHASE-I : 132 Highways, 8910 km Length

Feasibility Study for all Highways has been completed;
Mode of Implementation has been identified;
Project Financing arrangement have been made;
Bids for Some Projects have been received & for other
Projects under Pipeline;

PHASE-II : 66 Highways, 6200 km Length

Project Highways have been Identified;
Administrative & Financial Sanctions issued by Government;
Bids for Feasibility Study are ready to be invited;

PHASE-III : 4900 km Length

Project Identification is in Progress

5
 RSHDP: Development Modes

Public Private Partnership (PPP)

PPP-VGF Mode
PPP-Hybrid Annuity Mode

Engineering Procurement & Construction

(EPC) Mode

Swiss Challenge Mode (SCM)

6
RSHDP: Project Implementation
Arrangements

Rajasthan Highways Rajasthan State

Rajasthan Toll Policy
Development Act Highways Authority
2015
2014 (RSHA)

Empowered
Council of Empowered
Committee for
Infrastructure Committee (EC) for
Infrastructure
Development (CID) Road Projects
Development (ECID)
chaired by Chief chaired by Chief
chaired by Chief
Minister, Govt. of Secretary, Govt. of
Secretary, Govt. of
Rajasthan; Rajasthan;
Rajasthan;
State Level Bid Approval
Empowered Committee (BAC) for
Committee (SLEC) Road Projects
chaired by Chief chaired by Principal
Secretary, Govt. of Secretary, PWD,
Rajasthan; Govt. of Rajasthan;
7
RSHDP: Rajasthan State Highways Act
2014
Comprehensive Act Covering Development, Maintenance,
Operation & Regulation of State Highways in State of Rajasthan;

Road safety, Control of access,

Control of land appurtenant to Highway,

Delegation of powers to Concessionaire for smooth operation of

project highway etc.
Stringent penalties and effective enforcement to curb drunken
driving, over-loading, over-speeding and other offences which
compromise safety and cause accidents.
No construction within twenty five meters of the road boundary,

Controlled development in the remaining 75m

Stringent and effective measures for encroachments

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Rajasthan State Highways
Authority (RSHA)
Instituted under mandate given in Rajasthan State Highways Act
2014;

Notified under GoR Notification

RSHA shall be an Autonomous body corporate

Chairman Appointed by the State Government;

Rules for the Authority are in process;

A Dedicated Team of 35 officials already in Place under Rajasthan

State Highways Development Program Division;

9
RSHDP Phase-1 Map
 RSHDP : Program Financing
Arrangements

Program State Road Fund : At least 50% *

Funds for
RSHDP Asian Development Bank : US$ 500 million;
Phase-I
have World Bank : US$ 500 million;
been State Budgetary Support : INR 1200 Cr**
fenced
through : Private investment : INR 10500 Cr.

*Provisioned through Section 89 of Rajasthan State Highways Act 2014

** For Land Acquisition & Preconstruction Activities
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RSHDP : PPP-VGF MODE

MCA of Planning Commission has been adopted by the

State;
Project Highways to be Developed as per IRC SP 73-2015

Public Funding upto 40% (VGF) is provided as under:

GoI Support : 20% during Construction

GoR support : 20% (10% Construction & 10% O&M)

Construction Period : 1 to 2 Years

Concession Period : 15 to 20 Years

Rajasthan State Highways Fee Rules 2015

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RSHDP: Projects under Implementation PPP VGF

S. Project Name Length Project Present

No. (km) Cost (INR Position
Cr.)
LOA issued
1 Chomu Chandwaji 15.450 40.00

RFP received on
Hanumangarh - Abohar (Up 15.11.2016
2 42.655 51.50
to Punjab Border)

RFQ received
Pucca Sarna Sri and under
3 41.000 101.00
Ganganagar evaluation

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RSHDP: Rajasthan Hybrid Annuity
Model
O &M period shall be 10 year commencing from date of completion
(COD).

MCA of Planning Commission duly modified by ADB has been adopted

by the State;

Project Highways to be Developed as per IRC:SP-73-2015;

50% of the Project Cost to be paid , adjusted for the Price Index
Multiple during the Construction Period in 5 equal instalments of 10%
each;

Construction Payments are linked to Physical Progress Mile Stones;

Balance Project Cost, shall be payable in 20 biannual instalments

commencing from the 180th day of Commercial Operation Date
(COD).
O&M Payments shall also be payable alongwith biannual instalments
over 10 year period. ( fixed % of Quoted Project cost)
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RSHDP:HAM -Project Mile
Stones
Payment Milestones, the Authority shall disburse, within
15 days of the receipt of each such report, an
instalment equal to 10% of the bid Project Cost,
adjusted for the Price Index Multiple as applicable on
the reference Index Date preceding the date of that
report.
The Payment Milestone for release of payment during
Construction Period shall be as under:
I Payment Milestone On achievement of 20% Physical
Progress
II Payment Milestone - On achievement of 40% Physical
Progress
III Payment Milestone - On achievement of 60% Physical
Progress
IV Payment Milestone - On achievement of 75% Physical
Progress 15
 Annuity Payments during
Operation Period
The Completion Cost remaining to be paid shall be due and
payable in biannual instalments over a period of 10 (ten) years
commencing from COD, along with interest thereon (the
Annuity Payments).
The 1st instalment of Annuity Payments shall be due and
payable within 15 (fifteen) days of the 180th day of COD and
the remaining instalments shall be due and payable within 15
days of completion of each of the successive six months.
Each of the Annuity Payments due and payable during :
(a) 1st , 2nd and 3rd years following the COD shall be equal to 1.5% of the
Completion Cost;
(b) 4th, 5th, 6th and 7th years following the COD shall be equal to 2.5% of the
Completion Cost; and
(c) 8th, 9th and 10th years following the COD shall be equal to 3.5% of the
Completion Cost .
Each of the biannual instalments payable shall be hereunder
shall be paid along with interest. Interest shall
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payable on the
reducing balance of Completion Cost at an interest rate equal
O&M Payments
O&M Payments shall be :
(a) 2% of the Project Cost for each of the 1st,
2nd and 3rd years of the Operation Period;
(b) 3% of the Project Cost for each of the 4th,
5th and 6th years, of the Operation Period; and
(c) 4% of the Project Cost for each of the
remaining years,
O&M payments shall be made in 2 equal
biannual instalments and disbursed together
with the corresponding instalments of Annuity
Payments.
Each instalment of O&M Payments shall be the
product of the Project Cost and the Price Index
Multiple on the Reference Index Date preceding
the due date of payments thereof. 17
RSHDP: HAM- Special Features

Bonus on early completion

In the event that the Concessionaire shall achieve COD
more than 30 days prior to the Scheduled Completion
Date, the Authority shall pay to the Concessionaire a bonus
equal to 1/30% of the Completion Cost for every day by
which COD shall precede the Scheduled Completion Date.
Mobilisation Advance
Upon the Concessionaire furnishing a Bank Guarantee in a
form satisfactory to the Authority, make an advance
payment in a sum not exceeding 10 % of the Project Cost.
The rate of interest on the mobilization advance shall be
equal to the Bank Rate, compounded annually.
Advance shall be deducted in 4 equal instalments from
each of the payments to be made by the Authority to the
Concessionaire.

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RSHDP : EPC Mode

Need for EPC Mode

Languid response of Private Equity investment in PPP Projects
in current growth scenario.
to resolve the hindrances in the construction of Highways and
to ensure seamless construction of Highways .

Advantages of EPC Mode

EPC mode assigns the responsibility for investigation, design
and construction to Contractors for a lump sum price awarded
through competitive bidding, wherein provision for index based
price variation is also available
a fair degree of certainty relating to cost and time for the Govt.
Guaranteed Timeline for Completion
Single Point of Responsibility
Post-Commissioning Services
Performance Specifications
Adopted MoRTHs EPC Agreement framework with slight
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modifications suggested by ADB.
RSHDP : Projects Funded through ADB

GoR through DEA has approached to ADB for Funding RSHDP Phase-I

ADB has agreed for the Funding the Project Highways in a length of
2000km in 2 Phases viz. Tranche-I & Tranche-II under Rajasthan
Highways Improvement Program (RSHIP)
In total 70% of Project Cost amounting to US$ 500m shall be funded
by the ADB & balance cost shall be funded by the GoR;

In total 16 Project Highways having length of 981km have been

selected & Project Highways have been grouped into 4 Packages;

Mixed Mode of Project Implementation has been adopted in Tranche-I

PPP-HAM : Package 1, 2 & 3 (12 Highways, 747km)
EPC Mode : Package 4 ( 4 Highways, 234km)

Tranche-II shall consist of 1000km Highways which shall be identified

shortly & Bidding will start subsequently;

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RSHIP Tranche-I : List of Project
Highways
PKG Nos of Lengt Project Mode Present Tentative
# Roads h Cost Position Time Line
(km) (INR Cr.)
1 4 175.36 334.90 PPP- Bids LOA by Nov
HAM Received 30, 2016
2 2 178.00 346.77 PPP- Bids LOA by Nov
HAM Received 30, 2016
3 6 393.71 968.87 PPP- Bids LOA by Dec
HAM Received 31, 2016
4 4 233.96 616.00 EPC Bids to be Bids to be
invited Issued by Nov
30, 2016
TOTA 16 981.03 2266.54
L

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RSHIP :Tranche-II Tentative List of Project
Highways
S. No. Project Highway Road # Length TPC (INR
(km) Cr.)
1 Neemkathana - Khetri 13 53.220 128.36
2 Khood Dataramgarh - Renwal 8A 51.035 63.11
3 Nasirabad-Mangliawas-Padukalan 102 62.950 112.08
4 Sanchore - Mandar - Ambaji 11 & 11A 118.060 335.95
5 Losal - Salasar - Ratangarh 7 78.603 183.37
6 Palri- Makrana- Khatu including
2D 74.375 189.90
Parbatsar-Bidiyad- Makrana
7 Beawar - Gulabpura 39 42.300 88.87
8 Beawar-Pisangan-Govindgarh- Tahala-
59 & 104 57.060 100.91
Kot-Alniyawas
9 Mandri - Devgarh - Lassani 56 80.626 231.68
10 Lalsot Bassi 24 40.805 71.48
11 Dataramgarh - Khatushyamji Renwal 112 49.285 82.08
12 Bhavi - Pipad - Khinvsar 86C 83.275 115.34
13 Beawar Masuda Goyla 26A 66.940 122.43
14 Gadoj - Behror - Haryana Border 111 46.400 88.01
15 Mundara - Desuri 16 23.305 88.23
16 Kapren- Baran 37A 46.094 159.71
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TOTAL 974.35 2161.00
RSHDP : Projects Funded through
World Bank
GoR through DEA has also approached WB for Funding
RSHDP Phase-I
WB has also in Principal Agreed for the Funding the Project
Highways in a length of 2000km in 2 Phases viz. Tranche-I &
Tranche-II;
The WB shall finance US$ 500m for their component of
RSHDP;
In Tranche-I, 7 Project Highways having length of 611km
have been identified;
WB through GIF has initiated market sounding study to select
appropriate mode of implementation;
PwC has been selected by the GIF for the same & study is
likely to be completed by January 2017;

Bidding for Tranche-I Projects is likely to start in June 2017;

Subsequently, Tranche-II project highways shall be finalized in

consultation with World Bank. 23
 RSHDP: Projects Highways under WB
Tranche-I
Lengt TPC
S. No. Name of Road h (INR Present Status Remarks
(km) Cr.)
Feasibility Study 100% Land
1 Rojari - Bikaner 99.110 176.00
Completed Available
Dungargarh - 158.28 Feasibility Study 100% Land
2 340.00
Saradarshahar Rajgarh 5 Completed Avaialable
UP border to Kaman to Feasibility Study 100% Land
3 34.630 68.86
Pahari to Haryana border Completed Avaialable
Kishangarh Arain - Feasibility Study 100% Land
4 66.980 107.40
Malpura Completed Available
Feasibility Study 97% Land
5 Jhunjhunu - Rajgarh 62.880 101.55
Completed Available
Banar - Bhopalgarh - 126.03 Feasibility Study 91% Land
6 295.90
Kuchera 0 Completed Available
Ramseen - Bhinmal - Feasibility Study 91% Land
7 62.619 225.86
Raniwara Completed Available
1315.5
Total 610.53
7

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RSHDP :WB Tranche-II Tentative List of Project
Highways
S. Project Highway Road # Length TPC (Cr.)
No. km)
1 Udaipur Salumber 32 65.740 125.34
2 Sojat - Desuri - Pindwara 62 87.950 336.07
3 Arai - Sarwar 7E 44.331 96.08
4 Talanpur - Dhanapa - Kawaspura
103 10.300 19.90
(Mining)
5 Lakheri - Bijoliya 29 116.122 263.14
6 Sawai Madhopur to Palighat up to
30 33.960 81.57
State Border.
7 Mines road of Mandalgarh
114 45.830 84.67
(Bhilwara)(Mining)
7 Sawaimadhopur bypass (Lalsot
15.000 91.18
road to Kota road)
8 Sawarda Rupangarh Ajmer 100 42.520 90.00
9 Hurda - Banera 39A 52.700 115.48
10 Banera Bigod 39A 56.700 99.00
11 Salumber- Dhariyawad 12B 45.700 79.18

TOTAL 616.85 1481.61

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RSHDP : The Swiss Challenge Mode*
An unsolicited proposal is received from the project proponent ;

Proposal is examined & if found appropriate, Permission to Proceed is

issued to Project Proponent;
A comprehensive proposal needs to be submitted within a period of three
months, accompanied by earnest security equal to 0.05% of the total
estimated cost of the Project;
The direct cost of preparing DPR shall be mentioned by the proponent in
his proposal;

On acceptance; open Bidding will be invited;

After examination of Bid, if the proposal of proponent is found to be the

lowest, the project is awarded to the project proponent.
In case Bid of other Bidder is found lowest, the project proponent is given
an opportunity to match the lowest Bid within a specified period.

*(As per Rule 79N of RTPP (amendment )Rules 2015)

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RSHDP: Projects under Swiss Challenge Mode
PK Districts Nos Lengt Tentat Project Proponent Likely Date
G of h ive of
# Road (km) Cost submission
s (INR of DPR
Cr.)
1 Alwar, Bharatpur 10 508 1561 CML-MTD Jan 20, 2017
Constructions Ltd.
2 Baran, Bundi, Tonk, 9 514 1436 Binapuri Holdings Bhd. -
Sawai Madhopur, (LM)-MCCO
Dholpur, Karauli
3 Barmer, Jalore, Pali 7 474 1305 China Jan 20, 2017
Communications
Construction Company
(LM)- NAJCOM Sdn
Bhd.
4 Bikaner, Churum 8 554 1523 China Jan 20, 2017
SGNR, Communications
Hanumangarh Construction Company
(LM)- NAJCOM Sdn Bhd
5 Jodhpur, Pali 7 568 1562 China Railway Nov 30, 2016
Construction
Corporation (LM)-DMIA
6 Nagaur, Sikar 9 510 1036 China Railway Nov 30, 2016
Construction
Corporation (LM)-DMIA
7 Churu, Bikaner, 11 655 1800 China Railway 27 Nov 30, 2016
HMH, SGNR Construction
 RSHDP : Bidding Opportunities

Consultants :
IE for PPP VGF Projects;
IE for PPP-HAM Projects funded through Multilateral Financial
Institutions
Authorities Engineer for EPC Projects;
Technical Consultant for Feasibility Study for RSHDP Phase-II & Phase-
III;
Transactional Advisor for RSHDP Projects;
Entrepreneurs:
Legal Consultant for RSHDP Projects;

PPP VGF Projects

PPP-HAM Projects Funded by ADB
EPC Projects Funded by ADB
Projects under Swiss Challenge

or available opportunities & Project updates, Please click on following website:

ttp://pwd.rajasthan.gov.in/content/raj/roads/pwd/en/public-private-patnership-ppp-.html
or
mail to : aceppp.pwd@rajasthan.gov.in
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29
ADB Tranche-1 Road List
 The Swiss Challenge Mode
It is an approach to provide an opportunity to the private and public sector participants to envisage an innovative project &
proposals in almost all sectors which are not conceived by the government;
It is a method in which an unsolicited proposal submitted by a project proponent, uninvited by the government agency )for a
government project is received and allows third party to challenge the original proposal through open bidding, and then lets the
original proponent counter-match the most advantageous / most competitive offer.
Government of Rajasthan in exercise of the powers conferred under The RAJASTHAN TRANSPARENCY IN PUBLIC PROCUREMENT
ACT, 2012 has notified on June 5th ,2015 and its amendments on August 28th,2015,the detailed procedure for Bid Process
Management for Swiss Challenge Method as Chapter-VA of the Rajasthan Transparency in Public Procurement Rules, 2013 (RTPP
Rules 2013)
The above Act and Rules are available on official website http://sppp.rajasthan.gov.in and can be downloaded for reference.
Procedure to be followed for submission of Proposal by Project Proponent
Submission of Certificate in Form No: 2 and Details of Proposal in Form No: 3 to the Administrative Department.
If Pre-Feasibility Report or detailed project report is available then same shall also be submitted with application along with the
contents of Pre-Feasibility Report as specified in Form No. 4 and the contents of detailed project report as specified in Form No. 5.
Proposal is scrutinized by the Administrative Department and put up before the State Level Empowered Committee (SLEC) for
obtaining Permission to Proceed with or without modifications. Government has constituted SLEC vide order dated 29.07.2015
with Chief Secretary as its Chairman.
Thereafter, detailed and comprehensive proposal is asked from the Project Proponent to submit within 3 months in two covers. The
first cover include the DPR etc. along with Earnest Security equal to 0.05% of the total estimated cost of the Project and second
cover include the Bid Value which shall be opened only at the time of opening of the Financial bids received from bidders through
open competitive bidding process.
The reimbursement of detailed project report preparation cost to the project proponent shall be 0.1% of the final bid value or of
the approved negotiated cost of preparation of detailed project report, whichever is lower. It will be reimbursed to the Project
Proponent only if the successful bidder is other than the Project proponent.
Approval is sought from SLEC on the detailed and comprehensive proposal and after approval the proposal is put to Open
Competitive Bidding following the standard procedure outlined in Chapter-V of RTPP rules 2013.
After examination of the bids, if the proposal of the Project Proponent is found to be lowest or most advantageous then the Project
Proponent is selected and awarded the project.
In case bid of other bidder is found lowest or most advantageous the Project Proponent shall be given an opportunity to match the
lowest or most advantageous bid provided the bid value offered by the project proponent is within 15% of such lowest or most
advantageous bid. If the Project Proponent agrees to match the lowest or most advantageous bid, the Project Proponent shall be
selected and awarded the project. In case the Project Proponent fails to match the lowest or most advantageous bid, the bidder
who has submitted lowest or most advantageous bid, shall be selected and awarded the project.
Eligibility of the Project Proponent shall be governed as per Rule 79N of RTPP (amendment )Rules 2015
31