1. Introduction to TN Vision 2023 and TNIDB...Contents Sl. No Section Slide No. 1 TN Vision 2023 3 3...
Transcript of 1. Introduction to TN Vision 2023 and TNIDB...Contents Sl. No Section Slide No. 1 TN Vision 2023 3 3...
-
Introduction to TN Vision 2023 and Tamil Nadu Infrastructure
Development BoardDevelopment Board
-
Contents
Sl. No Section Slide No.
1 TN Vision 2023 3
3 TNID Act, 2012 14
3 TNIDB Structure 18
2 Strengthened Procurement Ecosystem 12
4 TNIDB Approvals 20
6 Project Monitoring under TNIDB 28
7 Post Award Governance of Projects 30
8 Implementation So Far 33
5 Key Considerations 23
-
TN Vision 2023TN Vision 2023
-
The Vision for Tamil Nadu for 2023 is to become
India’s most prosperous and progressive state free
from poverty, and where its people enjoy all the
TN Vision 2023
from poverty, and where its people enjoy all the
basic services of a modern society and live in
harmonious engagement with the environment
and with the rest of the world.
4
-
Key Outcomes of TN Vision 2023
The per capita income of TN’s residents will reach $ 10,000 per
annum (at 2010 prices) by 2023 - in line with that of Upper Middle
Income Countries
TN will attain a high standard of social development, with theTN will attain a high standard of social development, with the
Human Development Index of the state matching those of
developed countries by 2023
TN would provide to its residents, high quality infrastructure all over
the state comparable with the best in the world
5
-
0
100,000
200,000
300,000
400,000
500,000
0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
2006-07 2011-12 2016-17 2022-23
in R
s.
in R
s. c
rore
Expected Growth of GSDP and Infrastructure Spending
• Vision 2023 envisages
infrastructure investment of Rs.
15 lakh crore
• Infrastructure spending as a
percentage of GSDP is expected
to rise from the current level of
5% to 11.5% by 2023
Vision 2023 sets aspirational targets
PCI
5% to 11.5% by 2023
• 42% of financing for
infrastructure is expected from
the private sector
• Attracting private sector
investment requires bankable
project pipeline and effective
project development
framework
6
-
Ten outcomes and corresponding strategic themes
1. Economic
Prosperity
2. Inclusive
Growth
3. Health for All4. World Class
Infrastructure
5. Healthy 6. Knowledge
Increasing the share of manufacturing
Making SMEs vibrant
TN: The Knowledge Capital and Innovation Hub
Specialisation in service offerings
Thrust on skill development
OUTCOME STRATEGY
5. Healthy
Investment
Climate
6. Knowledge
Hub and
Innovation
Capital
8. Nurturing
Heritage and
Preserving
Ecology
7. Peace Security
and Prosperity
9. Protection
against
Vulnerability
10. Improving
quality of
institutions and
governance
Infrastructure development in the State is vital to achieve this Vision
Improving agricultural productivity
Transforming 10 cities into world class cities
Thrust on social welfare projects for inclusive growth
Promote PPP in infrastructure project creation and
service provision
Develop signature infrastructure projects
7
-
Energy Transport Urban
�Cost overruns;
�Difficulties in traffic
forecasting;
� Delay in obtaining right
of way
�High procurement cost;
�Difficulties in creating
revenue streams;
�Low willingness to pay;
�Delays in environmental
clearances;
�Multiplicity of
� High upfront costs;
� Seasonal variations in
power demand;
� Fuel unavailability;
� Delay in obtaining
clearances;
� Irregularity of
Rs 389,335 Cr Rs 368,123 Cr Rs 263,350 Cr
Co
nsi
de
rati
on
s
The Vision targets span across multiple sectors
Industrial Agriculture Human Development
of way �Multiplicity of
legislations
�Responding to
demographic changes;
�High transaction costs;
�Complexities in charging
a user fee
�Frequent technological
changes;
�Difficulties in ensuring
uptake of services;
�Land acquisition
�Lack of community
participation;
� Difficulties in
generating revenue
streams;
�Lack of viable PPP
models
� Irregularity of
subsidies
Rs 171,285 Cr Rs 121,400 Cr Rs 59,140 Cr
Co
nsi
de
rati
on
s
8
-
The Vision will be implemented in three phases
Phase I: Preparatory Phase III: Scaling upPhase II: Demonstration
Signal policy commitmentBuild capacity for infrastructure project
management
These phases are being realised through the following policy and institutional actions:
Strengthen institutions
Improve investment climate
Facilitate efficient land-use planning and
judicious allocation
Create an enabling environment for PPPs
Effectively address potential social and
environmental impacts
Effectively engage GoI and other states
Foster stakeholder engagement and
communication
Develop a sharp focus on financial
sustainability9
-
Vision 2023 Phase II: Procurement modes and timelines for
proposed projects
Energy
Roads
Railways
Ports
Airports and Aircraft maintenance
Industry
Tourism
Urban Infrastructure
Agriculture and Irrigation
Healthcare
Education and Skill Development
PPP 93
State 38
Center 2
Private 11
Multi-modal 71
19
12
5316
28
11• 217 projects proposed across
11 broad sectors
• Total investments expected at
Rs. 15,00,000 crore, inclusive of
proposed projects, investment
in general and social
infrastructure projects, and
MODE OF PROCUREMENT
33
16
10
116
0 10 20 30 40 50 60
Energy
Note: 215 projects have been covered. Information regarding procurement currently not available for 2 projects
Note: 209 projects have been covered. Information regarding timelines currently unavailable for 6 projects
28%
10%
14%1%2%
12%
1%
19%
9%1%3%
Investments Phase-II Energy 28%
Highways, Bridges and By-pass 10%
Railways 14%
Ports 1%
Airports and Aircraft maintenance 2%
Industry 12%
Tourism 1%
Urban Infrastructure 19%
Agriculture and Irrigation 9%
Healthcare 1%
Education and Skill Development 3%
infrastructure projects, and
capital improvements
PROPOSED TIMELINES
0 20 40 60 80 100
Ongoing
2013-2017
2018-2021
2022-2023
Energy
Roads
Railways
Ports
Airports and Aircraft
maintenanceIndustry
Tourism
Urban Infrastructure
Agriculture and Irrigation
Healthcare
Education and Skill Development
30
82
87
10
33
10
-
De
ve
lop
a h
ea
lth
y p
ipe
lin
e
of
pro
ject
s
In order to
217 projects proposed thus far
Rs. 15,00, 000 crore in investments
3 Phases
11 Sectors
One Vision
Challenging task ahead demands need for a CatalystTNIDB - A Game Changer for achieving the Vision
Achieving
Vision
2023O
ve
rco
me
ex
isti
ng
cha
lle
ng
es
In order to
realize the
Vision, the
state must
One Vision
Achieve Value for Money
Avoid duplication of effort due through
standardisation
Focus on disclosure requirements
Improve coordination
Focus on user welfare
TNIDB
Need for
a catalyst
11
-
Strengthened Procurement Ecosystem
12
Strengthened Procurement Ecosystem
-
Enactment of the TNID Act 2012 and framing of TNID Rules, TNIDB
Regulations and the TNTIT (PPP Procurement) Rules to provide for an
enabling ecosystem for infrastructure projectsK
ey
Ob
ject
ive
s
To improve the quality of project preparation, project development and
project structuring
To streamline and fast track project approvals
To standardise the procurement processes
13
Ke
y O
bje
ctiv
es
To ensure proper procurement
To address project implementation issues and enhance overall coordination
among project stakeholders
To address issues arising post COD during the entire project lifecycle
To standardise the procurement processes
-
TNID Act 2012 and TNIDBTNID Act 2012 and TNIDB
-
TNID Act, 2012
Enacted to provide:
an enabling and facilitative environment for
financing, design, construction, maintenance and operation
of infrastructure projects also through private sector
participation, andparticipation, and
an institutional framework for identification, prioritization
and implementation of such projects and related matters
15
-
Develop pipeline of infrastructure projects
Improve quality of project preparation
Ensure proper assessment of Value for Money for PPP projects
Basic objectives
Ensure stakeholder consultationEnsure stakeholder consultation
Ensure proper bidding
Provide state support where required
Enable project implementation and co-ordination
Manage post implementation monitoring
16
-
Applicability of TNID Act, Rules and Regulations
• 21 sectors in Schedule I of the Act
• Apply to all projects of a value exceeding Rs. 500 croreimplemented by Public Sector
• All Public Private Partnership (PPP) projects with a project value in excess of Rs. 10 crorevalue in excess of Rs. 10 crore
• Does not apply to projects by Central Government or a CPSU, either independently or as a JV with State
government
• Government may exempt a project from applicability of Act under Section 34
17
-
TNIDB StructureTNIDB Structure
-
TNID Board and bodies
• TNID Board chaired by Honourable Chief Minister
• Executive Committee chaired by Chief Secretary: Can include up
to 5 non-official experts
• Other Committees can be
The Board
Chairperson - CM
The Executive Committee
Chairperson – Chief Secretary
• Other Committees can be appointed
• Sub-Committee: Finance Secretary, CEO and one more
member
• Chief Executive Officer: ex-officio Secretary in Finance Department
Chief Executive Officer
TNIDB
Infrastructure CellFull time
consulting support
19
-
TNIDB ApprovalsTNIDB Approvals
-
TNIDB approvals (1/2)
� Scrutiny, evaluation and recommendation of
projects
� Identification of projects
� Prioritisation of projects
� Designation of public agency for project
implementation
Stage I: Project
Concept
Stage II: Project
Structuring
Stage IV: Tender
Documents
Stage III: Project
Funding
implementation
� Determination the appropriate mode of
implementation
� Determination of PPP type, if through PPP mode
� Finalisation of project scope and structure
―Determination of the required public
financial support and appropriate form of
such support
―Tender criteria
― Appropriate concession agreement
� Recommendation to the Government21
-
TNIDB approvals (2/2)
Stage I: Project
Concept
Stage II: Project
Structuring
� Approval of the extent and support from
TNIDF
� Recommendation to the Government on
other form of State support
� Recommendation to the Government for
release of funds including advance release, if release of funds including advance release, if
any
� Prescribe standard tender documents
� Approval of draft tender documents including
draft concession agreements
22
Stage IV: Tender
Documents
Stage III: Project
Funding
-
Key ConsiderationsKey Considerations
-
Need for robust project preparation
Enhances the
amenability of project
plan to appraisal
Determines the
effectiveness of
implementation
Determines the
acceptability in terms
of cost after due
consideration to
social, economic and
environmental aspects
Established support for project preparation
through Project Preparation Fund
14 panels for technical / Engineering
experts, feasibility and market study
experts, Transaction advisors, legal and
financial consultants
TNID Act provides
the enabling
framework for
improving
upstream project
preparation –
Feasibility Study is
Mandatory24
-
Choice of the appropriate mode
Public Procurement Public Private Partnerships
� Cost-benefit analysis including social cost-benefit
� Cost effectiveness of PPP implementation determined through VfM
assessment
Fact
ors
to
be
� Clarity in specifying and measuring performance parameters and project
outcomes
� Risk sharing possibilities with private sector participant
� Technological and managerial advantages due to private participation
� Realistic market and revenue assessment
� Levying affordable user charges
� Direct and contingent financial liabilities of Government are acceptable
Fact
ors
to
be
con
sid
ere
d
VfM is mandatory for any Feasibility Study of project proposed for PPP
implementation 25
-
Procurement of PPP projects (1/2)
Procurement of the services of the Private Partner under the TNID Act has
to be through tender process under TNTIT Act
Until Standard Tender Documents are prescribed by the Board, the
Sponsoring Agency shall submit draft tender documents for prior approval
For PPP projects, the Sponsoring Agency may follow the model documents
prepared by the Union Planning Commission
The Sponsoring Agency may with the prior concurrence of the Board issue
Request for Expression of Interest at any time
The Sponsoring Agency shall issue the Request for Quotations only after the
project structure has been finalized and the financial support from TNIDF is
approved
26
-
Procurement of PPP projects (2/2)
A two-stage, open competitive tendering
shall be mode of procurement of a PPP
Project (Rule 4, TNTIT PPPP Rules 2012)
A single stage two cover and competitive
A Request for
Expression of Interest
(REOI) or Request for
Technical Proposal
(RTP) or both could be
issued under certain
circumstances in
addition to two stages
Default
Mode
For Project
Value < Rs. A single stage two cover and competitive
tendering may be adoptedaddition to two stages
prior to issue of RFP
The final offer shall be in the form of a SINGLE
OBJECTIVE CRITERION (Financial) which shall
be specified in the Request for Proposal (RFP)
document
Value < Rs.
10 crore
27
-
Project MonitoringProject Monitoring
-
Project monitoring under TNIDB
Section 8 and Rule 8 empower the Board to monitor the implementation of
projects
The Board may direct the sponsoring agency to appoint a Project Manager
responsible for monitoring implementation of the project for its life cycle
GoTN, on recommendation of the Board may constitute an agency called
the Project Management Facility for management and supervision of thethe Project Management Facility for management and supervision of the
project, in lieu of a Project Manager
Regulations provide for a detailed Project Management Plan
The Board is required to monitor the implementation, enforce CA, require
submission of periodic reports and recommend corrective actions
If the Board finds bottlenecks due to impediments requiring policy
changes, it may make recommendations to GoTN for appropriate corrective
actions29
-
Post Award Project GovernancePost Award Project Governance
-
Post award governance of projects (1/2)
Infrastructure projects esp. PPP projects usually complex and
long term in nature.
� Changes in project assumptions compared to Feasibility Study/Detailed
Project Study
� Gaps in Concession Agreement in addressing specific areas or provide
detailing
� Assumptions on non mandatory, but “best effort” clauses
Common
Issues
Interface
between Public
Agency and
Concessionaire
Interface
between
Concessionaire
And Public
� Delays in approvals and land acquisition
� Cost escalations compared to schedule
� Revenue or revisions in demand estimates
� Delays in payments
� Inability of concessioning authority to drive revenue collection
� Lack of neutral reviewer leading to disputes on performance on KPIs
for both parties
� Scope of the concession
� Community opposition to the project during construction
� Community dissatisfaction with level of services, leading to active
opposition, or poor revenue recovery
31
-
Post award governance of projects (2/2)
TNID Act provides for inbuilt monitoring mechanisms for pre-
empting and addressing issues faced by projects in the post-
award phase.
Project Management Facility for large Project Managers for relatively smaller Project Management Facility for large
and complex facilities
Project Managers for relatively smaller
projects
� Fulfillment of conditions precedent
� Monitoring during construction and O&M stage
� Performance Management in monitoring of KPIs
� Risk Management
� Contingency Management
� Managing Relationships and Communication
� Project Administration including Financial Administration
� Information and Knowledge Management32
-
Implementation so far...Implementation so far...
-
Project related developmentsF
un
din
g A
pp
rov
ed
Fish processing park at Cuddalore
Fish processing park at Nagapattinam
SWM for Corporation of Chennai
Tamil Nadu
Infrastructure
Development
Fund (TNIDF)
Fu
nd
ing
Ap
pro
ve
d
Tamil Nadu Road Sector Project- II (TNRSP II)
Development of Minor Port at Cuddalore
Project
Preparation Fund
(PPF)
34
Energy Efficiency Project for Street Lighting in Town
Panchayats of Erode, Tiruppur, Coimbatore and The
Nilgiris
-
Projects cleared: High priority fast track
No. Key Projects Rs. in Crore
1. High Priority State Roads Upgradation Project 10,000
2. Madurai - Thoothukudi Industrial Corridor 40,000
3. Restoration of Chennai Water Ways 10,000
4. Ultra Mega Power Project – Uppur 10,000
5. Solid Waste Processing Facility for Chennai 1,500
6. Integrated Financial Services Centre (Financial City) 1,5006. Integrated Financial Services Centre (Financial City) 1,500
7. Large Scale Skill Development Initiative 6,000
8. Development of One Green / Brown Field Port, Cuddalore 2,000
9. Greenfield Airport at Sriperumbudur 15,000
10. Health City at Perundurai 2,000
11. Chennai Desalination Plant 3,000
12. New Water Reservoir in Thiruvallur District 500
13. Development of Agriculture/Horticulture in Wastelands Cost to be ascertained
Total 1,01,500
35
-
Project implementation progress
No. Project Implementation Progress
1.Development of Fishing Harbour at Manakudi in
Kanniyakumari District
• In-Principle Approval awarded for a Project Cost of
Rs. 72.44 crore
• Project Structuring Approval awarded
• Project currently at RFQ stage
2.
Development of Fish Processing Park at Cuddalore, Tamil
Nadu on DBFOT Basis under Public Private Partnership
(PPP)
• Project Structuring Approval awarded
• In-Principle sanction of Capital Grant from TNIDF
• Project currently at RFQ stage
Development of Fish Processing Park at Nagapattinam, • Project Structuring Approval awarded
3.
Development of Fish Processing Park at Nagapattinam,
Tamil Nadu on DBFOT Basis under Public Private
Partnership (PPP)
• Project Structuring Approval awarded
• In-Principle sanction of Capital Grant from TNIDF
• Project currently at RFQ stage
4.Solid Waste Management Project in Chennai (at
Kuthambakkam)
• In-Principle sanction of Capital Grant from TNIDF
• Capital Grant sanctioned for lesser of Rs. 100 crore
or 20% of the Project Cost
5. Solid Waste Management Project in Chennai (at Minjur)
• In-Principle sanction of Capital Grant from TNIDF
• Capital Grant sanctioned for lesser of Rs. 80 crore
or 20% of the Project Cost
6.Development of existing Minor Port at Cuddalore in PPP
mode• Rs. 40 lakh sanctioned via TNIDB PPF
7. Tamil Nadu Road Sector Project Phase (TNRSP) II • Rs. 65 crore sanctioned via TNIDB PPF
36
-
Project agnostic developments
Preparation of Model RFP for Appointment of Consultants for
Preparation of Feasibility Report
Preparation of Model RFP for Selection of TA
Launch of TNIDB Website – www.tnidb.tn.gov.in
Preparation of TNIDB Manual
Automation of TNIDB Workflow (In progress)
Toolkit for Value for Money Assessment
37
Financial Model Template
-
Thank you
38
Thank you