1

PPP Nodal Officers’ WorkshopMarch 23, 2009

Presentation by

PPP CELLAndhra Pradesh

Venue: The Taj Mahal Hotel

New Delhi

2

PPP Policy

Capacity Improvement

Development of PPP Guidelines Manual

Pipeline Development

Management Systems

Project Lists

Case Studies

Other Initiatives and Ideas

CONTENTS

3

Draft PPP Policy is under discussion Draft PPP Policy is prepared taking inputs from PPP

Policy of other states Draft PPP Policy is going to be discussed in a PPP Policy

workshop going to be held in April 2009 ISB Hyderabad is conducting the workshop with senior

government officials, Developers and PPP experts The final copy of the PPP Policy is expected to be ready by

May 2009 Formation of PPP Cell as a Society

Draft Memorandum of Association (MOA) and draft Rules / Bylaws for formation of PPP Cell as a society is prepared

The draft copy is under discussion

PPP POLICY

4

Workshop with the assistance of Administrative Staff College of India (ASCI) The workshop was conducted in July 2008 for the PPP Nodal

Officers of the State Administrative Departments The topics broadly covered are Rationale for PPP, Financing

Techniques, Legal Aspects and Case studies

Workshop with Transaction Advisors IL&FS and SBI Caps made a presentation about the various

types of PPP projects handled by them Case studies were discussed

Capacity Improvement

5

Workshop with the assistance of Indian School of Business (ISB) Planning to have a capacity building workshop for the

Administrative Secretaries in May 2009 PPP Monthly News

It capture the Infrastructure Developments in the form a Monthly News Letter

It captures the News Items, Expression of Interests advertised for selection of the Consultants and Developers by various governments

The monthly news letter is circulated to the Administrative Secretaries, Heads of Departments and the Nodal Officers of the various Administrative Departments

Capacity Improvement contd..2

6

Assistance of PPP Cell was sought on the following PPP Projects

Major Bridge on River Godavari on PPPMass Rapid Transit System (MRTS)Krishnapatnam PortNellore – Gooty Road ProjectPublic Library at Vizag IT based rural initiatives in KadapaUp gradation of Five Roads at PulivendulaSetting up of Distilleries at VishakhapatnamSetting up of Working Women's Hostel, Nursing Schools

Capacity Improvement contd..3

7

PPP Guidelines Manual contains..

AP Infrastructure Development Enabling Act 2001 V G F Guidelines IIPDF Guidelines Guidelines for usage of Transaction Advisors PPPs: Creating an enabling environment for state projects Model Request for Qualification Model Request for Proposal Summary of the list of PPP projects undertaken in AP The copy of the manual is distributed to the PPP Nodal

Officers of the State Administrative Departments

PPP Guidelines Manual

8

Urban Infrastructure like Foot Over bridge, Pay use Toilets, Parks: Its being developed on PPP. DEA has given in principal approval for under taking the project under IIPDF Scheme

Gandhi Hospital: Initial study is conducted to find out what areas can be taken up under PPP. KPMG had a initial discussion in this regard

Education Department: Establishment of rural residential schools on PPP. Presentations were made to the Prl Secretary in this regard by IFC

Pipeline Development

9

Commissioner of Sugars: Setting up of Distillery units on PPP mode at various places in AP.

Transportation Department: Setting up of Vehicle Testing Centers, Driving Testing Centers and Automated Weighbridges on PPP mode

INCAP: Development of Growth Corridor from Vizag to Kakinada. Development of Faster Rail Link between Begumpet and Shamshabad Airport

Pipeline Development Contd..2

10

Development of PPP Website with the assistance of A P Technology Services Ltd (APTS): Comprehensive website has been developed to serve as the repository of all the information relating to PPP’s in the State for the purpose of information sharing and information dissemination.

Major Content Coverage:Reference Documents (for Information sharing)

Important Circulars, Orders, Guide lines, PPP best practices etc. Case Studies, MCA’s, DPRs, RFP’s, PPP related EOI’s, Tenders etc. Important news, media coverage pertaining to projectsDetails of PPP related important eventsDetails of Departmental Nodal Officers, Consulting agencies, Developers

PPP Project details and Up coming ProjectsMessage Centre (close user group)Glossary, FAQs etc.

Official launch of this website is expected shortly

PPP Website of AP (www.ppp.ap.gov.in)

11

Development of MIS Application with the assistance of Center for Good Governance (CGG): A web-enabled integrated system is proposed to be developed to facilitate proper record keeping and on line monitoring of the overall progress / status of all PPP projects of the state .

The system is designed to capture the following details: Project Details General Information pertaining to project including the Project Benefits Project Timeline and Bidding Information Project costing/share etc. and Details of Funding Agencies and pattern Major Milestone during construction and operation period Major Risk factorsProject accomplishment detailsDetails of Project related approvals, orders, Relevant documents, Photos etc. Details of Issues/problems or suggestions Actual execution details pertaining to each stage of Project Planning

PPP-MIS Application

12

Current Status

Comprehensive MIS Design Document completed (Covering all the phases of Project Life Cycle)

Obtained commercial proposal for development and implementation of MIS from Center for Good Governance (CGG)

Administrative approval on the proposal is being sought

PPP-MIS Application Contd…

13

PPP Project Lists

Sector Number (and Value) of PPP Projects in various stages Total

Identified Detailed Project Report

RFP Bidding Construction/Implementation

Nos. App.Cost(Rs. Cr.)

Road 11 6 1 3 37 58 12624

Railways - - - - 1 1 12000

Ports 1 - - - 3 4 14200

Airports 2 - - - 1 3 2978

Tourism 1 1 10 1 35 48 1386

IT - - - - 4 4 77

Others - - - 1 14 15 2021

Total 15 7 11 5 94 132 43537

14

Major Bridge across River Godavari (Rs 593 crs)

Krishnapatnam Port (Rs 10400 crs)

Mass Rapid Transit System (MRTS) (Rs 12000 crs)

Hyderabad Outer Ring Road (Rs 3000 crs)

Hyderabad International Airport (Rs 1760 crs)

Mind Space Project

Convention Centre & Integrated Township

Hyderabad Integrated Trade and Exposition Center

Major PPP Projects in the State

15

Major Bridge Across River Godavari

Its near RajahmundryIts on BOT with VGF from GOIIn principal approval is given, waiting

for final approvalProject Cost is Rs 593 croresIt’s a toll bridgeDeveloper is Ms Gammon India LtdIndependent Engineer is Ms Scott WilsonConcession agreement is signed in Oct 2008Project expected to be completed in 3 years

16

Krishnapatnam Port

17

Developer is M/s Krishnapatnam Port Company Limited.Project cost of Phase – I Rs 1400 crs Project cost of Phase – II Rs 4000 crs Estimated cost of Phase – III Rs 5000 crsBuilt Operate Share and Transfer basis (BOST)Contract period is 30 years with further extention of 20 yrsLease Rentals is 2% of the fair market value with yrly escalationConcession fee is 2.6% of the Gross Income for 30 yrsGovernment has provided four lane approach road to the Port,

Power Supply, R&R. The total cost is Rs 159 crs

Krishnapatnam Port Contd..

18

Mass Rapid Transit System (MRTS) - Hyderabad

19

Mass Rapid Transit System (MRTS) - Hyderabad

Length of the corridor is 69 Kms with elevated structure

Project Cost Rs 12000 crs approx.

PHPDT is 40000 passengers approx with 3 min headway

Passengers expected to travel by 2011 is 1.6 mil per day and by 2021 is 2.3 million per day

Travel time from Miyapur to LB Nagar is 43 min covering a distance of 26 km against Bus Peak hour time of 1 hr 44 min

Concession period is 35 years with a construction period of 5 yrs

Bidder is Ms Maytas Infra Consortium offered a negative grant

Financial Closure is required to be achieved

20

Outer Ring Road - Hyderabad

SPV is incorporated as “Hyderabad Growth Corridor Limited”

Total Length – 158 Kms

Estimated cost – Rs 3000 crs

Part of the project which is of 62.3 km is on PPP Annuity basis

Provides orbital linkage to radial arterial roads

Creates options for development of the further satellite townships

Provides linkage to the proposed MRTS and Bus System

21

Rajeev Gandhi International Airport

22

Rajeev Gandhi International Airport Contd…

23

Total Project Cost is Rs 2478 crs Project area is about 5495 acresProject Partners: GMR Group (63%), MAHB (11%), Govt of

India (13%), Govt of Andhra Pradesh: 13%BOOT Format – Build Own Operate TransferConcession period is 30 yrsConcession fee is 4% of Gross Revenue AnnuallyCommenced operation from Mar 200842 aircraft parking stands - 12 boarding bridgesModular Cargo Terminal initial capacity - 100,000 MT/year 146 Check-in counters including 16 self check-in kiosksModern Air Traffic Control tower 75m high

Rajeev Gandhi International Airport Contd…

24

Phased Development

Airport is to be developed in phases based on the air traffic forecast.

Design Capacity (mppa) Construction-Start/FinishPhase 1 12 March 2008Phase 2 20 As per traffic triggerPhase 3 & 4 40 As per traffic trigger

Rajeev Gandhi International Airport Contd…

25

Mind Space Project

A Special Project for IT & IT enabled services Project area 110 acres at MadhapurAPIIC Ltd & K.Raheja Corpn. P Ltd have jointly promoted the projectTotal investment is around Rs.600 crs with employment generation of about 30000 personsEquity Partners: Govt of AP-11%, Private partner 89%. The revenue to AP Govt on dividend declared on equityBuilt up space of 5 million sft completedSecured approval for IT/ITES SEZ

26

Convention Centre & Integrated Township An integrated township, 18 – hole international golf course, a convention centre with 6000 seating capacity and a business hotel APIIC Ltd and EMAAR Properties, Dubai jointly promoted the project with 3 SPVs with equity of 26% and 74% respectivelyHyderabad International Convention Centre was built on an extent of 15 acres.The Golf Course is developed on an extent of 235 acres.The assets of Convention Centre and Golf Course will revert back to Govt. of A P after 66 years of lease without any encumbrances.Besides equity, APIIC Ltd shall receive 2 and 3% Gross Annual Revenue as lease rentals from both assets

27

Roads and Bridges

There are 58 Road projects in the state at

various stages of development apart from

Outer Ring RoadThe total project cost is Rs 12624 crs The projects are taken under BOT / Annuity

modeOut of 58 road projects 18 are under

implementation stage

28

Tourism Projects

There are 48 tourism projects on PPP modeThe total project cost is Rs 1386 crs Status of the projects

Implementation Stage - 21 ProjectsVarious stages of bidding Stage - 27

Major Tourism Projects:IMAX Theatre at HyderabadBeach Resort at Rishikonda, VizagSnow World at HyderabadFood Courts at Lower Tank Bund, Hyderabad

Beach Resort at Rishikonda, Vizag

29

Infrastructure Vision Document 2030: The document brings out Infrastructure Requirements, Infrastructure Gaps, Resources required and how to take it forward

Setting up of a State Project Development Fund (PDF): This assistance will encourage more and more departments to take up Infrastructure Projects on PPP

Setting up of a State Viability Gap Funding Scheme (VGF): This fund will help in attracting developers toward projects which are economically viable but not financially

Empanelling Transaction Advisors for the State who have local presence

Other Initiatives and Ideas

30