1. MPRDC 1 PPP in Madhya Pradesh Success Story of Roads Vivek Aggarwal MD MPRDC Connecting People Through Quality Infrastructure

2. Road Network of Madhya Pradesh MPRDC 2 67700.00Total MPRRDAMPRDCPWD Total Length ( in Km) Category 67700.00Total MPRRDAMPRDCPWD Total Length ( in Km) Category 67700.00Total MPRRDAMPRDCPWD Total Length ( in Km) Category -1442.81-4709 National Highways -10966- State Highways -22571731719574 Major District Roads 67700 (PMGSY) -2408991789 Village Roads 67700.0014400.3141671.50127038Total MPRRDAMPRDCPWD Total Length ( in Km) Category 67700.00 1442.81-4709 10966- 19574 -2408991789 14400.3141671.50127038 1442.81-4709 10966- 19574 -2408991789 14400.3141671.50127038 1442.81-4709 10966- 19574 -2408991789 14400.3141671.50127038 1442.81-4709 10966- 19574 -2408991789 14665.8141406127038 Total MPRRDAMPRDCPWD Total Length ( in Km) CategoryMPRRDAMPRDCPWDMPRRDAMPRDC Total Length ( in Km) PWDMPRRDAMPRDC - National Highways - State Highways - Major District Roads 67700 (PMGSY) Village Roads - National Highways - State Highways - Major District Roads 67700 (PMGSY) Village Roads - National Highways - State Highways - Major District Roads 67700 (PMGSY) Village Roads - National Highways - State Highways - Major District Roads 67700 (PMGSY) Village Roads Total Length ( in Km) PWDMPRRDAMPRDC Category Total Length ( in Km) PWD Category Total Length ( in Km) MPRDC PWD Category Total Length ( in Km) MPRRDA MPRDC PWD Category Total Length ( in Km) Category Total Length ( in Km) PWD Category Total Length ( in Km) MPRDC PWD Category Total Length ( in Km) MPRRDAMPRDCPWDCategory Total Length ( in Km) Category Total Length ( in Km) 173172257 173172257 17317

3. MPRDC 3  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 PWD dept., Finance dept., Forest Dept., Urban Administration & development and Mining Dept. are the members of the Board.  MD, MPRDC is also one of the director. Madhya Pradesh Road Development Corporation

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

5. MPRDC 5 Category/ModelCost (Crores) Ongoing BOT (Toll)16053 BOT (Toll + Annuity)3260 BOT (Annuity)4578 ADB4159 Regular Contract1689 ROB/RUB1645 Border Checkpost1094 OMT45 Building Works165 Projects in Pipeline ADB Loan IV3000 4 Lanning Of 3 State Highways on BOT (Toll) 4500 Grand Total40188

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

7. Pioneer in the field of road sector development through Public Private Partnership in the country. Adopted DBFOT Model of Tendering based on Model Concession Agreement of Planning Commission GOI. First agency in the country to get VGF from GOI. Under VGF scheme of GOI – 40 % of project cost is sanctioned to make projects viable. – 20% is given by GOI. – 20% is given by the State Government. In several Projects MPRDC receives Premium. VGF/Premium is the bidding Criteria. Distance based user fee (Toll). MPRDC 7

8. Feasibility study by Feasibility consultant. Financial analysis in-house in MPRDC on the basis of traffic survey & cost estimates. State Level Empowered Committee under the chairmanship of Chief Secretary GOMP approves the proposals of BOT projects. State government accords the administrative approval. Empowered Institution, DEA, GOI sanctions VGF. Two-Stage bidding (RFQ & RFP). Financial closure within 180 days of agreement date. Penalty for delays. Monitoring by Independent engineer. Land acquisition by MPRDC. Utility Shifting by the concessionaire. Expenditure on LA & Utility Shifting is borne by the state government. Fee of Independent engineer is shared by MPRDC & Concessionaire. MPRDC 8

9. Innovative Financial Models MPRDC 9 1. BOT (Toll + Annuity) Model 2. BOT (Annuity) Model 3. Deemed Shadow Fee Model 4. OMT Model

10. Hybrid Model of BOT (Toll) & BOT(Annuity). Formulated to increase Viability of the projects which are not viable on pure toll. Toll as a sweetener. Concession Period is kept 15 years including of 2 years of construction. Six Monthly Annuity is quoted by the bidders. Annuity is the bidding criteria. Annuity is the deferred payment over a period of 13 years as per payment schedule defined in Concession Agreement. Incentive for early completion as a bonus along with first annuity. Penalty for delay as a reduction of annuity. MPRDC 10

11. Formulated to implement the projects which are not viable on pure toll or Toll+ Annuity Models. Concession Period is kept 15 years including of 2 years of construction. Six Monthly Annuity is quoted by the bidders. Annuity is the bidding criteria. Annuity is the deferred payment over a period of 13 years as per payment schedule defined in Concession Agreement. Incentive for early completion as a bonus along with first annuity & Penalty for delay as a reduction of annuity. The concept of VFM was considered during conceptualization of Annuity projects. During VFM analysis of MDRs, 22% Annuity for BOT (Annuity) Projects was envisaged. However, after bidding, the projects have been awarded on Annuity of 18.30% under BOT(Annuity) projects & 12.88% as on average under BOT (Toll+Annuity) projects. MPRDC 11

12. It’s a PPP model. Acts as sweetener to increase the viability of project which are not viable with maximum permissible VGF of 40%. It is given in addition to maximum VGF of 40% with maximum limit of 10%. Deemed shadow Toll is given in lieu of exempted vehicles like Govt. vehicles, Military vehicles, vehicles of MLA etc. This will be contributed by State Government. Proposal of deemed shadow fee model is pending with DEA GOI. MPRDC 12

13. 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. 14 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 Construction, monitoring and inspection by Independent Engineer. MPRDC 13

14. 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. Concessionaire can seek O&M support also. User Fee - pre-decided, increase on the basis of WPI Exemption for non commercial traffic Only Commercial vehicles to pay Fee Escrow mechanism for fund flow. MPRDC 14

15. Innovative Projects MPRDC 15 ProjectsCost (Crores) 24 Border Checkposts1094 35 ROBs / RUBs1645

16. Innovative Projects (Border Checkposts) There are 24 Border Checkposts. Purpose of the project :- To increase the revenue of State Government. To control overloading & damage to state roads. To reduce leakage & corruption. To provide full transparency. It is a PPP Project. Project cost is Rs. 1150 crores including Rs. 56 crores for LA & Utility Shifting. Rs. 1094 crores to be borne by the concessionaire and Rs. 56 crores by State Government. Checkposts will serve as facilitation centre also. MPRDC 16

17. The project cost will be borne by concessionaire charging service fee per vehicle for construction, maintenance and operation. Project is fully computerized integrated system with online central control system at Gwalior & Indore. Concession period 4566 days including construction period of 730 days. It is an integrated project for Transport, Commercial tax, Forest, Mandi & Mining department. Innovative Projects (Border Checkposts) MPRDC 17

18. 18 WEIGHING CONTROLLER WEIGHBRIDGE DIMENSIONS MEASUREMENT EQUIPEMENTS License Plate Reader Camera Lane Computer Lane Traffic Controller Barrier & Traffic Lights Control CENTRAL CONTROL FACILITY ALL TRANSACTIONS, VEHICLE PICTURES SURVEILLANCE CAMERA Automatic Vehicle Classification System RFID Reader 18

19. 35 ROB’s & RUB’s on existing LC’s of Railway as per Railway Pink Book: Feasibility Consultant appointed in March 2012. Project of ROB’s is divided in two groups having 17 ROB’s in one group & 18 ROB’s in second group. To improve financial viability of ROB project following rates have been adopted Innovative Projects (ROBs/RUBs) Railway ShareState CostTotal cost Rs. 439.20 crores (45% of TPC)Rs. 537.60 crores (55% of TPC)Rs. 976.80 crores Type of vehicleCarLCV, Minibus BusTrucks3 Axles & Multiaxles Rates (in Rs.)717.50354284 MPRDC 19

20. Innovative Projects (ROBs/RUBs) GAD’s, Cost Estimates of Group-I(17 ROB’s) have been prepared & cost is Rs.763.81 crores.In Group-I all GAD of ROB & LHS have been approved by Railway. Railway is preparing their estimate for Railway portion and finalizing Railway share. Group-I of 17 ROB has been structured with 40% VGF of Department of Economic Affairs. Project will be implemented through PPP with 40 % VGF share and Investment of Concessionaire. MPRDC 20

21. Monitoring during Construction Monitoring of Project by Independent Engineer. Appointed through open bidding as per Concession Agreement. Regular monitoring by MPRDC officers. Change of Scope & Extension of Time (EOT) There is a Advisory Committee comprising of Technical Advisor, Chief Engineer (BOT), DGM (Technical), DGM (BOT), Concessionaire, Independent Engineer & Divisional Manager. Advisory Committee examines the proposals of the Concessionaires & make the recommendations. MD decides with the approval of BOD. MPRDC 21

22. Ensuring Quality 3-tier system of checking PMC of Concessionaire Independent Quality Control Engineer Officers of MPRDC Quarry approval after thorough testing. Field & lab testing is mandatory as per the norms of MORTH. Use of Graders for maintaining the camber at sub grade/GSB level. Crushed GSB Layer -1 (drainage) Coarse graded Grade-I. Layer -2 Close graded Grade-II. WMM in place of WBM with pavers. Use of Sensor Paver in place of mechanical paver for BT works. Use of RMC plant in place of normal concrete mixers. MPRDC 22

23. Our Strengths 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. MPRDC 23

24. 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 24

25. 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 25

26. Accident Response System 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. MPRDC 26

27. State Highway Fund MPRDC 27 GoMP has enacted the Madhya Pradesh Rajmarg Nidhi Adhiniyam 2012 to provide for the establishment of a Fund for investments in the highways & infrastructure projects of the State. Corpus of the Fund is 125 Crores (approx). Executive Committee under the Chairmanship of Chief Secretary to administer the fund. Sources of FundApplication of Fund All payments of PremiumFor Maintenance and Repair of Highways Proceeds towards encashment of Performance Security or Bid Security For Meeting any Development Cost of Highway or Infrastructure Project All returns on investments made out of the Fund For Project Preparation, Pre Tender Activities, Cost towards Utility Shifting, Land Acquisition

28. MPRDC 28 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….. Connecting People Through Quality Infrastructure