1. MPRDC 1 Operation, Maintenance & Tolling in Road Sector : Potential, Progress & Way Forward Perspective of Madhya Pradesh 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 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. BOT Models MPRDC 7 3. BOT (Toll + Annuity) Model 4 BOT (Annuity) Model 5. Deemed Shadow Fee Model 1. OMT Model 2 BOT (Toll) Model

8. 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. 15 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 MPRDC 8

9. Construction, monitoring and inspection by Independent Engineer. Remuneration, cost & expenses of Independent Engineer to be paid by the Concessionaire in four six monthly installments. 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. MPRDC 9

10. Concessionaire can seek O&M support also. User Fee - pre-decided, increase on the basis of WPI Toll on only commercial vehicles. Passenger vehicles are exempted from toll. Escrow mechanism for fund flow. Capital cost for road improvement along with maintenance of roads. Cost to be incurred on Land Acquisition & Utility Shifting will be borne from State Highway Fund. MPRDC 10

11. Conditions Precedent to be satisfied by the Concessionaire within 45 days from the date of Concession Agreement and prior to COD:  Submission of Performance Security.  Execution of Escrow Agreement.  Legal opinion of the Legal Counsel on the concession. Procurement of Right of Way to the Site within 30 days notice given by the Concessionaire upon providing Performance Security. COD within 45 days from the date of Concession Agreement. In case of delay, damages @ 0.2% of Performance Security for each day. MPRDC 11

12. Provision for Change of Scope. Force Majeure Act or event which i.is beyond the reasonable control of the affected party. ii.Affected Party is unable to prevent by exercising due diligence & Good Industry Practice. iii.has Material Adverse Effect on the Affected Party.  Types of Force Majeure: i.Non-Political Event ii.Indirect Political Event iii.Political Event MPRDC 12

13. Effects of Force Majeure on Concession  Prior to COD- period for achieving COD shall be extended by a period equal to the duration of Force Majeure event.  After COD: Concession Period shall be extended in proportion to the loss of fee on a daily basis, if daily toll collection is less than 90% of average daily fee. Loss of 25% in collection of fee as compared to Average Daily Fee for 4 days entitles the Concessionaire to extension of 1 day in the Concession Period. MPRDC 13

14. 14 Initiatives of MPRDC - BOT(OMT)MODEL TYPES OF FORCE MAJEURE ACTSALLOCATION OF COST AFTER COD TERMINATION PAYMENT Non-Political Event Act of God, epidemic, adverse weather conditions, earthquake, landslide, cyclone, flood, strikes, boycotts etc. Party shall bear their respective Force Majeure Cost & neither party shall require to pay to the other party any cost. 50% of debt due less insurance cover payable to the concessionaire Indirect Political Event Act of war, industry or state wide strike, civil commotion, political agitation Force Majeure cost shall be reimbursed by MPRDC to the concessionaire. Amount equal to the debt due Payable to the Concessionaire Political Event Change in Law, unlawful revocation of any clearance, license, permit, authorization, NOC, consent, approval of exemption required by the concessionaire. Force Majeure cost shall be reimbursed by MPRDC to the concessionaire. Amount equal to the debt due payable to the Concessionaire NOTE: - Upon Occurrence of Force Majeure prior to COD, the parties shall bear their respective cost & no Party shall pay to other party any cost.

15. MPRDC 15 Initiatives of MPRDC - BOT(OMT)MODEL Termination & Termination Payment TerminationTermination Payment Termination for Concessionaire Default During Construction Period: Amount equal to 50% of debt due. Termination for Authority Default i.Debt Due ii.Product of Average Daily Fee multiplied by 60.

16. Projects identified for OMT S. No.Name of RoadSH. No. Length (in Kms.) 1Bhopal-Vidisha RoadSH-1836.15 2Vidisha-Kurwai RoadSH-1974.6 3Sagar-Rehli RoadSH-1542.2 4Tikamgarh- Orchha RoadSH-11A78.4 5Jabalpur-Amarkantak RoadSH-22221.8 6Mandla- Kanha RoadSH-3859 7Khargone- Barwani RoadSH-2685.2 8Barwah- Damnod RoadSH-3860 9Badnawar- Thandla RoadSH- 1878.8 10Pachor- Shujalpur- Ashta- Kannod RoadSH-41 & 51127.4 11Budhi-Rehti-Nasrullaganj-KhategaonSH- 2287.40 12Bela- Govindpur- Churhat RoadSH-1856.6 13 Nagod- Jasso- Sahela-Mohindra- Amarganj Road SH-52104.7 14Porsa- Mohgaon- Seondha RoadSH-1977.4 15Lukwasa-Ishagarh- Chanderi RoadSH-1073.4 Total1263.05 MPRDC 16

17. S.N O NAME OF ROADS. H. N O. LENGTH (in KM) CAPITAL COST (in CRORES) NAME OF CONCESSIONAIRE PREMIUM (Per Year) 1 Badwah- Dhamnod 386018.49Agroh Infra2.07 Cr. 2 Badnawar- Thandla 1878.88.68Eagle Infra0.35 Cr. 3 Budhni-Rehti- Nasrullaganj- Khategaon 2287.405.50Madhav Infracon2.52 Cr. 226.232.674.94 OMT Projects 17 MPRDC

18. S.NONAME OF ROADS.H. NO. LENGTH (in KM) CAPITAL COST (in CRORES) 1 Bela-Govindhgarh- Churhat Road 1856.6012.20 OMT Project Under Tender Stage 18 MPRDC

19. 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 19

20. 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 20

21. 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 21

22. State Highway Fund MPRDC 22 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

23. 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 23

24. 24 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