Madhya Pradesh Road Development Corporation Limited

State Highway Authority of Madhya Pradesh

WelcomesIAS Officers Trainees of 2014 Batch (Group VIII)

10 Feb 2015 (Version 1.5)

Connecting People Through Quality Infrastructure

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Background• MP was known for bad roads.• Improper design based on traditional approach.• Budget driven construction methodology in place of demand driven.• Poor fund flow for projects – low budget outlay.• Result - Poor Connectivity, low industrial investment, sluggish

business growth.

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Transition to new regime• Government-embarked on program to revamp road sector.• M.P. Bridge Corporation Ltd.

revived in December 2000 and given mandate to upgrade highways on PPP

• Considering poor traffic, grant was made bidding parameter.• Madhya Pradesh Infrastructure Investment Fund Board (MPIIFB)

created to arrange funds for grant.• Rs. 500 Crore (US $ 125M) outlined for the purpose.• Approx. 2000 km. Road length identified to be developed in phases.

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Madhya Pradesh Road Development Corporation• Incorporated as wholly owned State Govt. Company under Companies

Act 1956, in July 2004. • State Highway Authority under the State Highway Act 2004.• Mandated to develop, regulate and maintain highways with focus on

PPP.• The Chief Minister is the chairman, Minister of Public Works

Department & the Chief Secretary are the Vice Chairmen, the Secretaries of the PWD, Finance , Forest, Urban Affairs and Mining Dept. are members on the Board. • MD, MPRDC is also a director.

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Road network with MPRDCCategory MPRDC Road length

(in km)

National Highways 1450

State Highways 10297

Major District Roads 6664

TOTAL 18411

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Our project financing philosophyInvite private investment by providing grant to/ premium by / the concessionaire on competitive bidding

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MPRDC Portfolio – BOT ProjectsDetails No. of Roads Length Cost

BOT Projects

Completed State Highways 26 2708 4993

Completed State Highways (Toll + Annuity) 11 451 853

Completed National Highways 1 108 315

Completed MDR (Toll, Toll + Annuity, Annuity) 38 1190 1925

In Progress State Highways 9 706 1266

In Progress State Highways (Toll + Annuity & Annuity) 14 645 1520

In Progress National Highways 8 850 6429

Proposed State Highways 3 138 370

Proposed National Highways 8 491 3485

Annuity (MDR) 25 863 1464

24 Border Check Posts One - 1094

16 ROB Group I One - 657

18 ROB Group II One - 674

Length in km and Cost in Cr Rupees

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MPRDC Portfolio – Other ProjectsDetails No. of Roads Length Cost

ADB FundedCompleted 50 3304 2452

In Progress 15 1080 1707

Regular ContractsCompleted SH 29 1366 1011

In Progress 17 334 505

OMT 8 490 57

State Highway FundCompleted 4 126 196

In Progress 2 71.3 133

Building Works Completed 4 works - 126

In Progress 10 works - 1635

Total 282 14921 32867

Length in km and cost in Cr Rupees

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MPRDC Portfolio - Projects in pipelineDetails No. of Roads Length Cost

1 ADB-IV / JICA (MDR’s) 156 4412 9004

2 Four-laning of State Highways 1 199 2249

Total 159 4611 11253

Length in km and Cost in Cr Rupees

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Shift in strategy• Takeover of entire state highway network including maintenance.• To overcome the limitations of existing PPP model new financial models

introduced.• All remaining state highways were taken for development in different

stages.• Important Major District Roads also taken up to complete the network

under PPP.• Performance based maintenance introduced through OMT.• MOU signed with MORTH for reconstruction of National Highways.

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Financial models• BOT (Toll) Model• BOT (Toll + Annuity) Model• BOT (Annuity) Model• Deemed Shadow Fee Model• OMT Model

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Border Checkposts• Up-gradation and integration of 24 Border Check Posts in MP covering

all State border crossings• An integrated, real time system for Transport, Commercial Tax, Forest,

Mandi & Mining departments• Purpose of the project• To increase the revenue of State Government.• To control overloading & damage to state roads.• To reduce leakage & corruption.• To use technology for reduction in transaction time and ensuring complete

transparency.

• Check posts to serve as facilitation centres

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Border Checkpost e-Data Capture Components

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Automatic Vehicle Classifier

Automatic Number Plate Reader

Electronic Weigh Bridge

Automatic Boom Barrier and Traffic Light

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Singrauli Airport• Airport at Singrauli is proposed with private participation.

• SPV – Singrauli Airport Corporation Ltd. Incorporated.

• Implementation Agency- MPRDC.

• 46 hectares land is available & 27 hectares is under acquisition.

• Consultant appointed.

• MCA of Planning Commission for Greenfields Airports will be adopted.

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Externally aided projectsLoan No. Length (In km) Loan Amount (US $) Status

1959-IND MPSRDP 1602.59 150 Million Completed

2330-IND MPSRSP-II 1701.52 320 Million Completed

2736-IND MPSRP-III 1080.37 250 Million Nearing completion

ADB-IV 1500 (MDR) 350 Million Loan Negotiation completed

J.I.C.A. 1500 (MDR) 350 Million Posed to JICA by central Govt.

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Our strengths• Concessionaire’s faith in MPRDC due to transparency in bidding

process.• Lender’s faith in MPRDC ensuring Financial Closure of BOT Projects.• Deployment of Supervision and Quality Control Consultants with

international expertise.• Adequate Budget provision for Annuity &VGF payments by the State

Government.• Annuity payment along with bonus on due date.• Experts like Legal Advisor, CA, CS, Environment expert, MIS expert,

Road Data System Engineer are engaged in house.

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Our strengths• Political commitment & support.• Concessionaires are treated as partners.• Bills are cleared in 2 to 4 working days.• 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.

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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.• Layer -2 Close graded.

• 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.

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Application of VFM in MPRDC• During VFM analysis of MDRs, 22% Annuity for BOT (Annuity)

Projects was envisaged.• After bidding, the projects awarded on Annuity of 18.30% under

BOT (Annuity) projects & 12.88% as on average under BOT (Toll+ Annuity) projects.

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VFM AnalysisProject Details• Total Project Cost $476.66 Million • Total Length of the Projects 1520.03 Km• Average Annuity (actual) 18.30% of Project Cost

Parameters EPC BOT -Annuity

Construction Cost $595.80 Million (Escalation by 25%)

$476.66 Million (Including 25% of TPC for financing cost, contingency & other charges)

Construction Period 2& ½ Years 1 & ½ yrsO & M ExpRoutine Maintenance 0.004M$/km/p.a. -Periodic Maintenance 0.02M$//km/p.a.. -Electricity & Patrolling 0.002M$/km/p.a. -

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VFM AnalysisParameters EPC BOT - Annuity

Interest 9.00% 13%Debt: Equity Ratio 100 70:30Funds Requirement Immediately 6 months after CODDiscount Rate for NPV Calculation 15% 15%Loan Repayment Period(in years) 10 10

Quality of Roads Average ExcellentEfficiency of private sector Not availed Availed

Technology Traditionally applied Latest availableSetting up of full infrastructure & staff Required Not required

NPV calculated (in $Million) 456.40 401.23Value for Money (NPV of EPC –NPV of Annuity) 55.17

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Accident Response System• Implementation of ARS system on PPP mode .• Technical Assistance through ADB for capacity building in road safety.• Accident Response System & Traffic Management Centre including operation

& maintenance for 5 years with estimated cost of Rs.12.50 Crore (US $ 2.5 M) is being set up.• ARS includes centralized call centre, GIS based automatic vehicle tracking

system (AVTS), Computer aided dispatch system, Traffic Management Centre.• Trial run started from 24th Dec 2014. State wide number 1099 and Citizen

portal available for assistance.

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State Highway Fund• State Highway fund established under an Act for investment in

highways & infrastructure projects.• Executive Committee under the Chairmanship of Chief Secretary to

administer the fund.Sources of Fund Application of Fund

All payments of Premium For 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

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Logistics park, PowarkhedaArea 115 acres land

Concession Period 33 years, extendable by 15 years

PPP Mode DBFOT

Estimated Cost Rs. 138.50 Crore (US$ 35M).

Bidding Parameter Highest Upfront Premium

Construction period 3 years for minimum facilities (COD)7 years for completion

Service Portfolio Rail Terminal WarehousingContainer Freight StationCold StorageGrain & Horticulture Procurement Trading & Collective MarketingNegotiable Warehouse Receipts

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Electricity transmission line between Satpura and Ashta

400 KV (DCDS) Transmission Line for evacuation of Power from 2 x 250 MW extension unit at Satpura Thermal Power Station

Type of PPP DBFOT

Total Length 240 KM

Implementing Authority

M P Power Transmission Company Limited, Jabalpur (MPPTCL)

Estimated cost Rs. 282.72 Crore (US$ 55M)Concession Period 25 years (incl 15 months construction)

Provision for 10 yrs extension

Bid Process Two-stage (RFQ + RFP)Bidding Parameter Lowest Grant (VGF) / Highest Premium

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Indore City Transport Service• High travel demand, traffic congestion, accidents, pollution, rapid growth of city.• No concept of bus stops and time schedules.• To create a specialized and effective agency to monitor and provide intra-city public transport

system.• PPP model with Private investment in buses, ticket vending, O&M and ancillary services.• Self-financing and revenue generating model for bus stops.• Fully computerized ‘Ticket Vending system’.• Every bus is fitted with GPS based tracking device with online data transfer facility.• Upgraded to BRTS under PPP mode itself. Free from subsidy.• Passenger information system is introduced for the first time in the country.• Benefits :

• Savings in travel time.• Reduction in congestion on roads.• Reduction in road accidents.• Reduction in environmental pollution.

A country has to pay for its roads, whether it has them or not, it pays

more for those it does not have.

So Let’s Have them……

Our commitments remains...

Connecting People Through Quality Infrastructure

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