MPRDC

11

Operation, Maintenance & Tolling

in Road Sector:

Potential, Progress & Way Forward

Perspective of Madhya Pradesh

Vivek Aggarwal

MD MPRDC

Connecting People Through Quality Infrastructure

Road Network of Madhya Pradesh

MPRDC

22

67700.00

Total

MPRRDAMPRDCPWDTotal

Length ( in Km)

Category

67700.00

Total

MPRRDAMPRDCPWDTotal

Length ( in Km)

Category

67700.00

Total

MPRRDAMPRDCPWDTotal

Length ( in Km)

Category

-1442.81- 4709National

Highways

-10966-10966State

Highways

-22571731719574Major

District Roads

67700 (PMGSY)

-2408991789Village Roads

67700.00

14400.31

41671.50

127038Total

MPRRDAMPRDCPWDTotal

Length ( in Km)

Category

67700.00

1442.81- 4709

10966-10966

19574

-2408991789

14400.31

41671.50

127038

1442.81- 4709

10966-10966

19574

-2408991789

14400.31

41671.50

127038

1442.81- 4709

10966-10966

19574

-2408991789

14400.31

41671.50

127038

1442.81- 4709

10966-10966

19574

-2408991789

14665.81

41406127038Total

MPRRDAMPRDCPWDTotal

Length ( in Km)

Category MPRRDAMPRDCPWD MPRRDAMPRDCTotal

Length ( in Km)

PWD MPRRDAMPRDC

-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)

PWD MPRRDAMPRDCCategoryTotal

Length ( in Km)

PWDCategoryTotal

Length ( in Km)

MPRDCPWDCategoryTotal

Length ( in Km)

MPRRDAMPRDCPWDCategoryTotal

Length ( in Km)

CategoryTotal

Length ( in Km)

PWDCategoryTotal

Length ( in Km)

MPRDCPWDCategoryTotal

Length ( in Km)

MPRRDAMPRDCPWDCategoryTotal

Length ( in Km)

CategoryTotal

Length ( in Km)

17317 2257225717317 225722571731717317

MPRDC

33

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

MPRDC

44

Invite private investment by providing grant / premium to / by the concessionaire on competitive bidding

Our Projects

Our Projects

MPRDC

55

Category/Model Cost (Crores)

Ongoing

BOT (Toll) 16053

BOT (Toll + Annuity) 3260

BOT (Annuity) 4578

ADB 4159

Regular Contract 1689

ROB/RUB 1645

Border Checkpost 1094

OMT 45

Building Works 165

Projects in Pipeline

ADB Loan IV 3000

4 Lanning Of 3 State Highways

on BOT (Toll)4500

Grand Total 40188

Our Projects: Cost Share in Crores of Rupees

MPRDC

66

ADB, 7159

RC, 1689

BOT(Toll), 20553

BOT(Toll And Annuity), 3620

Others, 2949

BOT(Annuity), 4578

BOT Models

MPRDC

77

3. BOT (Toll + Annuity) Model

4 BOT (Annuity) Model

5. Deemed Shadow Fee Model

1. OMT Model

2 BOT (Toll) Model

• 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

88

• 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

99

• 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

1010

• 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

1111

• 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

1212

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

1313

MPRDC

1414

Initiatives of MPRDC - BOT(OMT)MODEL

TYPES OF FORCE

MAJEURE

ACTS ALLOCATION 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 equalto 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 equalto 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.

MPRDC

1515

Initiatives of MPRDC - BOT(OMT)MODEL

Termination & Termination Payment

Termination Termination Payment

Termination for Concessionaire Default

During Construction Period:Amount equal to 50% of debt due.

Termination for Authority Default

i. Debt Dueii. Product of Average

Daily Fee multiplied by 60.

Projects identified for OMTS. No. Name of Road SH. No.

Length(in Kms.)

1 Bhopal-Vidisha Road SH-18 36.15

2 Vidisha-Kurwai Road SH-19 74.6

3 Sagar-Rehli Road SH-15 42.2

4 Tikamgarh- Orchha Road SH-11A 78.4

5 Jabalpur-Amarkantak Road SH-22 221.8

6 Mandla- Kanha Road SH-38 59

7 Khargone- Barwani Road SH-26 85.2

8 Barwah- Damnod Road SH-38 60

9 Badnawar- Thandla Road SH- 18 78.8

10 Pachor- Shujalpur- Ashta- Kannod Road SH-41 & 51 127.4

11 Budhi-Rehti-Nasrullaganj-Khategaon SH- 22 87.40

12 Bela- Govindpur- Churhat Road SH-18 56.6

13 Nagod- Jasso- Sahela-Mohindra- Amarganj Road SH-52 104.7

14 Porsa- Mohgaon- Seondha Road SH-19 77.4

15 Lukwasa-Ishagarh- Chanderi Road SH-10 73.4

Total 1263.05

MPRDC

1616

S.NO

NAME OF ROAD S.H. NO.

LENGTH (in KM)

CAPITAL COST

(in CRORES)

NAME OF CONCESSIONAIRE

PREMIUM (Per Year)

1 Badwah-Dhamnod

38 60 18.49 Agroh Infra 2.07 Cr.

2 Badnawar-Thandla

18 78.8 8.68 Eagle Infra 0.35 Cr.

3 Budhni-Rehti-Nasrullaganj-Khategaon

22 87.40 5.50 Madhav Infracon 2.52 Cr.

226.2 32.67 4.94

OMT Projects

1717

MPRDC

S.NO NAME OF ROAD S.H. NO.

LENGTH (in KM)

CAPITAL COST (in CRORES)

1 Bela-Govindhgarh-Churhat Road

18 56.60 12.20

OMT Project Under Tender Stage

1818

MPRDC

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

1919

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

2020

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

2121

State Highway Fund

MPRDC

2222

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 Fund Application of FundAll 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

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

2323

MPRDC

2424

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