private partnerships in infrastructure - ppp capstat - 2013.pdf · company), and three fully ......
Post on 21-May-2018
213 Views
Preview:
TRANSCRIPT
8
Private Sector Development and Public Private Partnerships in Infrastructure - Capability statement
ICRA MANAGEMENT CONSULTING SERVICES LIMITED
Logix Park, First Floor Tower A4 & A5, Sector – 16 Noida - 201 301 Tel: + (91 120) 4515800 Fax: + (91 120) 4515850 Email: enquiry@imacs.in Web: www.imacs.in
2013
ICRA Management Consulting Services Limited
Capability statement: PPPs in Infrastructure 2013
1
Denotes either projects done or clients located in a country
Firm overview
ICRA Management Consulting Services Limited (IMaCS) is a management and development
consulting firm headquartered in India. IMaCS has over 17 years of consulting experience during
which we have completed about 1200 projects with over 600 clients across 40 countries.
IMaCS is a wholly owned subsidiary of ICRA
Limited, a leading credit rating agency in
India. Group ICRA comprises four businesses,
namely, Credit Rating, Management
Consulting, IT (Software) and BPO Services,
which are offered by four different
companies, namely, ICRA Limited (the parent
company), and three fully owned
subsidiaries, IMaCS, ICRA Techno Analytics
Limited (ICTEAS), and ICRA Online Ltd.,
respectively.
The main driver for IMaCS’ growth has
been a growing need for unbiased and
professional views on adopting best
business practices arising from
economic deregulation, growing
international trade & integration, and
the increasing need to be globally
competitive. IMaCS began as a firm
operating in India and has since worked
in several parts of the world on its own
and through strategic partners. Our New York based subsidiary, IMaCS Virtus Global Partners, Inc.
(www.ivgpartners.com) offers Strategy and Transactional Advisory services to companies in North
America and in India seeking to operate in the Indo-American corridor.
Building on a carefully nurtured knowledge bank of global benchmarks for business and
management practices and a repository of high-quality analytical talent, IMaCS has executed
assignments for a variety of Indian and International organisations, Governments, and regulatory
authorities. Our clientele includes Government and Government agencies, Private sector
organizations, multilateral / bilateral development institutions, Banks & Financial Institutions and
Regulators. We have executed assignments for multilateral and bi-lateral development agencies
such as the Asian Development Bank (ADB), African Development Bank (AfDB), Department for
International Development (DfID) United Kingdom, International Finance Corporation (IFC), United
Nations Development Program (UNDP), United States Agency for International Development
(USAID) and the World Bank.
GROUP ICRA
Credit
Rating
ICRA Management
Consulting Services
Limited
Management
ConsultingIT
(Software)
BPO
ICRA Limited ICRA Techno
Analytics Ltd.ICRA Online Ltd.
ICRA Techno
Analytics Inc.
Capability statement: PPPs in Infrastructure 2013
2
Strategy
Risk
Management
Enhancing Competitiveness / Market Assessment / Product development/
Market Intelligence / Profit improvement
Credit Risk / Market Risk/ Operational Risk / Enterprise wide Risk management/
Risk Analytics/ Risk Software
Transaction
AdvisoryM&A / Due diligence / Project Advisory / Bid advisory / Financial restructuring
Policy &
RegulationPolicy Advisory / Regulatory Economics / PPP Models/ Governance
Process
Consulting
Cost reduction / Process re-engineering / Organisation design /
/ Supply Chain Management / Outsourcing
Capacity
Building
Investment Institutional Programme Sustainable Monitoring
Climate Strengthening Management Development & Evaluation
1
2
3
4
5
6
Business Groups and Service offerings
IMaCS has six practice areas
grouped under Strategy, Risk
Management, Process Consulting,
Transaction Advisory, Policy
Advisory, and Capacity Building.
The different business groups and
practice areas within IMaCS form
our matrix of service offerings.
Multi-disciplinary teams are used
on most assignments. The
diversity of experience in IMaCS
teams helps it to adopt a creative and cross-functional approach to problem solving, which has not
only been very successful in practice, but has also been well appreciated by all our clients.
Most consultants at IMaCS have advanced academic degrees and also have experience in reputed
firms before joining IMaCS. Both fresh graduates and experienced consultants undergo formal and
informal training in IMaCS to deliver high quality solutions to clients. IMaCS’ clients also have the
benefit of the considerable organisational expertise that IMaCS has built up over the past 15 years.
IMaCS consulting activities are organised along five verticals:
1. The Infrastructure Group, , focuses on policy and project transactions in the areas of sector
reform and restructuring, creating public private partnerships, and building capacity in
government and public sector institutions. At a Policy level, IMaCS seeks to serve regulators,
governments and multilateral agencies in formulating or refining sector-wide policy issues such
as licensing, regulation, business rules, competition, tariffs, service level obligations, and
subsidies. At a Project Transaction level, the Group has accumulated substantial experience
and skills in handling engagements related to regulatory representations, financial modelling,
structuring payment and security mechanisms, designing project contracts and concession
agreements, and providing assistance in financial closure for various infrastructure projects.
2. The Banking and Finance Group focuses on assisting banks and financial institutions in
Strategy, Risk management, Process improvement and Transaction advisory. Our services span
M&A, Risk management (credit/ market/ operations), Strategy and Business planning,
Organisation design and restructuring, derivatives strategy, corporate debt restructuring and
purchase/sale of portfolios. Besides providing consulting services to banks, IMaCS also
develops and installs software programmes in the areas of risk management and workflow
automation related to credit management. IMaCS also designs and conducts training
programmes in Risk Management.
Capability statement: PPPs in Infrastructure 2013
3
3. The Corporate Advisory Group focuses on enhancing competitiveness of clients across a
variety of sectors and industries. IMaCS brings sector specific expertise and experience in a)
Auto & Industrial Markets b) Retail and Consumer Markets and c) Healthcare, Hospitality
and Tourism and d) Education and Skill Building. Specific areas of consulting include
Strategy and Competitiveness at firm/industry/region/country levels, shareholder value
maximisation, business process design and improvement, entry strategies and product
positioning, enterprise-wide risk management, evaluation of acquisition or divestiture plans,
and transaction assistance (e.g. partner search, valuation, due diligence, structuring deals and
business and financial restructuring).
4. The Energy Group focuses on strategy, policy and transactional issues related to Electricity,
Oil & Gas and Renewables. The Group has significant expertise in restructuring and reform
process in the Electricity sector having worked with multiple entities such as the government,
regulators, state owned and private power companies from early stages of sector reform in
India. Our services cover regulatory assistance to utilities and regulatory commissions,
restructuring and privatization, formulating strategies and business plans for utilities,
conducting market assessment studies for investors/utilities, providing assistance to
developers/project appraisal/project risk assessment, and investment and transaction
assistance. IMaCS has assisted Indian and international business groups in formulating
strategies to enter the Energy sector. IMaCS has a strong focus on Renewables having worked in
wind, hydro, co-generation, and biomass segments, both at policy and project levels.
5. IMaCS’ Development Consulting Group has emerged out of IMaCS’ experience in working
with profit-seeking organisations and investors with the principle that practices commercial
enterprises follow are just as applicable for organizations working in the not-for-profit,
government and social development. The significant difference between for-profit and not-for-
profit organizations is essentially in how they are funded and/or in the expectations of returns
of their respective sponsors. The quest for strategic clarity, operating efficiency, and financial
sustainability remain the top priorities for senior management of all kinds of organizations,
spanning from profit-seeking enterprises to not-for-profit organizations in the development
sector. IMaCS works with governments at various levels – national, state or local government -
in a bid to help them become more effective in achieving their objectives. Our clients include
Government institutions at central, state and local levels, bilateral and multilateral aid agencies
in India and overseas.
Capability statement: PPPs in Infrastructure 2013
4
IMaCS’ Energy and Infrastructure Group
The Energy and Infrastructure Group of IMaCS focuses on
policy and transactional projects in the areas of sector reform
and restructuring, creating public private partnerships, and
building capacity in government and public sector
institutions.
At the Policy level, IMaCS seeks to serve regulators,
governments and multilateral agencies in formulating or
refining sector-wide policy issues such as licensing,
regulation, business rules, competition, tariffs, service
level obligations, and subsidies.
At a Transaction level, our Infrastructure group has accumulated substantial experience and
skills in handling engagements related to regulatory representations, financial modelling,
structuring payment and security mechanisms, designing project contracts and concession
agreements, and assistance in financial closure for various infrastructure projects. Our
transaction advisory services spans the project development cycle.
Our Energy and Infrastructure Group works across the Energy (including Power, Oil & Gas and
Renewables), Transportation, Urban Infrastructure and Social Sectors (Education and
Healthcare) across a variety of functional areas. The Practice has a core team of in-house
consultants, an extensive database of external experts, and partnerships with a range of
collaborating institutions. We recognize the need for infrastructure development in countries in
the emerging markets, and have accordingly built our research, knowledge base, networks, and
delivery mechanisms to work globally.
1.Feasibility and Project
Structuring
2.Bid Process
Management /Advisory
3. Financing and
Implementation
Project Identification and
Pre-feasibility
Demand/Traffic
Assessment
Technical & Financial
Feasibility
Economic Cost Benefit
Analysis
Environmental Impact
Assessments
Structuring Concessions
and/or Joint Ventures
Contract Documentation
Preparing bidding
documents –RFQ/RFP
Drafting and reviewing
concession agreements
Assisting private
developers in bidding for
projects
Financial Modeling and
Project Risk assessment
Conducting pre bid
meetings bid evaluation
& selection of bidder
Infrastructure project
structuring & appraisal
Financial Engineering &
Structured Finance
Assisting credit
enhancement in projects
Sell and Buy side
Advisory
Private Equity and Debt
finance
Assistance in negotiation
with lenders
InfrastructureDevelopers
Banks, Lenders, Private Equity,
Multilateral Institutions
Sponsors/GovernmentRegulators
Capability statement: PPPs in Infrastructure 2013
5
IMaCS’ services in Public Private Partnerships
IMaCS brings rich experience in Private Sector Development and Public Private Partnerships (PPPs)
through deep involvement in several transitioning sectors (that were otherwise provisioned by
public agencies and where private sector participation and PPPs have been initiated through
competitive bidding and market development frameworks created through policy intervention)
since the initial stages of reform.
Our work in PPPs covers both Policy and Project level support for clients across Government &
Government agencies, Regulators, Multi-lateral agencies and Private Sector organisations. Our
sectoral expertise in PPPs and private sector development extends across i) Transportation
(Airports, Ports and Highways), ii) Power (Generation, Transmission and Distribution), iii)
Renewables, iv) Urban Infrastructure (Water supply, Waste-water recycling, Solid Waste
Management), v) Gas (Transmission lines and City Gas networks), vi) Telecom (Rural Mobile
Telephony), vii) Skill Building and viii) Healthcare.
IMaCS’ work in Public Private Partnerships – Key Highlights
Policy support:
1. Development of a Practitioners’ Toolkit for developing PPPs in Municipal Solid Waste Management on
behalf of the Ministry of Urban Development, Government of India.
2. Development and maintenance of a comprehensive web-based database of PPP projects
(www.pppindiadatabase.com) on behalf of Department of Economic Affairs, Ministry of Finance,
Government of India
3. Development of a Communication Strategy and a Practitioners’ Manual for handling Communication in
PPPs for Department of Economic Affairs, Ministry of Finance, Government of India
4. Formulating a Strategy and Business Plan for a regional Urban Development Fund seeking to attract
private sector finance and participation in the Urban Sector.
Transaction Design and Bid Process Support
1. Urban: Advising on projects involving over USD 200 million worth in Water Supply and Waste - water
reuse and concluded a number of transactions in Solid Waste Management. Successfully concluded
bidding for India’s first large scale Waste-water reuse PPP project in the city of Surat in Gujarat.
2. Power: Transaction advisor for the first Public Private Partnership in Power Transmission in India by
successfully assisting the Central Power Transmission Utility in identifying a Joint Venture Partner for the
Western Region Grid Strengthening project in India. Besides this, IMaCS has provided Bid Advisory
support to over 10 projects in Power Generation and Distribution over the last five years.
3. Telecom: Advised the Universal Service Obligation Fund, Government of India in structuring and bidding
out subsidy support for shared extension of mobile networks in rural areas in India.
4. Transportation: IMaCS was part of consortium that advised Government of India in privatization of the
airports at New Delhi and Mumbai. Advised bidders on traffic studies and bid strategy in over 15
Highway PPP projects under the National Highway Development Program (NHDP) and on more than
10 PPP projects in the Ports sector in India over the past five years.
5. Skill Building: Retainer Advisor to the National Skill Development Corporation, Government of India to
evaluate proposals from Private sector for PPPs in Skill Building and in forming Sector Skill Councils.
Capability statement: PPPs in Infrastructure 2013
6
Our work in PPPs can be organized along three service offerings:
1. Policy and Program level advice
2. Transaction Design, structuring and Bid Process hand-holding
3. Project Bid Strategy advice for private sector developers
While service offerings 1) and 2) typically are done with Government / Government agencies (some
of which are supported by Multi-lateral / Bi-lateral agencies), service offering 3) is done on behalf
of investors / private developers that bid for PPP projects. Our work across diverse stakeholders
and across the spectrum from policy, transaction design and bid strategy enables us to provide a
balanced multi-dimensional perspective to our clients.
1. Policy and Program level advice: Experience with PPPs both internationally and in
India suggest that PPPs require a strong enabling environment including a clear sector
level policy, institutional capacity for project development and structuring within the
Government / Concessioning agencies and internal capacities to profile, disseminate
and learn from past experience and best practices. ‘IMaCS' expertise in PPP policy
advisory covers preparation of policy guidance documents, sector level toolkits,
training and capacity building programmes, and creation and maintenance of database
on PPP projects.
2. Transaction Design, structuring and Bid Process hand-holding: IMaCS has
experience in providing Transaction services for PPP projects in sectors including
Transportation Power, Water supply, Waste-water recycling and re-use, Solid Waste
Management, Telecom, Healthcare, and Education & Skill Development.
3. Project Bid Strategy advice: has experience in working with private sector developers
on providing project level bid strategy advisory services in sectors including
Transportation (Ports and Highways), Power (Generation and Distribution), Gas
Transmission and City Gas Networks and Urban Services (Water supply, Waste-water
recycling and re-use, Solid Waste Management).
Case vignettes of select assignments done by IMaCS in each of these areas are provided below:
Capability statement: PPPs in Infrastructure 2013
7
Policy Support
1. Toolkit for PPPs in Solid Waste Management. 2011. The Asian Development Bank (ADB) on
behalf of the Ministry of Urban Development, Government of India (MOUD) retained IMaCS to
develop a Toolkit for implementation of Public Private Partnerships (PPPs) in Municipal Solid
Waste Management (MSWM). The Toolkit aims to facilitate a better understanding of
applicability of potential PPP models in the context of issues and challenges faced and to
provide a step-by-step approach to identify, evaluate and implement PPP projects in MSWM. A
rapid assessment covering recent policy developments in the sector, compilation of case studies
of select PPPs and a review of baseline scenario in select satellite towns to explore scope for
application of PPP models, was undertaken as part of the process of developing this toolkit
2. Development of PPP communication strategy. India. 2010. Following the Government of
India’s recognition of PPPs as a key element of its Infrastructure development strategy, it
identified strategic communication as a key enabling requirement for mobilizing stakeholder
support. Against this backdrop, the Department of Economic Affairs (DEA) Government of India
with support from the World Bank retained IMaCS to develop a Communication Strategy to
enhance the level of awareness about PPPs among key stakeholder groups. This exercise
involved a detailed Communication Needs Assessment (CNA) survey to identify the current
mind-set and information needs of key stakeholder groups, review the present level and
approaches of communications in the context of PPPs, review PPP Communication Strategies of
other countries and draw lessons for India to develop a strategy and action plan for elements of
the communication strategy at project and program levels.
3. Communication Manual for PPPs India 2010. As PPPs continue to develop and expand in
India, the need to use strategic communication to review, mitigate and manage political and
developmental issues and make the outcomes socially and politically sustainable is becoming
critical and forms the subject of this Manual. This Manual developed with support from the
World Bank and done on behalf of the Government of India is structured as a high level guide on
the use of Communication tools and techniques for engaging with stakeholders of a PPP project
so as to mobilise their support and to address their concerns. This Manual is intended for the
use of Practitioners of PPP projects (“Practitioners”) working in various arms of Government at
the Central, State or Local levels, who are entrusted with the responsibility of developing
infrastructure projects in India under the PPP mode.
4. Design, Development and Maintenance of PPP Database. India. 2007-12. To track the
development with respect to Public Private Partnerships (PPP) in India, the Department of
Economic Affairs (DEA), Ministry of Finance, Government of India retained IMaCS to design,
develop and maintain a database on Public Private Partnerships. The database would support
DEA, Government of India and State Governments in providing information resources to track
development of PPPs and measure the overall performance of states in attracting investment
into PPPs, apart from other information on PPPs.
Capability statement: PPPs in Infrastructure 2013
8
5. Feasibility study and Business Plan for AMC-Urban Development Fund with AMC being
structured as a Public Private Partnership. Orissa. 2009 The main purposes of this
engagement done on behalf of a German bi-lateral agency as part of an Indo-German
cooperation initiative were to (i) lay the groundwork for the establishment of a Fund modality
at the state level for urban infrastructure projects and (ii) develop a proposal for financial
cooperation, identifying eligible subsectors for financing and outlining capacity building
requirements. As part of the study, IMaCS reviewed the Urban investment needs and potential
urban financing market, developed the Institutional Design and Capital Structure, and prepared
a five year Business Plan for the Fund. An Asset Management Company (AMC) – Fund model
was recommended at the end of this exercise with detailed modalities for managing the AMC as
a Public Private Partnership.
Transaction structuring and bid process support
Urban services
1. Transaction advice and Bid process support – Water Supply PPP – Ranchi Municipal
Corporation and Drinking Water and Sanitation Department, Government of Jharkhand
(DWSD) 2011. IMaCS has been retained for providing transaction advice and bid process
support to RMC and DWSD for conducting a technical assesment of the existing water supply
system, scoping and structuring of a comprehensive PPP project for rehabilitation and
maintenance of the water supply system in the city, prepare bidding documentation and and
provide hand-holding assistance in conducting the bid process for selecting a private operator
for the same.
2. Transaction advice and Bid process support. Waste-water reuse and Water Supply PPP
projects. Surat. 2009-10. The engagement was completed by IMaCS with support from Asian
Development Bank to support Surat Municipal Corporation (SMC) in developing two projects,
namely, a) Water supply distribution project in New North Zone in Surat city, and b) Waste
water recycling to produce Industrial Grade Water from Bamroli STP and supply to Pandesara
Industrial Area (both within the ambit of the SMC). The scope of assistance involved
preparation of Feasibility and Investment Banking reports, preparation of bid documents and
hand-holding SMC through the bidding process. The Bid process for the Waste water recycling
project has been completed and evaluation report of bids received has been submitted to SMC
for further action. The Bid documents for the New North Zone water supply project was
proposed to be implemented as an affermage contract and the bid documents for the same were
submitted.
3. Transaction advice - Waste-water reuse and Water Supply PPPs. Ahmedabad. 2009-10.
The engagement, done with support from Asian Development Bank, was to support Ahmedabad
Municipal Corporation (AMC) in developing two projects, namely, a) Water supply distribution
project in New West Zone and b) Waste water recycling to produce Industrial Grade Water from
Capability statement: PPPs in Infrastructure 2013
9
Pirana STP and supply to Narol and Vatva Industrial Area. The scope of assistance involved
preparation of Feasibility and Investment Banking reports (FIBRs), preparation of bid
documents and hand-holding AMC through the bidding process. Following finalization of FIBRs,
bid documents for both the projects were submitted.
4. Transaction advice - Water Supply PPP. Rajkot. 2009-10. The engagement done with
support from Asian Development Bank was to support Rajkot Municipal Corporation (RMC) in
developing a Water supply distribution project in the Extended Nyari Zone of the city. The
scope of assistance involved preparation of Feasibility and Investment Banking reports (FIBRs),
preparation of bid documents and hand-holding the municipal corporation through the bidding
process. Following finalization of FIBRs, bid documents for both the projects were submitted.
5. Transaction advice and Bid process support - Solid Waste Management PPP.
Koyambedu Municipal Market. Chennai 2009. IMaCS assisted the Market Management
Committee of Koyambedu Market Chennai in implementing Integrated Solid Waste
Management practices through a PPP contract and in conducting a Bid process to identify a
private Service Provider. IMaCS conducted a feasibility study to crystallize project components,
assisted MMC in preparing Tender documents and invited bids for the project. Based on the
bids received, a private developer was awarded the concession.
6. Transaction advice and Bid process support – Solid Waste Management PPP. Dumping
yard renewal and Transfer Station Development PPP. Ambattur. Tamil Nadu 2008. IMaCS
assisted Ambattur Municipality, a suburban town within Chennai Metropolitan Area, in a
feasibility study and bid process for identifying a private service provider for scientific closure
of dumping yard and development of Transfer station. The feasibility recommendations were
accepted and the bid process led to identification of a private operator for executing the project.
7. Transaction advice and Bid process support - Solid Waste Management PPP. Collection
and Transfer. Alandur. Tamil Nadu. 2007. The exercise involved supporting Alandur
Municipality, a suburban town within Chennai metropolitan area in conducting a bid process
for selection of a private service provider for handling primary collection, secondary transfer
and disposal of solid waste. The transaction was completed successfully.
8. Transaction advice and Bid process support - Telecom – Subsidy support for rural
mobile network expansion. India. The Universal Service Obligation Fund, Department of
Telecommunication, Government of India (USOF) had decided to extend financial support for
creation of shared infrastructure for mobile services in the rural areas. IMaCS was retained as
financial consultant for conceptualising and developing the methodology for support and
assisting USOF in the bid design and bid process management for the scheme. IMaCS’ role on
this project involved the following: (a) examine the role of mobile services in enhancing low-
cost telecom access in rural areas and rationale for the proposed scheme of USOF, (b) review
proposed framework for extending support to mobile infrastructure creation along with our
recommendations and design of the scheme, (c) analysis and designing the principles for
Capability statement: PPPs in Infrastructure 2013
10
arriving at the subsidy, (d) create a statistical Index based on district level economic and
demographic data to arrive at differentiated benchmark subsidy levels for shareable and non-
shareable components, (e) assistance in finalisation of Tender documents and bid process
management for the scheme. The process for subsidy support extension was successfully
concluded.
Healthcare
9. Transaction advice and Bid process support – Healthcare - North Goa District Hospital
PPP, Mapusa Goa. 2010. This project is to facilitate a transaction for Government of Goa to
enter into Public- Private Partnership (PPP) contract with an experienced Private Service
Provider for operating and managing a government hospital in Goa. The scope of work for this
study involved: assisting the Health Department in the selection of suitable firms as legal
consultants and also assisting in the entire building process up to the signing of the concession
agreement; advising on the commercial and capital structuring; development of various
possible alternatives for revenue maximization and preparation of revenue model for the
project; assistance in preparation of Bid documents including the relevant Schedules of the
Concession Agreement, and assisting the Health Department in the entire Bid Process and
selection of Concessionaire.
Energy
10. Transaction advice and Bid process support - Power Transmission – Western Region
system strengthening scheme – II. India. The Power Grid Corporation of India Limited
(PGCIL) appointed IMaCS to provide assistance in selection of private player (Independent
Power Transmission Company - IPTC)) to execute two transmission projects. The said projects
are a part of the transmission system associated with Western Region system strengthening
scheme – II. The project involved assistance to PGCIL in preparation and review of Model of
Financing Package and Base Project Cost and Criteria for Evaluation of Financing Package &
Base Project Cost and Tariff alongwith Price Variation (PV), sharing of RFP methodology being
followed for similar projects by other organisations in India and Abroad, review of draft RFQ
prepared by POWERGRID including responding to queries of POWERGRID/Bidders on the RFQ
document, review and finalisation of draft RFP (financial & commercial aspects), review and
finalisation of various contractual documents like the Shareholder’s Agreement (SHA),
Implementation Agreement (IA), Transmission Service Agreement (TSA), conduct of pre-bid
conferences and issue of clarifications to Bidders on RFP document, review of Evaluation
Report of Financial Package and Project Cost and assisting POWERGRID in review, negotiation
& finalisation of various Contracts and Project Agreements/Documents till financial closure.
The bid process was successfully concluded.
11. Bid process support - Competitive Power Procurement under Case I and Case II bidding
guidelines. IMaCS assisted the Haryana Power Generating Company Limited in a bid process
Capability statement: PPPs in Infrastructure 2013
11
management for the development of a 1338 MW coal based thermal power plant at Jhajjar
District in the State of Haryana as part of assistance for procurement of power of 3200 MW by
tariff based competitive bidding. IMaCS has also assisted utilities in several states including
Gujarat, Uttarakhand, Bihar and Madhya Pradesh in conducting similar bid processes for
competitive procurement of power under Case I.
12. Bid process support – Selection of a joint venture partner for development and operation
of a coal mine. IMaCS assisted the Punjab State Power Corporation Limited (PSPCL) for
evaluating the tenders and selection of a joint venture partner for formation of a joint venture
company for selection, allottment, development, mining and supply of coal to power stations of
PSPCL.
Transport
13. Bid process – Ports. PPP for marine services. IMaCS was appointed by a port management
company to provide financial advisory and bid process management services for
outsourcing/privatisation of marine services. The Port proposed to either sell the equipment
for marine services (Tugs and Pilot Launches) and charter them back from the purchaser or
retain the equipment with the Port and privatise manning, operation and maintenance of these
facilities. The Port had called for tenders for the above and appointed IMaCS to undertake
financial and technical evaluation of the tenders and suggest the best option -
outsourcing/privatisation of marine services. IMaCS evaluated the technical bids submitted by
the bidders for adherence and responsiveness to the tender document and assisted the client in
discussions with the bidders with regard to the data gaps and clarifications on issues relating to
relevant experience of the bidders. IMaCS evaluated the price bids submitted by the bidders
under both options and calculated the Net Present Value of the cash outflows -and
recommended a bidder under the sale and charter back option.
14. Financial Advisory support. Airports Authority of India (AAI). Renovation and
Modernisation of Mumbai and Delhi airports. The Government of lndia (GoI) had decided to
restructure and modernize two major metro international airports in India through formation
of joint ventures between the Airports Authority of lndia (AAI) and private players, to be
selected through an international competitive bidding process. AAI appointed a consortium
consisting of a leading investment advisory services firm and IMaCS for the proposed
transaction as the financial advisor. As part of the engagement, IMaCS along with the
consortium partner estimated aeronautical and non-aeronautical sources of revenue for the
airports, commented on feasibility of various financing structures that enable privatisation of
airports, conducted sensitivity analysis with respect to key variables affecting project viability,
and provided inputs on regulatory issues pertaining to the institutional framework for
privatisation. Our consortium also anchored the process of appointment of technical adviser
and overall supervision of work carried out by the transaction adviser, prepared the bid
documents and carried out bid process management leading to selection of private developers.
Capability statement: PPPs in Infrastructure 2013
12
15. Techno-economic Feasibility Study and Bid Process. Monorail project. Delhi. With a
present population of about 15 million, the National Capital Region is growing exponentially.
Apart from its intra-city transport demand, the city also attracts a large volume of passenger
traffic from other areas due to its historical, political, economic and administrative importance.
Considering present and future transport demand, various schemes to augment public
transport have been planned or are under implementation. One of the projects is a Mono Rail
Project, a Light Rail Transport System for three corridors in the city. IMaCS, in consortium with
an Indian technical consultancy firm and two Japanese consultancy firms, undertook this study,
in which IMaCS’ role was primarily to undertake financial analysis and recommend financing
structure, including viability gap funding for three corridors in the city.
16. Transaction strucutring and bid process. Airports. Air Cargo complex. The Airports
Authority of India (AAI) appointed IMaCS to carry out evaluation of the bids received for the
cargo complex at a major metro airport. AAI received varied bids from disparate consortia,
which then had to be brought onto a common measuring scale for evaluation and final selection.
IMaCS drafted the bid documents, evaluated the technical and financial proposals submitted by
the bidders, developed selection criteria/matrix of desired variables for ranking of
proposals/bids, and carried out negotiations with the selected developer on behalf of AAI.
Bid advisory for private developers
Transportation
1. Bid advisory support. PPPs in Terminals in Major Ports. India. IMaCS has advised private
developers / bidders in bidding for 5 PPP projects at Terminals in Major Ports (Federal ports
in India that are directly under the Ministry of Shipping, Government of India). Bid advisory
assistance to developers in these projects has typically covered market assessment, financial
modelling, risk analysis and bid strategy. Some of the PPP projects for which IMaCS advised
private developers include a) Marine Liquid Cargo Terminal, Ennore Port b) Iron ore berth.
Paradeep Port, c) General Cargo Berths. Kandla Port, d) Alumina Berth. Visakhapatnam Port and
e) 4th Container Terminal. JNPT Mumbai f) EQ-1 Visakhapatnam Port g) North Cargo Berth II
Tuticorin Port h) Coal Terminal – Mormugao Port
2. Bid Advisory support. PPPs in Minor Ports. IMaCS has advised private developers / bidders
in bidding for over 10 PPP projects in Minor Ports (ports in India that are developed by
respective State Governments). Bid advisory assistance to developers in these projects has
typically covered market assessment, financial modelling, risk analysis and bid strategy. Some
of the PPP projects for which IMaCS advised private developers include a) Machilipatnam Port
b) Cuddalore Port, c) Hazira Port d) Mundra Port, e) Dhamra Port, f) Pipavav Port Rail
connectivity, g) Subarnarekha Port h) Nargol Port
3. Bid Advisory support. Highway PPPs. IMaCS has advised private developers / bidders in
bidding for Highway PPP projects being bid out under the National Highway Development
Capability statement: PPPs in Infrastructure 2013
13
Program. Bid advisory assistance to developers in these projects has typically covered market
assessment, financial modelling, risk analysis and bid strategy. IMaCS has advised bidders on
over 35 projects over the past 10 years.
4. Bid Advisory Support. Railways. Mozambique. The Government of Mozambique received
financial assistance from the International Development Agency to rehabilitate two separate
railway lines as part of a single railway project, through private sector participation on BOT
basis. The privatisation programme required setting up of an SPV, with equity contribution
from the Government of the country, the state owned incumbent railway operator (CFM) and a
private sector operator. The SPV was to receive subordinate debt from IDA at concessional
rates, and the concession to operate the identified railway lines after rehabilitating them. The
client, a leading turnkey infrastructure construction company, in consortium with a leading
technical consultancy firm, wished to bid for forming the SPV, which was to be granted the
concession for developing and operating the Beira Rail System. The deciding criterion for the
bids was the amount of subordinate fund (subvention) to be sought from IDA. IMaCS assisted a
leading railway construction company in carrying out the due diligence and risk assessment of
the project. The project feasibility report, concession agreement and other bid documents were
reviewed to identify key commercial risks in the project, and queries were raised for the pre-
bid meeting. Following the receipt of clarifications/modifications in the bid documents, a
comprehensive financial model was developed to analyse the financial viability of the project
and estimate the optimum level of IDA funding required. IMaCS carried out sensitivity analyses,
by varying certain critical parameters to arrive at the optimum level of IDA funding required.
Our client emerged as the winning bidder for this project and has since implemented the
project. The Beira Railway project has emerged as a critical logistic link for export of coal from
Mozambique.
Power
5. Bid strategy. Ultra Mega Power Project PPPs. India. IMaCS advised power sector developers
in bidding for 4000 MW Ultra Mega Power Projects (UMPPs) developed by Government of India
on a competitive bidding basis at three locations, namely, Sasan, Tilaiya and Mundra. In these
projects, IMaCS’ support covered risk and regulatory assessment, financial and tariff modelling
to suggest means of financial engineering and to develop an effective bid strategy.
6. Bid strategy. Other Power Projects – IMaCS advised private sector players for participating in
BOO bids for a lignite based power project and a solar photovoltaic project. IMaCS has also
advised two private sector players in bidding for supply of power under Case I bidding
guidelines of Ministry of Power, Government of India.
7. Bid strategy. Power distribution PPP under Distribution Franchisee arrangement for
Aurangabad and Nagpur. IMaCS advised two private sector players in bidding for the
Distribution Franchisees in the competitive bids conducted by Maharashtra State Electricity
Distribution Company Limited (MSEDCL).
Capability statement: PPPs in Infrastructure 2013
14
8. Bid Strategy. Gas Transmission. IMaCS was retained by a leading Gas sector operator for
advice on financial modelling and bidding strategy advise for two Gas Transmission networks in
Northern India that were bid out by the Gas regulator, PNGRB. IMaCS’ scope of work involved
financial modelling and feasibility assessment. Our client was declared the successful bidder in
both the bids.
9. Bid Strategy. City Gas Networks. IMaCS has been retained by a leading gas sector operator for
pre-bid advisory and for assistance in preparation of bids for City Gas Networks for three cities
in India.
Water supply
10. Bid Strategy. Water Supply. Aurangabad water supply PPP. IMaCS was retained by a
leading Indian water operator to review the PPP structure and RFP for this project and conduct
a demand and revenue assessment study. As part of the study, IMaCS conducted a technical
assessment of the network and a household level survey to identify issues in the network and
distribution system. IMaCS also reviewed the contract and provided inputs to the operator on
contractual aspects that impacted the bankability of the project.
Capability statement: PPPs in Infrastructure 2013
15
I M a C S
Corporate Office:
Logix Park, First Floor
Tower A4 & A5, Sector - 16
Noida - 201 301
T: + (91 120) 4515800
F: + (91 120) 4515850
Registered Office:
1105, Kailash Building, 11th Floor
26 Kasturba Gandhi Marg
New Delhi – 110001
T: + (91 11) 2335 7940-50
F: + (91 11) 2335 7014
Contacts
Mr. Anand Madhavan
Head – Energy & Urban Infrastructure
Phone: + 91 44 45964300 / 2434 0043 (Chennai)
Mobile: + 91 98404 62556 (Mobile)
Email: anand.m@imacs.in
Mr. Harish Kamath
Head - Transport
Phone: + 91 22 30470047 (Mumbai)
Mobile: + 91 98204 49124 (Mobile)
Email: harish.kamath@imacs.in
Mr. Sunil Varma Marri
Head - Energy
Phone: + 91 120 4515800 (Noida)
Mobile: + 91 98490 38227 (Mobile)
Email: sunil.marri@imacs.in
Mr. Sriram V
Chief Operating Officer
Phone: + 91 44 4596 4300 /4596 4326 (Chennai)
Mobile: + 91 98400 88273 (Mobile)
Email: sriram.v@imacs.in
top related