global expression of interest for development of common

Global Expression of Interest for Development of Common Effluent Treatment plant with ZLD for Mega Textile Park at Warangal ADDENDUM-II: Clarifications to Pre-Bid Queries

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Clause & No. Pg. No.

Clause as per EOI & Addendums

Query Clarification/Response

1. Extension 4 Application Due Date: (Due date for submission of Application is 18-03-2017)

(1) We are in advanced state of discussion with probable partners and very keen to participate in the EOI stage. We request you to extend the EOI submission date by 1 month

(2) Kindly provide minimum 10 days from the date of clarifications for submission of EOI application.

The Bid due date is extended upto 04/04/2017, 17.00 Hrs IST.

2. Financial Eligibility Criteria: 3.1.3

14 Applicant should have a minimum net worth of INR 62 Crore (USD 9.26 mn) in each of the last three financial years (2013-14, 2014- 15 and 2015-16) And Applicant should have a minimum Turn over of INR 250 Crore (USD 37.34 mn) in each of the last three financial years (2013-14, 2014- 15 and 2015-16)

(1) It is requested that eligible criteria for each of the last

three financial years be relaxed to one of the Financial year. We request you to modify the net-worth criteria of upto 30 Crore in any one of the last three financial years (2013-14, 2014-15 and 2015-16)

(2) We request you to modify the turnover criteria of INR 100 Cr Crore in any one of the last three financial years (2013-14, 2014-15 and 2015-16)

(1) Not considered. The revised criterion is as below.

Applicant should have

minimum average net worth of INR 62 Crore (USD 9.26 mn) in the last three financial years (2013-14, 2014- 15 and 2015-16).

Likewise the applicant should have an minimum average Turnover of INR 250 Crore (USD 37.34 mn) in the last three financial years (2013-14, 2014- 15 and 2015-16).

3. Financial Eligibility Criteria: 3.1.3

14 Request to change the criteria to following: (1) Our firm will be participating with Lead Partner in the

project only as technical partner. We would like to clarify if such requirement can be met with combined net-worth of all members to consortium

(1) No.


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(2) Further for the purpose of meeting the above criteria can “Net Worth” definition be extended to include Free / Committed Cash Available with any of the member to consortium?

(3) We would like to know from you if such requirement of Turnover can be met with combined Turnover of all the members to consortium?

(4) Further if Turnover of the parents company (Company having more than 51% shares in the participating member) be considered for the purpose of meeting the turnover criteria? Also if Parent company of participating member or any of participating member is using “Calendar year i.e. Jan to Dec “ as financial year while other member is considering “April to March” financial year , whether clubbing / referral of turnover will be allowed. E.g, as per above criteria Turnover of FY 15-16 to be considered. FY 15-16 essentially covers period from April 15 till March 16. Consider a case where a company is following calendar year say Jan 15 to Dec 15 as financial year , can they use data for the period Jan to Dec 15 while calculating the criteria for FY 15-16.Please confirm.

(5) In most infrastructure tenders across sectors, the criteria of net-worth OR turnover is required to be met. However, the present tender requires both criteria to be met. Further the turnover criteria is usually in the same range of net-worth criteria. Therefore, we request you to have a Net-worth 'OR' Turnover criteria.

(2) No. definition as per EOI documents prevails.

(3) No.

(4) Yes, provided that the Authorised signatory of the Parent company of the bidding firm (Lead Member of a Consortium) gives the commitment to support the project financially in the form of a letter. The letter needs to be submitted along with the EOI. In case of financial year different due to different calendar years, you may show the Jan –Dec for one firm and April to March for the other firm.

(5) The EOI criteria shall prevail.


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(6) It is requested that eligible criteria for each of the last three financial years be relaxed to one of the Financial year. We request you to modify the net-worth criteria of upto 62.5 Crore in any one of the last three financial years (2013-14, 2014-15 and 2015-16).

(7) The tender has not clearly specified if the bidding entities/Consortium members can use the credentials of its Parent Companies (more than 50% controlling equity directly or indirectly) to meeting the financial and technical qualification criteria. Usually, the parent company sets up separate companies for projects, geographies or tax & compliance purposes and hence, that bidding entity per se may not meet the required eligibility criteria. For this reason, across all infrastructure tenders, the bidder is allowed to use the credentials of its Parent Company. Therefore, we request you to clarify and allow the bidding entities/ Consortium members to use the financial and technical credentials of its Parent

(6) The revised criterion is as below.

Applicant should have minimum average net worth of INR 62 Crore (USD 9.26 mn) in the last three financial years (2013-14, 2014- 15 and 2015-16).

Likewise the applicant should have an minimum average Turnover of INR 250 Crore (USD 37.34 mn) in the last three financial years (2013-14, 2014- 15 and 2015-16).

(7) Please refer response as

above. Please refer S. No. (2) for the financial criteria at item No. 4. However, the applicant/ consortium member shall meet the technical criteria by its own.


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Company in-line with other tenders.

(8) We are proposing to participate in the tender with an Investor Company, who could be a private equity fund or foreign investor operating in renewable energy / infra sector. Proposed Investor will act as a Lead Partner to consortium with us. Lead partner shall be responsible & will be investing 100% equity and will also be responsible for arranging 100% debt required for execution of the project. We will be solely be acting as technical partner and will carry out EPC/O&M job as sub-contractor to Consortium.

(9) You are requested to please clarify if such an arrangement is permissible?

(10) It is requested that all the members of the consortium cumulatively shall meet the minimum eligibility criteria under clause 3.1.3

(11) Please confirm if there has to be any minimum

percentage of equity participation for the Technical Member in the consortium.

(12) Member of the consortium shall nominate one member as the lead member (the “Lead Member”) who shall have equity share of at-least 51% in the Consortium. All the members of the consortium cumulatively shall meet the minimum eligibility criteria under clause 3.1.3

(8) Yes. The arrangement is acceptable. However, the technical partner shall be member of consortium, but not as a sub-contractor.

(9) Please refer S.No (2) & (3)

above.

(10) Each applicant/consortium member should meet at least one of the eligibility criterion on its own.

(11) No minimum percentage is specified for other members.

(12) Please see response at Item No. 10 above.

4. Technical Experience 3.1.3

Development Experience Development/Constr

(1) The clause may be modified as following Development / construction of a CETP / ETP at least 2 MLD in a single project (or group of CETPS with a

The revised criterion is as follows: Development/Construction of a


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uction of a CETP at least 2 MLD in a single project (or group of CETPs with a cumulative capacity of 5 MLD) during last ten years which is commissioned prior to the date of issue of this EOI

cumulative capacity of 5 MLD) during last ten years which is commissioned prior to the date of issue of this EOI

AND Applicant should have experience of development/construction of a Zero Liquid Discharge (ZLD) plant with suitable / appropriate technology for treating industrial effluent

(2) Development/Trunkey Contract of a CETP/

ETP/STP / at least 2 MLD in a single project (or group of CETPs / ETP / STP with a cumulative capacity of 5 MLD) during last ten years which is commissioned prior to the date of issue of this EOI

(3) Please confirm if Development experience in STP and or ETP will be considered for qualification

CETP/ETP of at least 5 MLD in a single project (or group of CETPs/ETPs with a cumulative capacity of 5 MLD with atleast one CETP of 2 MLD capacity) during last ten years which is/are commissioned prior to the date of issue of this EOI. STP development experience will not be considered.

5. Technical Experience 3.1.3

O&M Experience Operation of CETPs with a cumulative capacity of 5 MLD (with atleast one CETP of 2 MLD capacity) during last ten years which is operational as on date of issue of this EOI.

(1) Applicant should have experience of Operation of a CETP / ETP plant with ZLD in a industry during last ten years which is operational as on date of issue of this EOI

(2) Operation of CETPs with a cumulative capacity of 5 MLD (with atleast one CETP/ ETP / STP of 2 MLD capacity) during last ten years which is operational as on date of issue of this EOI.

(3) Please confirm if O&M experience in STP and or ETP will be considered for qualification

Please refer S. No. 4 above.

6. ANNEXURE 3: Format for Memorandum of association

(1) Request you to kindly allow to submit Letter of Intent for Joint venture along with RFQ document. JV agreement shall be submitted at the time of RFP stage.

(2) Whether we can add additional JV partner at the

Please refer S No (2) for financial criteria. EoI condition holds good.


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(MOA) for consortium

stage of RFP after qualification / EOI result confirmation received from TSIIC

7. Integrated of other Environment Management Infrastructure

- - EOI document speaks about development of Integrated Environment Management Infrastructure. Whether the project to be executed will include all the components or only CHP. It is suggested to have an integrated development through one developer for coordination among the various components of the environment management infrastructure.

TSIIC will examine and consider this while preparing in the next phase i.e. RFP.

8. 2.1.4 The developer selected through bid process is required to undertake Planning, detailed Engineering & Designing, Financing, Construction, Marketing and Operation & Maintenance (O&M) of proposed project as per the market requirement in consultation with the Authority

Our understanding : The developer selected through bid process is required to undertake Planning, detailed Engineering & Designing, Financing, Construction, and Operation & Maintenance (O&M) of proposed project Marketing and sale of water will be in scope of TSIIC.

As per the EOI, the Bidder shall be responsible for marketing of the project. The Hyderabad Pharma City project SPV / TSIIC will facilitate. TSIIC shall consider revenues from sale of water etc. while preparation of the documents in the next phase i.e., RFP.

9. Source of Funding / Grant / Subsidy

- - (1) Is VGF/grant available for the project

The project is a Prestigious and priority Project for the state of Telangana. The project is being funded by Government of Telangana and TSIIC through its internal sources or through funding


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from other financial institutions. VGF could be considered to be provided. Moreover, for some of the components such as Internal infrastructure, CETP etc., GOI grant is also being explored under various schemes.

10. Clearances and Permissions

- - (1) Please confirm if the projects have secured required Environment Clearance from MOEF

(2) Kindly clarify about all statutory clearances in whose scope: Like taking Consent to Establish, Consent to Operate, Environmental Clearances, NOC from Pollution Control/CPCB/Approval Authority etc.

(3) Pl confirm bidder has to obtain consent to Establish / Operation from Pollution control Board.

(4) Pl confirm EIA is done or not

TSIIC is in the process of obtaining Environment Clearance for the Mega Textile Park Project as a whole and it is expected to be received in few months. However, the CETP project related clearances such as EC/CFE/CFO and other necessary permissions shall be the responsibility of the bidder. TSIIC shall facilitate for the same.

11. Land Availability

- - (1) What will be the location for setting up of CETP? And size of available land. Pl confirm suitable land for construction of CETP? whether, TSIIC will give land of lease basic and on what terms and conditions?

Yes. TSIIC shall provide required land for the project which is free from all encumbrances. However, the details of the land extent and its modalities etc. shall be indicated at the next stage of bidding i.e., RFP stage.


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12. Mortgaging of Land for Bankability

- - (1) Lease hold right and/or mortgage rights of the project site should be given to the Bidder to enable him to arrange finances against security for the same. Please confirm if the same is acceptable.

(2) Weather the land is Mortgage able for getting Financial Assistances from the Bank or Other Financial Institution

In the next stage of bidding, i.e. RFP Stage, TSIIC shall allow a suitable framework to enable the Bidder to arrange finances against the lease of land/ mortgage of land etc.

13. Minimum Guarantee

- - (1) Please confirm minimum guarantee effluent phase- wise and also guarantee of buy back of treated water.

(2) Please clarify the Guarantee that the client would provide to ensure timely payment to the successful bidder for the entire concession period of 25 years. These guarantees should ensure Financial closure with the lenders

Details would be provided in the next stage i.e., RFP stage.

14. - - Being a DFBO Model of project implementation, please specify period of concession.

The concession period would be specified in RFP (Next stage).

15. - - As per recent Supreme Court direction, all effluent generators will have to carry out primary treatment before discharge to CHP. This will require the CHP to mandate limits of effluent inlet pollution load to the CHP.

In the next stage of bidding, i.e. RFP Stage, TSIIC shall stipulate inlet and outlet parameters, and treatment related requirements,

16. Right to use by-products of the treatment process

- - (1) Will the Bidder have the right to use the by-products that may get generated during the course of Treatment? Please confirm

(2) Kindly share who will purchase the treated effluent (TSIIC or individual industries) and at what terms and conditions.

Please refer S. No (8).

17. Please confirm if online monitoring of effluent quality and quantity at effluent generators end will be mandated. Please confirm if effluent quantity and quality exceeds norms as per above point, the CETP operator will have right to deny permission of discharge of effluent to CETP.

TSIIC shall consider this while preparation of documents in the next phase i.e. RFP.


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18. RFP issue: - - Pl. confirm whether RFP will be issued those bidder who are qualified in EOI process. Or after EOI separate RFQ cum RFP will be issued.

Will be decided in due course.

19. Concession Agreement

When will the draft Concession Agreement be issued to the Contractor/Developer?

Please refer S.No (7).

20. Site visit and Verification of Information

We request you to kindly provide us DPR (Detailed project Report ) for better understanding of this project.

TSIIC shall provide the details during the next phase i.e. RFP.

21. Feasibility study & tentative cost of project

(1) Whether any feasibility study has been undertaken for this project?

(2) What is approximate capital cost estimate for the facilities?

TSIIC shall provide the relevant details in the next phase i.e., RFP.

22. Technology & treated water quality

(1) Please confirm the technology for treatment of effluent as well as quality of treated water required after CETP Treatment

(2) Who will be responsible for undertaking the tests for ascertaining primary treated effluent at industry outlet .What is monitoring criteria will be obtained that companies will not discharge acidic / without treatment effluent to CETP.

(3) What will be the provision to meet the increased operating cost of treatment in case of variation in effluent quality .

At the RFP stage, bidders are free to adopt any appropriate technology.

23. Period of Completion of Project

(1) Kindly inform the time period for completion of Project. Including Construction Period and Operation Period.

(2) When will the draft Concession Agreement be issued to the Contractor/Developer?

Details would be provided in the RFP document.

24. - - - Being a DBFO project, can the contractor establish the CETP with his own process technology and treatment schemes? (onus of getting process approved by relevant

In the next stage of bidding, i.e. RFP Stage, TSIIC shall finalise the technology, and other parameters


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stake holders will be the responsibility of contractor) of the project. 25. Combined

treatment of Sewage and effluents

Can we have combined treatment plant both industrial effluents and Sewage.


26. Captive Co-generation plant based on Coal /Gas

Can we have a captive co generation plant based on coal/gas to meet the steam and power requirement of ETP?


27. Collection system & collection Data

(1) Whether effluents will be made available at CEPT or conveyance system also to be included.

(2) If transfer is through pipelines, whether the pipes to be above ground or below ground.

(3) Whether TSIIC will provide right of way for the pipelines or any lease rental to be paid.

The effluent from industrial units would be conveyed through pipelines to proposed CETP. ZLD based treatment is envisaged. TSIIC/SPV will provide the conveyance pipeline for recycled water from CETP to Units etc.

28. Sludge Disposal

What is the sludge disposal arrangement in pharma city CETP sludge shall be stored on site as per the guidelines of MoEF&CC/TSPCB. During the initial phases, the sludge shall be sent to the nearest TSDF facility at their own. Subsequently, the sludge needs to be sent to the TSDF facility to be developed within Pharma City.

29. Concession Agreement

Please confirm whether TSIIC will enter into Bulk Purchase Agreement with Concessionaire (SPV) or is to mandatory that the Concessionaire has to have a tie-up with any other Third Party.

Please refer S.No (7).

30. Payment (1) As this is a PPP mode project, we request you to


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Mechanism, Compensation, USER Charges Collection from Industry, Membership charges, Royalty Charges, Fine on delay payment on USER Charges

please give details on payment securities, Escrow Arrangements and compulsory take or pay basis by TSIIC

(2) Please confirm that compensation on Capital Grant will be paid 1. During periods of Effluent Shortage 2. During Periods of Power Cuts and 3. For other disruptions due to Force Majeure

(3) Pl confirm who will collect the USER charges from the Member Industry. It is recommended that USER charges should be collected from Industrial Association or by Department Directly.

(4) Whether operator can collect Membership deposit from the companies who are going to utilize services

(5) Pl, specify the escalation clause for USER fee. (6) Who will be responsible for paying the fines due to

delay in payment of USER charges by Industry (7) Whether any royalty will be imposed for sale of

treated water (8) Kindly clarify from where we will get payment during

operation and maintenance of the project from Telangana State Industrial Infrastructure Corporation (TSIIC) Limited or to collect from each industry.

(9) What will be the mode and Nature of payment ? (10) Whether TSIIC will make ESCROW arrangement for

payment to CETP Operator.

TSIIC shall provide the relavant details in the next phase i.e., RFP.

31. Site Information

Please furnish the Geotechnical report showing water table, bore log data & SBC recommendations for the proposed CETP site at the time of RFP.


32. Landfill & Incineration site

Please provide the distance of land fill site from CETP site for sludge disposal

Please refer S.No (28)


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33. Landfill & Incineration charges

As per PCB norms , sludge to be disposed at approved TSDF. Kindly provide landfill & Incineration approved rates of TSDF in RFP document so that same can be considered in proposal


34. Defect liability Since this is BOOT project , hence defect liability is not applicable


35. Combined treatment of Sewage and effluents

Can we have combined treatment plant both industrial effluents and Sewage.


36. Captive Co-generation plant based on Coal /Gas

Can we have a captive co generation plant based on coal/gas to meet the steam and power requirement of ETP?


37. Performance security

Performance PBG is not applicable as project is on PPP TSIIC shall provide the details during the next phase i.e. RFP.

38. Evaporator Kindly confirm whether solar evaporation is allowed or force evaporation need to be considered,


39. Treated water logistics

Pl confirm how , treated water will be distributed whether by separate pipeline or Tanker


40. Penalty Clause Pl confirm the penalty clause will not be applicable being PPP project


41. Pumping Station

Pl confirm pumping station for raw effluent is in scope of bidder


42. Escrow Account

What is quantum of funds that will be maintained in the escrow account at all points of time


43. Delay from Authority

Would the authority make proportionate payments for project grant in case construction of pumping / collection network is delayed due to delay in provision of land / or any reasons by authority


44. Depreciation of the Assets

Can the concessionaire claim Depreciation on the project facility?

TSIIC may consider this while preparation of the documents in the


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Allowing depreciation on project facilities will allow Authority to get lower quotes. Request the Authority to include the following Clause “For the purpose of claiming benefit for the depreciation of any equipment used in the project under applicable Law the property representing the capital investment made by the concessionaire. for Avoidance of doubt , Client shall not in any manner be liable in respect of any claims for depreciation to be made by the concessionaire under Applicable Law.

next phase i.e. RFP.

45. Evaluation Criteria

Pl confirm Price bid L1 criteria Selection criteria will be specified in the RFP document (Next stage)

46. Taxes (1) Please confirm if the tariff quoted has to include Service Tax and Indirect taxes

(2) Please clarify the terms and conditions pertaining to statutory variations in the tax both during the project execution period and during O & M period

As per RFP during next stage.

47. Technology & treated water quality, Variation in Effluent


48. Change in Law/Circular/Notification

If any changes in Law/circular/notification that CETP is not required in this particular area, then in that case, TSIIC will reimburse the capital expenses done by the contractor for set up CETP Plant.

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49. Textile Industry

Kindly provide the list of Textile Industries in that area; also share the effluent parameters of different industries.

Mega Textile Park is being set up with units in complete value chain. However TSIIC shall provide the details during the next phase i.e. RFP.

global expression of interest for development of common

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