pre-bid meeting for mirshorai economic zone...nw s s s distance from site, km 55 215 68 70 55 final...

Pre-Bid Meeting for Mirshorai Economic Zone

Bangladesh Economic Zones Authority

www.pwc.com

Final

Strictly Private and Confidential

December 10, 2015

Agenda

1 Key Features of Mirshorai Economic Zone (Phase-I) 1 2 Connectivity and Infrastructure Linkages of

Mirshorai Economic Zone 6 3 Details of the Bidding Process 18

Page

PwC

December 10, 2015

Key Features of Mirshorai Economic Zone (Phase-I)

Section 1

Pre-Bid Meeting for Mirshorai Economic Zone • Bangladesh Economic Zones Authority

1

Location Attractiveness

Proposed Industry Mix

Incentive Package

Salient Features

Final

PwC

December 10, 2015

Location of the proposed Mirshorai economic zone

Section 1 – Key Features of Mirshorai Economic Zone (Phase-I)


2

Project Site

Chittagong City

• 550 acre • 222 hectare

Proposed area

• Chittagong division

Division

• Chittagong district

District

• Mirshorai Upazila

Final

PwC

December 10, 2015

Salient Features of the Proposed Project Site



3

Land area: 550 acre

Hassle free land- no resettlement required

Excellent scope of future expansion

~200 km from Dhaka and ~55 km from Chittagong

Near to Dhaka-Chittagong highway (16 km)

Chittagong Port (70 km) near to the site

Chittagong International airport in proximity (68 km)

Proposed site

Final

PwC

December 10, 2015

Proposed Industry Mix for Mirshorai economic zone



4

Garment and Garment

Accessories Integrated Textile

Motorcycle Assembly

Automobile Assembly

Automotive parts Chemical and

other products

Food and Beverages

Light Engineering and Machineries

Power Plant

Source: JDI Feasibility Studies for Mirshorai Economic Zone (2014) available on BEZA website

In addition to these potential industries, proposed Mirshorai Economic Zone is expected to leverage on the possibility of forward/ backward industrial linkages

from industrial hub of Chittagong

Final

PwC

December 10, 2015

In addition to the Location Attractiveness, developers are entitled to avail Various Incentives…



5

Corporate Income Tax exemption: first 10 years- 100%, 11th year- 80%, 12th year-30%

VAT Exemption on electricity (for 10 years)

VAT Exemption on local purchase excluding petroleum products

Exemption of stamp duty and registration fees for registration of EZ land but limited to first transaction only

Full Exemption from dividend tax

Full Exemption from custom/excise duties

PwC

December 10, 2015

Connectivity and Infrastructure Linkages of Mirshorai Economic Zone

Section 2


6

Surrounding Features and Regional Framework

Utility Connections

Off-Site Infrastructure

Sustainability Initiatives

Final

PwC

December 10, 2015

Site Hinterland Development

Section 2 – Connectivity and Infrastructure Linkages of Mirshorai Economic Zone


7

Charland development & settlement project embankment

Bangladesh water development board embankment

Proposed Mirshorai EZ

Mirshorai

Proposed 4 lane approach road

Project road

Proposed LNG pipe line

Proposed coal based 1320 MVA power plant by ZHEJIANG JINDUN HOLDING GROUP, China (Location Not Yet Finalized)

Dhaka - Chittagong highway (N1)

Final

PwC

December 10, 2015

Surrounding Features of the Proposed EZ



8

EZ

CDSP embank

ment

BWDB embankment

Char- Land

Char- land

N

S

E W Proposed EZ

Char land

Fe

nn

y r

ive

r

CDSP embankment

BWDB embankment

Char land

Final

PwC

December 10, 2015

Regional Frame Work



9

Place

Chittagong, District Head Quarters

Dhaka, National Capital

Chittagong (Airport)

Chittagong port

Chittagong, Business Capital

Direction from site

S

NW

S

S

S

Distance from site, km

55

215

68

70

55

Final

PwC

December 10, 2015

Photographs of the Project Site



10

Proposed approach road to site

CDSP embankment

Icchakhale channel Proposed site

Final

PwC

December 10, 2015



11

Photographs of the Project Site

View from west side View from south side

View from east side View from north side

Final

PwC

December 10, 2015

Environmental Parameters



12

• Maximum 41.0°C to minimum 25.7°C Temperature

• 2540 mm Average annual rainfall

• Nil at proposed EZ Flora and Fauna

• Available at 30’ depth -Saline not suitable for potable purpose

Ground water

• Gentle slope Topography

• clay Soil

Final

PwC

December 10, 2015

Proposed Off-Site Infrastructure



13

Proposed access road (6 km)

Channel protection

Embankment (6.4 km)

landfill

Admin building

Final

PwC

December 10, 2015

Proposed External Water Supply System



14

Proposed EZ

Proposed alignment of incoming water mains to EZ

• 8 MLD Demand

• Desalination & Bore wells

Source

• Durgapur Location

• 25 kms Distance

Final

PwC

December 10, 2015

Proposed External Power Supply System



15

Proposed EZ Proposed alignment of incoming electrical mains to EZ

• 40 MVA Demand

• Mirshorai substation

Source

• 18 km Distance

Final

PwC

December 10, 2015

Proposed Master Plan



16

Excellent access through Roadways, Railway & Inland water ways and sea

Very close to Chittagong, Business Capital

Proximity to Chittagong port - Easier and quicker cargo handling management

Development of offsite infrastructure by BEZA

Topography: Plain (site filling under progress)

Environmental concerns : Nil

Core offerings of the site

Final

PwC

December 10, 2015

Sustainability Initiatives



17

Micro level activity

Adoption of eco friendly materials

Adoption of recyclable material

Avoidance of toxic chemicals

Usage of environmental friendly products

Waste minimization technologies

Scientific treatment of waste

Energy recovery possibilities to reduce power consumption

Implementation of sustainability

ideas

Rain water harvesting

Zero discharge

Waste recycling

3-R concepts

Scientific management

of waste disposal

Waste minimization

Energy efficiency

PwC

December 10, 2015

Details of the Bidding Process Section 3


18

Timelines

Qualification and Evaluation Criteria

Bid Parameters

Preparation of Bid Document

Final

PwC

December 10, 2015

Timelines of the Bidding Process

Pre-Bid Meeting

10th Dec 2015 17th Dec 2015 28th Feb 2016 18th Jan 2016 24th Dec 2015

Last day for bidders to

submit supplementary

questions (arising out of site visits only)

Issue of response to questions

Deadline of submission of bids- 3:00 PM

and bid opening at 3:05 PM

Identification of successful

bidder

Section 3 – Details of the Bidding Process


19

Site Visit 23 Sep 2015 to

17 Jan 2016

• Notification of Award – Prequalification Permit 28 Mar 2016

• Performance Security 12 Apr 2016

Time to prepare and successfully submit bid

Road Ahead

Cost of RfP: US$ 100 or BDT 7,800 (non-refundable) DD in favour of Project Director, Support to Capacity Building of BEZA

Final

PwC

December 10, 2015

Developing and operating the EZ for multi-purpose or multi-use EZ activities

(EZ to comprise of Multiple EZ Users for employees of Bangladesh nationality

and other foreign nationalities)

Conducting environmental impact assessment and proposed mitigation

measures

Scheduling of EZ design, construction, and activation, including phased

development

Marketing the EZ

Operating and Maintaining the EZ

Responsibility of the Developer



20

The developer shall Design, Build, Finance, Own, Operate and Transfer (DBFOOT) the Mirshorai economic zone on 550 acres of land provided by the

authority on lease for 50 years

Final

PwC

December 10, 2015

Qualification Criteria



21

Criterion-1: General Economic Zone Experience

Experience in establishing sole/ multiproduct Economic Zone (EZ) / Special Economic Zones (SEZ) / Industrial Parks (IP) or Free Ports (FP) and operation thereof, or experience in development, construction of infrastructure, management and operation of any large project#

{Rule 6(a) of Bangladesh Economic Zones Authority- Qualification of a developer}

Criterion-2: Particular Economic Zone Experience

Experience in designing of or financing of at least one EZ/ SEZ/ IP/ FP or any large project#

{Rule 6(b) of Bangladesh Economic Zones Authority- Qualification of a developer}

Criterion-3: Financial Capabilities

Gross revenue of US$10mn per year within last 3 years for operation of EZ, SEZ, IP or FP or any large project#

Minimum net worth of US$25mn

# Large Project is defined as any infrastructure project having a total investment of BDT 2.5 billion and above

Final

PwC

December 10, 2015

Evaluation Criteria



22

Evaluation of the Bid

Technical Proposal

(70 marks)

Financial Proposal

(30 marks)

Design Philosophy, Drawings & Project Concepts

10

Project Marketing Concepts 10

Implementation Plan 10

Environmental and Social Development Impact 10

Operation and Maintenance 10

Key Staff, Organization & Development Agreement Administration Plan

10

Economic Growth and Job Creation 10

Soundness of Assumptions and Projections

10

Projected sources of financing 10

Financial returns to the Authority 10

Financial Schedule 1(A), 1(B), 2 and 3 to be submitted

Final

PwC

December 10, 2015

Bid Parameters



23

1. Revenue sharing arrangement 2. An annual land lease payment in US$ per square meter of released land from the

date the land is released to the Developer 3. A one time up-front payment (non-refundable) in US$ payable upon signature of

contract 4. Escalation Formula

Authority (Bangladesh Economic

Zones Authority)

Developer

the Authority shall make available 550 acres of land, at Mirshorai, Bangladesh on lease hold basis for a period of 50 years for developing the Economic Zone on a Design, Build, Finance, Own, Operate and Transfer(to the Authority)

• Up front payment (non-refundable, non-adjustable and payable one time)

• Revenue Sharing of Gross Revenue &/or Net Profit • profit sharing does not include share of any loss incurred by developer throughout the concession period • Land Lease Payment: in US$ per sq. m per year

Final

PwC

December 10, 2015

Documents Comprising the Bid

Preparation of Bid



24

Section of the Bid Details

Technical Section (six parts)

Part-I (ITB 3.3) Technical and Organizational Information (70 marks)

Executive Summary and seven sections

Part-II (ITB 3.4) Bid Security

Part-III (ITB 3.5) Bid Form

Part-IV (ITB 3.6) JV/ Consortium documents (where applicable)

Part-V (ITB 3.7) Power of Attorney

Part-VI(ITB 3.8) Separately bound pre-printed literature

Financial Section (ITB 3.9) Financial Offer Schedules (30 marks)

Each bidder shall also submit an initialled Draft Developer Agreement in the same envelope as its Technical Section

Language of the bid is English

Final

PwC

December 10, 2015

1. Bid Security

Amount : 2,000,000 BDT - (US$ 25,000 @ BDT 80 to US $1)

The Bidder shall ensure that the Bid Security remains valid for a period of 60 days after the end of the original Bid Validity Period (i.e. 180 days)

Format: As per “Form of Bid Security (Bank Guarantee)” in Annex-A

2. Bid Form

“Bidder’s Bid form” provided in Annex A to the RFP

3. JV/ Consortium documents

Letter duly executed by an authorized officer of each joint venture/consortium participant confirming criteria provided in Clause 3.6: Technical Section- Part IV



25

Preparation of Bid- Responsive Criteria (1 of 2)

Final

PwC

December 10, 2015

4. Power of Attorney

Authority of the person or persons signing the Bid to bind the Bidder shall be demonstrated by a written and duly notarized power of attorney

5. Separately Bound Pre-Printed Literature

About the Bidder or the Joint Venture/consortium Bidders (separately bound)

6. Number of Copies for Submission

One signed and initialed original and 7 copies plus one soft copy (CD)

7. Information Forms

Information Form No. 1, 2(A), 2(B), 2(C), 3(A), 3(B), 3(C), 4, 5

Audited financial statements- last five financial years



26

Preparation of Bid- Responsive Criteria (2 of 2)

Final

PwC

December 10, 2015

Preparation of Bid- Financial Schedule



27

Schedule 1(A)

Projected Capital Investment, Operational Cost and Revenues

Schedule 1(B)

Details of Investment

Schedule 2

Projected Source of Funding (debt and equity)

Schedule 3

Financial Returns Proposal to Authority

We Welcome You to Participate and Invest in Economic Zones of Bangladesh

Contact Us: Paban Chowdhury Executive Chairman, Bangladesh Economic Zones Authority BDBL Bhaban, Level-15, 12, Kawran Bazar, Dhaka Phone: +880-28180114 E-mail: [email protected]

Md. Harunur Rashid Project Director, Bangladesh Economic Zones Authority BDBL Bhaban, Level-15, 12, Kawran Bazar, Dhaka Phone: +880-28180170 E-mail: [email protected]

Your Investment… Our Care…