private partnerships in infrastructure - ppp capstat - 2013.pdf · company), and three fully ......

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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: [email protected] Web: www.imacs.in

2013

ICRA Management Consulting Services Limited

mailto:[email protected]

http://www.imacs.in/

Capability statement: PPPs in Infrastructure 2013

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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.

http://www.ivgpartners.com/


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.


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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.


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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


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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.

http://www.pppindiadatabase.com/


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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:


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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.


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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


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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


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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


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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.


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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


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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).


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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.


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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: [email protected]

Mr. Harish Kamath

Head - Transport

Phone: + 91 22 30470047 (Mumbai)

Mobile: + 91 98204 49124 (Mobile)


Mr. Sunil Varma Marri

Head - Energy

Phone: + 91 120 4515800 (Noida)

Mobile: + 91 98490 38227 (Mobile)


Mr. Sriram V

Chief Operating Officer

Phone: + 91 44 4596 4300 /4596 4326 (Chennai)

Mobile: + 91 98400 88273 (Mobile)




