Development of Steel Silo’s on DBFOT Basis under PPP mode · 2015. 3. 31. · Development of...
Transcript of Development of Steel Silo’s on DBFOT Basis under PPP mode · 2015. 3. 31. · Development of...
Stakeholders
Consultation
Development of Steel Silo’s on DBFOT Basis under PPP mode
Ministry of Consumer Affairs, Food &
Public Distribution
FOOD CORPORATION OF INDIA
OUTLINE
Project Proposal
Bidding Structure
Q&A / Open Forum Discussion
Proposed Projects
FCI is the nodal agency for creation of modern storage capacity through
construction of Silos for foodgrains
The FCI is envisaging, development of the Wheat Steel Silos at 93
Locations across India
Implementation mode: Design Built Finance Operate Transfer (DBFOT)
basis under PPP
FCI has appointed ‘Srei Infrastructure Finance Limited’ as
Consultant’ to assess the technical feasibility and commercial
appraisal of the sub-projects including ‘Bid Process Management’
In the PPP model FCI will provide land to the private developer on
licence to create the project facility
The private developer shall be responsible for designing, financing,
construction, operation and maintenance of the project for the
concession period and handover the project facility to the Authority after
efflux of concession period.
Backdrop …
State Proposed Silo
Locations
Andhra Pradesh
/Telangana 15
Assam 1
Bihar 8
Chhattisgarh 4
Delhi 3
Gujarat 3
Haryana 4
Karnataka 5
Kerala 8
Madhya Pradesh 2
Maharashtra 7
Odisha (Orissa) 1
Punjab 6
Rajasthan 5
Tamil Nadu 4
Uttar Pradesh 11
West Bengal 6
Project Locations
Pilot Project Locations
11 locations have already
been appraised across six
States
Assessment of 2 more
locations has commenced
Initial Assessment of 80
more location shall start
shortly
State No. of
Locations Punjab 4
Karnataka 2 Bihar 2
Maharashtra 1 Assam 1
Delhi 1
Total 11
Changsari
Kilaraipur
Kotkapura Patiala
Sahnewal
Baramati
Bellary
Whitefield
Katihar
Buxar
Narela
Silo Configurations
Two Types of Silo Proposed
Producing Area Silo Complex – being planned in wheat “Producing Area”
Receiving Area Silo Complex – planned in wheat “Consuming Area”
Producing Area
Silo
• Food grain in bulk and
bagged form by road
• Food grain in bulk form
by rail (Primary)
• Bagged dispatch by Rail
or Road & bulk dispatch
by Road/Rail
Receiving Area
Silo
• Food grain in bulk form
by rail
• Food grain in bagged
form by road (Primary)
• Bulk dispatch by Road
Receipt Dispatch
• Weigh Bridges
• Unloading Station
• Conveying System
• Receiving Silos
Grain Receiving Infrastructure
• Cleaning Station
• Online Weighing
• Conveying System
• Long Term Storage Silo
Grain Storage
• Shipping Silo for Bulk Wagon Loading
• Shipping Silo for Bulk Truck Loading
• Bagging Station
Grain Dispatch Infrastructure
Producing Area Silo Complex
Railway Siding, Truck Parking, Grain Testing Laboratory, Administrative Block,
Bag Storage, Power Infrastructure, Water Infrastructure, Drainage
Infrastructure, Fire Detection & Fighting, Gates & Boundary,
Modern Silo Complex
Site Infrastructure : Producing Area
Consuming Area Silo Complex
• In-motion Weighing
• Wagon Unloading Station
• Conveying System
• Receiving Silos
Grain Receiving Infrastructure
• Cleaning Station
• Online Weighing
• Conveying System
• Long Term Storage Silo
Grain Storage
• Shipping Silo for Bulk Truck Loading
• Bagging Station
• Weigh Bridges
Grain Dispatch Infrastructure
Railway Siding, Truck Parking, Grain Testing Laboratory, Administrative Block,
Bag Storage, Power Infrastructure, Water Infrastructure, Drainage
Infrastructure, Fire Detection & Fighting, Gates & Boundary,
Modern Silo Complex
Site Infrastructure : Consuming Area
Silo Complex: Capacity Planning
Silo Complex
Conversion of old storage
Availability of Land
Regulatory
Frame work
Railway
Siding
Feasibility
Location Analysis
Gap Analysis
Silo Complex
Capacity Planning
Bidding Framework
If land is made available by FCI, CWC, SWC,
State Government or Central Government /State
Government Agency, the VGF route may be
adopted
Niti Ayog has outlined and appended the RFQ,
RFP and Model Concession Agreement for VGF
model structure
The FCI is envisaging, Development of the
Wheat Steel Silos initially at about 11 Locations
on Pilot basis under VGF Model
VGF Model …
• FCI to provide land to Investor
• FCI to provide Statutory Clearances
• Investor to construct and operate facility
Project Development
• Timely Delivery
• Optimal Capital Cost
• Efficient operations
• Minimal Involvement of FCI
Benefits • VGF by GoI
• Fixed Storage Charges
• Variable Storage Charges
• Handling Charges
Funding and Revenue
Salient Features of DBFOT Model
Proposed Project Implementation Structure
Equity Debt
Develop and maintain the project till
the end of concession period and
collect user charges fixed by FCI
Bid Parameter: VGF/Upfront
Concession Premium
Concession rights on
land for creation of the
project facility
Food Corporation of India
Private Investor / SPV
THE PROJECT
Development of Wheat Silos at 11 Locations
Concessionaire Bank
PPP Implementation Structure
Bidding Framework
Two Stage Bid Process
Shortlisting Criteria
1. Threshold Eligibility: 200% revenue/expenditure of project cost during last 5 year
2. Net worth of previous financial year equal to 100% of project cost
Bid Parameter
Viability Gap Fund (VGF) to be quoted by the shortlisted bidder
RFQ & RFP
The Model RFQ and RFP outlined and appended by Niti Ayog to be used as base for
conducting the Bid Process after suitable customisation to suit the project requirements
Concession Agreement
Model Concession Agreement developed by Niti Ayog to be used with required
customisation
RFQ to be issued for shortlisting of eligible bidders
Short Listed Eligible Bidders to be invited to submit Price Bid through RFP stage
Concession Agreement
PARTIES TO CONCESSION AGREEMENT
Concessioning Authority: FCI/State Government Agency
Concessionaire : Special Purpose Company incorporated under Companies Act by the ‘Selected Developer’
PRECONDITIONS TO CONCESSION AGREEMENT
Formation of the SPV by the selected developer for signing of the
concession agreement
Constitutional documents and Board Resolutions of selected partner
The scope of the Project (the “Scope of the
Project”) shall mean and include, during the
Concession Period:
construction and procurement of the Storage Facility
including a Railway siding on the Site
operation and maintenance of the Storage Facility in
accordance with the provisions set forth in agreements
storage and preservation of foodgrains
performance and fulfilment of all other obligations
Transfer of the silo complex after the afflux of concession
Scope of Concessionaire
Conditions Precedents
Authority procure for the Concessionaire the ‘Right of Way’ of the Licensed Premises
procured ‘Applicable Permits’
obtain required permissions from ‘Indian Railways’ for ‘Railway Siding’
execute and procure ‘Default Escrow Agreement’
Concessionaire provide ‘Performance Security’ to the Authority
execute and procure execution of the ‘Substitution Agreement’
execute and procure execution of the ‘Escrow Agreement’
procure all ‘Applicable Permits’
execute ‘Financing Agreements’
confirm the correctness of their representations and warranties
a legal opinion from the legal counsel of the Concessionaire’
(COMPLIANCE PERIOD: 120 DAYS FOR BOTH THE PARTIES)
Penalties: 0.2% for Authority and 0.3% for Concessionaire of the Performance Security for
each day’s delay until the fulfilment of such Conditions Precedent
Payment of storage charges i.e. Fixed Charge and
Variable Charge
Fixed Charge is to be paid for the storage capacity made
available by the Concessionaire.
The Silos with Railway siding bulk handling facility Base Fixed Charges
per MT per month
Prices to be Revised annually to reflect the variation in Price Index
Variable Charge is payable for the actual quantity of food
grains stored in the facility
The MCA also provides for charges to be paid for other
services such as unloading, bagging, stacking and loading
of food grains
Storage Charges
Construction
Construction Completion within 12 months from
appointed Date
Design risk will be with ‘Concessionaire’
Liquidated damages for delay in construction
completion
Construction Performance Security
Operations and Monitoring
Mechanism
Operate, maintain and manage the Project Facility can subcontract operation and maintenance, etc.
Storage Capacity shall not be less than the ‘Normative Availability’
Liquidated damages for non-performance
Deviation from O&M standards
Downtime of Project Facility
Non compliance with Engineer instruction
Monitoring Mechanism
• Independent Expert
Grant /Premium
GRANT
• FCI to provide Grant, if quoted by preferred bidder
• Grant shall be released as per the mentioned mechanism in the
concession agreement
PREMIUM
• Applicable in case Concessionaire is not seeking Grant and instead
offers to pay Premium as per the conditions of the model concession
agreement
Snapshot of projects to be bid
SN Project Site Nature of
Site
Type of
Facility
Planned
Existing
Capacity
(MT)
Planned
Capcity
(MT)
Future
expansion
(MT)
1 Kotakapura Brown Field Producing 41699 25000 -
2 Sanewhal Brown Field Producing 89000 50000 -
3 Katihar Green Field Consuming
10800
(Separate
Facility)
50000 50000
4 Nerala Brown Field Consuming 50000 50000 50000
5 Changsari Green Field Consuming
50000
(Depot
under
const.)
50000 -
Thank You
© 2014 SREI – All Rights Reserved