Selection of Private Player for Refurbishment, Operation & Maintenance of Fruit and Vegetable Market at Mohali, Punjab
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1 Melbourne Wholesale Fruit, Vegetable & Flower Market, Australia Selection of Private Player for Refurbishment, Operation & Maintenance of Fruit and Vegetable Market at Mohali, Punjab Punjab Infrastructure Development Board Pre-Bid Meeting 26 th May 2015 Punjab State Agricultural Marketing Board
2 Agenda Background Site Details Market Configuration Project Structure RFP Details Proposal Submission Development of Multi-Skill Development Centre - Ludhiana November, 2014
3 Background The Punjab State Agricultural Marketing Board (PSAMB) intends to select a Private Player for the Operation & Maintenance of Fruit & Vegetable Market at Mohali on PPP basis Nodal Agency Transaction Advisor Punjab Infrastructure Development Board (PIDB) Nodal agency of Government of Punjab for development of Infrastructure projects on PPP Mode Feedback Infra (P) Ltd Project Operation and Maintenance of Fruit and Vegetable Market on ROMT basis for a period of 30 years Project Site ~13.75 acre site at Sector-65, Mohali Proposed Components Electronic Auction Cold Storage Ripening Chamber Packhouse Testing Laboratory Weighbridge
4 Agenda Background Site Details Market Configuration Project Structure RFP Details Proposal Submission Development of Multi-Skill Development Centre - Ludhiana November, 2014
5 Project site in well connected by multiple means of transportation Site Location Chandigarh Phase 11, Sector-65, Mohali, Punjab Kharar Market 21 Balongi Chandigarh Market Regional Setting (Large catchment region) Mohali Bus Station 21 Manimajra Badanpur Jammu &Kashmir - Apple HP - Apple Uttaranchal Apple Punjab Potato, Onion Project Site Sector 65 Mohali Railway Station Chandigarh Airport Area 22 Local Setting (well connected by road and rail and air) Zirakpur 21 Chandigarh Airport ~10 kms Railway Station ~3 kms Location on Jagatpura Bypass road - Two entry gates facing 4-lane road The site location is well suited for F&V market 5
6 Agenda Background Site Details Market Configuration Project Structure RFP Details Proposal Submission Development of Multi-Skill Development Centre - Ludhiana November, 2014
7 Market Configuration acres (12.5 acres acres next to Mandi Board Office) Total Land Area Retail Area (~40,000 sq ft including circulation) EXISTING COMPONENTS (ALREADY CONSTRUCTED IN THE MARKET) Market / SCO Area (~45,000 sq ft 34 trader shops) Facilities & Utilities Area (~30,000 sq ft) Total 95 temp controlled shops present Revenue from lease rentals Revenue from lease & usage charges Mandi Fee and RDF to be waived Limitation on number of shops licensed Office & Canteen ATM, First Aid Room, Toilets, etc. PROPOSED COMPONENTS Entry PROPOSED COMPONENTS Cold Storage Min Capacity 500MT Future expansion possible Entry Retail Area GC 40,000 sq ft Office & Canteen GC 16,000 sq ft Ripening Chamber Min Capacity 32MT (4 chambers of 8MT capacity each) Packhouse Round & Oval Fruits 2.5MT/ hr Vegetables 1.25MT/ hr Shrink wrap facility to be present Market/ SCO Area GC ~115,000 sq ft Additional Area GC 29,000 sq ft Testing Laboratory 2-3 portable testing machines to be installed Electronic Auction Within 1 year of signing of Concession Agreement Additonal space for proposed components 54,450 sq ft Utilities 14,500 sq ft Weighbridge Facility For weighing of the vehicles and their contents Estimated Project Cost of INR ~7 Cr required for proposed components
8 The site consists of already constructed Wholesale and Retail Area Entry Entry Retail Area Office & Canteen Wholesale Area 8
9 Agenda Background Site Details Market Configuration Project Structure RFP Details Proposal Submission Development of Multi-Skill Development Centre - Ludhiana November, 2014
10 Project Structure (1/2) Project to be developed on ROMT (Refurbish,Operate, Maintain and Transfer) PROJECT SCOPE Refurbishment, Operation and Maintenance of the Fruit & Vegetable Market on PPP basis Design, engineering, finance, procurement and construction of additional components Cold Storage, Ripening Chamber, Pack-house and Testing Machines Operation & Maintenance of the Project by the private player as per the provisions of the Concession Agreement PROJECT STRUCTURING PARAMETERS Bid Parameter Up-front Fee (INR 5 Cr.) + Annual Concession Fee Tenure of Project 30 years 10
11 Project Structure (2/2) Punjab Mandi Board Concessionaire Sub-licensed Traders INVOLVED PARTIES The Authority SPV formed by the Successful Bidder Traders selected by Successful Bidder FUNCTIONAL REPRESENTATION OF THE MODEL Mandi Board Lease agreement and Concession Agreement Annual Concession Fee Private Player Sublease Agreement Lease & Usage Charges Collection Traders
12 Roles & Responsibilities of Concessioning Authority & Concessionaire CONCESSIONING AUTHORITY Leasing assets to the Concessionaire without encumbrance Support in getting required approvals Bring enabling regulations to allow the private partner to collect usage fee / rent Make / Issue Required Notifications to waive off the Market Fee and RDF CONCESSIONAIRE Responsible for Operation & Maintenance of the complete project Construction of additional components in the market Management decision(s) regarding the market Sub-lease of shops - Collect revenue Transfer of ACF to Escrow Account of concessioning authority 12
13 Revenue Streams available to the Concessionaire 1 a MARKET AREA SUB-LEASE OF SHOPS (UPFRONT PREMIUM & LEASE RENTAL) MARKET /SCO AREA (TRADERS) RETAIL SHOPS MINIMUM UPFRONT PREMIUM INR 20 Lakh per shop INR 2 Lakh per shop MINIMUM RENTAL INR 15 psf per month INR 40 psf per month 1 b MARKET AREA USAGE CHARGES User Fee / Charges can be charged up to 2% of trade value (1% of trade value to be shared with PSAMB) 2 RESTAURANT / OTHER UTILITY AREA Sub - Lease Rentals from the spaces such as Restaurant, ATM etc. 3 MISCELLANEOUS INCOME Any other income that the Concessionaire may receive for other services offered in the operations of the Market 13
14 Payments to the Authority 1 UPFRONT FEE 2 UPFRONT PREMIUM OF SHOPS INR 5 Cr at the time of signing of Concession agreement 75% of upfront premium collected from traders / retailers through auction of shops 3 USAGE CHARGES 4 ANNUAL CONCESSION FEE 1% Usage Charge (on trade value) collected from traders Annual concession fee (bid variable) paid out on a monthly basis 14
15 Agenda Background Site Details Market Configuration Project Structure RFP Details Proposal Submission Development of Multi-Skill Development Centre - Ludhiana November, 2014
16 RFP Details Singe Stage Two Envelope Bidding Process BIDDING PROCESS Technical Evaluation of Applicants Short-listing as per Technical Evaluation & Opening of Financial Proposals Award to Bidder quoting highest Annual Concession Fee ELIGIBLE PLAYERS Applicants may apply as Individual business entity or in consortium (max. 3 members) where at least one of the members necessarily belongs to the Agribusiness category TECHNICAL CRITERIA For the purposes of the RFP, Agri is defined as business dealing in Fruits & Vegetables, Spices & Others (Food grains, Pulses & Oilseeds) FINANCIAL CRITERIA Agri Processing Trading of Agri- Commodities Agri Infra Developers INR 25 Cr. Minimum Net worth Auction Management Marketing / Whole-selling of Agri Commodities Commodity / Spot Exchanges Agri inputs O&M of Whole sale markets INR 10 Cr. Minimum turnover each year over last 3 years
17 Evaluation Parameters (1/2) VOLUME OF AGRI BUSINESS HANDLED (P 1) Average Annual volume (MT) of different commodities handled in last three years (in MT) Low Medium High Fruits & Vegetables 1,000-4,000 4,000-8,000 >8,000 Spices 200-1,000 1,000-2,000 >2,000 Foodgrains, Pulses & Oilseeds 1,000-4,000 4,000-8,000 >8,000 Low Medium High Fruits & Vegetables Spices Foodgrains, Pulses & Oilseeds PROJECT COST (P 2) The cost (in INR Cr) of the largest project completed over last ten years (in INR Cr.) Low Medium High Similar Project >50 Agri-Infra Development >100 Infra Development (Other than Agri) >800 Low Medium High Similar Project Agri-Infra Development Infra Development (Other than Agri) 2 3 5
18 Evaluation Parameters (2/2) NET WORTH* (P 3) Minimum net worth (in INR Cr) of the individual bidder/ lead financial member for consortium (in INR Cr.) Low Medium High Low Medium High Net Worth of Applicant >100 Net Worth of Applicant *Aggregate Net Worth of the Consortium partners to be considered ANNUAL TURNOVER* (P 4) Minimum net worth (in INR Cr) of the individual bidder/ lead financial member for consortium (in INR Cr.) Low Medium High Turnover >40 Low Medium High Turnover *Aggregate Turnover of the Consortium partners to be considered MINIMUM QUALIFYING SCORE Evaluation Parameter Minimum Score P 1 3 P 2 3 P 3 3 P 4 3 The total score for all three parameters should be Minimum of 21 points for qualification & opening of financial bid Contract will be awarded to the Bidder with Highest Annual Concession Fee (ACF) quote
19 Project Plan Concession Period 30 (Thirty) years Conditions Precedents Period Compliance Date Refurbishment Period Implementation Period 3 months from the Agreement Signing Date for both Concessioning Authority and Concessionaire Latter of the date of issuance of the Certificate of Compliance to the Concessioning Authority or Concessionaire 4 months starting from the Compliance Date (for Market & Retail Areas) 12 months starting from the Compliance Date (for Cold Storage and other components to be built) JVs / Consortium Maximum three entities Bid Variable Up-front Fee (INR 5 Cr.) + Annual Concession Fee Selection Criteria H1 (Bidder quoting Highest Annual Concession Fee) Proposal Validity 180 days from Proposal Due Date
20 Important Fees Bid Document Fee Purchase of Document INR 5,000 (INR Five Thousand Only) Proposal Security / Earnest Money Deposit to be accompanied with Bid proposal INR 10 Lakh (INR Ten Lakh Only) Project Development Fees (To be paid to PIDB) 45 days from acceptance of Notice of Award INR 25 Lakh (INR Twenty Five Lakhs Only) Performance Security 45 days from acceptance of Notice of Award INR 1 Cr. (INR One Crore Only) Upfront Fee / Premium Prior to Agreement Signing INR 5 Cr. (INR Five Crore Only) Annual Concession Fee (ACF) Paid out on a monthly basis Highest ACF would be the selected bidder
21 Agenda Background Site Details Market Configuration Project Structure RFP Details Proposal Submission Development of Multi-Skill Development Centre - Ludhiana November, 2014
22 Proposal Submission E-TENDERING PROCESS Register on etender.punjabgovt.gov.in Get a User ID and a password to submit Proposals/ Bids online Digital System Certificate(DSC) is mandatory to participate in the e-tendering process Upload Scanned copy of all the relevant documents SUBMISSION GUIDELINES Bids to be submitted in both online and physical form Bids without Digital Signatures will not be accepted by the Electronic Tendering System No Bid will be accepted only in physical form Bid submitted only in physical form will be rejected summarily HARDCOPY SUBMISSION Envelope 1 + Envelope 2 + Envelope 3 Proposal Fee: Bid Document Fee + Proposal Security Technical Proposal Financial Proposal as per format C Bid to be addressed to Managing Director, Punjab Infrastructure Development Board
23 Documents to be submitted- Technical Proposal Format Details Format A (Letter of application & interest) Format B (General Information from Bidder) Format D (Affidavit) Format E (Power of Attorney for signing of Application) Format G (Power of Attorney for each member of the Consortium in favour of Lead Member) Format I (Experience of Applicant) Format J (Acknowledgement Letter) Relevant Supporting Documents Original RFP Document To be executed on the Company s Letter Head General Details Details of individual(s) who will serve as the point of contact Role of each Consortium Member ( in case of a Consortium) To be given separately by each Consortium Member in case of a Consortium or otherwise by the Bidder on a stamp paper of INR 10 Duly notarised Power of Attorney in favour of the Authorised Representative Duly notarised Power of Attorney by all consortium members in favour of the Lead Member Details of volume handled in agri-business, project cost of large projects and financial details with relevant supporting documents To be executed on Company s letter head from all bidder s(single/consortium Members) Certificate of Registration, Annual Reports, Brochures, Area Statement duly signed by an Architect/Local Authorities, Audited Financial Statements etc Duly signed by the (on each page) by the Authorised Representative of the company as a token of acceptance
24 Bid Schedule Event Description Date of Issue Pre Bid Meeting Response to queries latest by Bid Due Date Opening of Technical Proposals Opening of Financial Proposals Notice of Award(NoA) Acceptance of NoA Submission of Performance Security to PSAMB Submission of Project Development Fee to PIDB SPV Formation Date of Event 5th May th May th June th June 2015 (1200 hours online submission & 1600 hours hard copy submission) To be informed To be informed to the shortlisted bidders Within 60 days of Bid Due Date Within 10 days of award Within 45 days of acceptance of NoA Within 45 days of acceptance of NoA Within 45 days of acceptance of NoA Signing of Concession Agreement between PSAMB and Selected Bidders Within 60 days of acceptance of NoA
25 Contact Details FOR FURTHER INFORMATION PLEASE CONTACT Punjab Infrastructure Development Board Managing Director, PIDB S.C.O , Sector 34 A, Chandigarh Phone: Fax: id: Punjab State Agricultural Marketing Board Secretary Punjab Mandi Bhawan Sector 47-C Chandigarh Phone: id: E-Procurement Helpdesk Feedback Infra Pvt Ltd S.C.O , 2 nd Floor, Sector 34 A, Chandigarh Mobile: SCO 101, 2 nd Floor Sector 47-C,Chandigarh Phone:
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