REQUEST FOR PROPOSAL

IFCI LIMITED
REQUEST FOR PROPOSAL
For appointment of an independent consultant for
estimation of tollable traffic and valuation of the
equity shares of Jaora Nayagaon Toll Road Co. Pvt. Ltd.
20 June 2014
RFP No. IFCI/PDG/2014-15/01
RFP No. IFCI/PDG/2014-15/01
1. PURPOSE
IFCI Limited (IFCI) proposes to engage the services of an independent consultant to carry out (i)
Estimation of tollable traffic and (ii) Valuation of the equity shares of Jaora Nayagaon Toll Road
Company Private Limited (JTCL), a company in which IFCI holds 26% of the equity shares.
2. ABOUT THE PROJECT
Madhya Pradesh Road Development Corporation (MPRDC) awarded the Project of four laning of
Jaora – Nayagaon Section of State Highway 31 in the State of Madhya Pradesh to M/S Jaora –
Nayagaon Toll Road Company Pvt. Ltd. (JTCL) on BOT basis in August 2007. The project has a
Concession Period of 25 years (Till August 2032).
The Project Road passes through three districts of Madhya Pradesh State, namely, Ratlam,
Mandsaur and Neemach. It starts at Jaora at km 125.00 and ends at Nayagaon at MP/Rajasthan
border at km 252.7. The project road has three homogeneous sections (i) Jaora to Mandsaur, (ii)
Mandsaur to Neemuch and (iii) Neemuch to Nayagaon. There are three existing toll plazas on the
Project Road section at km 149, km 194 and km 251. All three sections of the road were
commissioned by February 2012.
3. MINIMUM ELIGIBILITY
1. The Applicant shall be a sole firm/ company or a consortium of firms / companies (in the
case of a consortium, the terms and conditions associated with award of this assignment
shall be jointly and severally binding on all members of the consortium);
2. The Applicant should have carried out at least 2 assignments each in (i) Estimation of
Tollable Traffic and (ii) Valuation of the equity of road concession projects through various
valuation techniques, including Discounted Cash Flow Method. The cost of projects for which
the aforesaid assignments have been carried out shall be at least Rs. 200.00 crore each;
3. The Applicant should satisfy IFCI that it has the required capacity and manpower and
undertakes that it can complete the awarded assignment of valuation within 45 days from
the date of appointment;
4. One Applicant can submit only a single bid and cannot be a constituent to any other bid;
5. There shall be no complaint registered against the applicant with CBI, Serious Fraud
Investigation Cell and court(s) and/or it should not be blacklisted by Banks/ NBFCs/ FIs etc.
Page 2 of 13
RFP No. IFCI/PDG/2014-15/01
If at any time, any adverse observation comes to the notice of IFCI, the assignment shall be
cancelled with immediate effect.
6. The Applicant shall not be directly or indirectly related to JTCL or any of the shareholders of
JTCL (except IFCI) by virtue of shareholding, common directors, control, influence, etc.
4. BID SECUIRTY AND PERFORMANCE SECURITY
The Applicant will need to submit a Bid Security of Rs. 25,000 (Rupees Twenty five thousand only)
in the form of demand draft in favour of IFCI Limited, payable at New Delhi. The Bid Secuirty shall
be refunded to the unsuccessful bidders within two weeks of the date of opening of the bids. For a
successful bidder, the same shall be converted into Performance Security and will be refunded after
completion of the assignment to the satisfaction of IFCI.
5. LAST DATE FOR SUBMISSION OF BIDS
The interested Applicants may submit their Bids positively by 15:00 hours on or 04 July 2014.
6. UNCONDITIONALITY OF BIDS
The Bid should be unconditional otherwise it would be liable for rejection.
7. BID SUBMISSION GUIDELINES
The Bid should be submitted in a sealed cover and should contain (i) Application Letter as per
Annexure I, (ii) Sealed envelope (Envelope A) containing Technical Bid as per Annexure II along
with supporting documents detailed below and (iii) Sealed envelope (Envelope B) containing
Financial Bids as per Annexure III.
7.1 TECHNICAL BID
The Technical Bid as per Annexure II shall be submitted in a sealed envelope. The following
documents must be submitted along with the technical bid.
1. Firm registration certificate/constitutional document, as applicable.
2. Documentary proof of have carried out at least 2 assignments each in (i) Estimation of
Tollable Traffic and (ii) Valuation of the equity shares of Road projects using various
valuation techniques, including Discounted Cash Flow Method. The cost of projects for which
the aforesaid assignments have been carried out shall be at least Rs. 200.00 crore each.
Page 3 of 13
RFP No. IFCI/PDG/2014-15/01
3. Qualification and experience of the team which will be working on IFCI’s assignment along
with the plan for completing the assignment within a period of 45 days.
4. Bid Security in the form of demand draft for Rs. 25,000 (Rupees Twenty five thousand only)
in favour of IFCI Limited, payable at New Delhi.
5. Details of the pending litigation and contingent liabilities, if any, that could affect the
performance of the bidder under the mandate, as also details of any past conviction and
pending litigation against sponsors/ partners and any areas of possible conflicts of interest.
6. Undertaking by the Applicant that it is not directly or indirectly related to JTCL or any of the
shareholders of JTCL (except IFCI) by virtue of shareholding, common directors, control,
influence, etc.
7.2 FINANCIAL BID
The Applicants are required to submit the sealed Financial Bids incorporating the Lump-sum Fee
chargeable (including expected out of pocket expenses and gross of all applicable taxes).
7.3 ADDRESS FOR SUBMISSION
General Manager, Project Development Group, 16th Floor, IFCI Tower, 61 Nehru Place, New Delhi –
110019.
For
any
clarification,
applicants
may
contact
at
phone
No.
:
011-41732529
Email:
[email protected]
8. OPENING OF BIDS AND BID EVALUATION CRITERIA
1. The opening of bids shall take place on 04 July 2014 at 16:00 hours IST in the presence of
Applicants who shall choose to be present at 2nd Floor, IFCI Tower, 61 Nehru Place, New
Delhi - 110019.
2. The Technical Bids shall be evaluated on the basis of details provided in Envelope A. The
Financial Bids will be evaluated for only those parties who fulfill the minimum eligibility
criteria stated in Clause 3. Financial bids of only technically qualified Applicants shall be
opened and the Applicants quoting the lowest financial bid (L1) for the assignment shall be
preferred for negotiations and award of contract.
3. Any bid not meeting the Minimum Eligibility Criteria (Clause 3), Last Date of Submission of
Bids (Clause 5), Unconditionality of Bids (Clause 6), Bid Submission Guidelines (Clause 7)
would be liable for rejection.
Page 4 of 13
RFP No. IFCI/PDG/2014-15/01
9. LETTER OF AWARD
The selected Applicant shall be issued a Letter of Award (LOA) after completion of the bid evaluation
and selection process.
10. PAYMENT SCHEDULE
The payment schedule for the lump sum fees quoted shall be as under:
S. No.
Description of Deliverables
Payment
1.
Initiation Fee
10%
2.
Submission of Draft Traffic Estimation and Valuation Report
40%
3.
Acceptance of Report after presentation on Report
50%
11. ESTIMATION OF TOLLABLE TRAFFIC
11.1
SCOPE OF WORK FOR ESTIMATION OF TOLLABLE TRAFFIC
The applicant shall carry out 7 day classified volume counts and 1 day Origin-Destination survey.
The following scope of work should be given due consideration while undertaking the estimation of
tollable traffic.
1. The Classified traffic volume counts shall be carried out round the clock for 7 continuous
days at all three toll plazas of JTCL in three shifts under the supervision of a supervisor. A
total of 4 enumerators shall carry out the classified volume count per shift (two for each
direction) at each plaza.
2. The Classified traffic volume counts shall be analyzed in terms of vehicle categories as well
as the equivalent Passenger Car Unit (PCU). The analysis shall also include vehicle
exemptions and use of passes.
3. The Traffic count data would be analyzed to depict hourly and daily variations. The abstract
of traffic data should also be provided for each toll plaza. Additionally, historic toll collection
data (as provided by IFCI) must be analyzed to depict seasonal variations.
4. The applicant shall carry out 1-day (24 hour, both directions) O-D and Commodity
Movement Survey. The locations of the O-D survey and Commodity Movement surveys shall
normally be same as for the classified traffic count.
Page 5 of 13
RFP No. IFCI/PDG/2014-15/01
5. The O-D survey shall be carried out round the clock at each plaza in three shifts under the
supervision of a supervisor. A total of 4 enumerators shall carry out the O-D survey per shift
(two for each direction) at each plaza. The applicant shall adopt interview method for
conducting O-D survey on a random sampling basis in both directions at each plaza.
6. The location of origin and destination zones shall be determined in relation to each individual
plaza and the possibility of traffic diversion to and from the Project Road from/to other road
routes (existing and/or proposed) shall be ascertained.
7. The commodity movement data and the O-D data should be duly taken into consideration
while making the traffic estimates.
8. The applicant shall make an assessment of the traffic forecasts for the Project road for the
period from 01 April 2014 up to the end of the Concession Period based on analysis of traffic
counts, trend growth and growth in the influence area of the Project road, in relation to past
trends, with justification for future variation. The assessment/forecast shall be for various
classes of vehicles. While assessing the traffic demand the consultant shall also study &
analyze the socio-economic factors that would affect the Project road.
11.2
DELIVERABLES FOR ESTIMATION OF TOLLABLE TRAFFIC
A report to IFCI (in physical printed form signed by the consultant along with a soft copy in PDF
format and Microsoft Word DOCX format) containing the following sections:
1. Baseline traffic characteristics.
2. Details of the name of the persons, qualification and period devoted to the classified traffic
volume counts and O-D study (including details of enumerators and supervisors).
3. Detailed approach and methodology.
4. Detailed estimation of tollable traffic for the Project road for the period from 01 April 2014
up to the end of the Concession Period.
5. Observations as per scope of the work.
The applicant shall also submit a spreadsheet model (in Microsoft Excel XLSX format) with
assumptions and calculations used to arrive at the traffic forecasts.
Page 6 of 13
RFP No. IFCI/PDG/2014-15/01
12. Valuation of the Equity Shares of JTCL
The following scope of work should be given due consideration while carrying out the valuation of
the equity shares of JTCL.
1. The methodology used for valuation should include but is not limited to (i) Discounted Cash
Flow, (ii) Transaction Multiple Method. If the applicant, in its professional opinion believes
that other methods of valuation may be appropriate, he may also include these methods in
addition to those required, providing a justification for using the method.
2. Financial projections shall be prepared by the consultant. All assumptions made shall be
supported by adequate justification and must be in alignment with the provisions of the
Concession Agreement.
3. The financial projections must take into consideration dues to EPC contractors and others, if
any, whether they are already booked or are contingent. The financial projections must also
consider payment of premium to MPRDC, payment of interest, repayment of loans as per
contractual provisions.
4. All assumptions made shall be supported by adequate justification and must be in alignment
with the provisions of the Concession Agreement.
5. The financial projections must make adequate provisions for maintenance of the road as per
the Concession Agreement and best industry practices.
6. The commodity movement data and the O-D data should be duly taken into consideration
while making the traffic and revenue estimates.
7. The applicant shall justify the discount rate used to arrive at the valuation of the equity
shares of the company.
8. The applicant shall also provide detailed sensitivity analysis, indicating change in valuation
for changes in interest rate, traffic growth rate and any other major parameters that can
affect the valuation.
12.1
DELIVERABLES FOR VALUATION OF EQUITY SHARES OF JTCL
A report to IFCI (in physical printed form signed by the applicant along with a soft copy in PDF
format and Microsoft Word DOCX format) containing the following sections:
1. Valuation of arrived at based on various methodologies.
2. Detailed approach and methodology.
Page 7 of 13
RFP No. IFCI/PDG/2014-15/01
3. Final value for the equity shares of JTCL based on assignment of weights to various
methodologies as deemed appropriated by the Applicant in his professional opinion.
4. Details of the name of the persons, qualification and period devoted to the classified traffic
volume counts and O-D study (including details of enumerators and supervisors).
5. Other heads under scope of the work.
The applicant shall also submit a spreadsheet model (in Microsoft Excel XLSX format) with
assumptions, underlying workings of assumptions and calculations used to arrive at the valuation of
the equity shares of JTCL.
13. CONFLICT OF INTEREST
1. The Bidder shall not have a conflict of interest that may affect the Selection Process or this
Assignment (the “Conflict of Interest”). Any Bidder found to have a Conflict of Interest shall
be disqualified at any point of time. In the event of disqualification, IFCI shall forfeit and
appropriate the Performance Security for, inter alia, the time, cost and effort of IFCI
including consideration of such Applicant’s Proposal, without prejudice to any other right or
remedy that may be available to IFCI hereunder or otherwise.
2. IFCI requires that the Consultant provides professional, objective, and impartial advice and
at all times holds IFCI’s interests paramount, avoid conflicts with other assignments or its
own interests, and act without any consideration for future work. The Applicant shall not
accept or engage in any assignment that would be in conflict with its prior or current
obligations to other clients, or that may place it in a position of not being able to carry out
the assignment in the best interests of IFCI.
14. OTHER TERMS AND CONDITIONS
1. All the information/details are to be supported by authentic documents duly certified by the
authorized signatory.
2. The Selection Process shall be governed by, and construed in accordance with, the laws of
India and the Courts at Delhi shall have exclusive jurisdiction over all disputes arising under,
pursuant to and/or in connection with the Selection Process.
3. IFCI, in its sole discretion and without incurring any obligation or liability, reserves the right,
at any time, to:
a. suspend and/or cancel the Selection Process and/or amend and/or supplement the
Selection Process or modify the dates or other terms and conditions relating thereto;
Page 8 of 13
RFP No. IFCI/PDG/2014-15/01
b. consult with any Applicant in order to receive clarification or further information;
c. retain any information and/or evidence submitted to IFCI by, on behalf of and/or in
relation to any Applicant; and/or
d. independently verify, disqualify, reject and/or accept any and all submissions or
other information and/or evidence submitted by or on behalf of any Applicant.
4. It shall be deemed that by submitting the Proposal, the Applicant agrees and releases IFCI,
its employees, agents and advisers, irrevocably, unconditionally, fully and finally from any
and all liability for claims, losses, damages, costs, expenses or liabilities in any way related
to or arising from the exercise of any rights and/or performance of any obligations
hereunder, pursuant hereto and/or in connection herewith and waives any and all rights
and/or claims it may have in this respect, whether actual or contingent, whether present or
future.
5. All documents and other information supplied by IFCI or submitted by an Applicant shall
remain or become, as the case may be, the property of IFCI. IFCI will not return any
submissions made hereunder. Applicants are required to treat all such documents and
information as strictly confidential.
6. IFCI reserves the right to make inquiries with any of the clients listed by the Applicants in
their previous experience record.
Page 9 of 13
RFP No. IFCI/PDG/2014-15/01
15. ANNEXURE I
APPLICATION LETTER
(On the letter head of the Applicant)
Date:
To,
General Manager,
Project Development Group,
IFCI Tower, 61 Nehru Place,
New Delhi - 110019
Phone: 011-4173 2565 / 29
Sub: Estimation of tollable traffic and valuation of equity shares of Jaora Nayagon Toll
Road Company Pvt. Ltd.
Sir,
Being duly authorized to represent and act on behalf of ………….(hereinafter referred to as
“the Applicant”), and having reviewed and fully understood all of the requirements of the Request
for Proposal (RFP) and information provided, the undersigned hereby apply for the project referred
above.
We are enclosing the following documents, with the details as per the requirements of the RFP
document, for evaluation.
1)
Technical Bid (Envelope A) as per Annexure II of RFP
1. Firm registration certificate/constitutional document, as applicable (in case of consortium the
same to be submitted by each member of the consortium).
2. Documentary proof of have carried out at least 2 assignments each in (i) Estimation of
Tollable Traffic and (ii) Valuation of the equity shares of Road projects using multiple
Page 10 of 13
RFP No. IFCI/PDG/2014-15/01
valuation techniques, including Discounted Cash Flow Method. The cost of projects for which
the aforesaid assignments have been carried out shall be at least Rs. 200.00 crore each.
3. Qualification and experience of the team which will be working on IFCI’s assignment along
with the plan for completing the assignment within a period of 45 days.
4. Bid Security in the form of demand draft for Rs. 25,000 (Rupees Twenty five thousand only)
in favour of IFCI Limited, payable at New Delhi.
5. Details of the pending litigation and contingent liabilities, if any, that could affect the
performance of the bidder under the mandate, as also details of any past conviction and
pending litigation against sponsors/ partners and any areas of possible conflicts of interest.
6. Undertaking by the Applicant that it is not directly or indirectly related to JTCL or any of the
shareholders of JTCL (except IFCI) by virtue of shareholding, common directors, control,
influence, etc.
2)
Financial Bid (Envelope B) as per Annexure III of RFP.
Yours sincerely,
Signature of Authorized Signatory
Page 11 of 13
RFP No. IFCI/PDG/2014-15/01
16. ANNEXURE II
TECHNICAL BID
NAME OF THE BIDDER:
REGISTERED OFFICE:
DETAILS OF CONTACT PERSONS (along with their telephone numbers, fax numbers, e-mail ids):
EXPERIENCE DETAILS OF PROJECTS FOR WHICH (i) ESTIMATION OF TOLLABLE TRAFFIC and (ii)
VALUATION OF THE EQUITY OF THE PROJECT WITH PROJECT COST NOT LESS THAN RS. 200
CRORE EACH [Note: The table below has to be filled in for 2 assignments each for (i) and (ii) above]
Name of the Project:
Particulars of the Project
Description of services performed by
the
Key
Personnel
(including
designation):
Name of Client and Address
Name, telephone no. And fax no. Of
client’s representative
Estimated capital cost of Project
(in Rs Crore )
Start
Date
(month/year)
of
the
services
End
Date
(month/year)
of
the
services
Details of Assignment
Note: Please provide documentary proof of each assignment in support of Eligibility Criteria. The
completion certificate / document(s) evidencing satisfactory completion of the assignment should be
provided for each of the projects.
Page 12 of 13
RFP No. IFCI/PDG/2014-15/01
17. ANNEXURE III
FINANCIAL BID
(On the letter head of the Applicant)
Date:
To,
General Manager,
Project Development Group
IFCI Tower, 61 Nehru Place
New Delhi - 110019
Phone: 011-4173 2565 / 29
Sub: Estimation of tollable traffic and valuation of equity shares of Jaora Nayagon Toll
Road Company Pvt. Ltd.
Sir,
We have perused the RFP document for subject assignment and Scope of Work and am/are willing
to undertake and complete the assignments as per terms and conditions stipulated in the proposal
document.
Our offer is inclusive of all taxes (including service tax), incidentals, overheads, traveling expenses,
printing and binding of reports, all sundries, all other expenditure for execution of this
service/assignments covering all ‘Scope of Work’ as mentioned in the RFP issued by IFCI Limited is
as follows:
Rs.---------------------------------- (i.e. in words Rupees.----------------------------------------)
This offer is valid for a period of six months from the date of opening of the bid (bid due date).
Signature of Authorized Person
Name :
Address :
Page 13 of 13

Download Report