Chennai Metro Update: Tender invited for licensing of underground commuter amenities centre in Shenoy Nagar Metro Station

Chennai Metro Rail Limited (CMRL) has invited digitally signed open e-tender through e-procurement portal for Tender cum auction for licensing of underground commuter amenities centre in Shenoy Nagar Metro Station, Chennai.

• Tender Reference Number: CMRL/BD/PD-SSN/2023/423/03
• Name of Work: Tender cum auction for licensing of underground commuter amenities centre in Shenoy Nagar Metro Station, Chennai.
• EMD: INR 48,21,000/-
• Document Download / Sale Start Date: 05th May, 2023
• Document Download / Sale End Date: 25th May, 2023
• Pre-Bid Meeting: 11th May, 2023
• Bid Submission Start Date: 19th May, 2023
• Bid Submission End Date: 25th May, 2023
• Bid Opening Date: 26th May, 2023

Scope of Work:

• Cleaning involves all type of floor area, all type of civil structures, wall tile, glasses, false ceiling, raised floor tile, Roofs and any other structures, Lift, escalators, rooms, toilets, etc.
• Cleaning and maintenance of Telecommunications, DG sets, portable fire extinguisher, smoke detector, fire detector, signage & notice boards, fire hydrants, fire panels, switch, sewer, water tanks, boards, other miscellaneous items & equipment available in the  licensed premises and supporting the licensed space.
• Eco friendly cleaning material/detergents to the extent possible should be used for cleaning and housekeeping operations. These should be free from chemical reactions, odorless and should not affect the public.

Other General Conditions:

• Any type of film shooting in the licensed space may be allowed with prior approval from CMRL.
• Licensee shall be responsible for all risk to the work and for trespass and shall make good at his own expense all loss or damage to any other property of the CMRL or the lives, persons, or property of others from whatsoever cause in connection with the works until they are taken over by the CMRL.
• Licensee shall be responsible to take all precautions to ensure the safety of the public and  staff within the licensed space.
• The Licensee shall be responsible for any minor repairs and replacement to the assets within the licensed space.

General Terms and Conditions:

• Date of Commencement of License Fee will be 9 months from the date of issue of notice to hand over. The License Fee and other charges and taxes shall commence and become payable immediately after fitment period from date handing over of site and shall be charged until the termination / completion of agreement.
• No relaxation or further extension for payment of all the due bythe Licensee shall not be considered. The Selected Bidder / Licensee voluntarily and unequivocally agrees not to seek any claim, compensation on, damages or any other consideration whatsoever on account of not taking over physical possession of scheduled allotted space on date of deemed handing over, if applicable.
• The tenderer to quote over & above of the reserve price of the License Fee per sqm per Month in bid BoQ form only through e-tendering portal. Licence Fee will be escalated at 5% every year from the date of the commencement of Licence fee (after 9 months from date of issue of notice to handover), on compounding basis.
• Licence Fees along with other dues shall be payable in advance by the Licensee to CMRL before 15 days of the end of the current term.
• The Licence Agreement shall be executed within 30 days of issue of Letter of Acceptance upon receipt of Performance security and advance licence fee for 1st quarter.
• Within 7 days of issuance of note to takeover / handover, the Licensee and CMRL shall carry out a joint inspection of the property as detailed in Annexure I.
• Measurement of actual area: Actual area of licensed space shall be computed as per the as built drawing issued during handover / takeover stage. In case of difference of opinion as to the quantum of actual area, the stand of CMRL will be final and binding. The Licensee voluntarily and unequivocally agrees not to seek any claim compensation or any other  consideration on this account.
• The Successful Bidder/ Licensee shall be responsible for taking prior approval from all the relevant legal and statutory authorities as per the Applicable Laws for operation of its business.
• On completion / termination of Licence Agreement, the Licensee shall hand over the premises as per last development plan with normal wear & tears. The Licensee shall not remove any facility, equipment, fixture, etc. which are an integral part of the development plan of the premises without the prior written permission of CMRL.
• However,the Licensee can remove movable assets including furnishings, fit outs and facilities belonging to them without causing damage to the structure.
• Licensee should pay INR 3100 per sq.m per month on quarterly advance basis for 100 sq.m approx of space for incidental commercial activity provided to the licensee at the street level. Actual area shall be measured at the time of handing over.
• If Successful Licensee applies for any additional area at same level for commercial purpose, it may be permitted by CMRL if found feasible (except for banned list of usages as given in  Annexure-12), the same may be provided on pro-rata basis of the prevailing licence fee of Rs. 3100 per sq.m per month, on sole discretion of CMRL. Decision of CMRL in this regard will be final and binding.
• Additional area if required by licensee at street level adjacent to Shenoy Nagar metro station may be provided at INR 430 per sq.m per month. The terms and conditions pertaining to additional areas shall be co-terminus with licence agreement.
• The said area provided shall only be utilised for the purpose of incidental activities supporting Basement-1&2 and it should not be used for any commercial activity.
• Incidental activity areas will be charged on actual areas measured at the time of handing over. The licensee shall provide prior intimation to CMRL on the usage of incidental activity areas.

Performance security:

• The performance security of Underground commuter amenities centre (i.e. Basement – 1&2 space) will be accepted in the form of an irrevocable and unconditional Bank Guarantee to be executed by any nationalised / Indian Scheduled Commercial Bank included in the 2nd schedule of RBI Act in 1934 in favour of Chennai Metro Rail Limited payable at Chennai.
• The Performance security shall be renewed subsequently for the following year (after completion of 3-year period) with a validity of three years period. The Performance security for the last term shall be kept valid for the licence period plus 180 days.
• The Performance security for incidental commercial activity areas will be paid for a value equivalent to 1st year License Fee in the form of RTGS/NEFT mode by the Licensee.
• Performance security shall be paid / submitted within 30 days from receipt of LOA and before signing the Licence Agreement.

Tenure of Licence Agreement:

• Licensing Rights shall be for an initial period of 10 (Ten) years, may be extendable for a further period of 10 years each on mutually agreed terms and conditions for a maximum of 2 terms after initial period.
• The Licensee shall have an option to exit from the License Agreement only after three years of lock-in period after issuance of a six month prior notice period to CMRL. In this case, Performance security of the Licensee shall be refunded after adjusting the dues, if any, to be payable by the Licensee.
• If the licensee is exiting the License Agreement without issuing 6 months’ notice, the Performance security shall be forfeited by CMRL besides recovering other dues if any and Licensee shall not make any dispute or make any claims in this regard.
• The Handover of site shall be made after execution of agreement upon receipt of performance security and advance licence fee for 1st quarter.

Renewal of Licence:

• At the end of the Licence period, the Licence may be renewed on mutually agreed terms and conditions.
• Licensee shall communicate in writing its decision to renew or extend the Licence at least 6 months prior to expiry of the Licence Agreement.
• In the event that CMRL decides to renew the License, it shall in its communication to the Licensee conveying such renewal, set out the terms of the renewed License, the period of such renewal, the renewed License fee, the renewed performance security, etc.

Maintenance:

• Complete maintenance and management of commercial & parking space at Basement 1&2 , Drop off Zone at street level and its security rooms, Inside 2 lobbies leading to Basement 1&2, 8 fire escape staircase, Incidental activity areas at ground level, all Entry and Exit of Ramps from Basement 1, VRV Units, ventilation shafts, light well, water tanks, sewer tanks shall be carried out by the Licensee.
• HT panels, Transformers, 910 KVA DG, HT panel rooms, Bus ducts, LT panel and associated rooms, all machinery, equipment supporting Basement 1 & 2 which is referred to in Annex:1 should also be maintained and managed by licensee.
• Basement 1 (Parking Area – 19,775 sq.m) shall be used for public parking which may be chargeable by licensee to the users with a prior intimation to CMRL.

Schedule of Various Stages: The Selected Bidder shall follow the following timelines:

Eligibility:

• The applicant may be any entity i.e. a sole proprietorship firm, a partnership firm or a company having its registered office in India & incorporated under the companies act 1956/2013 or a combination of above in the form of Joint Venture (JV) or Consortium.
• Bid by a JV/Consortium of firms: In case of a bid by a JV/Consortium of firms, following shall be abide by the participant/s: For the purpose of evaluation of the consortium, each member‘s contribution towards the turnover shall be considered in the same ratio of their equity participation in the consortium.
• Illustration: Say, If A and B are two members of JV/Consortium. A is having 70% equity holding in JV and B is having 30% equity holding in JV. In such a condition, 70% of A Turnover and 30% of B’s Turnover will be taken for the calculation of eligibility of the JV.
• The lead member of the JV/Consortium shall maintain a minimum equity stake of 51% of the aggregate shareholding of the JV/Consortium during full tenure of Licence Agreement.
• Any change in percentage stake of JV/ Consortium members without prior written approval of CMRL shall be treated as material breach of Contract and Selected Bidder/ Licensee‘s event of default entitling CMRL to forfeit Performance security and/or to terminate the License Agreement after a 30 (thirty) days termination notice.
• Minimum percentage stake of any member in JV/ Consortium during LicensePeriod shall not be less than 15%.
• Partners having less than 26% participation shall be considered as non-substantial partners and shall not be considered for evaluation which means that their eligibility shall not be considered for evaluation of JV/Consortium.
• All members of such entities shall be jointly and severally liable for the performance of Licence Agreement.

To be eligible for bidding process, the Bidder shall fulfil each of the following conditions simultaneously:

• Bidders should have a minimum average annual turnover of INR 6 Cr for any 3 years out of the 4 financial years (2018-19, 2019-20, 2020-21 & 2021-22). The Bidder shall submit the below documents along with the qualification details.
• Turnover certificate as duly certified by the statutory auditor / chartered accountant as per Annexure 4(B).
• The Bidder is required to submit proof of eligibility requirement of minimum average annual turnover for any of the three years in the last 4 (four) years audited financial statements certified by the statutory Chartered Accountant with stamp & signature.
• The last four Financial Years shall be 2018-19, 2019-20, 2020-21 & 2021-22. Here, turnover shall mean turnover from all/single (as applicable) sector(s) of business(es).
• The Bidder shall submit audited financial statements including profit-loss account for financial years as indicated above.
• If an audited financial statement for the last completed year is not available, the Bidder shall furnish a certificate from a statutory auditor in this regard.
• In case of a JV/CONSORTIUM subject to clause 3.2 above, the eligibility of lead member & substantial partners of JV/CONSORTIUM would be considered.

The complete documents can be downloaded from http://eprocure.gov.in/eprocure/app

Source: CMRL- Tender | Image Credit (representational): Linxon