Chennai Metro Update: Tenders invited for selection of Consultant for providing Transaction Advisory Services including Feasibility & Market Study

July 2, 2021 Rail News, Tender

Chennai Metro Rail Limited (CMRL) has invited online tenders through e-procurement portal from reputed Vendors under Single Stage Two bid system for the following work:-

  • Tender Reference Number: CMRL/BD/500/CPTAS/2021/01
  • Name of Work: Selection of Consultant for Providing Transaction Advisory Services Including Feasibility & Market Study, Formulation of Non Fare Box Revenue Business Plans, Project Structuring and Bid Process Management Services, For CMRL Land Parcels and Built-Up Spaces Within Chennai Metro Rail Stations.
  • EMD: INR 2 Lakh
  • Document Download / Sale Start Date: 01-Jul-2021
  • Document Download / Sale End Date: 20-Aug-2021
  • Bid Submission Start Date: 13-Aug-2021
  • Bid Submission End Date: 20-Aug-2021
  • Pre Bid Meeting Date: 15-Jul-2021 
  • Bid Opening Date: 21-Aug-2021

About the Project:

Chennai Metro Rail Limited (CMRL) is a joint venture of the Government of India (GoI) and the Government of Tamil Nadu (GoTN) for the construction of Metro Rail Project Phase I in the Chennai city with loan assistance from Japan International Co-operation Agency (JICA).

  • Phase 1:
    • The phase 1 of Chennai Metro project covers a 54.1 km network i.e. Corridor I – From Tiruvotriyur to Airport (32.1 km), Corridor 2 – From Chennai Central to St. Thomas Mount (22.0 Km). Out of 54.1 km of Phase 1 network, 54 km is operational now.
  • Phase 2: 
    • Phase 2 consisting of three corridors and covering a total length of 118.9 Km (i.e. Corridor 3 – Madhavaram to Siruseri (45.8 Km), Corridor 4 – Lighthouse to Poonamallee (26.1 Km) and Corridor 5 – Madhavaram to Sholinganallur (47.0 Km).

Objective:

To Assist CMRL in enhancing the revenue from Commercial development and to ensure the tapping of the unutilized potential of CMRL’s assets towards generation of non-fare revenue.

Broad scope of work to be carried out by the consultant is indicated below:

  • Formulation of Non Fare Box Revenue Business plans taking into account the Business Plan of CMRL. To enhance existing and on-going plans and to propose new opportunities
  • To suggest the optimum disposal strategy for Licensing of the retail spaces within existing stations of CMRL.
  • Feasibility Study and Transaction Advisory Service for Existing and New Land Parcels up to the stage of transaction completion till signing of Agreement after issue of LOA.
  • Enhancement of revenue from Advertisement (At Stations, Metro Trains and on new mediums)
  • Augmentation of revenue from other Sources. Consultant to identify additional sources.
  • Preparation of suitable policy and procedure documentation where required, to ensure successful achievement of desired outcomes.
  • Planning and implementation of suitable Marketing/Promotional strategies through various mediums to ensure maximum reach and impact of the various commercial CMRL proposals.

The Scope of Work for key items of the above listed activities are as follows:

1) Formulation of Non Fare Box Revenue Business plan based on the Core (Operations) Business Plan of CMRL.

  • Assessment of Business plan of CMRL including:
    • Broad Operational Targets:
      • Review of all existing business activities.
      • Fixation of suitable and realistically achievable targets.
      • Phase wise Implementation of Targets.
      • Overall CAPEX Requirement and Revenue Targets.
      • Revenue Projection from Operation Teams and to assess the proposed revenue targets (Balance) from other revenues to achieve overall revenue targets.
    • Assessment of present status of Commercial Projects / Activities and Gap.
    • Analysis for all Non-Core Revenue streams.
    • Formulation of Policy for overall Non Fare Box Revenue generation activities.
    • Preparation of Procedures / Implementation Guidelines.
    • Formulation of Primary Business Plan for Commercial Activities / Non-Core Activity.
  • Fortifying the Primary Business Plans with alternative or secondary development plan to ensure achievement of the proposed targets.

2) To suggest the optimum disposal strategy for licensing the retail spaces within existing and proposed stations.

  • Creating policy documents comprising guidelines w.r.t. Category of Shops to be permitted, zoning of spaces for Retail, F&B Activities etc.
  • Standardization of License agreements to acceptable legal standards, operational procedures, waste management etc., to ensure optimum occupancy level.
  • Validation & Modification of existing spaces in case of any disadvantages. To finalize/update the revised List of retail space at stations.
  • Re-assessment of Revenue potential depending on present scenario and categorization of Spaces depending on footfall, size and other aspects.
  • Assessment of Retail Rentals by benchmarking the revenues of other Metro
  • Developments across India and by assessment of Market dynamics.
  • Formulation of Marketing Strategy for various types of Spaces and implementation of same though Multiple Advertisement Mediums.
  • Providing dynamic strategy for adapting to evolving market requirements like, Revenue Sharing Mechanism, Early Renewal or Mix & Blend, Establish Focused Shopping Zones etc.
  • Assistance in finding the right Anchor Clients and for execution of License agreement by suggesting appropriate commercial terms.
  • To assist in marketing, the entire retail area and to suggest on advertisement and promotion strategy.
  • To provide legal assistance for general compliance purpose and to assist in preparation of transaction documents excluding specialized legal opinions & other legal requirements.
  • To provide Extended support for execution of License Agreement with other small retail players

The Tender documents can be downloaded from CMRL website www.chennaimetrorail.org or CPP portal http://eprocure.gov.in/eprocure/app.

Source: CMRL-Tender | Image Credit: CMRL