Delhi Metro Rail Corporation Ltd. (DMRC) has issued a Letter of Acceptance (LoA) to M/s Auctus Advisors Pvt. Ltd. for Consultancy service for maximisation of Non-Fare Box revenue sources study and bid process management for Delhi Metro rail network.
- Tender Reference Number: PD/PB/NFBR/01/2022
- Name of Work: Consultancy service for maximisation of Non-Fare Box revenue sources study and bid process management for Delhi Metro rail network.
- Awarded Value: INR 1,45,00,000/-
- Completion Period: 12 Months
In November last year, the DMRC invited a tender for Tender Number: PD/PB/NFBR/01/2022
Objective:
- DMRC invites Proposals (the “Proposals”) for selection of consultants who shall “Identify, Design and Develop” an appropriate structure for Non-Fare Box Revenue Sources Study and Bid Process Management” for identified Property Development/Property Business avenues at Delhi Metro Rail Network.
- The consultant shall prepare a Feasibility Report for unexplored existing issues like Advertising, Retail, Semi-Naming Rights and other Non-Fare Box Revenue (“Non-Fare Box Revenue”) and new avenues for existing and upcoming lines. The feasibility report shall cover benchmarking analysis, financial modelling, value estimation, technical feasibility and requirements, strategy for selection of concessionaires, contract structures, etc.
- For existing inventory, the consultant shall review tender documents, support in marketing activities and assist DMRC in the bidding process to select suitable concessionaires for the identified “Non-Fare Box Revenue” heads. Following award of contracts, the consultant shall assist with preparing concession agreements and signing of the agreement with the winning bidder leading to the on boarding of the concessionaire.
- The necessary project related inputs will be provided to the consultant for the purpose of the project during study by DMRC.
- The project development proposed shall be with utmost consideration for the ecology of the existing surroundings. DMRC intends to select the Consultant through an open competitive bidding in accordance with the procedure set out herein.
- The consultant shall develop innovative revenue models and project structures, prepare the feasibility report in accordance with Terms of Reference (ToR) specified in Section 7 and assist DMRC in the bidding process for selection of suitable bidder.
Scope of Work:
Bid process management:
- Preparation of Feasibility report
- Review of bid documents – EOI, RFP, addendums.
- Preparation of marketing plan and implementation.
- Support in publicizing the EOI/ RFP
- Media engagement support for effective PR.
- Supporting pre-bid meetings and query handling.
NFBR maximization study for new avenues:
- Benchmarking with Indian & overseas metro networks
- Review of regulations affecting the commercial exploitation
- Organizing study tour for DMRC officials and consultants
- Review of contract packaging & structuring
- Evaluation of revenue potential, inventory mapping for brownfield and greenfield monetization
- Preparation of implementation plan
- Financial analysis and revenue modelling
- Ascertaining infrastructure & utilities requirements
- Drafting of Policy manual for NFBR
Scope of Services:
Bid Process Management:
- Preparation of feasibility study for all the identified NFBR sources – This shall include package study, suggesting contract terms being followed by metros across India and globally and modify RFP that is in line with the best practices being followed, which will maximize revenue for DMRC and ensure healthy competition amongst the bidders.
- Identifying all NOC’s, clearances, approvals, utility, etc. required for leasing of spaces, Conducting primary market survey, contracting strategy and its terms and conditions etc, Value analysis including recommending the revenue model & preparing reserve price.
- Review of EOI/RFP, addendums, bid notice, bid documents etc and assist DMRC with publishing of the RFP/bid documents and assist DMRC in conducting the bid process.
Media Engagement Assistance:
- To ensure healthy competition for the bids, assist DMRC through the preparation of presentations and media notes that may be used by the DMRC Public Relations team for engaging with the media.
- Developing a marketing strategy, including digital marketing strategy, to promote the opportunity to the relevant bidder universe.
- Support with organizing road shows, bidder engagements, create a database with prospective bidders for each opportunity.
Finalization of tender:
- Assisting DMRC in issuing LOA and signing of contract agreement.
- In case the tender is not awarded, retender of the same by reviewing the terms and conditions shall also be included unless DMRC specifically decides against it.
- Inventory list of PD is attached as “Annexure-A”.
- Inventory list of PB is attached as “Annexure-B”.
- The Inventory list of PD & PB is tentative and may change at the time of award of LOA. However, DMRC reserves the rights to replace any of the items of existing inventory with a new one of similar nature.
NFBR maximization study:
- Identification of NFBR heads, preparation of feasibility study for all the identified NFBR heads, business plans and value analysis.
- The first phase of the study can be broken down into following sub-sections.
- Identification of NFBR Sources
- Review of various studies and reports with regard to Delhi Metro Rail Network all associated reports and documents including various studies on NFBR in Urban Infrastructure related projects.
- The Consultant shall review/study any relevant reports on similar concepts/ best practices followed in India and outside.
- Consultant shall carry out a benchmarking exercise for the experience of different metro rail systems, airports and other transportation hubs globally to bring replicable lessons.
- The Consultant shall produce a working paper in the form of Inception report summarising various studies/reports projects already implemented and lessons learnt.
The review shall cover the following, but not limited to:
- DPR of Delhi MRTS Network Metro station layout plans of Delhi Metro Rail Phase-IV Line-7 & 8 extension and Line-10 Sanctioned Development Plan of MPD-2021/2041, Various TOD/Commercial exploitation of Transport/Urban Infrastructure related studies in the region Outdoor Advertisement and retail policies Review of existing DMRC policies and procedures for NFBR.
Detailed Action Plan:
- The consultant is required to study existing frame (Government) work or Policy including (duties, levies & taxes) any amendments to current prevailing MPD, TOD policy, Prevailing Building Bye Laws or Government regulations to ensure the revenue opportunity can be secured and also suggest suitable changes/modifications to the existing policies/regulations/acts/etc.
- The consultant shall study in detail the viability of available non-fare box options and should advise on the strategy on how to secure the identified opportunities The Consultant shall prepare a detailed action plan for each of the components, but not limited to the following:
- Advertising
- Leasing of commercial space at metro station
- Station Naming Rights
- Any other NFBR sources
- Considering the progress of metro implementation works and time required for bidding and time required for carrying out works within the stations, develop a timeline for tendering, bid evaluation including estimation and tender award for each NFBR head.
Eligibility:
- The Tenderers will be qualified only if they have successfully completed work(s), completion date(s) of which falling during last 10 (ten) years ending last day of the month previous to the month of tender submission The Consultancy firms must meet the following eligibility criteria:
- Minimum 07 years’ experience in consultancy services in urban transport infrastructure/ commercial projects in India and/ or overseas from the bid submission deadline.
- Should have completed minimum one Non fare box revenue maximisation assignment with Govt. entities/ Multilateral/ PPP entities for any Metro Rail Network in India or overseas.
- Should have completed minimum one Bid advisory assignment with Govt. entities/ Multilateral/ PPP entities/ projects for any Metro Rail Network in India or overseas.
- Average annual financial turnover from consultancy services of Rs. 1.10 Crore and above for the last 3 consecutive financial years (not including audit/ tax advisory, property management., IT advisory).
- A JV/consortium of maximum 2 firms is permitted.
- In case the bidder is DMRC’s existing Consultant, the Consultant is required to submit the details by duly filling up Annexure 2. In case the bidder is not an existing Consultant of DMRC, the fact shall be clearly stated in the Annexure.
Source: DMRC- Tender Update | Image Credit (representational): DMRC
