K-RIDE invites bids for engagement of transaction advisory services for procurement of Rolling Stock on PPP model for Bengaluru Suburban Rail Project

Rail Infrastructure Development Company (Karnataka) Limited has invited technical and financial proposals from reputed Consulting Firms for Preparing Engagement of transaction advisory services for selection of entity for procurement, operation & maintenance of Rolling Stock on PPP for Bengaluru Suburban Rail Project.

  • Tender Notice No.: K-RIDE/BSRP/09/2021
  • Name of Work: Engagement of transaction advisory services (TAS) for selection of entities for procurement, operation & maintenance of Rolling Stock on PPP model for Bengaluru Suburban Rail Project.
  • Period of Consultancy Services: 12 Months

Project Background:

  • Government of India for infrastructure development of Railways in Karnataka with 51:49 equity participation. 
  • K-RIDE has been mandated to undertake the development of the Bengaluru Suburban Railway Project (BSRP), at a total cost of ₹ 15767 crores. 
  • Under the condition of sanction of Bengaluru Suburban Rail Project, it was instructed that “procurement and operation (with onboard train staff only) and maintenance of rolling stock should be kept on PPP mode”. 
  • This mandates KRIDE to explore different PPP models for procurement and Operation & Maintenance of Rolling Stock. 
  • K-RIDE is planning to engage Transaction Advisory Services (TAS) for selection of entities for procurement, operation & maintenance of rolling stock for Bengaluru suburban rail project on PPP model.

Scope of Work:

The scope of work will be inclusive of a minimum of the following items but not restricted. 

Pre-Tendering Process:

Project Structuring:

  • Primary data collection for all cost components including Basic Capital Cost estimates, Financing Cost, O&M Cost estimates including replacement cost, insurance cost, risk assessment, and any other cost, etc.
  • It shall be the consultant’s responsibility to establish and justify all the costs with convincing reason and coordinate with stakeholders of K-RIDE i.e.,GOK & MOR for getting it approved within a time period that was approved by K-RIDE.
  • Approval of the PPP committee of GOI & GOK as applicable, by the consultant with K-RIDE association as required. Along with any other statutory approval regarding cost approval and PPP tendering.
  • Review of existing Rolling  Stock  PPP/ Leasing models in the world, including DMRC’s Rolling Stock Leasing Model.
  • Based on the above, examine various implementation options, and develop the most optimal PPP model suitable for the implementation of the project in compliance with the strategic objectives of KRIDE.
  • Defining KRIDE’s role in the proposed PPP project.
  • Developing and providing detail of the legal architecture and design of the transaction, identifying.
  • Type of PPP contract to be used (e.g., concession, management contract, EMI or lease, etc).
    • Interaction required with concerned authorities in connection with RS-PPP approvals.
    • Investment plan & commitment required.
    • Basic project structure  encompassing roles and responsibilities of each    stakeholder, monitoring mechanisms, key performance indicators, institutional & regulatory framework for implementation, and risk allocation framework for risks during all project stages.
    • Stakeholder consultation to identify their concerns in the proposed project structure.
  • Recommendation of final project structure and identify milestones and prepare a suitable implementation plan for successful implementation of the project
  • Prepare a consolidated list of PPP-related approvals (if required)/ consents/ clearances required from government instrumentalities for the Project and assist in obtaining such approvals and issues related thereto for the project.

Financial Appraisal:

  • Identifying & collecting data required for the financial appraisal.
  • Assessment of completed project cost: Based on quotations received from  manufacturers and primary data as per clause 1A-Ia above, implementation  schedule, and other soft costs, the completed project cost shall be assessed.
  • O&M Cost Estimation: Based on the quotations received from operation &  maintenance agencies and primary data as per clause 1A-Ia above, maintenance schedule, and other necessary services required, the year-wise O&M cost including spares replacement shall be assessed.
  • Revenue Estimation: Based on the proposed model, the required lease revenue and/ or revenue from users based on traffic revenue estimated in DPR + primary data as per clause 1A-Ia above, shall be assessed.
  • Return Analysis: Based on completed project cost, revenue & lifecycle O&M cost, the contractor shall prepare an excel based financial model indicating the return on the project through DCF or other techniques approved by KRIDE to establish the likely Financial Internal Rate of Return from a private investors point of view.
  • Identify Key revenue drivers and conduct sensitivity analysis to assess the impact of changes in the key revenue drivers on the viability of the project.

About Bangalore Suburban Rail Project:

K-RIDE is entrusted with the responsibility of execution of Bangalore Suburban Railway Project. The project comprises of four Corridors at a total length of 148.17 km.

Corridor From – toLength (km)Number of Stations
1KSR Bengaluru to Devanahalli 41.4015
2Baiyappanahali to Chikkabanavara25.01 14 
3Kengeri to Whitefield 35.52 09
4Heelalige to Rajanakunte 46.24 19 
  • The proposed four corridors lines are expected to provide much needed last mile connectivity to the commuters and also traverse through some of the densest and traffic congested areas of the city, and are expected to bring connectivity to the Information Technology Industry.
  • The project is proposed to be completed in 6 years at an estimated cost of Rs. 15,767 crores.
  • The project is expected to be completed by 2026.

Bidding Documents can be downloaded from-procurement portal free of cost i.e.,https://www.eproc.karnataka.gov.in

Source: K-RIDE-Tender | Image Credit: K-RIDE