National Capital Region Transport Corporation Ltd. (NCRTC) has issued a Letter of Acceptance (LoA) to M/s HDFC Bank Limited for Engagement of financial advisor for transit oriented based development of NCRTC complex Jangpura for Delhi-Meerut RRTS corridor.
- Tender Reference Number: DM/GC/COR-OF/189
- Name of Work: Engagement of financial advisor for transit oriented based development of NCRTC complex Jangpura for Delhi-Meerut RRTS corridor.
- Accepted Contract Amount: INR 79,50,000/-
In November 2022, the NCRTC invited a tender for Tender Number: DM/GC/COR-OF/189
Background:
- National Capital Region Transport Corporation (NCRTC) – a Joint Sector company of the Govt of India and the states of Delhi, Haryana, Rajasthan, and Uttar Pradesh – has been given the mandate for designing, developing, implementing, financing, operating and maintaining the Regional Rapid Transit System (RRTS) projects in the National Capital Region (NCR) to provide comfortable and fast transit to NCR towns and meet the high growth in transport demand (“Authority”).
- RRTS is a next-generation, state of the art, eco-friendly, sustainable, high speed (180 kmph), high capacity, safe, reliable inter-state/ city dedicated commuter rail network having features like multimodal integration (MMI), interoperability, etc. The RRTS project is aimed at improving the quality of life of people by providing equitable, fast, reliable, safe, comfortable, efficient, and sustainable mobility solutions enabling balanced, inclusive, and sustainable economic development in NCR.
- Further, the RRTS project will connect economic centres in metropolitan cities with other suburban and urban nodes in NCR, thereby triggering sustainable economic development across NCR. The economic impact through investments in sustainable and resilient public transit infrastructure has a multiplier effect on the associated supply chains which, further, generates employment opportunities in the form of indirect and induced employment.
Key Features of RRTS Network:
- Regional Rapid Transit System (RRTS) – A Rail based high speed, high capacity, comfortable and safe commuter service connecting regional nodes. It will help in reducing Road Congestion, Energy Consumption and Pollution. RRTS trains will travel at 3 times the average speed of Metro. A total 08 (eight) RRTS corridors have been identified for implementation.
- Out of these, 03 (three) corridors namely, DelhiGhaziabad-Meerut, Delhi-Alwar and Delhi-Panipat are planned to be implemented in the first phase.
- Corridor-I (Delhi- GhaziabadMeerut) is the first corridor under implementation for revenue service.
- All RRTS corridors shall be interoperable with seamless connectivity among each other which means passengers boarding trains from any corridor shall be capable of travelling to other corridors and viceversa seamlessly. Sarai Kale Khan (SKK) station near Hazrat Nizamuddin Railway Station is planned to be the interchange station for the first three corridors.
Introduction to the site:
- The Jangpura Stabling Yard and Station Site is located in proximity to Sarai Kale Khan RRTS Station. The Jangpura station will have direct connectivity with Sarai Kale Khan Station and will provide access to commuters to all the three corridors.
- The total area of the site is 17.27 Ha. It is located in the South East Delhi district of Delhi (Zone D). This area is considered to be one of the most premium localities of Delhi. The immediate vicinity comprises upper HIG and HIG residential areas. Site and location details are provided below.
- The site is proposed to house a stabling yard & terminating RRTS station in the Delhi Meerut RRTS corridor segment. Operational offices & housing facilities for NCRTC are also proposed.
Site Connectivity Details:
- There are two proposed access roads to the site. The two access roads from Mathura Road and Ring Road are approved by UTTIPEC. Mathura Road connectivity is under construction and for Ring Road connectivity the RFP for engaging the contractor has been issued.
- The site has excellent connectivity through Public Transport as well. The connectivity details are shown in the following map.
Transit Oriented Development at Jangpura:
- Vide Delhi TOD (Transit Oriented Development) Regulations dated 13.04.2021, DDA has notified “Jangpura RRTS Station” as a ‘TOD Node’ for implementation under the Delhi TOD Policy.
- Transit-Oriented Development (TOD) is an innovative urban paradigm that involves leveraging existing and upcoming public transit infrastructure and associated large numbers of users, to ensure sustainable mobility and optimise utilisation of land through compact mixed use development.
- A TOD approach in Delhi will help in bringing people and jobs closer to mass transit and lead to much needed integration of land use and transport in the city. It will result in compact, walkable, mixed-use developments within influence zones of transit stations.
- This is a critical paradigm shift that can potentially improve public transit ridership, reduce vehicular congestion, and reduce greenhouse emissions and pollution in the long term.
- As DDA has notified “Jangpura RRTS Station” as a ‘TOD Node’, it is being planned to be developed in a fashion that will maximize the amount of residential, business and leisure spaces with convenient connectivity. Delhi TOD Policy,2021 allows an FAR of 500 for the TOD Schemes.
NCRTC’s Objective for Development:
- Under the framework of the Metro Rail Policy 2017, NCRTC is mandated to explore conventional and innovative sources of non-fare box revenue to enhance financial sustainability of the RRTS network. NCRTC has initiated various steps to augment non-fare box revenue including Transit Oriented Development.
- NCRTC wishes to explore the development opportunities at Jangpura TOD Node to achieve its objective for financial sustainability. NCRTC aims to have development based on TOD Norms which integrates land use and transport by developing planned sustainable urban growth, having walkable and liveable communities with high density mixed landuse around Jangpura RRTS Station. The development at Jangpura is to be phased to maximize the value of the land parcel.
- To meet these objectives, NCRTC proposes to engage a reputed firm as Financial Advisor, which has experience in the field of financial resource mobilization through Equity or Debt Funding and associated due diligence for financing of infra/real estate/TOD Projects. NCRTC seeks the interest of firms with aforesaid experience through this Bid. Details of the Scope of Work, Qualification and Evaluation Criteria of the Financial Advisor is highlighted in the following section.
Scope of Work of Financial Advisor:
- The scope of work detailed below for the Financial Advisor under this Bid pertains to the parcel of land allocated to NCRTC at Jangpura including Jangpura Stations and Stabling lines (the “Project”):
- Phase-1: Project assessment and financial modelling: Develop multiple options for development of the Project and assist NCRTC in developing detailed financial model(s) to evaluate identified structure for the transaction.
Key activities and deliverables would include:
- Propose Project Transaction Models, their scope and design, and the overall execution philosophy.
- Provide project cost and revenue estimates for various options.
- Prepare detailed financial model(s) for project structuring options along with projected balance sheets, income statements etc. and project valuation for NCRTC in terms of NPV.
- Recommend the most suitable option with associated advantages and disadvantages Deliverable: Option prioritisation matrix and financial model for selected option.
- Risk analysis and mitigation: For the Selected Option, Identifying the major areas of risk in the Projects and establishing appropriate risk matrices for managing the same. Key activities and deliverables would include:
- Risk allocation framework, between developer/concessionaire and NCRTC, with respect to project development Risk mitigation strategy and specific clauses (if any) to be incorporated for the same in concession/Lease/JV/Sales agreement Deliverable: Risk allocation matrix along with mitigation measures for selected option.
- Bid framework: Developing bid framework for efficient transaction of various phases of the project. NCRTC has developed model documents which may be suitably adapted to the proposed structure for development Key activities and deliverables would include:
- Preparing/Review of bid framework, with key bid parameters, for each of the real estate category- Office, Residential and Retail
- Prepare summary of key clauses required for concession / contract agreement, in view of Phase A and Phase B
- Final Bidding Documents for office development, residential development and mixed use / retail development.
- Phase-2: Assistance to NCRTC in evaluating proposals submitted for development of land parcel Assistance in valuing various proposals submitted (Phase 2 of the assignment based on monthly retainership basis).
- Discussions with prospective bidders along with NCRTC staff. Preparing evaluation sheets for various proposals and submission of evaluation reports to NCRTC for each development proposed for the “Project).
Eligibility:
- Submission of audited financial data for the last 05 (Five) financial years or from the date of incorporation, whichever is later, to demonstrate the current soundness of the Bidder’s financial position.
- As a minimum, the Bidder’s net worth for the last year calculated as the difference between total assets and total liabilities should be positive.
- Minimum Average Annual Turnover of INR 2.30 Cr. calculated as total certified payments received for contracts in progress or completed, within the last 05 (Five) financial years or from the date of incorporation from the last date of submission of bid.
For Start-ups:
- Minimum Average Annual Turnover of INR 1.70 Cr. calculated as total certified payments received for contracts in progress or completed, within the last 05 (Five) financial years or from the date of incorporation from the last date of submission of bid.
Work Experience:
- The bidder must have experience in Commercial Real Estate Resource Mobilization* (including lease rental discounting of Commercial Real Estate projects) of minimum Rs. 2000 crore Average of last five financial years (i.e. FY 2017-18 to FY 2021-22).
For Start-ups:
- The bidder must have experience in Commercial Real Estate Resource Mobilization* (including lease rental discounting of Commercial Real estate projects) of minimum Rs. 1500 crore Average of last five financial years (i.e. FY 2017-18 to FY 2021-22).
Source: NCRTC- Tender update | Image Credit (representational): NCRTC
