PPP in Madhya Pradesh

Success Story of Roads

MP
RDC
1

Connecting People Through Quality Infrastructure

Road Network of Madhya Pradesh

Category
National
Highways
State
Highways
Major
District
Roads
Village
Roads

Total

Total
Length
( in Km)

PWD

MPRDC

MPRRDA

4709

1442.81

10966

10966

19574

17317
17317

2257

91789

24089

67700
(PMGSY)

127038

41671.5
41406
0

14665.8
14400.3
1

67700.0
0

MP
RDC
2

Madhya Pradesh Road Development Corporation

Incorporated as wholly owned State Govt. Company under
Companies Act 1956, in July 2004.
Highway Authority for State Highway.
Upgrades, Constructs and Strengthens the total length of
State
Highways.
Develops projects in the State on Public Private
Partnership
basis.
The Honble Chief Minister of Madhya Pradesh is the
chairman, Honble Minister of Public Works Department &
the Chief Secretary are the Vice Chairmen, the Principal
Secretaries of the PWD dept., Finance dept., Forest Dept.,
Urban Administration & development and Mining Dept. are
the members of the Board.

MP
RDC
3

Our Projects
Invite private investment by providing grant /
premium to / by the concessionaire on competitive
bidding

MP
RDC
4

Our Projects
Category/Model

Cost (Crores)
Ongoing

BOT (Toll)

16053

BOT (Toll + Annuity)

3260

BOT (Annuity)

4578

ADB

4159

Regular Contract

1689

ROB/RUB

1645

Border Checkpost

1094

OMT

45

Building Works

165

Projects in Pipeline
ADB Loan IV

3000

4 Lanning Of 3 State
Highways
on BOT (Toll)

4500

Grand Total

40188

MP
RDC
5

Our Projects: Cost Share in Crores of Rupees

MP
RDC
6

Pioneer in the field of road sector development

through Public Private Partnership in the country.
Adopted DBFOT Model of Tendering based on
Model Concession Agreement of Planning
Commission GOI.
First agency in the country to get VGF from GOI.
Under VGF scheme of GOI
40 % of project cost is sanctioned to make
projects viable.
20% is given by GOI.
20% is given by the State Government.
In several Projects MPRDC receives Premium.
VGF/Premium is the bidding Criteria.
Distance based user fee (Toll).

MP
RDC
7

Feasibility study by Feasibility consultant.

Financial analysis in-house in MPRDC on the basis of traffic
survey & cost estimates .
State Level Empowered Committee under the chairmanship of
Chief Secretary GOMP approves the proposals of BOT projects.
State government accords the administrative approval.
Empowered Institution, DEA, GOI sanctions VGF.
Two-Stage bidding (RFQ & RFP).
Financial closure within 180 days of agreement date.
Penalty for delays.
Monitoring by Independent engineer.
MP
Land acquisition by MPRDC.
RDC
Utility Shifting by the concessionaire.
Expenditure on LA & Utility Shifting is borne by the state
government.
8
Fee of Independent engineer is shared
by MPRDC & Concessionaire.

Innovative Financial Models

1.

BOT (Toll + Annuity) Model

2.

BOT (Annuity) Model

3.

Deemed Shadow Fee Model

4.

OMT Model
MP
RDC
9

Hybrid Model of BOT (Toll) & BOT(Annuity).

Formulated to increase Viability of the projects which are not
viable on pure toll.
Toll as a sweetener.
Concession Period is kept 15 years including of 2 years of
construction.
Six Monthly Annuity is quoted by the bidders.
Annuity is the bidding criteria.
Annuity is the deferred payment over a period of 13
years as per payment schedule defined in Concession M
P RD
Agreement.
C
Incentive for early completion as a bonus along with
first annuity.
10
Penalty for delay as a reduction of annuity.

Formulated to implement the projects which are not

viable on pure toll or Toll+ Annuity Models.
Concession Period is kept 15 years including of 2 years of
construction.
Six Monthly Annuity is quoted by the bidders.
Annuity is the bidding criteria.
Annuity is the deferred payment over a period of 13
years as per payment schedule defined in Concession
Agreement.
Incentive for early completion as a bonus along with first
annuity & Penalty for delay as a reduction of annuity.
The concept of VFM was considered during
conceptualization of Annuity projects.
During VFM analysis of MDRs, 22% Annuity for BOT
(Annuity) Projects was envisaged.
However, after bidding, the projects have been awarded
on Annuity of 18.30% under BOT(Annuity) projects &
12.88% as on average under BOT (Toll+Annuity)
projects.

MP
RDC
11

Its a PPP model.

Acts as sweetener to increase the viability of

project which are not viable with maximum
permissible VGF of 40%.

It is given in addition to maximum VGF of

40% with maximum limit of 10%.

Deemed shadow Toll is given in lieu of

exempted vehicles like Govt. vehicles, Military
vehicles, vehicles of MLA etc.

MP
RDC

This will be contributed by State Government.

Proposal of deemed shadow fee model is
pending with DEA GOI.

12

MPRDC has envisaged to take up roads on OMT (Operate

Maintain & Transfer) mode under Public Private partnership.

Above roads are developed by MPRDC through ADB

funding/Budgetary Support of the State Government.

14 such roads are identified by MPRDC amongst which 3

roads are awarded on Premium & 1 is under tender stage.

Concession Period Project specific, normally 9-12 years

Concessionaire to undertake management, operation &

maintenance of Highways

Augmentation of facility to be done

Construction, monitoring and inspection by

Independent Engineer.

MP
RDC
13

Concessionaire to pay Concession Fee to the

Authority.

Concession Fee is the bidding parameter.

This fee to increase by 10% per year as

compared to the immediately proceeding year.

Concessionaire can seek O&M support also.

User Fee - pre-decided, increase on the basis of

WPI

Exemption for non commercial traffic

Only Commercial vehicles to pay Fee

Escrow mechanism for fund flow.

MP
RDC
14

Innovative Projects

Projects

Cost (Crores)

24 Border Checkposts

1094

35 ROBs / RUBs

1645

MP
RDC
15

Innovative Projects (Border Checkposts)

There are 24 Border Checkposts.
Purpose of the project : To increase the revenue of State Government.
To control overloading & damage to state roads.
To reduce leakage & corruption.
To provide full transparency.
It is a PPP Project.
Project cost is Rs. 1150 crores including Rs. 56
crores for LA & Utility Shifting .

MP
RDC

Rs. 1094 crores to be borne by the concessionaire

and Rs. 56 crores by State Government.
Checkposts will serve as facilitation centre also.

16

Innovative Projects (Border Checkposts)

The project cost will be borne by
concessionaire charging service fee per
vehicle for construction, maintenance and
operation.

Project is fully computerized integrated

system with online central control system at
Gwalior & Indore.

Concession period 4566 days including

construction period of 730 days.

MP
RDC

It is an integrated project for Transport,

Commercial tax, Forest, Mandi & Mining
department.

17

CENTRAL
ALL TRANSACTIONS,
CONTROL FACILITYVEHICLE PICTURES

SURVEILLANCE CAMERA
DIMENSIONS MEASUREMENT EQUIPEMENTS

License Plate
Reader Camera

Barrier &
Traffic Lights
Control

RFID
Reader

Lane
Traffic
Controller

Lane Computer

WEIGHING
CONTROLLER
Automatic Vehicle
Classification System

WEIGHBRIDGE
18

Innovative Projects (ROBs/RUBs)

35 ROBs & RUBs on existing LCs of Railway as per Railway

Pink Book:
Railway Share

State Cost

Total cost

Rs. 439.20 crores (45%

of TPC)

Rs. 537.60 crores (55%

of TPC)

Rs. 976.80 crores

Feasibility Consultant appointed in March 2012.

Project of ROBs is divided in two groups having 17 ROBs in
one group & 18 ROBs in second group.
To improve financial viability of ROB project following rates
have been adopted

Type of
vehicle

Car

LCV,
Minibus

Bu
s

Truck
s

3 Axles &
Multiaxles

Rates (in
Rs.)

17.50

35

42

84

MP
RDC
19

Innovative Projects (ROBs/RUBs)

GADs, Cost

Estimates

of Group-I(17 ROBs)

have

been prepared & cost is Rs.763.81 crores .In Group-I all

GAD of ROB & LHS have been approved by Railway.

Railway is preparing their estimate for Railway portion

and finalizing Railway share.

Group-I of 17 ROB has been structured with 40% VGF of

Department of Economic Affairs.

Project will be implemented through PPP with 40 % VGF

share and Investment of Concessionaire.

MP
RDC
20

Monitoring during Construction

Monitoring of Project by Independent Engineer.

Appointed through open bidding as per Concession

Agreement.
Regular monitoring by MPRDC officers.
Change of Scope & Extension of Time (EOT)
There is a Advisory Committee comprising of Technical
Advisor, Chief Engineer (BOT), DGM (Technical), DGM
(BOT), Concessionaire, Independent Engineer & Divisional
Manager.

MP
RDC

Advisory Committee examines the proposals of

the Concessionaires & make the
recommendations.
MD decides with the approval of BOD.

21

Ensuring Quality

3-tier system of checking

PMC of Concessionaire
Independent Quality Control Engineer
Officers of MPRDC

Quarry approval after thorough testing.

Field & lab testing is mandatory as per the norms of MORTH.

Use of Graders for maintaining the camber at sub grade/GSB

level.

Crushed GSB
Layer -1 (drainage) Coarse graded Grade-I.
Layer -2 Close graded Grade-II.

WMM in place of WBM with pavers.

Use of Sensor Paver in place of mechanical paver for BT

works.

Use of RMC plant in place of normal concrete mixers.

MP
RDC
22

Our Strengths
Concessionaires faith in MPRDC due to transparency in
bidding process.
Lenders faith in MPRDC ensuring Financial Closure of
BOT Projects.
Most of the projects of MPRDC have achieved Financial
Closure in spite of nationwide scenario of
Infrastructure sector wherein Financial Closures have
become difficult.
MPRDC facilitates Concessionaires to achieve
FinancialClosure.
Deployment of Supervision and Quality Control
Consultants with international expertise.
Deployment of capable construction agencies with
introduction of advance machineries and
equipments.

MP
RDC
23

Our Strengths
Adequate Budget provision for Annuity &VGF
payments by the State Government.
Annuity payment along with bonus on due date.
Outsourcing of Expertise.
Consultants are appointed for Feasibility Report/DPR
and Supervision of Construction.
Experts like Legal Advisor, Chartered Accountant,
Company Secretary, Environment expert, MIS expert,
Road Data System Engineer are engaged in house.
In-house financial analysis.

MP
RDC

Planning is done well in advance at the head office

level.
Fast decision making.

24

Our Strengths

Political commitment & support.

Concessionaires are treated as partner.

Bills are cleared in 2 to 4 working days.

All Stake holders are facilitated.

Land Acquisition and Environmental Clearances are
planned and executed well in advance.
Chief General Manager at Head Office & Divisional
Manager coordinate with District Administration.
NOC of State Forest Department, permissions for
utility shifting, tree cutting permission etc are
procured before Appointed date.

MP
RDC
25

Accident Response System

Implementation of ARS system on PPP mode is probably a

first in the world.

State wide implementation of ARS will be first in country.

ARS to address safety requirements in the larger

perspective.

Technical Assistance through ADB for capacity building in

road safety.

Accident Response System & Traffic Management Centre in

Madhya Pradesh including operation & maintenance for 5
years with estimated cost of Rs.12.50 crores has been
proposed.

A Road Safety Cell is created in MPRDC.

MPRDC has engaged an agency for ARS on Annuity basis.

ARS includes centralized call centre, GIS based automatic

vehicle tracking system (AVTS), Computer
aided
dispatch system, Traffic
Management Centre.

MP
RDC
26

State Highway Fund

GoMP has enacted the Madhya Pradesh Rajmarg Nidhi Adhiniyam
2012 to provide for the establishment of a Fund for investments in
the highways & infrastructure projects of the State.
Corpus of the Fund is 125 Crores (approx).
Executive Committee under the Chairmanship of Chief Secretary
to administer the fund.
Sources of Fund

Application of Fund

All payments of Premium

For Maintenance and

Repair of Highways

Proceeds towards
encashment of
Performance Security or
Bid Security

For Meeting any

Development Cost of
Highway or
Infrastructure Project

All returns on
investments made
out of the Fund

For Project Preparation,

Pre Tender Activities,
Cost towards Utility
Shifting, Land
Acquisition

MP
RDC
27

A country has to pay for its roads.

Whether it has them or not, it pays
more for those it does not have.
So Lets Have them..
MP
RDC

Connecting People Through Quality

Infrastructure

28