Development and Maintenance of Land to be created in Offshore of Vadhvan Coast by Dredging, Reclamation & Construction of Offshore Protection Bund for Vadhvan Port on PPP to be executed on Hybrid Annuity Mode.

F.No.2/12/2024-PIU Government of India Ministry of Finance Department of Economic Affairs Infrastructure Finance Secretariat ISD Division (PIU) STC Building, Janpath, New Delhi Dated: 6" June 2025 Record of Discussion Subject: Record of Discussion of 128* meeting of the PPPAC for considering the proposal, ‘Development and Maintenance of Land to be created in Offshore of Vadhvan Coast by Dredging, Reclamation & Construction of Offshore Protection Bund for Vadhvan Port on PPP to be executed on Hybrid Annuity Mode’, reg:- Reference: PPPAC meeting held on 30.04.2025 & 31.05.2025 Sir/Madam, The undersigned is directed to forward the Record of Discussion of the 126" Meeting of the PPPAC held on 31.05.2025 under the Chairmanship of Finance Secretary and Secretary (EA), for information and necessary action. 2. This issues with the approval of the Competent Authority. Arya Balan Kumari (Joint Director-PIU) To, 1. Secretary, Ministry of Ports, Shipping and Waterways, Parivahan Bhavan, 1, Parliament Street, New Delhi. 2. Secretary, Department of Expenditure, North block, New Delhi-01 3. CEO, NITI Aayog, Yojana Bhawan, New Delhi-01 4. Secretary, Department of Legal Affairs, Shastri Bhawan, New Delhi-01 Copy to: 1. Sr. PPS to Finance Secretary & Secretary (EA) 2. Sr. PPS to OSD, DEA 3. Sr. PPS to AS (IPP) 4. Sr. PPS to JS (ISD)Subject: Record of Discussion of the 128 meeting of the PPPAC for considering the proposal, ‘Development and Maintenance of Land to be created in Offshore of Vadhvan Coast by Dredging, Reclamation & Construction of Offshore Protection Bund for Vadhvan Port on PPP to be executed on Hybrid Annuity Mode’, reg: - 1. The 128 meeting of the PPPAC was held on 31% May 2025 at 16.00 hrs to consider the proposal, ‘Development and Maintenance of Land to be created in Offshore of Vadhvan Coast by Dredging, Reclamation & Construction of Offshore Protection Bund for Vadhvan Port on PPP to be executed on Hybrid Annuity Mode.’ 2. List of attendees is placed in Annexure-l. 3. The basic details of the project are given in the table below: Table 1° Details of the project . __| Development and Maintenance of Land to be created in Offshore Project | of Vadhvan Coast by Dredging, Reclamation & Construction of S on _ =| Offshore Protection Bund for Vadhvan Port on PPP to be executed on Hybrid Annuity Mode. Hybrid Annuity Mode (HAM) | Ministry of Ports, Shipping & Waterways Vadhvan Port Project Limited ce | State: Maharashtra District: Palghar | 15 years (including 5 years of construction) S.No. | Description | Vadhvan Port _ | Phase-I- 3 years _ Sora ye k As Dredging of jo The Access Channel shall be dredged to . . Navigation a minimum level of 20 metres below Channel Chart Datum.o The turning circle of minimum diameter of 800 (eight hundred) metres, internal dredged basin and inner approach channel shall be dredged to a minimum level of 17.5 metres below Chart Datum. oA berth pocket with a minimum level of 19.5 metres below Chart Datum, extending 65-meter seaward of the berthing line is required. These depths shall be the minimum level after the placing of any bed scour protection. Reclamation o Dredging of the marine borrow pit area for extraction of sand from offshore of Daman. o Reclamation of offshore land parcel with sand fill in an area of 850 Hectare in phases at the level of + 6.8 metres below Chart Datum excluding the protection wall and design slopes of the Shore protection bund. o The finished reclamation level shall be a minimum of + 6.8 metres below Chart Datum. Construction oAlong the Perimeter, a_ structure to of Shore protect the bland fill of the land parcel for 1207 Hectares reclaimed land protection bund Common o Earthworks for Sub-base preparation for Port storage, rail yard and roads (filling to +6.8 m below Chart Datum) Infrastructure Phase-ll- 2 years 5. Reclamation o Dredging of the marine borrow pit area for extraction of sand at offshore of Daman. o Reclamation of offshore land parcel with sand fill in an area of 357 Hectare at thelevel of +6.8 metres below Chart Datum excluding the protection wall and design slopes of the Shore protection bund. o The finished reclamation level shall be a minimum of +6.8 metres below Chart Datum. Common Development of Internal Road rant o Preparation of sub-base, sub grade over Infrastructure ; ; : the reclaimed land including pavements at the finished level of +7.60mCD as indicated in drawings. Development of in-port Common Rail Yard. o The development of in-port common rail yard shall include filling of granular fill, sub-base and subgrade in layers. The average finished level shall be a minimum of +6.8 meter below Chart Datum for a minimum area of 290 Ha. Total Civil Construction Cost 18240.55 IC/pre-= operatij ve expenses @ 19% 182.41 of (C) i; ren: e Cost (1:% of debt 50.44 amount i.e., 5,243.61 crore) Interest during Construction 522.511 Estimated Project Cost (A+B+C+D) 18997.90 GST @ 18% on(A+B+C) 3325.57 Estimated Project Cost including GST (E+F) saean2i3aa.l4ie Labour Cess (1% of G) 2eoL0Estimated Project Cost |! including GST and Labour- 22546.70 Cess (G+H) J Contingenci; es @ 1% - (on Total 182.41 Civil cost) Ik Escalatii on @5f%e) per Year (on 3099.54 civil cost) L O&M ones for 10 years (Shore 171.79 Protection Bund) M Total Capital Cost (l+J+K+L) 26000.44 N Bid Project Cost 20950.00 The location of the reclamation is offshore of the Dahanu Coast and no land acquisition is required for Port. However, the land requires for the road and rail connectivity is being acquired by _| NHAI/MoRTH. | Project IRR: 12.26% Equity IRR: 15% NPV @12% of revenue stream: Rs. 5188.73 crore NPV@12% of project: Rs. 254.72 crore Avg. DSCR: 1.40 The project is proposed to be implemented as per Model _| Concession Agreement dated 09.12.2016 uploaded on MoRTH website with subsequent amendments issued thereafter till date, | modified to suit Port Sector. _| Lowest Bid Project Cost quoted by the bidders Single Stage with two envelopes 4. The Vadhvan is a greenfield port project, approved by the Union Cabinet in June 2024 with an overall cost of Rs. 76,220 crore. The instant proposal to the tune of Rs. 18998 crore (Estimated Project Cost) to be executed under a Hybrid Annuity Mode (HAM) and involves the construction of offshore and nearshore land reclamation, dredging, shore protection bund and common port infrastructure. The project consists of two phases, with Phase 1 scheduled for completion within three years and Phase 2 within two years, totalling a five-year construction period, followed by ten-year operation and maintenance period. Once the construction of port is completed, the terminals will be developed on suitable PPP mode.. The instant project was initially appraised by the PPPAC in its meeting held on 30" April 2025. In the meeting, PPPAC directed MoPSW to provide detailed explanations on several key aspects such as the basis of cost estimation, rationale for adopting the HAM model, quality control mechanisms during construction period, phase-wise responsibilities of the concessionaire, adherence to manual standards and international benchmarks, etc. MoPSW has given a detailed response to the queries raised by the PPPAC in its meeting held on 30" April, 2025 which are placed at Annexure II. . On behalf of the Chair, Joint Director (ISD) welcomed the attendees to the meeting and requested MoPSW to make a presentation to the PPPAC. With the permission of the Chair, Chairman, JNPA & MD. Vadhvan Port Project Limited (VPPL) made a detailed presentation to the PPPAC. . Vadhvan Port is a deep draft port planned by JNPA (Jawaharlal Nehru Port Authority) and MMB (Maharashtra Maritime Board) to handle the additional traffic. This need arises owing to the increasing demand for containers and the capacity saturation of JNPA and Mumbai port. As per the traffic demand assessment, Vadhvan Port has potential to handle around 23.2 million twenty-foot equivalent units (TEUs) of container traffic by FY 2040. In the port, a total of 9 container terminals with a total quay length of 9,000 meters will be developed, featuring 18 berths and over 100 quay-side gantry cranes (QGCs) to accommodate container ships with a length overall (LoA) of 350 meters or more. Further, liquid cargo berths, Ro-Ro facility, general/coastal/breakbulk cargo berths, common railyard, tank farms and storage areas will also be developed. . After the presentation, the Chair asked the PPPAC members for their observations. The representative of DEA, DoE and DoLA supported the proposal and stated that they have no further comments to offer. . PD, NITI Aayog raised the following observations: a) The project is currently divided into two phases. The possibility of combining the two phases into a single phase may be explored. b) The road connectivity is very critical for the project and therefore, it should be made as a condition precedent.10.The Chair raised the following observations: a) Have the rates used for the cost estimation been properly vetted and verified? b) The sand borrow pit for the project is identified at Daman offshore, approximately 60 Km away from project site. What is the reason for selecting such a distant location? c) Have the cost of transporting sand from the borrow pit to the project site been included in the cost estimate? d) Have appropriate standards and specifications been adopted for dredging and reclamation, considering the large-scale nature of the work and the need for timely completion? e) What techniques and methods will be used during the reclamation work to prevent settlement issues? f) Whether any specialized agency shall be deployed to ensure proper execution of work in accordance with the specification of the standards? g) Has forest clearance been obtained for the identified quarry sites? h) What is the status of the road connectivity to the proposed site? i) What is the rationale for adopting 60:40 cost sharing ratio under the HAM model? j) Does the Draft Concession Agreement include provisions for penalties in case of delay in completion of the project? k) Why has the sand filling process been divided into phases? 11,MoPSW submitted the following to the queries raised by the PPPAC Members: - a) The phasing of the project into Phase | and Phase II has been planned based on the design parameters and the operational requirements of terminal operators. This sequencing shall ensure optimal utilization of reclaimed land and aligns with the targeted commissioning of Phase | terminals by 2030.Therefore, the current phased approach is essential to maintain project efficiency and ensure synchronized development with future concessionaire activities. Road connectivity to the site will be provided by the Authority as per Schedule b) T of the Draft Concession Agreement which states that the road connectivity to be within 1.5 years from Appointed Date. The JNPA has undertaken various port expansion works in last 5 years, which helped to gain valuable in-house expertise over the years. The rates arrived as per the DPR by the consultant M/s. Royal Haskoning DHV was also examined by JNPA. The rates have been adopted from the Schedule of Rates (SOR) of PWD, State Govt. of Maharashtra. Thereafter, the cost estimates were also vetted by IIT, Madras for all Marine Works. The rate for dredging & reclamation from Daman to Vadhvan area is based on the CIRIA method, an international method, which is also verified by National Technologies Centre for Ports, Waterways and Coasts (NTCPWC). The site at Daman was selected based on a detailed field survey, which revealed extensive sand dunes. Tests confirmed that the sand is suitable for reclamation due to its silty composition and approximately 6% clay content, providing good binding and consolidation properties. The site was recommended by ONGC and IIT Madras. No other high-quality sea sand is available near the proposed port location. The Ministry of Mines granted permission for sand mining on 24th February 2025. Dredging and dumping operations will begin only after the construction of a shore protection wall to prevent sand washout. The transportation costs are included in the cost estimates to the tune of Rs. 570 per m%. This includes the sand dredging by dredger, transporting & dumping at site by suitable method and also compaction by standard method. The standards and specification have been incorporated in the Schedule D of Draft Concession Agreement for dredging and reclamation work at site. g) Initially, sand is deposited into the waterbed, where natural liquefaction facilitates primary consolidation. Once the area transitions to a dry state, vibro- compaction is employed to aciieve a compaction level of up to 90%, which meets the required standards for site handover and subsequent construction. Additionally, to prevent soil erosion and loss of reclaimed material, a geotextilelayer will be installed. This layer acts as a filtration barrier, effectively retaining sand particles and preventing washout through the voids in the shore protection structure. The external agency in the form of Independent Engineer (IE) shall monitor the h) entire project with respect to quality control & proper execution in accordance with concession agreement. The selection of IE shall be as per the guidelines issued by DoE for selection of Consultants with experience on similar works. The two quarry sites have been identified and Geophysical survey was carried out through National Institute Rock Mechanics (NIRM). The survey indicates adequate availability of suitable rock for breakwater and shore protection works. Further, the NOC for mining was obtained in May, 2025. Tree enumeration for mining was completed and lana for compensatory afforestation is identified in Parbhani District of Maharashtra. The online application to get the forest clearance will be made within two days and it is understood that the clearance shall be received within 60 days. MoRTH has recommended to initially go for the 22 km 2-lane road which will be used by the Vadhvan port Project for transportation of Quarry material to construction site. Tender to be invited by NHAI initially on EPC basis as there are no generation of toll revenues in the initial years. The land acquisition for Road & Rail connectivity is at final stage and 3D notification is likely to be issued at the earliest. Once the possession of land is obtained, NHAI will float the tender. This is a first-of-its-kind PPP prcject where dredging and reclamation will be k) carried out on PPP. To make the project attractive, a 60:40 HAM payment structure—60% by the Authority and 40% by the Concessionaire—has been adopted. This split is also based on market feedback from 15 prospective bidders. Additionally, this model promotes competitive bidding, shares risk with private players, minimizes long-term maintenance costs, and ensures timely completion of Phase-| by 2030. There are standard clauses in the concession agreement for liquidity damage of 0.2% of Performance Guarantee per day and provision for termination for delay for longer period.m) The reclamation has been planned in phases based on the projected land use requirements. In the initial phase, 850 hectares will be reclaimed and subsequently four container terminals will be developed. The remaining 350 hectares are not immediately required and will be developed in the second phase, with full reclamation expected to be completed within the overall five- year construction period. 42. After detailed deliberations, the PPPAC unanimously recommended the proposal, “Development and Maintenance of Land to be created in Offshore of Vadhvan Coast by Dredging / Reclamation & Construction of Offshore Protection Bund for Vadhvan Port on Hybrid Annuity Mode for consideration of the competent authority for giving administrative approval. The project is recommended with the following observation for consideration of the Competent Authority for administrative approval: - a. The appraised estimated project cost is Rs. 18,998 crore with a total construction cost of Rs. 18,241 crore. b. With no direct source of revenue generation from dredging and reclamation, HAM is the only preferred mode of implementation. Hence, the project will be implemented on HAM model with a payment structure in the ratio of 45:55 where 45% of the upfront payment shall be made by the Authority and 55% by the concessionaire. A higher upfront payment is not recommended as that would reduce the concessionaire’s stake in proper construction and take the project towards the EPC mode. c. Given that the project involves offshore reclamation through dredging and filling, it is essential to adhere to proper benchmarking and established standards. An Independent Engineer with appropriate qualifications may be engaged to monitor the project in accordance with the provisions of the Concession Agreement. Additionally, JNPT has developed in-house technical expertise, which has already vetted the cost estimates will also carry out parallel monitoring to ensure compliance and quality. d. As per the Concession Agreement, a 2-lane permanent road is to be developed and made operational by NHAI within six months from the Appointed Date to facilitate transportation of materials from the quarry site to the project site. The land for road development should be acquired fully before the bid submission date. Further, the road should be designed in a manner that allows for future 10expansion to a 4-lane configuration without dismantling or disturbing the new 2-lane structure, ensuring its continued usability. All clearances including forest clearance for quarry sites to be obtained before the bid due date. A well-defined risk-sharing matrix must be implemented during execution to ensure clear accountability and prevent any breach of contractual obligations. Considering the complexity of the project, the total concession period has been kept for 15 years including 05 years for construction and 10 years for operation and maintenance. Penalty provisions in case of delay in completing the project should be structured in a telescopic manner, starting at 0.2% and _ increasing progressively over time. 43.Revalidation of its recommendation by the PPPAC is not required for following post recommendation changes in the project costs/bid documents: - Any change in the date/time period for any time-bound actions like appointed a. date, financial close, construction period etc. b. Non-substantial change in risk -aiiocation. Any other changes/modification in the project proposal with the overall Cc. objective of making project successful. Further, MoPSW/VPPL may decide whether the changes proposed post recommendations of the project proposal by the PPPAC fall within the threshold criteria as stated above. All such changes falling within the threshold criteria shall be appraised at the level of Secretary (PSW)/ BoD of VPPL as the case may be, without any further need of revalidation by the PPPAC and shall proceed with the approval process accordingly. 14.The meeting ended with a vote of thanks to the Chair. KKKKKKKK 11Annexure-| List of the attendees of the 128 meeting of the PPPAC for the Development and Maintenance of Land to be created in Offshore of Vadhvan Coast by Dredging, Reclamation & Construction of Offshore Protection Bund for Vadhvan Port on PPP to be executed on Hybrid Annuity Mode. a. Department of Economic Affairs, Ministry of Finance 1. Shri Ajay Seth, Secretary, EA- In Chair oakon Shri Aman Garh, Director Ms. Arya Balan Kumari, Joint Director Ms. Anmol Wariach, Assistant Director Shri Rajender Singh, Section Officer Shri Manjeet, Assistant Section Officer b. Department of Expenditure 1. Ms. Preeti, Joint Director c. NITI Aayog 1. Shri. Partha Reddy, Programme Director d. DoLA 1. Dr. RJR Kasibhatla, Joint Secretary & Legal Adviser e. Ministry of Ports, Shipping and Waterways 1. Shri T K Ramachandran, Secretary 2. Shri R Lakshamanan JS (Ports) 3. Shri Rituraj Director Ports- PPP f. Vadhvan Port Project Limited Shri Unmesh Sharad Wagh (IRS), Chairman JNPA il Shri Sunilkumar Vishnu Madabhavi, Director (Technical) VPPL Shri Vishwanath Gajanan Gharat, Dy. General Manager JNPA Shri Sagar Mukund Dhok, Assistant Engineer VPPL Shri Amit Magadum, Team Leader Consultant Royal Haskoning DHV 12Annexure Il The queries raised by the PPPAC in its meeting held on 30.04.2025 and the response of MoPSW. Observations S.No. Response by Ministry of Ports, Shipping and Waterways by PPPAC What is the The cost estimates for the Vadhvan project have been firmed basis of the with significant due diligence and has also been vetted by IIT Cost Madras. Estimation? e Rates have been adopted from the Schedule of Rates of State Government of Maharashtra PWD basis 2023 (Q1). e Wherever the marine work is involved the Rate have been arrived from Rate Analysis. e Unit rates of Marine works have been taken based on the past projects carried out by rates analysis, current market rates and vendors. e Cost towards the reclamation for the project is based on the international methods for construction design. e Cost estimation was vetted by IIT Madras for all Marine Works. e Verification of unit rate for Dredging works for reclamation was done by National Technology Centre for Ports Waterways and Coasts (NTCPWC, MoPSW). Details of Cost Breakup is attached as Enclosure-1. Whether Industry / International benchmarks: industry The costing f.; the reclamation is based on the large benchmarking dredgers proposed for carrying out the works. It is proposed been done to carry out the reclamation using trailer suction hopper with respect to dredgers of 24,000 cum capacity which are available with the dredging and large dredging companies. The costing is based on the reclamation, proposed methodology, type of dredger, location of marine and what is the borrow pit. The costing includes the equipment charges, its international mobilisation, fuel, barges, manpower and other associated best practices equipment. The cost arrived has been compared with the in this regard? similar ongoing projects elsewhere in the world. The project was discussed with various dredging companies who provided the methodology for executing the reclamation 13Observations Response by Ministry of Ports, Shipping and Waterways S.No. by PPPAC works. The costing has also been reviewed and vetted by NTCPWC. The cost towards the shore protection work is based on the quarrying of the rocks, its transportation to site, sorting, weighing, barge loading, placement and profiling of the bund. The cost of the rocks is based on the CPWD rates provided by the Government of India for the region. The cost towards the transportation is based on the lead charges and prevailing fuel rates. The quarrying of the rock would be based on the mining plan which will be provided by NIRM. Details of Consultation/ discussion with potential bidders: In order to gauge the market and get feedback from potential bidders Expression of Interest was invited for the said work and discussions were held with these bidders. All the large dredging companies participated in the EOI discussion held on 1% Aug 2024. Applications were submitted by all the potential bidders. The Connectivity to site is at presently through the state How is Site highway and village roads and the dedicated road to Port is Connectivity being developed for cargo movement & the same will be be ensured for utilised for transportation of construction materials in initial the project? years. The Port Road connectivity is being developed by NHAI and land acquisition for 34 km is in progress and will be completed by July2025. The work of road connectivity to stone quarry is being taken up on priority by NHAI/MoRTH. The road connectivity will be available for transportation of boulders within 12 months of commencement of road works. The permission / license for quarrying of stone / material from forest land is being obtained by VPPL and the application for 14-No. Observations Response by Ministry of Ports, Shipping and Waterways leasing of land from forest department of Govt of Maharashtra is in process. Site will be handed over to the Concessionaire for mining after approval process. 4. The Cabinet The Cabinet, while approving the project investment, had while directed that the VPPL shall undertake reclamation and providing dredging activities through a suitably structured PPP model approval, (PPP Component-1) with appropriate risk sharing and suggested to financial support arrangement between VPPL_ and structure the concessionaire (for instance, Hybrid Annuity Models, Gap project Funding by VPPL, etc.). through a suitable PPP It is submitted that the present project primarily involves model. MoPSW preparatory package of development (through reclamation) has opted for of land for development of Vadhvan project. It may be HAM Model. appreciated that preparation of land for development of What is the terminals is critical preparatory activity and does not entail justification for any revenue stream as such. The primary revenue considering generating activity for port shall be from terminal operations HAM Model of mainly on account of Cargo handling charges which can be PPP? leveraged only after terminals have been developed. Key reasons for adoption of HAM model are as under: a) The Viability Gap Funding (VGF) model assumes partial commercial viability, requiring the private partner to recover a significant portion of the investment through user- based revenue streams. However, in the case of this project, the scope is iimited to land reclamation and development, which by itself does not generate any direct revenue. Revenue generation will only begin in subsequent phases, such as terminal development and port operations, which are not part of the current project's scope. 15Observations S.No. Response by Ministry of Ports, Shipping and Waterways by PPPAC b) Scale, complexity & criticality of the project- This project involves offshore reclamation of an unprecedented scale and complexity, making it the first-of- its-kind in India, particularly for the purpose of port development. Traditionally, projects of this nature have been executed under EPC mode, with limited private risk exposure and no long-term operational responsibility. Further, such works has not been carried out in revenue-risk model like VGF. Therefore, to ensure greater market participation, risk mitigation, and long-term interest alignment, the HAM has been adopted. Has Summary of consultation with Stakeholders: Stakeholder consultation VPPL/JNPA had invited Expression of Interest (EOI) from been done interested parties for the purpose of assessing the interest with potential among parties in the market. Based on the responses from bidders? If yes, 15 Firms and the same is listed below. Out of the 15 firms, 10 then details of firms are from major Dredging and Terminal & Port Operators Consultation/ and balance have small time construction firms. Discussion held with The majority of the firms have evinced the interest and potential submitted various suggestions. The following are the gist of bidders may suggestions which can be of considered for analysis of the be provided. PPP Financial Model. (i) Concession period : The concession period to be 10 years instead of 15 years, this will enable the Contractor to reduce the cost associated with the longer period. This adjustment will help mitigate the costs involved in the longer period. (ii) Payment Conditions : To consider making 60% payment funding during construction period and 40% as variable annuity amount after the completion of the project depending upon the value of assets created instead of 40% and 60%as proposed in MoRTH-HAM. 16Observations Response by Ministry of Ports, Shipping and Waterways S.No. by PPPAC (iii) | The O & M shall be in percentage of the Project cost instead of fixed amount to be quoted and the maintenance of dredging shall be the responsibility of Authority as the dredging in initial years would not predictable. (iv) | Prequalification Conditions : Consider last 10 years in place of last 5 years for demonstrating Technical Capacity and experience and consider preceding 3 years instead of preceding one year for demonstrating the Financial capacity. (v) | Obligations by Authority : The breakwater and dredging works shall be started together in order to reduce the accretion / erosion & to have protected waters. List of Stakeholders: Sse Adani Ports & Logistics Ltd Boskalis India Private Limited Hindustan Infralog Private Limited Hyundai Engineering & Construction Co., Ltd. International Seaport Dredging Private Ltd Jan De Nul Dredging India Private Limited Larsen and Toubro Limited National Marine and Infrastructure India Pvt. Ltd. Rail Vikas Nigam Limited Van Oord Dredging and Marine Contractors B.V. Vishwa Samudra Engineering Private Limited. COON oop ehy> - Oo 17S.No. Ob bs ye r Pv Pa Pt Aio Cn s Response by Ministry of Ports, Shipping and Waterways 6. What is the The pre-constriiction activities and clearances for the project status of pre- are completed through key preparatory stages. Land construction acquisition is in process and nearing completion, ensuring activities and that the site is ready for development. Environmental clearances? clearances, including the Environmental Impact Assessment (EIA), have been obtained by the relevant authorities. Overall, the project is steadily advancing through the pre- construction phase, with most critical clearances and activities are completed. 7. How will the For quality control of the project: project’s e Concession is DBFOT which includes investigations, quality be design, construction, provision, erection, setting to work, assured; and material, construction method, selection of equipment how the and plant, quality control testing, deployment of testing of personnel and supervisory _ staff monitoring and material, plant maintenance etc. and equipment e Shall be executed under the control of a quality assurance system which satisfies the requirements of will be done ISO-9001:2015, ISO-14001:2015 and ISO-45001:2018 for quality which will be monitored by the IE/PMC appointed by the control? Employer. e Engineer (IE) appointed by Authority will supervise and monitor Quality Management Plan. e Quality Management Plan will also be approved by Authority Engineers. e Quality Assurance Plan will demonstrate in detail that all the requirements of the Contract and all relevant codes, standards and regulations are being met. For quality control of material, plant and equipment: 18Observations Response by Ministry of Ports, Shipping and Waterways S.No. by PPPAC An Independent Engineer (IE) will be appointed with responsibility as per Concession Agreement. As part of tender document for construction by the contractor, the Employer’s requirement clearly mentions the testing schedule requirements and details that the contractor has to submit to the IE. Tests under the relevant codes and standards and in these empleyer’s requirement, the contractor shall carry out further tests required by the engineer, at its own cost. Compliance of Materials with Specifications shall be confirmed by sampling and testing. Acceptance criteria is stipulated in the Schedule D of the Concession. How are the Responsibility/ risk sharing: responsibilities Vadhvan Port is an SPV _ incorporated under the shared and Companies Act 2013 to implement this project. what are the Widely accepted port model balances investment risks responsibilities associated with greenfield port development. of PPP-1 and In this model, basic and common port infrastructure such PPP-2 as, breakwater, rail and road linkages, power supply, components? water supc'y lines and common infrastructure and services will be developed by the port/ SPV Dredging, reclamation and shore protection bund is proposed to be developed under suitable PPP i.e. HAM. All cargo handling infrastructure will be developed and operated by the private operators which will be awarded on concessions. Cargo or container handling operations which would be entirely in the hands of developer cum operator on public private partnership (PPP) mode. Responsibility of PPP-1 and PPP-2: Reclamation of land and access will be developed by PPP-1 under HAM. 19Observations Response by Ministry of Ports, Shipping and Waterways S.No. by PPPAC O&M for the asset created under PPP-1 will be maintained by PPP-1 Concessionaire for 10 Year or until allotted to PPP-2 Concessionaire (Container Terminal). Container Terminal Operator will invest in development berthing place, on-Shore handling and storage facilities under Concession. O&M responsibility for the asset created under PPP-2 will for 30 years. Land created under PPP-1 will be handed over as is where is basis and all ground improvement program etc. will be responsibility of PPP- 2 Concessionaire. Once Project site as defined under PPP-1 is handed over to PPP-2, the O&M responsibility ceases for PPP-1. O&M for another portion of not allotted will continue to be maintained for O & M period, as well as Shore protection Bund which is common infrastructure will be maintained by PPP-1 for 10 years. Status of construction works -near shore reclamation What is the current status work: of near shore Award of EPC Tender Package 2 (A) for Nearshore works? reclamation and shore protection works. The EPC Tender invited on 22th Oct, 2024 Estimated Cost ~Rs.1770 crore excluding GST. The contract Period is for 18 months. Awarded to the lowest bidder, M/s ITD Cementation India Ltd., at their quoted price of 1648 crore (excluding GST) which is 6.892% below of the estimated cost on 31st Dec, 2024. (Two month before schedule i.e. Before end of Feb 2025/March 2025). Contract Agreement was signed on 29th January 2025. Notice to proceed with work issued on 15th March 2025. The work will commence from May 2025 and expected to be Completed by November 2026. Status of construction of breakwater: The contract period is for 52 months. 20Observations Response by Ministry of Ports, Shipping and Waterways S.No. by PPPAC The Forest Department of Maharashtra has granted permission for prospecting proposal for the survey of the quarry on 26th Aug 2024 by conducting Geo-Physical Survey in Khanivade & Gargaon sites to know suitability of rock with size & strength. NIRM completed field survey in 27th Dec, 2024 & submitted report in 8th April, 2025. Application to Forest for Licensing of Land for Stone Quarry is submitted on 2nd April, 2025 & under verification by DCF, Dahanu. Tenders on EPC mode for Breakwater will be invited by July, 2025. For Stone, Aggregate and Murrum, quarry site is located 10. What are the at Khanivade, located 20 km from Vadhvan. 74 million sources of the tons of rock, murrum & aggregate will be traported from construction this quarry. materials? Additionally, few identified hillocks are also situated in villages of Palghar Taluka. Cement - Manufactured cement from market. Steel — will be procured from open Market. Road: Murrum & Aggregate will be procured from the identified quarry following SoP issued by MoEF. For Railway: Murrum & Stone for embankment and ballast shall be procured from the identified quarry site following SoP issued by MoEF. Reclamation fill material sea sand will be sourced from the Marine borrow Pit located north of Vadhvan port along the Daman coast. Borrow pit is 50 km from Vadhvan at a depth of 20 to 25 m. Sand Mining Composite license under OAMDR Act 2002 for reservation is received from Ministry of Mines through extraordinary Gazette of India on 21st Dec, 2023. 21Enclosure-1: Details of Cost Breakup Vadhvan Port - Detailed Cost Estimates for PPP-1 Proposal under HAM Ss. ITEM QUANTITY UNIT RATE AMOUNT No. (Rs.) (Rs.) 1 DREDGING (Ph 1) 1.1 Inner Approach Channel & Harbour Basin (- 17.5 m CD and 19.5 mCD at berth) a. | Soil Cum 300 825,000,000 dredging 2,750,000 b. | Rock Cum 2,350 8,319,000,000 dredging 3,540,000 12 Outer Approach Channel (-20 m CD) a. | Soil Cum 300 216,000,000 dredging 720,000 b. | Rock Cum 2,350 dredging Total (1) 9,360,000,000 RECLAMATION 2. Offshore land (Ph 1) upto +5.0 m CD a. | Reclamation 151,170,000 Cum 570 86,166,900,000 through 22marine borrow pit b. | Reclamation 7,010,000 Cum 300 2,103,000,000 through dredged material Dts Offshore land (Ph 1) upto +5.0 to +6.8 m CD (Terminal areas) a. | Reclamation 4,917,559 Cum 570 2,803,008,402 through marine borrow pit 2.3 Offshore land (Ph 2) upto +5.0 m CD a. | Reclamation 37,420,725 Cum 570 21,329,813,250 through marine borrow pit b. | Reclamation 20,056,511 Cum 300 6,016,953,300 through dredged material 2.4 Offshore land (Ph 2) upto +5.0 to +6.8 m CD (Terminal Areas) 23a. | Reclamation 5,205,712 Cum 570 2,967,255,612 through marine borrow pit 121 ,386,930,564 Total (2) 3.0 SHORE PROTECTION WORKS 3.1 | Offshore reclaimed land protection works (Ph 1 - 17 km of bund with crest level @ +7.0 m CD) a. | Rock Rock 866,800 MT 1,729 1,498,265,808 Armour 0.06-0.3T Rock 0.3 to 501,183 MT 1,763 883,587,128 41 MT Rock 1 to 3 697,040 MT 1,809 1,260,946,961 MT b | Core and Bedding Toe 156,352 MT 1,300 203,258,052 Protection - 1-500 Kg Core 10 to 10,430,453 MT 1,300 13,559,588,850 100 kg Geotextile 1,220,298 Sq. 211 257,482,959 24c. | Crown Wall, 41,543 10,000 415,433,750 Cast-In-Situ Cum M40 Mass Concrete 3.2 Offshore reclaimed land protection works (Ph 2 - 5.5 km of bund with crest level @ 7.0 m CD) a. | 5T - 35,122 Cum 13,750 482,927,500 Accropode b. | Rock 201,376 MT 1,729 348,079,024 Armour 0.06-0.3T c. | Rock 0.3 to 606,348 MT 1,763 1,068,993,354 4 MT d. | Quarry run 6,956,184 MT 1,300 9,043,039,200 bund e. | Geotextile 734,383 Sq. 225 165,236,175 29,186,838,760 Total (3) COMMON PORT INFRASTRUCTURE 4.1 Earthworks for Sub-base preparation (Filling from +5.0 mCD to +6.8mCD) Borrowed earth 3,177,666 Cum 570 1,811,269,620 254.2 | Roads (at 7.6 m) Primary roads 1,105,013 |. Sq. 6,225 6,878,846,124 within the port m Asphalt roads 168,626 | Sq. 3,262 550,027,203 within the port m Parking Area 438,472 | Sq. 4,281 1,877,100,173 m 4.3 | Drainage and 1/ LS | 1,788,888,292 1,788,888,292 sewerage 4.4 | Utilities Utility Trenches 1; LS 396,105,796 396,105,796 Cabling 1; LS 20,000,000 20,000,000 Illumination and 1; LS 110,577,000 110,577,000 lighting Total (4) 13,432,814,207 RAILWAYS 5.1 | Earthworks for 5,233,875 | Cum 850 4,448,793,750 Sub-base preparation (Filling from +5.0 mCD to +6.8mCD) 5.2 | Rail yard ground development - (Filling from 26+6.8m CD to +7.6m CD) a. | Granular Fill 870,000 | Cum 1,839 1,599,930,000 300mm thk b. | Sub Grade 870,000 | Cum 2,200 1,914,000,000 300mm thk c. | Crushed 435,000 | Cum 2,474 1,076,190,000 Rock Sub Base 150mm thk Total (5) 9,038,913,750 Total (1+2+3+4+5) 182,405,497,281 Total in crores 18,241 IC/Pre-operative expenses @1% of 182.41 (A) Financing Cost (1% of debt amount) 52.44 Interest during Construction (@ 522.51 11.10%) Estimated Project Cost (A+B+C+D) 18,997.90 GST @ 18% on (A+B+C) 3a20.0F Estimated Project Cost including 22,323.47 GST (E+F) KkRKK 27