**Executive Summary**
This office memorandum forwards the Record of Discussion from the 18th Meeting of the Approval Committee regarding support under the IIPDF Scheme for the Andhra Pradesh Metro Rail Corporation Limited's Light Metro Rail System in Visakhapatnam, on PPP mode. The meeting was held on February 29th, 2024. The purpose is to consider granting approval for the proposal.
**Key Points / Main Content**
* **Project Approval and Funding**
* The Approval Committee (AC) has unanimously decided to approve funding for hiring of TA (Transaction Advisor) for the development of Light Metro Rail System in Visakhapatnam on PPP mode.
* Approved funding for TA expenses under IIPDF Scheme is up to Rs. 5 Cr inclusive of taxes.
* Actual disbursement will be the lesser of the approved funding or actual cost quoted by the TA, conditional on meeting milestones and IIPDF Scheme conditions.
* **Request for Proposal (RFP) Requirements**
* Work already completed by APMRCL must be mentioned upfront in the RFP.
* Qualifications of technical and legal experts must be clearly defined in the RFP, including signalling and CBTC expertise.
* Additional qualification criteria are to be considered based on the availability of appropriate bidder universe.
* **IIPDF Scheme Compliance**
* Payment milestones specified under the IIPDF Scheme must be followed.
* All conditions of the IIPDF Scheme shall be complied with by APMRCL and the Government of Andhra Pradesh.
**Impact Analysis**
**APMRCL and Government of Andhra Pradesh**
* **Impact**: Responsible for developing the Light Metro Rail System in Visakhapatnam, including issuing the RFP and managing the project under the IIPDF Scheme guidelines.
* **Action Required**: Incorporate committee feedback into RFP documents, comply with the milestones, ensure all conditions of the IIPDF scheme are met, and manage the project.
**Transaction Advisor (TA)**
* **Impact**: Will be responsible for advising on the PPP transaction, with TA costs up to Rs 5 Cr.
* **Action Required**: Prepare proposal based on clearly defined qualifications for technical and legal experts, and meet required milestones.
**Department of Economic Affairs (DEA), Ministry of Finance**
* **Impact**: Provides funding support under the IIPDF Scheme and ensures compliance with the scheme guidelines.
* **Action Required**: Oversee the disbursement of funds and monitor compliance with the IIPDF Scheme.
**NITI Aayog**
* **Impact**: Provides advisory support on the project.
* **Action Required**: Ensure that technical experts for the project have sufficient competence to ensure the project's success.
Key Entities Referenced
IIPDF Scheme: Scheme that provides support to infrastructure projects.
Visakhapatnam: Location of the Light Metro Rail System project.
Andhra Pradesh Metro Rail Corporation Limited: The entity responsible for the development of Light Metro Rail System in Visakhapatnam.
Approval Committee: Committee that considers granting approval for support under the IIPDF Scheme.
Ministry of Finance: The primary ministry under which the Infrastructure Finance Secretariat and Private Investment Unit (PIU) fall.
F. No. 1/5/2024-PIU
Government of India
Ministry of Finance
Department of Economic Affairs
Infrastructure Finance Secretariat
Infrastructure Support &D evelopment Division
Private Investment Unit (PIU)
5 Floor, Jawahar Vyapar Bhawan,
Tolstoy Marg, New Delhi
Dated xx March 2024
Office Memorandum
Record of Discussion of the 18 Meeting of the Approval Committee to
consider granting approval for support under the IPDF Scheme to the
proposal of Andhra Pradesh Metro Rail Corporation Limited, Government of
Andhra Pradesh for Development of Light Metro Rail System in Visakhapatnam
on PPP mode -Reg.
The undersigned is directed to forward Record of Discussion of the 18
Meeting of the Approval Committee to consider granting approval for support under
the IIPDF Scheme to the proposal of Andhra Pradesh Metro Rail Corporation
Limited, Government of Andhra Pradesh for development of Light Metro Rail System
in Visakhapatnam on PPP mode, held on 29 February 2024 for information and
necessary action.
This issues with the approval of Competent Authority.
2
(Anmol Waraich)
Assistant Director
To.
i. Shri, Partha Sarathi Reddy, Adviser, NITI Aayog
i. Sri. UJM Rao, MD, APMRCL
iii. Sr. PPS to JS (1SD)
Copy for information:
The Chief Secretary, Andhra Pradesh
Record of Discussion of the 18h Meeting of the Approval Committee to
consider granting approval for support under the IPDF Scheme to theproposal of Andhra Pradesh Motro Rail Corporation Limited, Government of
Andhra Pradesh for Development of Light Metro Rail System in Visakhapatnam
on PPP mode.
The 18 Meeting the Approval Committee (AC) chaired by the Joint
Secretary. ISD Division, Department of Economic Affairs (DEA) was held on 29"
February 2024 at 1100 hours to consider the proposal of Andhra Pradesh Metro Rail
Corporation Limited for Development of Light Metro Rail System in Visakhapatnam
on PPP mode. List of participants (attendees) is placed at Annexure - I.
2. Project Overview:
A brief overview of the project is provided below:
Project Name Development of Light Metro Rail Systen in
Misakhapatnam on PPP mode
Purpose of Assistance PPP Transaction Advisory (TA) Costs
Sector Transport and Logistics (Urban Public Transport)
SponsoringAndhra Pradesh Metro Rail Corporation Limited,
Project
Authority |Govt of Andhra Pradesh
Location Misakhapatnam, Andhra Pradesh
PPP Mode Envisaged Design Build Finance Operate and Transfer DBFOT
Proposed EstimatedRs. 3.304 Cr. inclusive of taxes'
TA Costs
Payment Milestonel As per lIPDF Scheme
Proposed
IPDF contribution 100%
sought (%)
Current Status TA is yet to be onboarded
3. On behalf of the Chair, Director (PlU) welcomed the attendees to the 18
Meeting of the Approval Committee and informed that the project proposal
has been received from Andhra Pradesh Metro Rail Corporation Limited,
Government of Andhra Pradesh, seeking funding to the tune of Rs. 3.304 Cr
inclusive of GST, for development of Light Metro Rail System in
Visakhapatnam on PPP mode. Director (PIU) further informed that the
proposal has been duly circulated to all members of the Appraisal Committee
(AC) and with the permission of the Chair, APMRCL was invited to make a
presentation on the proposal.
4. APMRCL stated that the Stale Government of Andhra Pradesh has taken a
significant stride in urban transportation by incorporating the Andhra Pradesh
Metro Ral Corporation Ltd. The top-priority Visakhapatnam Light Metro Rail
Project, spanning 76.9 km with 54 stations across 4 corridors, is set to be
swiftly established. In alignment with the Government of India's
recommendation, the project will be undertaken on PPP model with VGF
support. The approved DPR of the project, reflects an estimated project cost
of Rs.14,309 crores with driverless operations, CBTC signalling system, 3rd
Rail Power supply and connectivity to the international airport. This initiative
marks a pivotal step towards modern, efficient, and sustainable urban public
This is the proposed amount without including the cost of rolling, electrical and signalling experts.transportation in the state. The strategic placement of stations underscores
the urban mobility commitment to accessibility, efficiency, and cos
effectiveness, marking a milestone in the state's urban public transportation
evolution.
5. After the presentation, the following points were discussed with the
permission of the Chair:
The Chair highlighted that a lot of work has already been done by the
Authority inter alia financial feasibility and project structuring. Hence, it
was recommended that the work already done by the PSA be
mentioned upfront in the tender documents so that TA makes an
appropriate cost estimation and duplication of work is avoided.
i. NITI Aayog highlighted that technical (including signalling and CBTC
expertise) and legal experts should have sufficient competency in this
sector (Light rail Transit), to ensure success of the project.
ii. Regarding additional qualification criteria of the applicant having a
minimum average annual turnover from advisory / consultancy services
of Rs. 30 crores (Rs. Thirty crore) during the 3 (three) financial years
preceding the PDD, DEA informed that the empanelment of TAs has
been undertaken considering Rs.50 Cr as the benchmark criteria and
hence, there is no requirement of this lower criteria as it is redundant.
Further, the other additional eligibility criteria may be considered basis
the availability of bidder universe to fulfil such conditionalities.
0v. DEA stated that APMRCL's payment milestones are in deviation from
the milestones applicable under lIPDF scheme guidelines. It was
further informed that DEA will reimburse PSA as per lIDPF payment
milestones.
6. APMRCL tendered the following responses:
i. Work already completed would be mentioned in the RFP upfront.
i. As recommended by the committee, the scope of work and
qualifications of experts is revisited and the rolling, electrical and
signalling experts shall be included in the requirements of the TA team
and also the qualifications of the technical and legal experts would be
clearly defined in the RFP. This may enhance the TA Cost and
therefore, it is requested that TA support under the IIPDF Schenme be
revised to Rs. 5 Cr. The actual TA cost will be made competitive
through market bids.
ii. The additional qualification criteria would be revisited to make them
more appropriate to the project.
iv. Payment milestones under the lIPDF Scheme would be followed.
7. In light of the above, AC unanimously decided to approve funding for hiring of
TA for undertaking development of Light Metro Rail System in Visakhapatnam
on PPP mode, subject to following:
i. Funding for TA expenses under the lIPDF Scheme is approved up to
Rs.5 Cr inclusive of taxes.
ii. Actual disbursement under the lIPDF Scheme shall be upto maximum
of funding approved or actual cost quoted by the TA, whichever is less,
subject to accomplishment of milestones and fulfilment of other
conditions under the lIPDF Scheme.
ii. Qualifications of technical and legal experts would be clearly defined in
the RFP.
iv. Additional qualifications criteria to be considered basis the availability of
appropriate bidder universe.V The payment milestones specified under the PDF Scheme will be
followed.
vi Work already undertaken by the APMRCL Would be mentioned in the
RFP upfront.
vii. Allc onditions of the lIPDF Scheme shall be complied to by APMRCL
and the Government of Andhra Pradesh.
8. The meeting ended with vote of thanks to the Chair.Annexure -|
List of attendees of the 18 Meeling of the Approval Committee to consider granting
a SM hp i yrep i sntr tr go eo
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on PPP mode, held on 29 February 2024.
1. Department of Economic Affairs, Ministry of Finance
1. Shri Baldeo Purushartha, JS(ISD) - in Chair
2. Ms. Bhumika Verma, Director
3. Ms. Arya Balan Kumari, Joint Director
4. Dr. Kartik Agrawal, DD
5. Shri Dhruv Rohatgi, OSD
6. Ms. Anmol Waraich, AD
NITI Aayog
1. Shri Partha Sarathi Reddy, Adviser (PPP)
Andhra Pradesh Metro Rail Corporation Limited (APMRCL), Government of
Andhra Pradesh
I. Sri. UJM Rao, MD, APMRCL
2. KSN RAJU, AGM. Corporate Affairs
3. B. Bhargav, Engineering specialist