PURA Project

Response to pre-bid queries

Query No.Category 1 Part 1- RFP

Clause no 2.2.1.d

Clarifications/ Queries Clause 2.2.1.d.of draft RFP states that we can have upto 6 members in consortium, clause 2.2.1.e. states that lead member should have minimum 51% of equity share and clause 2.2.1.f. states that each member should have atleast 11% equity share. If we have 6 members(one lead member and 5 members)and if we use their technical criteria for qualification then Lead member can have only 45% equity share.

Response to Queries The total number of members in a consortium shall not exceed 6 (six) members including the Lead Member. Consortium Members whose experience has been utilized for qualification shall have a minimum of 11(eleven)% equity stake in the paid up share capital of the SPV. Consortium Members whose experience has not been utilized for qualification can have a lesser equity stake in the paid up share capital of the SPV. If the Bidder wishes to utilize the experience of all the members of the Consortium then the total number of members in a consortium shall not exceed 5 (five) members including the Lead Member.

Part 1- RFP

Can minimum 11% equity share clause 2.2.1.f. be removed? Please refer to the response of query number 1 Our humble suggestion is that the lead member can share (or pay) the partners in proportion to the contribution of other members and the percentage of share should be left to the Lead Member's discretion. This 11% equity share clause will discourage the Lead member from associating with more partners and using their expertise. The concept plan to be submitted on or before 23rd August 2010 requires lot of time. As the draft RFP states that there should not be a difference of more than 20% between concept plan and DPR, it requires extensive field study. Under these circumstance, can the deadline for submission of concept plan be extended by one more month(23rd Sep 2010 instead of 23rd August 2010)? The revised schedule shall be as follows: Bid Due Date: 15th September 2010 Announcement of Selected Bidders & invitation to DPR: 15th October 2010 Last date for submitting the DPR: 30th November 2010 Signing of Concession Agreement and State Support Agreement: 30th December 2010

Part 1- RFP

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PURA Project

Response to pre-bid queries

Query No.Category 4 Part 1- RFP

Clause no 1.2.2

Clarifications/ Queries

Response to Queries

It is mentioned that the Skill Development and Development It is clarified that skill development could be from the list of of Economic Activities shall be from the list of Add-on projects. add on projects. Please clarify what is meant by the same. Please also clarify whether the Concessionaire would be allowed to tap Government grants, if available, for the implementation of the add-on projects. Yes. However if such grants are available for add on projects, the same shall be deducted from the project cost of Add on projects. The reason being that for the same Add on project/s, Authority cannot allow grants from two sources. Please refer to the response of query number 3

Part 1- RFP

Part 1- RFP

1.9

Request for extension the Bid Due Date by at least one month. Since the Concept Plan is one of the bid evaluation parameters, preparation of the Concept Plan is extremely crucial. Given the complex and multi-sectoral nature of the project and the amount of details required in the Concept Plan, at least two months time is required for the preparation of the same.

Part 1- RFP

1.9

Further the time given for the preparation of the DPR is only Please refer to the response of query number 3 three and a half months, which is also insufficient given the scale and nature of the projects. We would request to provide at least six months time for the preparation of the DPR If a Bidder submits two bids, is it necessary that the bidder has Bidder can submit notarized / attested copies of original to furnish original certificates of its experience with both the documents in the second bid bids, or it can submit one set of original documents and one set of photocopies? Please clarify. What is meant by a resolution from the Gram Panchayat? A resolution from the Gram Panchayat(s) is a resolution granting consent to the Bidder for implementing the PURA project in the villages under the jurisdiction of the respective Gram Panchayat(s).

Part 1- RFP

2.4.1

Part 1- RFP

2.5.2

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Response to pre-bid queries

Query No.Category 10 Part 1- RFP

Clause no 2.5.2

Clarifications/ Queries Will a consent letter from the Chairman of the Panchayat Samity to participate be sufficient? What is the format? No

Response to Queries

11

Part 1- RFP

2.5.2

The formats for the Gram Panchayat Resolution and NOC from State Government have been emailed to all the Bidders by the Authority on 3rd August 2010. In the event there is no elected Gram Panchayat, the approval can be obtained from the concerned Administrative Authority under whose jurisdiction the PURA project is proposed. The NOC can be from the District Collector or CEO of Zilla Parishad of the concerned District with information to the State Government for bid submission. Alternately, the NOC can also be from the concerned department / directorate of the State Government.

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Part 1- RFP

2.5.2

Regarding NOC from the State Government, who should be the issuing authority?

13

Part 1- RFP

3.6.9 (b)

Since project cost is NOT a bid evaluation criterion,penalty in No change allowed case of variation in cost is not relevant.Further, PURA being a pilot project and a unique experiment in the country, the finalization of the project components and cost would be an evolving process and may not be possible to estimate the sameso precisely at the concept plan stage itself. Therefore, it is requested that the clauses pertaining to forfeiture of the Additional Security for variation of the project cost and project components in DPR from the Concept Plan (i.e., Clauses 3.6.9 b and c) may please be waived.

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Response to pre-bid queries

Query No.Category 14 Part 1- RFP

Clause no

Clarifications/ Queries Elements under serial no. 6 and 7 are integral part of DPR No change allowed requiring detailed study and analysis requiring investment of significant resources. As DPR succeeds award of LoA, including the same at the stage of concept plan will cause significant avoidable expenditure to the bidder. On winning the LoA, the bidder shall have sufficient incentive to undertake the same during the DPR stage and hence these elements may be dropped from the requirements under concept plan.

Response to Queries

15

Part 2: Draft Concession Agreement

3.1.1

As per Cl. 1.5.1.3 of RFP the project period is of 10 years. Here 13 years is taken including the construction period. In case the construction is completed before the end of 3 years of LoA, what will there be reduction in concession period? In case the selected bidder is not a consortium by a single entity and it intends to form an SPV for the implmentation of the project cost LOA, what would be its minimum shareholding in the SPV (the Concessionaire)

No, the concession period shall not be reduced in the event the construction is completed before the Scheduled Project Completion Date (SPCD).

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Part 2: Draft Concession Agreement

7.1 (i)

The shareholding of the bidder shall be 100% of the subscribed and paid up equity of the SPV. The shareholding can be diluted to a maximum of 51% of the subscribed and paid up equity of the SPV by addition of members to the SPV. However it shall be ensured that the Selected Bidder, who was a single entity, shall be the Lead Member of the SPV throughout the period of the concession. Please refer to the response of query number 16.

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Part 2: Draft Concession Agreement

7.1 (i)

What is the Lock In Period

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PURA Project

Response to pre-bid queries

Query No.Category 18 Part 2: Draft Concession Agreement

Clause no 8.3.1

Clarifications/ Queries The release schedule of performance guarantee does not match with the build-up schedule of performance guarantee what will be the mechanism of release of Bank Guarantee? Changing the amount of BG on each period will increase the charges incurred on Performance Security to the bidder

Response to Queries Please refer Clause No 7.3 of Part II of the Concession Agreement. There shall be no change in the either the build up schedule under Clause 7.1 or release schedule under Clause 7.3.1 of the Part II of the Concession Agreement.

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Part 2: Draft Concession Agreement

9.1 The clause is silent in case the land is purchased by the concessionaire. In that case, the concessionaire shall have the right to continue operations of facilities built on own land after completion of concession period.

In the event of the land for Site B being purchased by the Concessionaire, the Concessionaire shall have the right to continue operations beyond the concession period. However if the land for Site B has been provided by the Gram Panchayat, the operations beyond the concession period shall be governed by the agreement between the Gram Panchayat and Concessionaire with respect to Site B. The responsibility for providing land for Site A shall rest with the Gram Panchayat. The Concessionaire is not expected to provide for land under Site A. The cost of land shall not be included in the project cost.

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Part 2: Draft Concession Agreement

9.1 In case gram Panchayat has no surplus land no other public land is available for components of common infrastructure (like O/H tank, treatment plant etc) concessionaire will need to purchase private land and hence the cost of land in such case should be permitted to be included in the project cost to make the project technically and commercially viable.

21

Part 2: Draft Concession Agreement

9.1 Can the depreciation be claimed on the entire asset value for There are no specific concessions granted for this project. calculating the VGF or only depreciation on the proportion of Claiming of depreciation shall be governed by the existing investment made by the concessionaire needs to be guidelines of the relevant Government Instrumentality. considered? 9.2.4 Will the Power of attorney be only for the site A and not for Site B? Power of attorney shall only be for Site A.

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Part 2: Draft Concession Agreement

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Response to pre-bid queries

Query No.Category 23 Part 2: Draft Concession Agreement

Clause no 11.2

Clarifications/ Queries The time allotted for the preparation of DPR (s) is less than the review period. The design review period shall be less and once the engineer approves the drawing, it should be his responsibility to get it cleared from the panchayat as an independent body. What is the intention, need clarification? If there is penalty than there should be a cap on the penalty (it cannot be unlimited) and since there is penalty for underperformance there should be a provision of bonus to the concessionaire in case of timely achievement of milestone. Further, what happens in case of delay in release of the Capital Grant? Please clarify.

Response to Queries Please refer to the response of query number 3. The responsibility for getting the approval of the drawings from the Gram Panchayat, after the approval from the Independent Engineer, shall rest with the Concessionaire. Clause 11.4 of the Part II of the Concession Agreement stands replaced. Kindly refer to Clause 10.4 in the Part II of the Concession Agreement. The District Rural Development Agency (DRDA) shall be responsible for mobilizing the instalments of scheme funds and PURA grant 6 months prior to the date of release of such instalments to the Concessionaire. Clauses 16.4 and 16.5 of the Part II of the Concession Agreement stand replaced. Kindly refer the same in the Concession Agreement.

24

Part 2: Draft Concession Agreement

11.4.3

25

Part 2: Draft Concession Agreement

16.4.1

The repair penalty clause is harsh on the part of concessionaire as penalty @ 120% is levied in addition to undertaking the cost of repairs. In view of Clause 16.5.1 applicability of Cl. 16.4.1 may be clarified Read with 16.4.1, there is double penalty. Please delete the Clause

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Part 2: Draft Concession Agreement

16.5.1

Please refer to the response of query number 25.

27

Part 2: Draft Concession Agreement

24.2.1

Its the concessionaire who has to effect and maintain the insurance on his own cost but the insurance proceed from all claims shall be paid to Panchayat and but repairs to be done by concessionaire.Either insurance proceed should go to the concessionaire or the Pachayat should use the proceeds for the repairs and concessionaire shall not pay for the repairs and / or penalty thereof

Clause 24.2.1 of the Part II of the Concession Agreement stands replaced. Kindly refer to Clause 23.2.1 in the Part II of the Concession Agreement.

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Response to pre-bid queries

Query No.Category 28 Part 2: Draft Concession Agreement

Clause no 27.3.1

Clarifications/ Queries Upon termination in the event of default by Concessionaire, no No change allowed payments including the investments made by the concessionaire till the date of default, is due and payable to the Concessionaire even though the asset will get transferred to the Panchayat. The Clause should be suitably modified so that the investments made by the concessionaire in the assets created till the date of default ( during construction stage) or WD value of asset (during the stage of operation) is paid to the Concessionaire

Response to Queries

29

Part 2: Draft Concession Agreement

27.3.2

Why is the Concessionaire required to refund the grant utilised The PURA Grant is provided to the Concessionaire for the till the date of termination, as the grant would have been Operations and Maintenance period and not for the utilised for creation of assets, and in fact the residual value is development period. No change allowed in the clause. anyway payable to the Concessionaire after deducting the grant utilised till date of termination? Please clarify.

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Part 2: Draft 27.3.3 (e) If the facilities yielding revenues through user fee as defined in No change allowed Concession the concept plan is taken over the Panchayat while making Agreement the Concessionaire liable to service the liabilities, the interests of the Concessionaire shall be unduly affected as they are subjected to double penalty for the same offence- one by way of loss of performance guarantee and return on investment and then by making to pay the liabilities for the assets created without having recourse to the revenues from those assets. This clause needs to be modified either to include accured liability as part of termination payment or Panchayat taking over debt service after take-over of asset.

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Response to pre-bid queries

Query No.Category 31 Part 2: Draft Concession Agreement

Clause no 28.4.1

Clarifications/ Queries

Response to Queries

The transfer of assets as understood is only for site A. Please Transfer of assets is only for Site A. No transfer fees shall be confirm. payable to the Concessionaire by the Gram Panchayat. If community infrastructure is built of Site B (eg STP/ Over head tank) at what value the land be paid to concessionaire at the time of transfer as the concessionaire is being paid only RoI during the concession period. At what value transfer of assets for Site A will take place whether it will be at market value or at Salvage Value. Yes it is the responsibility of the Concessionaire to distribute treated water to the households within the PURA village cluster. In the event the source is insufficient to meet the requirements of the PURA cluster and the identified water source is available at a distance, then it is the responsibility of the Concessionaire to tap the source and transport the raw water to the PURA cluster. The cost for the same shall be borne by the Concessionaire. The concerned State Government shall provide the necessary permissions for tapping of such sources or tapping from existing bulk water supply sources in the near vicinity.

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Part 2: Draft Part 3, It is the responsibility of the Concessionaire to distribute Concession Schedule treated water to households. In case, the source of water Agreement D, within the PURA cluster is insufficient to meet the A. Water requirements of the PURA Cluster, and the identified water Supply source is available at a distance, whose responsibility would it be to tap the source and transport the raw water upto the limit of the Project Area and who will bear the cost? Please clarify.

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Part 2: Draft Concession Agreement

The choice of Piping material should be left to concessionaire Piping material can be as per CPHEEO manual. as per CPHEEO manual.

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PURA Project

Response to pre-bid queries

Query No.Category 34

Clause no

Clarifications/ Queries

Response to Queries

Storm water drainage is for road side drains only. Covered Part 2: Draft Part 3, It is understood that this is for road side drains only. Please surface drainage for storm water drainge can be allowed. Concession Schedule confirm. Agreement D, Underground Storm water drainage system should be avoided D. Storm as : Water a. It would be impossible to lay three underground systems Drainage (Water sewerage and Storm water drainage) in narrow streets/lanes of village (mostly 8-10). b. Storm water contains heavy loads of silt and clay which will cause O&M problem to Panchayat after 10 years thus leaving the investment dead. It is suggested that covered surface drainage may be proposed for ease of maintenance and sustainability of asset created. Part 2: Draft Concession Agreement The percentage of central support in case of CAPEX involved in water supply, Sewerage and solid waste management needs to be fixed for this project as the project involves higher per capita supply. Whether the central grant of solid waste management will be applicable to this project. If yes, what will be the central support? 1.1.3 Core funding shall be sourced from the convergence of Central Sector schemes and complemented by additional support through the PURA scheme. Please elaborate the mechanism citing relevant illustration. As per the relevent scheme guidelines. The PURA Grant is being provided to make up for any deficit on account of higher service level standards than that which may have been in the concerned scheme guidelines. Yes. The applicability of the central grant for solid waste management shall be as per the relevant scheme guideline.

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36

Part 1- RFP

Kindly refer to the PURA guidelines and the presentations uploaded on the website of MoRD. http://rural.nic.in/PURA.htm

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Part 1- RFP 1.3.1

What is the standard mechanism to identify BPL families and As per the relevant scheme guidelines who will do it?

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PURA Project

Response to pre-bid queries

Query No.Category 38

Clause no

Clarifications/ Queries

Response to Queries

Part 1- RFP 1.3.1

A single type of skill development center is not enough to train The cap of Rs. 15 crores is per skill development project. A all the BPL families in our selected region. We need an agro PURA project can have more than one skill development based center and services oriented center like plumbing, project. carpentry etc. There is no available public building to house these centers. Does the cap of Rs. 15 cr per project means Rs. 15 cr per each skill development center or per PURA project? If it is per PURA project, it is very less.

39

Part 1- RFP

1.6.1

a. Is there any exclusive right to develop/setup these add-on No exclusivelity rights can be granted to the Concessionaire for the add on facilities. facilities in the selected region? We have to cross subsidize the O&M expenses of mandatory facilities with the revenues from add-on facilities. If there is no exclusivity clause, anyone Please refer to the response of query number 19. can setup these add-on facilities if they are commercially viable at Concessionaires expense. b. The land cost in these villages is not much when compared with the development cost of add-on facilities. It is not commercially viable for the Concessionaire if the facilities have to be handed over after 10 years. It would be better for the Concessionaire to buy the land. In such case, will there be any guarantee that no one is allowed to setup similar kind of add-on facility in the cluster of villages selected for PURA implementation? We are developing a port in Karaikal, UT Puducherry on BOT Yes the Phase 1 of the port project at Karaikal can be basis in a well planned phases. We have completed considered as an eligible project. construction of the Phase -1 and port become operational in April,2009 with an investment of Over 450 Cr Phase 2 is under progress. Kindly confirm that we can include Phase 1 of the project as an eligible project

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Part 1- RFP

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PURA Project

Response to pre-bid queries

Query No.Category 41 Part 1- RFP

Clause no 2.1.1

Clarifications/ Queries Please clarify this ambiguous statement. Does it mean a bidder can choose up to two different village clusters for independent PURA implementation? Are we allowed to submit two bids each with different set of activities (no overlaps) for a single big cluster of villages?

Response to Queries Bidder can choose up to two different village clusters for independent PURA implementation. It is clarified that for 1 (one) village cluster there shall be only 1 (one) PURA project.

42

Part 1- RFP

3.2.1

The Resolution shall be procured from each of the concerned Do you accept block presidents (elected by Gram Gram Panchayats. Panchayats presidents) consent in place of each villages Gram Panchayat? We are thinking of considering a portion of a block which comprises over two dozens of villages with a population of over 25,000. If we have to submit consent letter from each village Gram Panchayat, it is a tedious and time consuming process. Please accept block presidents consent in place of Gram Panchayats consent. From whom should we get this no objection certificate and is there any specific format for it? Please refer to the response of query number 12

43

Part 1- RFP

44

Part 1- RFP

3.4.3.14

We have certificate from statutory auditor in the required form They are acceptable. and project completion certificate from UT Puducherry govt. Are they sufficient? We do not have any certificate from Urban Local Body. Please give an exemption from this. Given the size and nature of the project, it is very easy to verify the facts about our project.

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Response to pre-bid queries

Query No.Category 45 Part 1- RFP

Clause no 3.4.4.4

Clarifications/ Queries

Response to Queries

This condition is forcing the applicant to partner with several No Change is allowed entities to score maximum in Community experience. Very few entities will have experience more than one category. The project is already complicated enough with so many stakeholders and funds coming from different central and state schemes. This should not be further complicated by a consortium of several entities as Concessionaire. We request you to consider the reputation of the applicants, their projects in place of this condition. We request you to link the weight of projects to their size like in case of infrastructure experience. The amount of details sought as part of the concept plan is No Change is allowed. Please refer to the response of query number 3 for the revised timelines. quite detailed and it requires through field survey of all the villages (26 villages in our case) involved in the cluster which is a very time consuming and expensive process. DPR should cover all these details. We request you to simplify the concept plan by keeping the limited amount of time available for the Bidders. Please explain this clause. Is the word minimum is a typo? No it is not a typo error.

46

Part 1- RFP

3.5

47

Part 1- RFP

3.6.1

48

Part 1- RFP

3.6.4

Please explain this clause. How many applicants will be shortlisted based on the highest total score for the first shortlist? And how many from this first shortlist will be shortlisted for next round and on what basis?

The number of bidders to be shortlisted shall depend on the amount of grant available with the Ministry and proposed project concepts.

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Part 1- RFP

3.6.6

For how long this qualified bidders list will be valid? In the next The Qualified bIdders list shall be in force as per decision round of PURA projects, will these bidders be again asked to taken by the EC after the selection process is completed submit the bids or given any preference before calling for tenders?

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Response to pre-bid queries

Query No.Category 50 51 52 Part 1- RFP Part 1- RFP Part 1- RFP

Clause no 3.6.9 4.3 6.3

Clarifications/ Queries How much time it will take to approve the DPR once it is submitted by the Bidder?

Response to Queries Please refer to the response of query number 3

Please give us the names of your legal, financial, and CRISIL Risk & Infrastructure Solutions Limited, Phoenix Legal technical advisers names so that we would not avoid this. and Griffin Strategies Please explain this clause. If we understood it correctly, it is No Change is allowed giving a blanket cover in disowning any type of liability or accountability for authority and its personal. Given the nature of (potential) non-viability of the project, the Bidder is taking a huge risk and expecting assurances from authority in securing funds under various schemes. This clause is quite vague and increasing the risk for Bidder

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Part 1- RFP ANNEX-III Does it mean that other consortium members need not submit In case of a Consortium, only the Lead Member is required to their financial statements? What needs to be submitted if the submit its financial statements. consortium member is a small NGO and do not have audited financial statements? Part 1- RFP The Bidder will search for the different MoRD, non-MoRD, and Please refer to the response of query number 24 State level schemes to fund different projects under PURA project and will calculate the potential cash flows and project costs as per these schemes in the concept plan & DPR. Who will be responsible in securing the funds under different schemes when the project comes to implementation stage? Once the Bidder identifies these schemes what is the role of DRDA or authority? At what stage the Concessionaire will know the availability of funds under these schemes?

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PURA Project

Response to pre-bid queries

Query No.Category 55 Part 2: Draft Concession Agreement

Clause no 4.1

Clarifications/ Queries Does it mean that, it is DRDAs responsibility to mobilize the funds from different schemes as they were mentioned in the DPR? What is the role of DRDA and authoritys role in achieving financial closure?

Response to Queries Please refer to the response of query number 24

The Concessionaire shall be responsible for achieving the financial closure of the Project. 56 Part 2: Draft Concession Agreement 8.1.1 How many times performance securities have to be provided by the Bidder in the form of Bank Guarantees in the entire PURA project implementation? What is the percentage of all performance securities together when compared to total project cost? Please refer Clause 7.1 of the Part II of the Concession Agreement.

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Part 2: Draft Concession Agreement

The RFP document mentions 10 years as the concession The Concessionaire has a period of 3 (three) years to develop period while the Draft Concession Agreement Part 1 and Part the project and 10 (ten) years to operate and maintain the project. The Concession period shall be 13 (thirteen) years. 2 mention it as 13 years. Does it mean that the Concessionaire have three years to provide the urban amenities. Please clarify. PURA projects will be implemented in the Gram-Panchayat No change allowed level. There is a scope to accommodate more than 2 bidders working in the different regions separated by geographical boundaries. Please do consider your stand of choosing only 2 bidders/ state. Request for Extenstion of date to 30th Septmenber 2010 Please refer to the response of query number 3

58

Part 2: Draft Concession Agreement

59

Part 1- RFP

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Response to pre-bid queries

Query No.Category 60 Part 1- RFP

Clause no Clause 3.4.3.2

Clarifications/ Queries

Response to Queries

Can you please clarify whether construction of residential / Yes, provided it is proved that these constructions are a part university / institutional buildings to public sector entities will of a township project and not isolated real estate buildings. be counted as eligible project for Infrastructure experience. As per clause 3.4.3.4 a of the RFP, this is a construction project providing output to a public sector entity, thereby satisfying the conditions of the clause, whereas clause 3.4.3.2 does not mention residential/university/institutional buildings under core infrastructure.

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Part 1- RFP Clause 1.3 Request is to elaborate in details the schemes available under As per the scheme guidelines MORD and availability of funds for the various schemes at a village Gram Panchayat Part 1- RFP General In any ratio fixed for the distribution of Total Project cost among MoRD, Non MORD, Private Funding , Addon project O&M etc The ratio of project cost for add on projects has been fixed, which can be referred under Clause 3.5.3 of the RFP document. The distribution of the project cost among other components is left to the Bidder. PURA project shall not include Rehabilitation and Resettlement of Project Affected persons in and around an ongoing / proposed economic project. An economic project shall be a project undertaken on commercial basis.

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63

Part 1- RFP

Caluse 1.6.1

PURA Project is supposed to be not allowed for undetaking Rehabilitation and Resettlement of Project Affected persons in and arround an ongoing/ proposed economic project. Kindly elaborate what projects do fit in Economic Project cateogry and provide details of the ongoing/proposed economic projects in state of Maharashtra, Gujarat, Karnataka, Madhya Pradesh and Chhatisgarh

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Part 1- RFP

Clause 3.4.4

What kind of Projects are entiltled to fit in Community Oriented Kindly refer the Clause no 3.4.4(iii) of the RFP document. Project category? Does this means that the said Project Community oriented projects require the participation of the should have been undertaken in and arround the said local population. Rural/Urban/Semi Urban areas or it requires pariticpation of the local population in such projects It is requested to provide bidders with a case study for the proposed project. Kindly refer to presentations made at the pre bid conference available on the website http://rural.nic.in/PURA.htm

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General

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Response to pre-bid queries

Query No.Category 66

Clause no

Clarifications/ Queries

Response to Queries

Part 1- RFP Qualificatio The infrastructure Experience and Financial Capabilities have No change allowed ns already been evaluated in the EOI Stage.Hence it is requested to avoid submissions required towards the same Part 1- RFP For a more qualitative and productive proposal submission , the consortium would request a further extension of 15 -30 days to 30th September ,2010 or 15th October,2010 as may be approved by your good office and with due consideration. Please refer to the response of query number 3

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68

Part 1- RFP

Please refer to the response of query number 1 Changes in composition of consortium ( prior to final submission) The lead member remaining the same. The other members of the consortium can be changed /added/deleted subject to a maximum of 5 members in the consortium. b) This final composition cannot be changed for 24 months post award / COD. State Govt. / Gram Panchayat Tie Up - We sincerely appreciate the readiness of the committee to accept a NOC from the Gram Panchayat/ Letter from Mukhiya as a starter. General MoRD will take up the initiative of reaching an understanding with the respective state governments and facilitate the process on behalf of the bidder. It is hereby clarified that the Bidder is required to submit a resolution from the concerned Gram Panchayat (s) and a NOC from the District Collector or CEO of Zilla Parishad at the time of the submission of its bid. The Bidder shall be responsible for getting the NOC from the respective State Government for its PURA project. MoRD has defined the process for executing the State Support Agreement with the respective State Government. However it is hereby clarified that both the processes are exclusive of each other. MoRD is facilitating the process of getting the NOC and has written letters vide letter no. J-11020/01/2010PURA dated 12th August 2010 to the State Governments to extend the necessary co-operation to the Bidders for preparing their proposals and issuing of the NOC.

69

Part 1- RFP

70

Part 1- RFP

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Response to pre-bid queries

Query No.Category 71 72 73 Part 1- RFP Part 1- RFP Part 1- RFP

Clause no General General

Clarifications/ Queries Risk sharing section may please be elaborated. Will baseline study be required before the proposal ? Can skill development fund from National Skill Development Corporation be harnessed for Add-on projects ?

Response to Queries Kindly refer to the Concession Agreement along with its schedules. No Yes

74

Part 1- RFP

Non-MORD schemes have different eligibility norms and guidelines and how this will be addressed at in PURA area if we need to converge? What will be the modalities of concession? How the devolution of funds will work for community oriented schemes by Panchayat?

As per the relevant scheme guidelines

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Part 2: Draft Concession Agreement Part 1- RFP

Kindly refer to the Article 20 of the Part II of the Concession Agreement

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Is Viability Gap Funding limited to 35% of the project cost or it The PURA Grant shall be limited to 35% of the lifecycle cost takes into account the return from the add-on projects too into of the project. This percentage accounts for the deficit on account? returns for add on projects. An excel template for calculating the PURA Grant will be provided to the Bidders. Kindly also refer to the pre bid presentation uploaded on the website http://rural.nic.in/PURA.htm

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Response to pre-bid queries

Query No.Category 77 78 Part 1- RFP Part 1- RFP

Clause no General

Clarifications/ Queries What is the definition of in-and-around?

Response to Queries Please refer to the response of query number 63.

Lead member will hold 51% equity throughout. If six members Please refer to the response of query number 1. are permitted and each of them is expected to have 11% equity ,it will come to 66%.It appears to be inconsistent. Yes provided that the SEZ projects are completed projects. International experience for infrastructure project experience can be considered. However for community oriented project experience only projects executed in the India shall be considered. MoRD will create a risk fund, which shall be managed by the DRDA. The interest earned on the scheme funds and PURA grant will be deposited in this risk fund. This fund will be used for termination payment in the event of Gram Panchayat event of default. In the event the PURA cluster is covered under the municipal limits of an urban area, following options are avaliable: The Municipal Corporation assumes the role of Gram Panchayat and continues to perform the obligations under the Concession Agreement. Or If the Municipal Corporation does not assume the role of the Gram Panchayat then the Agreement is terminated. The Termination Payment to the Concessionaire shall be as per the Termination Payment under Gram Panchayat event of default.

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Part 1- RFP Qualificatio Can the experience of developing SEZs be considered in the n evaluation of infrastructure experience? Part 1- RFP Qualificatio Can international experience be cited for both infrastructure n experience and community oriented project experience?

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Part 2: Draft Concession Agreement

In the event of Gram Panchayat event of default, who is providing for the termination payment?

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Part 2: Draft Concession Agreement

In the event the PURA cluster is covered under municipal limits of an urban area, what would be the consequence on the existing agreement?

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PURA Project

Response to pre-bid queries

Query No.Category 83 Part 2: Draft Concession Agreement

Clause no

Clarifications/ Queries Can the PURA project be implemented near private tea gardens?

Response to Queries PURA project can include Gram Panchayats near to private tea gardens. However the activities of the PURA project shall be undertaken only for the rural population living under the jurisdiction of the Gram Panchayat. It is hereby clarified that none of the PURA project activities shall be undertaken on privately owned land parcels including private tea gardens.

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Part 1- RFP Qualificatio Regarding Infrastructure experience, can the experience of n the work undertaken by the sub contractor, appointed by the Bidder under BOT project, be considered?

Yes. However the Bidder would need to furnish the following documentary evidence: 1. Bidder's equity stake in the paid up capital of the SPV having the experience is greater than 26%. 2. The contract between the Bidder and the subcontractor describing the scope of the work and the amount of the contract. 3. Certificate from the relevant Government Instrumentality certifying the completion of the project along with the name of the bidder and the subcontractor.

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