REQUEST FOR PROPOSAL (RFP) FOR
DEVELOPMENT OF 6.84 SQ. KM START UP AREA
OF AMARAVATI CAPITAL CITY ON PUBLIC
PRIVATE PARTNERSHIP (PPP) MODE THROUGH
SWISS CHALLENGE APPROACH UNDER THE
ANDHRA PRADESH INFRASTRUCTURE
DEVELOPMENT ENABLING ACT (APIDEA), 2001
NIT No: 25/CRDA-14024(34)/46/2016
CLARIFICATIONS
August 2016
Andhra Pradesh Capital Region Development
Authority (APCRDA)
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No.
1
2
3
4
5
6
7
Reference
Clarification Required
RFP,
Please clarify whether the land to developers would be sold.
Page 4 –
Para 4
(a) GoAP to confirm that a competing scenario shall be avoided
either directly or indirectly to allot lands for any similar
developments as planned for Startup area, as this will compete with
the proposed developments in Startup Area.
(b) GoAP to confirm whether any concessions / tax benefits be
extended to the prospective developers within the Start-up area
(Vertical development) upon their investment
(c) Will the developments come under the purview of the Real
Estate Regulatory Bill?
RFP, Page 6 – Please confirm whether any weightage will be given for modification
Revenue
in Equity structure / CADA terms / SHA for award of the projector will
sharing
Revenue sharing alone be the sole criteria for the selection of
developer for Start-up area.
RFP, Page 19 If the challenging bidder is successful, it is requested that a mutually
– Para 2
agreed draft is finalized for execution.
Draft Replies
Please refer to Clause 4.3 (v) of Draft CADA as amended by S.
No. 2 of the Addendum to CADA dated 30 th May 2016.
No such non-competing & exclusive rights are granted to ADP.
RFP, Page 19 Please confirm whether the master developer for startup area
– Cl. 1.1.7
including its associate and group companies can also be a subdeveloper (buying land from the ADP) for vertical development as an
end-user or developer
ADP Board will decide on the allotment and pricing of the
plotted development. Please refer to Clause 9.2 of Annex 4 of
Draft CADA as amended by S. No. 6, 7 & 8 of the Addendum
to CADA dated 30th May 2016. Related Party transactions are
governed by the provisions pertaining to Reserved Matters as
set out in Annex 3 of the Draft SHA read with Clause 8.2 of
Draft SHA.
Page 1 of 10
The RFP terms and conditions do not envisage any such
concessions/ tax benefits to be extended to the prospective
developers (vertical development) in the Start-up Area.
ADP needs to comply with all the Applicable Laws.
i. No weightage will be given for modification in Equity
structure / CADA terms / SHA for award of the project.
ii. Revenue sharing alone will be the sole criteria for selection
of developer
Please refer to clause 4.3.5.2 of the RFP document.
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
Clarification Required
8
RFP, Page 19 Whether the ADP can participate in the future development of the
– Cl. 1.1.7
Seed development area for the remaining of 20 sq.km as & when
GoAP calls for the same.
9
RFP, Page 19 The development plans for the remaining part of the seed
– Cl. 1.1.7
development area may please be shared.
Whether the ADP shall have the RoFR for the future development of
remaining seed area
10
11
12
Draft Replies
Please refer to Clause 2.2 of Draft CADA as modified by S.
No.21 of the Addendum to CADA dated 30 th May 2016.
i.
The Master Plan for the Capital City has been finalized
and notified by APCRDA. This can be accessed on the APCRDA
website (http://crda.ap.gov.in/)
ii. ADP shall not have any rights on the development of the
remaining Seed Area.
iii. Please refer to Clause 2.2 of Draft CADA as modified by S.
No.21 of the Addendum to CADA dated 30th May 2016.
Please refer to Clause 6 (iii) of the Draft CADA for single
window mechanism and GoAP as a facilitator in obtaining
Project clearances.
RFP, Page 21 Will GoAP help in obtaining all clearances for the Start up area
– Para 2
development through a single window mechanism? Also to attract
developers, can GoAP give an assurance to help for obtaining time
bound building & other related approvals which will be an attractive
factor for developers to set up projects?
RFP, Page 30 Our understanding of “Cumulative refers to simple aggregation” is Clause 3.1.2.2 of the RFP document is self-explanatory.
– Cl. 3.1.2.2 projects executed in multiple locations can be aggregated. Please
confirm.
RFP, Page 31 As the project being planned is to be executed in India, we request No change in RFP terms and conditions.
that the Cumulative master development experience be taken within
India or Outside India in lieu of criteria outside India as a separate
criterion.
The same is applicable for all criteria viz. Land development, Built-up
Page 2 of 10
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
Clarification Required
13
RFP, Page 32 Development of Land which includes projects like Airports, Metros,
Seaport and Marine Infrastructure & facilities which involves predominantly land developments with physical Infrastructure of
commercial in nature shall also be considered as Experience based
criteria of Master developer of Land. Please confirm.
Draft Replies
i. Clause 3.1.2.2 of the RFP document refers to Master
Development of land developed (plotted development) of
mixed use nature (commercial or residential).
ii. Clause 3.1.2.2. of the RFP document refers to Master
Development of land involving designing, developing,
building, financing, managing and marketing of land
developments (plotted development), including constituent
physical infrastructure and saleable /leasable built-up area
that is ready for occupation.
iii. No change in RFP terms and conditions.
14
15
16
CADA, Page
A5. 6
CADA, Page
A5. 8
CADA, Page
A5. 15
Is it mandatory for the bid proposal to add the catalytic development
in the proposal?
Is the Concession period a floating one or is it 20 years from date of
issuance of the Acceptance Notice by ADP for the Conditions
Precedent for Phase 1.
Catalytic Development is mandatory as specified in Draft
CADA.
Please refer to definition of Concession Period in Clause 1.1
(xxiv) of Draft CADA as modified by S. No. 11 of Addendum to
CADA dated 30th May 2016.
Is it for the remaining of 20 sq.km apart from the start-up area
Please also refer to S. No. 1 of Addendum to CADA dated 14th
June 2016
i.
Please refer to Clause 2.2 of Draft CADA as modified by
S. No.21 of the Addendum to CADA dated 30th May 2016.
ii.
The Clause refers to the area outside Start-up Area.
Page 3 of 10
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
Clarification Required
Draft Replies
17
CADA, Page Please confirm whether the additional development rights under this i.
Please refer to Clause 2.3 of Draft CADA as modified by
A5. 15
provision is for area development (Land) or ADP will have right for
S. No.9,10 & 20 of the Addendum to CADA dated 30th May
Cl. 2.3
vertical development also.
2016.
ii.
There are no conditions attached to the Additional
development rights excepting as mentioned in the abovementioned provisions.
18
CADA, Page Whether revenue share will remain the same for the extended
i.
Please refer to clause 2.6 of CADA as amended by Sl. No.
A5. 16
period. Please confirm.
11 of the addenda dated 30th May 2016 and Sl. No. 01 of the
addenda dated 14th June 2016.
ii.
Automatic extension as mentioned therein shall be on
the same terms and conditions as are contained in Draft
CADA as modified by the Addenda.
19
CADA, Page What is the minimum and maximum equity exposure permitted by i. Equity shall be by way of cash contribution.
A5. 16
CCDMCL in the ADP and whether the same will be by way of cash
ii. The Equity exposure by Selected firm/ Consortium and
contribution.
CCDMCL shall be the prerogative of ADP Board and governed
by the relevant provisions of Draft CADA, SHA and Addenda.
20
CADA, CADA The CADA and SHA captures the salient features which include:
OPP Proposal shall be the basis.
terms
- Exemptions like stamp duty / other concessions / incentives
- Termination payments
- Cure period for delayed handing over
- Change in law conditions
- Mortgage rights for the land.
The above are proposed by OPP. Please confirm whether the OPP
proposal as shared can be a base for placing the assumption while
preparing the bid proposal from our end as most of the clauses have
a direct bearing on the revenue share % which is reckoned as the
sole evaluation criteria for award.
Page 4 of 10
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
21
CADA,
Developmen
t control
22
CADA, Page
7 – Para 4
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24
Clarification Required
Draft Replies
The development control rules, allowable FSI etc., for the vertical Please visit CRDA website (http://crda.ap.gov.in/) for
development to be followed by the developer may please be given. information.
Given the task for formation of consortium, due diligence on the No change in RFP terms and conditions.
proposal and to submit a compliant proposal the time frame is too
short.
We hereby submit that the time for submission of bids may please
be extended by 3 months from the scheduled due date
RFP, 3.1.2.2 In case of the technical eligibility criteria, cumulative built-up area No change in RFP terms and conditions.
Condition of developed outside India is asked. If an Indian developer is bidding
Technical
who has worked in the same domain in India extensively, cumulative
Eligibility
built up area in India should also be included in the eligibility criteria.
Page -31
RFP, 3.1.2.2
Condition of
Technical
Eligibility,
Page - 31, 34
The RFP states the minimum technical and financial eligibility criteria The evaluation of Technical and Financial Eligibility is on pass/
along with various sub-criteria defining the experience of the fail basis. There will be no weightages.
developer in the role of Master Developer, Developer, Employment
creation, Existing Venture with any Government, Experience in
marketing.
When the Developer submits a proposal with more experience and
higher financial net worth, what will be the weightage given to each
of these criteria and how will the rating be done in order to evaluate
the proposal?
Page 5 of 10
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
25
RFP, 3.1.2.2
Condition of
Technical
Eligibility,
Page - 32
26
RFP, 3.1.2.4
In case the
bidder is a
consortium,
Page - 34
27
RFP, 3.1.2.3
Condition of
Financial
Eligibility,
Page - 34
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General
Queries
29
General
Queries
Clarification Required
In case of Indian bidder, is the letter of support required from the
Government Department? If yes please clarify its format and the
department from which it is to be furnished.
Draft Replies
Clause 3.1.2.2 (G) of the RFP document is self-explanatory.
The RFP specifies maximum of 3 members may form a consortium. No change in RFP terms and conditions.
You are kindly requested to relax the criteria and permit upto 5
members of a consortium.
"The Applicant shall enclose with its Proposal, certificate(s) from its i. No change in RFP terms and conditions.
Statutory Auditors stating its annual turnover during each of the past ii. Financial Eligibility Criteria is Net Worth and Net Cash
three financial years."
Accruals and not Annual Turnover as mentioned by the
Bidder.
Kindly consider certificate from ‘Chartered Accountant’ stating
annual turnover of last 3 financial years.
In case of the Consortium, submitting the proposal and bid, what are Please refer to Clause 3.15 and 4.3.1 of the RFP document for
the complete set of financial eligibility parameters and which all
the formats required to be submitted by the Bidder.
documents are to be submitted by each consortium partner? Please
confirm.
As the project is large in terms of area and investment, it is Site visit can be organized on request.
requested that APCRDA should organize an official site visit for the
prospective proponents in order to show them the site conditions
and limitations of the proposed development area. Date of the site
visit may be communicated to us.
Page 6 of 10
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
Clarification Required
30
General
It is requested that APCRDA should provide the list of available
Queries
documents pertaining to the proposed site such as Topo survey,
Geotech reports, Field data, Other development plans in the nearby
areas with their timelines. All these details will help the proponent to
come up with a realistic proposal.
31
General
Please provide confirmation on the complete document list required
Queries
in case of each partner and for the consortium as a whole, both for
testing the responsiveness and eligibility evaluation.
32
General
Kindly allow the extension of proposal and bid submission date from
Queries
1 September to 1 October 2016 in order to complete the due
diligence by the bidders and enable submission of a sound technical
proposal.
33
General
We understand that the complete land for the phase wise
Queries
development will be provided by the GoAP to the ADP free of
encumbrances. Please confirm
34
General
The land will be provided by the GoAP to the ADP free of cost or will
Queries
the ADP bear land costs?
35
36
General
Queries
General
Queries
Please provide the finalized boundaries of the project site.
Please confirm if the concession period of 20 years can be further
extended in the proposal.
Draft Replies
Available reports are uploaded on the CRDA website
(http://crda.ap.gov.in/)
Please refer to Clause 3.15 and 4.3.1 of the RFP document for
the formats required to be submitted by the Bidder.
No change in RFP terms and conditions.
Please refer to Clause 4.3 (i) of the Draft CADA.
GoAP through APCRDA grants concession to ADP as per
provisions of Clause 2.1 of the Draft CADA.
ADP in return shall share the revenue with APCRDA as per the
provisions of Clause 11 of the Draft CADA.
Please refer to Annex 6 (A), 6 (B) and 6 (C) of the Draft CADA.
Please refer to definition of Concession Period in Clause 1.1
(xxiv) of Draft CADA as modified by S. No. 11 of Addendum to
CADA dated 30th May 2016.
Please also refer to S. No. 1 of Addendum to CADA dated 14th
June 2016
Page 7 of 10
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
Clarification Required
37
In a Swiss Challenge method the bidder needs to be aware of
"Financial Bid" so that the bidder can make a challenge offer.
Without this disclosure, the Government would be put to loss since
the challenge offers may not be competitive to the already
shortlisted participant.
38
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39
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Draft Replies
Please refer Para 8.10.1 of the OPP Proposal and Section 2 (ss)
of Andhra Pradesh Infrastructure Development Enabling Act,
2001 (APIDEA).
Please also refer to Para 9 (ix) of G.O. MS. No. 170 dated
04.07.2016 vide which GoAP has prescribed percentage of
gross revenue share as the sole bidding parameter.
Pursuant to the above, the Commercial Bid submitted by OPP
cannot be disclosed to the challenger bidders.
Eligibility Criteria: One of the criteria mentioned in the RFP is that for No change in RFP terms and conditions.
Cumulative BUA eligibility the bidder needs to have experience
Outside India. This puts the Indian bidder to an undue disadvantage.
If foreign players are given the opportunity to add experience from
multiple projects in their own country, the same may be made
applicable to Indian bidders also and have their Indian experience
count.
Net worth Requirement: The Aggregate net worth requirement of
No change in RFP terms and conditions.
the bidder is set as 2000 crores. Whereas the total project cost for all
the three phases to be completed within the given time frame of 20
years is approximately 3200 crores as per the shortlisted participant.
This indicates an yearly requirement of approx 160 Crores. Hence the
Net worth Requirement may be reduced to a more reasonably limit.
Page 8 of 10
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
Clarification Required
40
Business Plan: The business plan submitted by the shortlisted
participant has been kept confidential to the challenging bidders. At
the same time, the RFP document is not very clear on what needs to
be developed as part of the bid. For any proposal, this business plan
is pivotal to the cash flows and profitability of the project. Hence it is
requested to either disclose the Business Plan submitted by the
shortlisted participant so that a challenge proposal can be submitted
by the bidders. Alternatively, the RFP document can clearly define
what the developmental requirements are for the Seed Capital.
41
42
Draft Replies
Business Plan submitted by OPP has been kept confidential
and not disclosed, in compliance with the provisions of
APIDEA, since the same constitutes proprietary information of
the OPP.
The development (horizontal and vertical) in the Start-up Area
(SUA) are set out in the Draft CADA and are bound by the
Master Plan and Zoning regulations for the Capital City
(available on APCRDA’s website) based on which the business
plan can be prepared.
Bid Due Date Kindly allow the extension of Proposal and bid submission date from No change in RFP terms and conditions.
1st Sep, 2016 to 1st Nov, 2016, in order to complete the due diligence
by the bidders and enable submission of a sound techno-commercial
Proposal.
DCA, Page
We request you to provide the commercial details of these two
Clause 2.1 (iii) refers to the 50 acres of land for Catalytic
A5.15,
clauses to enable us to arrive at the proper commercial proposal.
Development which is self explanatory. Please refer to the
Clause 2.1
details of Project Cost including Land Cost as provided in the
(iii) & 2.3 (i)
OPP Proposal vide para 5.3 of Chapter 5 : Scope of Work for
the Land Cost details.
Clause 2.3 (i) refers to Additional Development Rights. In this
connection please consider the following :
(i)
Please refer to S. No. 5 of Addendum dated 14th
June 2016, according to which reserve price for Phase 1 is Rs.
4 crore/ acre.
(ii) Please refer to Clause 2.3 of Draft CADA as modified by S.
No.9,10 & 20 of the Addendum dated 30thMay 2016.
Page 9 of 10
RFP for Development of 6.84 sq. km Start up Area of Amaravati Capital City on Public Private Partnership (PPP) mode through Swiss Challenge Approach
Clarifications on Queries raised by Bidders
Sl. No. Reference
Clarification Required
43
General
As per Swiss Challenge, commercial bid of the original proponent
may not be proprietary and request you to disclose the same.
Draft Replies
Please refer Para 8.10.1 of the OPP Proposal and Section 2 (ss)
of Andhra Pradesh Infrastructure Development Enabling Act,
2001 (APIDEA).
Please also refer to Para 9 (ix) of G.O. MS. No. 170 dated
04.07.2016 vide which GoAP has prescribed percentage of
gross revenue share as the sole bidding parameter.
APIDE Act and the referred GO are available on the CRDA
website
Pursuant to the above, the Commercial Bid submitted by OPP
cannot be disclosed to the challenger bidders.
44
Eligibility of
ICB
45
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If there is no branch company of our business partners outside of All bidders need to adhere to the terms and conditions of
India, is it possible for them to attend bidding in our proposed RFP.
projects in CR ‘Amaravati’ Start-up Area?
Is there any favorable policy for foreign bidders in terms of financing, No.
land, etc.
Page 10 of 10