CITY DISTRICT GOVERNMENT, KARACHI (CDGK) REQUEST FOR STATEMENTS OF QUALIFICATION (RSOQ) FOR SUPPLIERS / MANUFACTURERS OF SHAHEED BENAZIR BHUTTO CNG BUS PROJECT SPONSORED BY GOVERNMENT OF PAKISTAN AND GOVERNMENT OF SINDH ENVIRONMENT FRIENDLY PUBLIC-PRIVATE PARTNERSHIP BASED PUBLIC TRANSPORT SYSTEM FOR KARACHI JUNE 2011 Table of contents DEFINITION ...................................................................................................................................................... 3 1. GENERAL ............................................................................................................................................... 4 2. 2.1 2.2 2.3 3. PRE-QUALIFICATION ....................................................................................................................... 5 ELIGIBILITY REQUIREMENTS ................................................................................................................... 5 EVALUATION CRITERIA ................................................................................................................... 5 BASIS FOR DISQUALIFICATION ................................................................................................................. 5 CONTENTS OF SOQ.......................................................................................................................... 6 3.1 3.2 3.3 3.4 3.5 3.6 3.11 3.12 3.13 3.14 4. EXECUTIVE SUMMARY ............................................................................................................................ 6 ORGANIZATION STRUCTURE .................................................................................................................... 7 MANAGEMENT CAPABILITY .................................................................................................................... 8 FINANCIAL CAPABILITY .......................................................................................................................... 8 LEGAL CAPABILITY ................................................................................................................................. 8 TECHNICAL CAPABILITY ......................................................................................................................... 9 FUTURE PLANS ...................................................................................................................................... 10 CONFLICT OF INTEREST ......................................................................................................................... 10 CONFIRMATION OF ELIGIBILITY ............................................................................................................ 10 OPERATIONS IN PAKISTAN ..................................................................................................................... 10 SUBMISSION OF SOQS ................................................................................................................. 11 4.1 4.2 4.3 4.4 5. TIMING, NUMBER OF COPIES ETC .......................................................................................................... 11 POWER OF ATTORNEY ........................................................................................................................... 11 MATERIAL CHANGE .............................................................................................................................. 11 CERTIFICATION...................................................................................................................................... 12 REVIEW AND EVALUATION OF SOQS .................................................................................. 12 5.1 5.3 5.4 5.5 5.6 6. REVIEW AND EVALUATION .................................................................................................................... 12 ORAL PRESENTATIONS .......................................................................................................................... 12 SUPPLEMENTARY INFORMATION ........................................................................................................... 12 INDICATION OF PRE-QUALIFICATION ..................................................................................................... 13 RETURN OF SOQ ................................................................................................................................... 13 SPECIAL PROVISIONS .................................................................................................................. 13 6.1 6.2 6.3 DISCHARGE AND EXEMPTION ................................................................................................................ 13 CONFIDENTIALITY DURING PRE-QUALIFICATION ................................................................................... 13 GOVERNING LAW .................................................................................................................................. 13 2 DEFINITIONS “Due Date” 30 July, 2011 being the last date for submission of SOQs “EOI” Expression of Interest “GoP” Government of Pakistan “GoS” Government of Sindh “Executing Agency” City District Government, Karachi (CDGK) “PIMU” Project Implementation & Monitoring Unit established under the funding of Government of Pakistan “JV” Joint Venture “Interested Party” An individual party or joint venture who submits SOQ. “Project” Environment Friendly Public-Private Partnership Based Public Transport System – CNG Bus Project “Project Secretariat” (PS) Karachi Mass Transit Cell (KMTC) as notified by CDGK “TC” Technical Committee, being the Competent Authority as notified by SGA&C Department, Government of Sindh vide No. SO(C-IV) SGA&CD/4-26/08 dated 25 June 2008 responsible to evaluate and short list the SOQs “RSOQ” Request for Statements of Qualification “SOQ” The Statements of Qualification, containing the information as set out and required under this RSOQ “Tangible Net Worth” Value of total assets, less the sum of total liabilities and intangible assets of the entity concerned. 3 1. GENERAL 1.1 Government of Pakistan is introducing Environment Friendly Public Transport System on Public-Private Partnership (PPP) in major cities of Pakistan. As a result around eight thousand (8,000) CNG dedicated buses would be inducted with five (5) years. Out of these, four thousand (4,000) will be operated in Karachi and remaining buses will be operating in nine other major cities of the country. Initially at least five hundred (500) CNG dedicated buses would be procured and operated by the private sector in Karachi in the current financial year. 1.2 Accordingly, the Implementing Agency (CDGK) intends to launch a CNG Bus project by introducing environment friendly public transport system on Public Private Partnership (PPP) in Karachi. It is envisaged that private sector would bring in and operate CNG dedicated buses on routes identified by the CDGK. 1.3 Preliminary Information Memorandum for Supplier / Manufacturer for this project is enclosed as part of this document. 1.4 The Government of Pakistan has decided to provide upfront grant / subsidy on markup to facilitate the operators on loan/leasing of buses from Banks/Financial institutions. 1.5 The Implementing Agency (CDGK) intends to request Statements of Qualification (SOQ) and supporting documents in order to prequalify interested parties. 1.6 Short listing / pre-qualification of applicants shall be based on the information submitted by the applicants as requested in this document. 1.7 The Operators would be allowed to procure CNG dedicated Buses only from the prequalified Suppliers/Manufacturers. 1.8 In connection with the procurement process of the project, financially sound interested parties (local or foreign) having capacity to undertake/acquire the business under the Project are invited to submit a SOQ together with a non-refundable processing fee of Rs. 100,000/- to the PS by the Due Date in the form and manner set out in this document. Parties who have already submitted EOIs along with nonrefundable processing fee of Rs. 100,000/- need only to submit the SOQ. 1.9 Information provided in each SOQ will be used exclusively to evaluate the technical, financial, management, legal and other capabilities of interested parties. The Prequalified parties would be notified by the TC. 1.10 Notwithstanding anything contained in this RSOQ, this RSOQ is not intended to be, and should not be construed as an offer of the project to the interested parties. No representation or warranty, express or implied, is hereby made. The TC/CDGK/PS shall neither be responsible or liable for the accuracy or completeness of this RSOQ. The receipt of an SOQ from interested parties shall not be construed as a commitment to assign the project to the interested party to any person/entity who submits an SOQ. 1.11 Notwithstanding anything contained herein, the competent authority may in its discretion reject any or all SOQs without assigning any reason whatsoever. 4 2. PRE-QUALIFICATION 2.1 Eligibility Requirements Interested Party must fulfill the following eligibility requirements for prequalification: 2.2 a) It must have the capacity to manufacturer/supply at least 1000 CNG dedicated Buses annually according to specifications attached with PIM as part of this document for this Project. b) It commits to set up After Sale Service Centres in Karachi and ensure availability of spare parts. c) All the foreign manufacturing companies that will supply more than 1000 CNG buses in Pakistan shall have to give an undertaking to establish a bus manufacturing plant under an agreed indigenization and deletion plan. Evaluation Criteria Sr. No 1. 2. 3. 4. 5. 6. 7. 8. 9. 2.3 Criteria Original Equipment Manufacturer (OEM) or Supplier/Agent/JV Local Presence Organisation & Management Capability & Experience After Sale Service Local Service Centre Availability of Spare Parts Performance (Load, Speed, Fuel Efficiency) Manufacturing / Supplying Capability (Technical/Financial) Local Manufacturing and Deletion Program Experience of Similar Sale/Supply of Buses Price of Bus (Selling Price in Pakistan) Total Marking 10 5 5 15 5 20 10 10 20 100 Basis for disqualification The Competent Authority at any time may disqualify the Interested Party on the following reasons, if it: (a) fails to submit along with the SOQ, the supporting documentation required pursuant to this RSOQ, by the Due Date; or fails to demonstrate its capabilities to acquire the business in the project under this RSOQ; (b) provides any false or misleading information or misrepresents, withholds, conceals any information in the SOQ; (c) fails to disclose or provide any additional information as may be required by the TC/PS from time to time; 5 (d) has been blacklisted in the past by any Federal, Provincial or Local Government Department or Authority; (including any regulatory authority) or agency in Pakistan, in whatever capacity including as an individual contractor, partner or a joint venture partner; (f) has, itself or any of its subsidiary/associate company committed any default in payment to any bank or financial institution in or outside Pakistan; (j) is directly or indirectly associated or affiliated in any manner with the GoP / GoS / CDGK and/or their consultants or advisors in respect of the project; (l) fails to inform the competent authority of any significant change in its ownership or control or to obtain the consent of competent authority to such change; (m) fails to report any material change in the information provided by it, in due course of time, (prior to the date on which bidding is held); (n) is deemed by the competent authority, that it failed to satisfy any requirements under this RSOQ. (o) Fails to match CNG dedicated Bus Specifications attached herewith at Annex. 1. 3. CONTENTS OF SOQ Each SOQ shall include the following sections: 3.1 Executive Summary Organizational Structure Management Capability Financial Capability Legal Capability Technical Capability Production Capacity of OEM/Import Capacity of Suppliers After Sale Service Features Local Manufacturing and Deletion Program Bus Price & Model/Make Future Plans Conflict of Interest Confirmation of Eligibility Operations in Pakistan Executive Summary The Executive Summary of the SOQ shall provide a brief description of the history and the structure and capabilities of the Interested Parties and its associated partners. In the Executive Summary, the Interested Parties should clearly indicate the level of resources available to it. i) Through its own resources. ii) Though its associated partners. 6 3.2 Organization Structure The organization structure section of the SOQ shall include the information regarding the Interested Parties and its associated partner. Where the Interested Parties or any associated partners of the Interested Parties is a subsidiary, the following information should also be provided for its holding company. If the Interested Parties or any associated partners is an individual, a company or a partnership, then the following information should be provided in respect of any individual, shareholders or partners (and in case of shareholders, those holding an interest of 10% (ten percent) interest or more in such company): 3.2.1 Basic information: Name Nationality Address of Principal Office Telephone Number Fax Number Mobile Phone Number E-mail Address Primary Areas of Business Names and Brief Background of Directors 3.2.2 Organization chart 3.2.3 Information on representative in Pakistan (if any): 3.2.4 Name Nationality Address of Principal Office Telephone Number Fax Number Mobile Phone Number E-mail Address Primary Areas of Business Number of Years Representing the Interested Party Information on affiliates outside of Pakistan (if any): Name Nationality Address of Principal Office Telephone Number Fax Number Mobile Phone Number E-mail Address Primary Areas of Business 7 3.3 Management Capability The Management Capability section of the SOQ shall include the following: (a) Experience and capability of efficiently managing a project comparable with the Project at hand. (b) An organizational chart for such of the Interested Parties and its associated partner’s personnel who will execute primary management functions together with their and its associated partners curriculum vitae. (c) The Interested Parties and its associated partner must demonstrate adequate managerial capabilities and the required management strength to effectively undertake the Project. (d) Other relevant information relating to management experience and capabilities that would be material for the future management of the project. 3.4 Financial Capability For the Financial Capability section of the SOQ, the Interested Parties (and its associated partner to the extent applicable) shall submit: (a) details of financial and operating background for the last 3 (three) years demonstrating financial viability, including audited financial statements duly certified by a firm of chartered accountants which financial statements shall include consolidated balance sheet and income and profit and loss statements. Similar financial and operating information for any parent company, affiliates and associated undertakings/companies should also be included. In case of individuals the tax returns filed by such individuals for the most recent 3 (three) years together with the tax assessment orders of the relevant income tax authorities. (b) Any other relevant information regarding financial track record and capabilities of the Interested Parties and its associated partner that it believes would be helpful. 3.5 Legal Capability Each Interested Party’s authorized representative must submit the following documents/information (including, associated partner): (a) List of majority shareholders/partners. (b) A copy of the constitutive documents (for example, memorandum and articles of association for a company, certificate of incorporation, partnership deed for a partnership). (c) Copies of all material and relevant regulatory filings (if applicable) for the last 3 (three) years, under the applicable jurisdiction(s) in which it/they operate. 8 (d) The Power(s) of Attorney referred to in Section 4. (e) Details of all litigations in any jurisdiction that can affect the ability of the Interested Party or any of its directors to acquire the business in the Project and exercise operation/maintenance rights after the Concession Agreement. 3.6 Technical Capability The Technical Capability section of the SOQ shall include the information listed below with respect to the experience of the Interested Party and its associated partner to: (a) details of Production Profile along with location of manufacturing units. (b) experience in manufacturing / supplying CNG dedicated buses. (c) list of clients along with details of buses supplied, supported by authentic documents. (d) detail of accreditation/certification of international quality control assurance bodies. 3.7 Production Capacity of OEM/Import Capacity of suppliers The potential bidder must report for its annual bus production capacity besides readily available stock of buses matching with the given specifications. In case of supplier, the potential capacity of importing the buses within time frame. 3.8 After Sales Service Features The interested party should indicate the following: a. b. c. 3.9 Local Service Centre (s) to facilitate the bus operation. Availability of spare parts for smooth operation of buses. Performance with special reference to load, speed, fuel efficiency etc. Including Guarantees/Warranties provided. Local Manufacturing and Deletion Programme The interested party should indicate its future plan of manufacturing the buses at local level with specific deletion programme. 3.10 Bus Price and Model/Make The Interested party should also quote the selling price of CNG dedicated buses in Pakistan, clearly specifying the Model number and Make, matching the minimum requirement of given specifications. 9 3.11 Future Plans In the Future Plans section the Interested Party shall submit a brief on its future plans (both short-term and long-term) for its role in the Project, its marketing plan and strategy to make the project sustainable, the Public Transport sector as a whole (including coverage of far flung areas and introduction of new value added services). 3.12 Conflict of Interest The Conflict of Interest section shall include detailed information regarding any existing or proposed future conflict of interest that Interested Party (and associated partner) or any of its subsidiaries or affiliated or associated undertakings/companies may have with the CDGK. 3.13 Confirmation of Eligibility The Interested Party and its associated partner shall confirm its eligibility and the eligibility of its associated partner if applicable, to participate in the bidding process: 3.14 a) The Interested Party and associated partner shall confirm that the Interested Party and its associates are not disqualified for the project based on the criteria set out in Section 2.3 above. b) The Interested Party, and its associated partner, shall provide evidence to establish that it fulfils the eligibility requirements set forth in Section 2.1 and 2.2 above. c) An authorized signatory of the Interested Party and its associates must sign the SOQ after the company, seal there to. Operations in Pakistan The Interested Party and its associated partners shall submit details relating to any business operations conducted by them and their respective associated, subsidiary and holding companies that are the same or similar to the business operations of the Project and towards that end, specify its/their current market share in such business operations, (including without limitation bus manufacture/ purchase), and in relation to supporting infrastructure (fueling facilities etc). 10 4. SUBMISSION OF SOQs 4.1 Timing, Number of Copies etc The Interested Party and its associated partner must submit an original and three copies of its SOQ (with soft-copy) not later than 1500hrs Pakistan Standard Time on the Due Date to the PS at the following address: Director General Project Secretariat Karachi Mass Transit Cell City District Government Karachi 6th floor, East Annexe Civic Center, Gulshan-e-Iqbal Karachi, Pakistan Tel: +92-21-9923 0665, Fax: +92-21-9923 1153 Each SOQ shall be in English. Faxed SOQs will not be accepted. SOQs bearing a postmark or courier dispatch receipt prior to 1500 hrs Pakistan Standard Time on the Due Date will be accepted upon the package’s arrival. 4.2 Power of Attorney Each Interested Party and its associated partners must submit a Power of Attorney and/or a copy of the board resolution evidencing grant of authority vested in the individual submitting the SOQ on behalf of the Interested Party. For any Power of Attorney executed outside Pakistan, assistance with regard to proper execution of the same should be obtained from the nearest Pakistani Embassy/Consulate/High Commission. 4.3 Material Change (a) Each Interested Party must immediately report to the TC/PS in writing any material change in the information provided in its SOQ. Any failure to report such material change shall constitute grounds for disqualification under Section 2.3. The material change itself could also lead to a disqualification of the Interested Party. (b) No significant changes in the ownership will be allowed at any time without the prior written consent of the Competent Authority. In giving such consent the Competent Authority may require, the Interested Party (as modified) to requalify under the terms and conditions of this RSOQ. 11 4.4 Certification The Interested Party submitting the SOQ shall certify each SOQ in the following form: “I, the undersigned as the duly authorised attorney and representative of [name of the Interested Party]/associated partner] certify that to the best of my knowledge and belief, and upon diligent inquiry, all the information submitted in this Statement of Qualification is true and accurate. I further confirm that the Interested Party and its associated partner meet the eligibility criteria and are not disqualified on the criteria set out in Sections 2.1, 2.2 and 2.3. The TC may investigate the truth and accuracy of this Statements of Qualification by any means. I understand that amongst other reasons any misrepresentation or concealment of facts may render [name of the Interested Party and/its associated partners] disqualified for pre-qualification. In certification of the statements above, I hereby signed this document on the ____ day of ______ 2011. [Typewritten name, signature and position of person legally empowered to bind the Interested Party.]” 5. REVIEW AND EVALUATION OF SOQs 5.1 Review and Evaluation The financial, management, technical, organizational and other capabilities of the Interested Party to participate in the Project and to manage the Project, as demonstrated in the Interested Party’s SOQ, will be reviewed and evaluated in view of the aforementioned criteria to determine whether in its view the Interested Party and its associated partner is a fit and proper entity to acquire the business in the Project. 5.2 Meeting with Interested Parties An open meeting with Interested Parties would be held at 1500 hrs on 30th June , 2011 at Karachi Mass Transit Cell Office (with TC Members) to discuss any issues and to provide any clarifications. However, written clarification may be sought by the interested parties at any time at least one week prior to the Due Date. 5.3 Oral Presentations Interested parties may be requested to make an oral presentation to it prior to the final pre-qualification. 5.4 Supplementary Information Where it is deemed convenient or necessary, supplementary information or documentation may be requested from an Interested Party for determining eligibility for pre-qualification of such Interested Party and whenever such request is made the Interested Party shall provide the same to the TC/PS by such date as may be specified. 12 5.5 Indication of Pre-qualification Indication of pre-qualification will be given in writing by Competent Authority and delivered to pre-qualified interested parties by facsimile, mail and/or courier at their specified address. 5.6 Return of SOQ The TC/PS shall be under no obligation to return any SOQ or supporting materials submitted by the Interested Party (or its associated partners) or to reimburse the Interested Party for the cost of preparing an SOQ or any other costs incidental thereto. 6. SPECIAL PROVISIONS 6.1 Discharge and Exemption Each Interested Party that submits an SOQ exempts and discharges the competent authority and its consultants, advisors and personnel completely and unconditionally from any responsibility or liability for the decisions that may be made with respect to its pre-qualification to participate in the competitive bidding process under the Project. No suit, prosecution or other legal proceedings shall be brought against the competent authority, officers/officials or its consultants and advisers in respect of anything contained in or arising from this RSOQ. 6.2 Confidentiality during pre-qualification By submitting its SOQ, each Interested Party and its associated partner agrees to maintain the confidentiality of all information (whether written, oral or otherwise) supplied to it in connection with the pre-qualification process and agrees to keep its own application confidential, whether or not it is among those pre-qualified by the competent authority. The competent authority will maintain the confidentiality of information designated by the Interested Party as confidential will not release such information for any purpose other than evaluation of the SOQ and will not (unless disclosure is required by mandatory law) release any such information without having first obtained the Interested Party’s and its associated partners permission. Permission for disclosure of information submitted by the bidder in connection with this SOQ is not required for the release of information to the GoP/GoS/CDGK and its advisors for the purpose of pre-qualification and evaluation. 6.3 Governing Law This document shall be governed and construed in accordance with the prevailing laws of Pakistan. 13 CITY DISTRICT GOVERNMENT KARACHI PRELIMINARY INFORMATION MEMORANDUM FOR SUPPLIERS / MANUFACTURERS OF SHAHEED BENAZIR BHUTTO CNG BUS PROJECT SPONSORED BY GOVERNMENT OF PAKISTAN AND GOVERNMENT OF SINDH ENVIRONMENT FRIENDLY PUBLIC - PRIVATE PARTNERSHIP BASED PUBLIC TRANSPORT SYSTEM FOR KARACHI JUNE 2011 14 Table of contents 1. SUMMARY OF THE PROJECT ................................................................................................... 16 2. 2.1. 2.2. 3. OVERVIEW OF PAKISTAN ........................................................................................................... 17 LOCATION ............................................................................................................................................ 17 ECONOMY OF PAKISTAN AND INVESTMENT CLIMATE.................................................................................. 17 OVERVIEW OF KARACHI AND ITS PUBLIC TRANSPORT ........................................... 18 3.1. 3.2. 4. ECONOMY AND DEMOGRAPHICS .............................................................................................................. 18 OVERVIEW OF PUBLIC TRANSPORT IN KARACHI ........................................................................................ 18 OVERVIEW OF THE PROJECT................................................................................................... 19 4.1. 4.2. 5. EXISTING PUBLIC TRANSPORT SYSTEM IN KARACHI................................................................................... 19 OVERVIEW OF THE PROJECT .................................................................................................................. 19 IMPLEMENTATION AND MONITORING MECHANISM ................................................... 21 5.1. 5.2. 5.3. 6. STEERING COMMITTEE ........................................................................................................................... 21 IMPLEMENTATION AND REGULATORY SET-UP........................................................................................... 21 PROJECT IMPLEMENTATION AND MONITORING UNIT ................................................................................. 22 ENABLING ENVIRONMENT ........................................................................................................ 23 6.1. 6.2. 6.3. 6.4. 6.5. 6.6. 6.7. 6.8. 7. ROUTE DEVELOPMENT ........................................................................................................................... 23 STANDARDIZATION OF CNG BUSES ......................................................................................................... 23 CNG FILLING STATIONS ........................................................................................................................ 23 DEPOTS ............................................................................................................................................... 24 BUS STOPS ........................................................................................................................................... 24 FARE ................................................................................................................................................... 24 EXISTING FUEL PRICES .......................................................................................................................... 24 ALLOCATION OF ROUTES ....................................................................................................................... 25 FINANCIAL SUPPORT TO THE PROJECT ........................................................................... 26 7.1. 7.2. 7.3. UPFRONT GRANT / INTEREST SUBSIDY .................................................................................................... 26 IMPORT DUTY EXEMPTION ON CBU ........................................................................................................ 26 MOTOR VEHICLE REGISTRATION TAX AND MOTOR VEHICLE TAX................................................................ 26 Disclaimer….…………………………………………………………………………………………………26 7 CNG Bus Specifications……………………...……………………….…………………………………268 15 1. SUMMARY OF THE PROJECT Project name Environment Friendly Public Transport System – CNG Bus Project Location Karachi Implementing Agency City District Government Karachi (CDGK) Facilitator Project Secretariat Karachi Mass Transit Cell (KMTC), CDGK Private Party To be selected after competitive process Industry Classification Primary: Automobile Manufacturing Secondary: Bus Manufacturing by Manufacturers (OEMs) of CNG Dedicated Buses Project dynamics Original Equipment Existing Public Transport Vehicles in Karachi – 12,399 No of CNG Dedicated Buses required in first phase – 500 approx No of CNG Dedicated Buses required in Karachi in 5 years – 4,000. On successful implementation of the first phase, the same would be replicated in major cities of Pakistan including Lahore, Rawalpindi / Islamabad, Faisalabad, Multan, Quetta, Hyderabad, Peshawar and Gujranwala on the same lines of Karachi CNG bus project. Government of Pakistan (GOP) has already allocated 2.5 billion under Public Sector Funding Program to facilitate the Operators / Investors for induction of the 4,000 CNG buses in Karachi. Project Status Project Description Approved by the City District Government Karachi Approved by the Government of Sindh Approved by the Federal Government CDGK will select CNG Bus Manufacturers/Suppliers through competitive process. Criteria for selection would include conformation to Bus Specifications, price, performance, after sale service, ensuring the availability of parts and indigenization programme. CNG Bus operators would be required to procure CNG Buses from prequalified suppliers / manufacturers (OEMs) only. Way Forward Step 1. Request for Proposals (SOQ) from Pre-qualified Suppliers / Manufacturers (OEMs) and new potential / interested Suppliers / Manufacturers Step 2. Submission of SOQ by Bidders (OEMs). Step 3. Pre-qualification / Selection of Manufacturers (OEMs). Step 4. Agreement between CDGK and Manufacturers (OEMs). Step 5. Procurement of Buses Manufacturers (OEMs). 16 by Operators from selected 2. OVERVIEW OF PAKISTAN 2.1. Location Pakistan is strategically located at the mouth of the Gulf. It lies at the junction of four important regions i.e. Oil rich Gulf to the West, Energy rich Central Asian Republics to the North West, fastest growing economy of China to the North East, India to the East and the strategic North Arabian Sea as its southern boundary with 1,064 km of coastline. Hence, it is ideally positioned to serve as a major trade route and energy corridor for the region. Additionally, international trade routes to and from the Gulf pass just off its coastline. The country has a total area of 796,095 sq km and is nearly four times the size of the United Kingdom. From Gwadar in its south, the country extends more than 1,800 km to the Khunjerab Pass on China’s border. It has a population of approximately 180 million people. 2.2. Economy of Pakistan and Investment Climate The economy of Pakistan has remained buoyant and thriving despite political uncertainties and major catastrophes like earthquake in the country. This progress is the outcome of substantial macroeconomic reforms since 2000, most notably privatizing the banking sector. Poverty levels have decreased and Government has steadily raised development spending in recent years, including a 52% real increase in the budget allocation for development in FY07. Pakistan’s growth performance over the last five years has been striking. Average real GDP growth during 2003-07 was the best performance since many decades, and it now seems that Pakistan has decisively broken out of the low growth rut that it was in for more than one decade. With economic growth at 7.0 percent in 2006-07, Pakistan’s real GDP has grown at an average rate of over 7.5 percent in the last four year (2004-07). Compared with other emerging economies in Asia, this puts Pakistan as one of the fastest growing economies in the region along with China, India, and Vietnam. The growth is not confined to any particular sector as all sectors of the economy including Banking, IT and Telecom, Oil and Gas, Power and Infrastructure have seen a major growth over the past few years. Today Pakistan has 160 million consumers with an ever growing middle class. Foreign investment has risen sharply from an average of US$400 million in the 1990s to over US$8.4 billion in 2006 and Forex reserves have increased from $500 million in 1999 to more than US$16 billion in May 2011. 17 3. OVERVIEW OF KARACHI AND ITS PUBLIC TRANSPORT 3.1. Economy and Demographics Karachi is the financial capital of Pakistan generating over 60% of the total national revenue (federal & provincial taxes, customs and surcharges). Karachi produces about 42 percent of value added in large scale manufacturing. In February 2007, the World Bank identified Karachi as the most business-friendly city in Pakistan. Most of Pakistan's public and private banks are headquartered on Karachi's I.I. Chundrigar Road, while most major foreign multinational corporations operating in Pakistan have their headquarters in Karachi. The Karachi Stock Exchange is the largest stock exchange in Pakistan. The population and demographic distribution in Karachi has undergone numerous changes over the past 150 years. Non-governmental and international sources estimate Karachi's current population is 16 million — a huge increase over its population in 1947 (400,000) at the time of independence of the country. The city's population is currently growing at about 5% per year (mainly on account of rural-urban internal migration), including an estimated 45,000 migrant workers coming to the city every month from different parts of Pakistan. 3.2. Overview of Public Transport in Karachi Provision of public transport / mass transit facilities is a key issue in Karachi, the largest cosmopolitan city of the country with a population of 16 million and urban sprawl of about 3,500 sq. km. The number of vehicles in the city had increased to 1.8 million in 2007 while the numbers of trips were 24.5 million per day. About 90% of the work force uses some form of public transport in the city. Although accurate information is not available, it is estimated that around 12,399 buses (mostly old buses) of different sizes and shapes ply in Karachi on around 267 routes which overlap considerably with each other. Through a number of studies it has been established that the existing public transport system cannot serve the existing and incremental demand in an effective manner and there are a number of problems associated with the system including unnecessary travel delays, severe traffic congestion, economic and financial losses and environmental problems. The daily commuters face great hardships due to poor quality of service, sub-standard vehicles and clumsy routes. Environmental degradation due to noise and air pollution and vehicular exhausts is touching alarming levels in the city. 18 4. OVERVIEW OF THE PROJECT 4.1. Existing Public Transport System in Karachi Near to realistic estimated fleet size and structure of the Karachi public transport is tabulated below: Classified Routes and Number of Permits S. NO. CLASSIFIED 1 2 3 BUS MINI-BUS COACH Total TOTAL ROUTE TOTAL NO. OF PERMIT 88 145 34 267 3065 5948 3386 12399 The ageing of the Bus fleet is shown in the table below: Age of Fleet No of Buses %age of Fleet Between 45 to 65 years old 34 0.2% Between 25 to 45 years old 3,417 18.6% Between 15 to 24 years old 4,129 22.5% Between 5 to 15 years old 7,652 41.7% Less than 4 years old 3,118 17.0% It is evident from the above that the buses are not standardized, bus fleet is ageing and that the fleet is insufficient for a city having population of around 16 million people. Another issue is that these buses are diesel based and add considerably to the pollution in the city. 4.2. Overview of the Project Karachi Mass Transit Cell (KMTC), a specialized cell in the City District Government of Karachi (CDGK) is responsible for developing Mass Transit Projects in Karachi. Realizing the problems of the public transport system in Karachi, the KMTC undertook a detailed study named “Detailed Study on Public-Private Partnership based Environment Friendly Public Transport System in Karachi” with PCI International, Thailand and Engineering Associates, Karachi, Pakistan. The Study was circulated to technical and professional experts, concerned NGOs and Government departments besides International donor Agencies, like World Bank, Asian Development Bank, etc. The report was very much appreciated by the Stake holders. Final report of the study is available on the website of KMTC/CDGK (www.karachicity.gov.pk). 19 The study highlighted the problems of the current public transport system and proposed a two pronged strategy to address these, firstly the introduction of CNG Based Buses and secondly the development of Bus Rapid Transit System (BRTS) in Karachi. The study recommended Government support to the CNG Buses considering that these are more expensive than the diesel based buses and the payment capacity of the users is limited. It also highlighted the role of the Government to create an enabling environment for the private sector which would finance and operate the CNG Buses. Accordingly, the Government of Pakistan has approved financial support to the Bus operators, by providing interest subsidy on loans obtained to procure CNG Buses. The Government of Sindh up front grant is considering a concession package to the Bus operators, through exemption from Motor Vehicle Registration Tax and Motor Vehicle Tax. The City District Government of Karachi (CDGK) through KMTC is working actively to provide enabling environment to the Bus Operators in terms of developing implementation mechanism, identification and development of CNG Bus routes, CNG Stations, Depots, Bus Stops and Bus Specifications etc. CDGK envisages introducing 4000 CNG dedicated buses in a phased manner in the next 5 years, whereby, in the first phase around 500 buses are expected to be introduced. 20 5. IMPLEMENTATION AND MONITORING MECHANISM There are number of stakeholders and government departments involved in the project at the Federal, Provincial and City level. Therefore, for effective implementation of the project, a three tier Implementation and Monitoring Mechanism has been established as following: 5.1. Steering Committee Implementation & Regulatory Set-Up Project Implementation & Monitoring Unit Steering Committee A Steering Committee for overall coordination, support and monitoring of the project to be constituted as: 5.2. Federal Minister for Environment Deputy Chairman Planning Commission Provincial Transport Ministers, Provincial ACS (Development), Provincial Transport Secretaries, Nazims Reps each from manufactures, bus investor and Banks Rep fo GOP from Ministries of Environment, Communications, Industries and Petroleum/HDIP Chairman Member Member Member Member Member Members Members Implementation and Regulatory Set-Up In order to implement the project smoothly, an Implementation and Regulatory Committee has been setup headed by DCO, CDGK having the membership of concerned GoP, GoS, and CDGK Officers, Representatives of Transporters Association, relevant NGOs and prominent citizens, besides representatives of CNG Bus Operators. Proposed structure of Implementation Regulating Committee is as under: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) District Coordination Officer, CDGK Director General, KMTC DIG Police (Traffic) Additional Secretary (Transport), GOS Project Director, PIMU EDO (TCD), CDGK Chief (T&C), P&D Dept., GOS Representative of IPDF Representative of ENERCON Secretary, DRTA, CDGK Deputy Director – I, KMTC Brig. (Retd.) S. A. Qasim, Hon’y Secretary, CILT Pakistan (13) Mr. Irshad Hussain Bukhari, President KTI (14) 3 Members from CNG Bus Operators (first come first basis) 21 Chairman Co-Chairman Executive Member Executive Member Executive Member Executive Member Executive Member Executive Member Executive Member Executive Member Secretary Honorary Member Honorary Member Honorary Members The Committee may also co-opt any individual as and when required. The Committee to be notified by CDGK would provide policy guidelines, approve the operation plan of CNG Bus operators including routes allocation, depot facilities, fare structures and bus depot facilities, etc. Besides, this Committee will also review and monitor the project progress and service operation. The Committee ensures its meeting fortnightly. 5.3. Project Implementation and Monitoring Unit For effective implementation and day to day monitoring of the project, a Project Implementation and Monitoring Unit (PIMU) has been established. KMTC will be the Project Secretariat for the PIMU. Establishment of office of PIMU and hiring of personnel is underway. 22 6. 6.1. Enabling Environment Route Development Route is one of the most important considerations in a Public Transport Project. Existing routes in Karachi are unplanned, convergent and overlapping resulting in inefficiencies. To develop a more effective and efficient public transport system in Karachi, KMTC has identified 40 routes for which a detailed Routes Confirmatory Study is being conducted. The objective of the study is to quantify the existing and future levels of supply and demand for Public Transport on the identified routes. The study will also identify bottlenecks and problems on these routes. Besides, the study would firm up feasibility. It is expected that the study will be completed by end of October 2008 and the results of the study would be used to finalise the routes, determine the number of buses required on these routes and remove any bottlenecks. Details of the 40 identified routes are annexed with this document. 6.2. Standardization of CNG Buses As stated above, buses of various types / models / makes and sizes are used for public transport in Karachi and are not standardized, which results in low service quality, lack of enforcement, low salability of buses and various other issues. To overcome these problems, KMTC has developed detailed specifications of CNG Buses, which have been notified by the Government. All CNG Buses to be introduced under this scheme would have to conform to these specifications. Detailed specifications are annexed with this document. To ensure supply of standardized buses, KMTC has invited Expressions of Interest (EOIs) from CNG Bus manufacturers and suppliers. The competent authority will pre-qualify the CNG Bus Manufacturers/Suppliers based on various criteria including conformation to Bus Specifications, price, performance, after sale service and indigenization programme. Bus operators would be required to procure CNG Buses from pre-qualified manufacturers/suppliers only. 6.3. CNG Filling Stations CNG Buses require high pressure fast filling CNG Stations, which need high pressure CNG from Sui Southern Gas Company (SSGC). Existing SSGC pipeline infrastructure and CNG Stations cannot meet this requirement. KMTC, in coordination with SSGC, has identified various locations, wherein SSGC would provide high pressure CNG for establishment of high pressure fast filling CNG Stations. CDGK is already in the process of tendering the CNG Filling Stations. Prospective Bus Operators / Investors may also participate in separate scheme advertised by CDGK for establishment and operation of CNG Stations. 23 6.4. Depots Currently, most of the buses in Karachi are parked on the streets and filling stations during the night. This not only creates congestion/bottlenecks on the streets but is also not safe for the buses. To overcome this issue KMTC has identified various depots which may be made available to the CNG Bus operators to ensure safety and security of the Buses besides other facilities as termination stations. 6.5. Bus Stops New modern Bus Stops are being developed in Karachi by CDGK under a Public-Private Partnership program. 6.6. Fare Fare is one of the most important considerations in public transport for all the stakeholders i.e. Investors, Government and Users. Fare should be: Adequate to cover operating costs; Provide reasonable return to the investors; Affordable to users; and Competitive to other modes of public transport Base year Fare would be determined through the competitive process. However, in the context of rising fuel prices, Fare would need to be adjusted on periodic basis. 6.7. Existing Fuel Prices Fuel Price Petrol per Liter Rs. 86.48 CNG per Kg* Rs. 54.00 Diesel per Liter Rs. 93.00 * The above quoted CNG price is based on average of filling stations for cars in Karachi. Under the CNG Rules 1992, the CNG price completely deregulated. However in view of recent cartelization by CNG sellers, the Federal Govt. has decided to regulate the CNG price through Oil & Gas Regulatory Authority (OGRA). It is assumed that the price determination by OGRA coupled by economy of scale of mega CNG stations for buses, the CNG price for the bus operators may in fact be much lower. 24 6.8. Allocation of Routes CDGK had already identified 40 Green Routes (list attached with this document). With the financial support of IPDF, GOP, confirmatory Green Routes Study is in the process to firm the financial feasibility of each route. The findings of the route confirmatory study will include: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) 12) 13) 14) 15) 16) 17) 18) 19) Average Speed Capacity (Sitting, Standing & Total) Peak / Off Peak Timings Average Headway (Peak / Off Peak) Route Length (Single Way / Round Trip) Round Trip Time (On Route) Number of Bus Stops Average Time per Bus Stop Total Time for Stops Checking Time after each trip Round Trip Time (On Route + Time on Terminal) Total Trips (During Peak & Off Peak) Average Distance Travelled by each passenger Avg. Passenger Ratio to Capacity (Seat Replenishment) Peak Vs Off Peak Passenger Ratio Terminal Information like location, size ownership, total area (measured from handheld GPS) Average Occupancy Minimum Number of Buses Required Solution to deal with congestion along Green Routes 25 7. FINANCIAL SUPPORT TO THE PROJECT The Government realizes the importance of providing efficient, affordable and environment friendly Public Transport System and it also realizes that the cost structure of such a system would be higher as compared to existing old fleet of diesel buses. The Government has therefore provided several tax incentives for CNG buses as noted below: 7.1. Upfront grant / Interest Subsidy After extensive consultation, the Government of Pakistan has decided to provide upfront grant of Rs. 300,000/= per bus / interest subsidy to reduce the cost of financing of CNG Buses. According to the approved scheme, if the operators obtain loan/leasing from banks/financial institutions for procurement of CNG Buses, the Federal Government will share part of the interest cost with the Investor/Operator. The Government will pay interest directly to the banks/financial institutions on the following terms: Upfront Grant Rs.300,000/= per bus Cost of CNG Bus capped at Rs.3.6 million each (Provisional) Debt Equity Ratio capped at 80:20 Term of Loan capped at 5 years Interest rate capped at 10% The Investor/Operator would be allowed to have different financing terms & conditions with the banks/financial institutions; however the Government’s support is limited to the above terms. The Government has approved Rs.2.5 billion for the scheme over a period of five years. 7.2. Import Duty Exemption on CBU The Government of Pakistan has been pleased to provide import duty exemption on CBU, which is currently at 15% of import value. 7.3. Motor Vehicle Registration Tax and Motor Vehicle Tax The Government of Sindh is actively considering giving exemption from motor vehicle registration tax and motor vehicle tax to the project. 26 Disclaimer Karachi Mass Transit Cell, City District Government Karachi has prepared this Preliminary Information Memorandum (PIM) based on data and assumptions provided in various studies relating to Public Transport in Karachi. This PIM does not purport to contain all the information related to the Project. While all efforts have been made to incorporate all information relevant to the proposed transaction, the KMTC does not make any representations or warranties, express or implied as to the adequacy, accuracy, completeness or reasonability of the information contained in this PIM. No decision should be based solely on the basis of the information provided by this PIM. KMTC has no liability for any statements, opinions, information provided by this PIM. Furthermore, KMTC shall have no liability for any statements, opinions, information or matters (expressed or implied) arising out of, contained in or derived from, or for any omission from, this PIM or in any other written or oral communication transmitted to third parties in relation to this transaction. 27 CNG Bus Specification Specification 1. Vehicle Dimensions, Capacity & Seat Layout Method Of Verification Dimension 10.0-10.5 metres Dimension 11.0-12.2 metres Calculation provided by manufucturer. 1.1. Bus Capacity 70 passenger 100 passengers 1.2. Seat- to-standing passenger ratio: 25/45 40/60 1.3 Vehicle width Maximum 2.5 metres (excluding side mirrors) 1.4 Inside free standing height Minimum 2.2 m /Maximum 2.4 m Measurement 1.5 Total passenger carrying capacity: Calculated on the basis of 6 persons/m2, (65kg per person) OR 5 passengers per sq. meter and avg weight to be 160 Lbs). Measurement 1.6 Floor height Not exceeding 1100 mm 1.7 Height of steps: First step: Second and last step 2. Gross Vehicle Mass & Weight Distribution 2.1 Gross Vehicle Mass (GVM) Inspection Inspection Calculation provided by manufacturer. Not exceeding 400mm Measurement Not exceeding 250mm Measurement Minimum: GVM 13,000kg Minimum: GVM 15,000kg Manufacturers specification Minimum:6,000kg / 10,000kg Manufacturers specification 2.2 Axle weight 11.0-12.2 metres F/R Minimum : 5,000kg / 8,000kg 2.3 Rear axle Overhang Shall not exceed 60% of the wheelbase 3. Engine and Fuel Propulsion 3.1 Engine placement The vehicle shall have a rear / front mounted engine. 3.2 Fuel type The engine shall be powered by compressed natural gas Manufacturers specification 3.3 Emission standard The engine exhaust shall be fitted with a oxidation catalyst Manufacturers specification 3.4 Engine Power The engine shall have a minimum power of 170hp Manufacturers specification 3.5 Fuel storage The CNG gas shall be stored in high pressure cylinders stored under floor at maximum 200 bar. Manufacturers specification 2 Manufacturers specification Inspection CNG Bus Specification Specification Method Of Verification The engine shall be certified for full use CNG (dual fuel not permitted) Design and fitment of the CNG equipment shall be authorized by a qualified authority/engineer. Measurement 3.7 Fuel Capacity and Service Period between fuelling events The on- bus fuel storage shall have sufficient capacity to perform 300 km of daily use without refueling Manufacturers specification 3.8 Refueling The bus shall be fitted with a fast fill capability to allow filling from empty to full in a maximum of 6 minutes subject to filling facility available in the city Inspection approval 4. Transmission Both manual or automatic transmission options are permissible Inspection approval 5. Brakes 3.6 CNG certification 5.1 System The bus shall be fitted with a full air brake system with 3 separate brake circuits; a dual circuit service brake system separated by front and rear. However, it is open to accommodate braking system 1) Air 2) Hydraulic or 3) Air over Hydraulic 5.2 Safety The bus shall be fitted with an audible low air alarm 6. Gradeability The vehicle should have a minimum gradeability of 20% 7. Steering Power steering shall be fitted as standard. Inspection 8. Suspension Fitted with air suspension on the front and rear axles.However, considering the local conditions, leaf spring, shock absorber type, suspension system may also be accepted. Inspection 9. Body Structure 9.1 Rust proofing The manufacturer must specify measures used to prevent rust of the body frame (materials primers, anti corrosion treatments) suitable for 15 year life 3 Inspection Inspection Manufucturers specification Evidence provided by manufacturer CNG Bus Specification Specification 9.2 Inspection 9.3 Engine access hatches The body shall be fitted with heat and noise insulation so that interior noise levels shall not exceed 90 Db during any part of the duty cycle Method Of Verification Test result provided by manufacturer Access doors through the floor to the engine transmission area shall be lockable with latches to prevent lifting during motion Inspection 10. Internal Trim 10.1 Walls & Ceiling materials Inside lining of the vehicle shall be an easy to clean laminate material of a light colour. Inspection 10.2 Floor material Floor must be lined with a durable material with anti slip properties. Proper and safe trimming must be used at the edge of steps. Inspection 11. Windows and Ventilation 11.1 Front windscreen Front wind screen shall consist of one piece or two piece wind shields / laminated glass. No tinting is permitted on the wind screen. Inspection 11.2 Drivers window Driver shall have a sliding opening window. Inspection 11.3 Side windows Side windows shall made of toughened glass and shall allow opening (slide or inward flap) Inspection 11.4 Roof ventilation Roof ventilation hatches shall be fitted (minimum two hatches) manually operated Inspection 11.5 Under dashboard ventilation On the driver's side Inspection 12. Passenger doors 12.1 Door dimensions Buses shall have two doors for boarding and alighting passengers on the left hand side. One centre entry/exit door with a minimum free width of 1100mm forward of the rear axle, and a front exit door with a minimum free width of 700mm forward of the front axle. 4 Inspection / Measurement CNG Bus Specification Specification Method Of Verification 12.2 Door control Doors shall be pneumatically controlled Inspection 12.3 Door safety interlock It is mandatory that buses shall have an interlock system with the vehicle brakes to avoid moving the bus from stop position with passenger doors open. Inspection / Test 12.4 Door open warning indicator Door Open' warning light on dashboard for driver in Red light. Inspection / Test 12.5 Door glass Each passenger door must have glass panels fitted. Inspection 13. Emergency Exits Inspection 13.1 Emergency door provision The bus must be fitted with a manually controlled outward opening emergency door on the right hand side in the rear half of the bus, able to be opened from the inside and the outside. It must be free of obstruction and be clearly marked as an emergency exit. 13.2 Emergency door dimension Emergency door shall have a free width of 650mm and a free height of 1800mm. Inspection/measure 13.3 Safety The emergency door shall have a safety catch and an audible alarm bell on opening Inspection / test 14. Passenger seating 14.1. Seat Layout : All seats shall be forward facing with the exception of the seats over the wheel arches which are permitted to be inward facing. No seat shall face towards the rear. Inspection 14.2 Material Fiberglass/plastic molded seats with grab handles aisle side of seat back Inspection 14.3 Design Seats shall be of individual design with closed in back. Inspection 5 CNG Bus Specification Specification Method Of Verification Seat mounting Seats shall be mounted directly to the floor and be without sharp edges rivets or screws. Inspection 14.5 Movable ladies section partition A sliding partition shall enable the ladies seating area to be reduced to 4 seats (front row) and be increased to the number of seats available when the partition reaches the forward edge of the centre door. The partition shall be transparent and made of polycarbonate material and shall not protrude below the top edge of the seat back. It is permitted to lock down the bottom edge of the partition to the top of the seat back. It is permitted to use the stainless steel hand rail to track the partition. Inspection 14.6 Seat spacing Minimum distance between seats shall be such that the minimum distance from the front of the seat back and the back of the seat in front shall not be less than 650 mm. 15. Driver's Equipment: 15.1 Driver seating 3-way adjustable foam cushioned seat 15.2 Safety Partition Partition behind driver (glass or polycarbonate on top half) Inspection 15.3 Sunshield Drivers position shall have a retractable sun shield on the front window. Inspection 15.4 Fire extinguisher Fire extinguisher 5 kg. Fitted at driver's compartment Inspection 15.5 Rear-view mirror Able to see rear 2/3 of bus Inspection 15.6 Dash board and instrumentation With instrumentation lighting Inspection 15.7 Electric Horn No air horns permitted 15.8 First aid kit Fitted Inspection 15.9 Lockable box for documents Fitted Inspection 15.10 Body identification plates Body identifcation plate in drivers area / Chassis plate on chassis Inspection 14.4 16. Passenger equipment 6 Inspect/measure Inspection/ test CNG Bus Project Specification Specification Method Of Verification 16.1 Handrails and handgrips The passenger area shall be equipped with stainless steel handrails and flexible handgrips to ensure all passengers have access to a stable hand hold along the lengthy of the aisle. Inspection 16.2 Stop Request Alarm Passenger ‘request to stop’ bells. Three passenger push buttons shall be fitted at equal spaces along the aisle of the bus and be clearly marked. Inspection a) Fluorescent tube lighting (equal spaced) over the full length of the vehicle from behind the driver area to within one metre of the rear seat. Inspection b) Lighting in the step wells active upon door opening Inspection c) Fluorescent light above driver on separate switch to main lighting Inspection a) One at front above windscreen, approx, height 300mm with 200mm high letters Inspection b) Inspection 17. Interior lighting 17.1 Minimum requirements: 18. 18.1 Destination Display: Placement and dimension One at left hand side 200mm high letters 18.2 Operation and lighting Both destination boxes to be manually operated with fluorescent lighting Inspection 18.3 Lettering Letters should be white on a black background Inspection 18.4 Language Route information should be written in English and Urdu Inspection 19.1 Head lamps : 2 at front, minimum Inspection 19.2 Stop lamps : 2 at rear, minimum Inspection 19. Exterior Lighting 7 CNG Bus Project Specification Specification Method Of Verification 19.3 Tail lamps : 2 at rear, minimum Inspection 19.4 Reverse lights : 2 at rear, minimum with audible alarm Inspection 19.5 Direction Indicator lights : At front, rear, sides and roof corners Inspection 19.6 Reflectors : Reflectors : 2 red at rear and 2 amber at front Inspection 19.7 License lamp License lamp on rear Inspection 19.8 Hazard lights Use flashing indicators lights all sides Inspection 20.1 Towing eye at front and rear Fitted Inspection 20.2 Battery compartment with moveable battery tray Fitted with slide out or swing out mechanism Inspection 20.3 Wind shield wipers with washer Fitted Inspection 20.4 Two rear-view mirrors and one under view (front) Fitted Inspection 20.5 Steel /FRP bumpers at front & rear Fitted Inspection 20.6 Handles for windscreen cleaning Fitted Inspection 20. Outside Accessories shall include: City District Government, Karachi (CDGK) Request for Submission of Statements of Qualification (SOQ) from Bus Suppliers/Manufacturers (OEMs) Shaheed Benazir Bhutto CNG Bus Project; Sponsored by Government of Pakistan & Government of Sindh Under Public-Private Partnership Arrangement Under Public-Private Partnership Arrangement Government of Pakistan and Government of Sindh through City District Government Karachi (CDGK) is launching Shaheed Benazir Bhutto CNG Bus Project that aims at introducing Environment Friendly Public Transport System on Public-Private Partnership basis in Karachi. It is envisaged that over the next five years, 4,000 dedicated CNG buses would be inducted in Karachi. The buses would have to comply with specifications of CNG buses notified by the Government of Pakistan (GoP). CDGK and Government of Sindh would provide enabling environment to the private sector. Additionally, the GoP will provide upfront grant / subsidy on mark up to facilitate the operators on loan/leasing of buses from Banks/Financial institutions. It is envisaged that another 4,000 buses would be introduced in nine major cities of Pakistan. Statements of Qualification (SOQs) are hereby invited from reputable national/international Suppliers and Manufacturers (OEMs) of Dedicated CNG Buses. Interested parties should visit CDGK’s official website www.karachicity.gov.pk or Government of Sindh website www.sindh.gov.pk or Infrastructure Project Development Facility (IPDF), Ministry of Finance, GoP website www.ipdf.gov.pk or the Hydrocarbon Development Institute of Pakistan (HDIP) website www.hdip.com.pk to access Request for Statements of Qualification (RSOQ) document or obtain it from the address given below. Interested parties should submit SOQ accompanied with a Bank Draft in favor of “Karachi Mass Transit Cell, CDGK” amounting to Rs.100,000/- (non-refundable processing fee) by June 30th 2011. The already pre-qualified parties / firms are required to submit SOQ only withoutBank Draft. Further queries and clarifications can also be sought from: Director General Karachi Mass Transit Cell, City District Government Karachi / Project Secretariat, 6th Floor, East Annexe, Civic Centre, Gulshan-e-Iqbal, Karachi Tel: +92-21-9923 0665, Fax: +92-21-9923 1153 Email: kmtc_cdgk@yahoo.com