Operation, Maintenance & Tolling
in Road Sector:
Potential, Progress &
Way Forward
Perspective of Madhya Pradesh
Vivek Aggarwal
MD MPRDC
Connecting People Through Quality Infrastructure
Road Network of Madhya Pradesh
Category
Total Length
( in Km)
PWD
MPRDC
MPRRDA
National
Highways
4709
-
1442.81
-
State
Highways
10966
-
10966
-
Major District
Roads
19574
17317
2257
-
Village Roads
91789
24089
-
67700
(PMGSY)
Total
127038
41671.50
41406
14400.31
14665.81
67700.00
Madhya Pradesh Road Development Corporation
Incorporated as wholly owned State Govt. Company under
Companies Act 1956, in July 2004.
‘Highway Authority’ for State Highway.
 Upgrades, Constructs and Strengthens the total length of
State
Highways.
 Develops projects in the State on Public Private Partnership
basis.
 The Hon’ble Chief Minister of Madhya Pradesh is the
chairman, Hon’ble Minister of Public Works Department & the
Chief Secretary are the Vice Chairmen, the Principal
Secretaries of the Finance dept., Forest Dept., Urban
Administration & development and Mining Dept. are the
members of the Board.
 MD, MPRDC is also one of the director.
Our Projects
Invite private investment by providing grant / premium
to / by the concessionaire on competitive bidding
Our Projects
Category/Model
Cost (Crores)
Ongoing
BOT (Toll)
16053
BOT (Toll + Annuity)
3260
BOT (Annuity)
4578
ADB
4159
Regular Contract
1689
ROB/RUB
1645
Border Checkpost
1094
OMT
45
Building Works
165
Projects in Pipeline
ADB Loan IV
3000
4 Lanning Of 3 State Highways
on BOT (Toll)
4500
Grand Total
40188
Our Projects: Cost Share in Crores of Rupees
BOT(Annuity),
4578
ADB, 7159
Others, 2949
RC, 1689
BOT(Toll And
Annuity), 3620
BOT(Toll), 20553
BOT Models
1.
OMT Model
2
BOT (Toll) Model
3.
BOT (Toll + Annuity) Model
4
BOT (Annuity) Model
5.
Deemed Shadow Fee Model
•
MPRDC has envisaged to take up roads on OMT (Operate
Maintain & Transfer) mode under Public Private partnership.
•
Above roads are developed by MPRDC through ADB
funding/Budgetary Support of the State Government.
•
15 such roads are identified by MPRDC amongst which 3
roads are awarded on Premium & 1 is under tender stage.
•
Concession Period – Project specific, normally 9-12
years
•
Concessionaire to undertake management, operation &
maintenance of Highways
•
Augmentation of facility to be done
•
Construction, monitoring and inspection by
Independent Engineer.
•
Remuneration, cost & expenses of Independent
Engineer to be paid by the Concessionaire in four six
monthly installments.
•
Concessionaire to pay Concession Fee to the
Authority.
•
Concession Fee is the bidding parameter.
•
This fee to increase by 10% per year as compared to
the immediately proceeding year.
•
Concessionaire can seek O&M support also.
•
User Fee - pre-decided, increase on the basis of WPI
•
Toll on only commercial vehicles.
•
Passenger vehicles are exempted from toll.
•
Escrow mechanism for fund flow.
•
Capital cost for road improvement along with
maintenance of roads.
•
Cost to be incurred on Land Acquisition & Utility
Shifting will be borne from State Highway Fund.
Conditions Precedent to be satisfied by the Concessionaire
•
within 45 days from the date of Concession Agreement and
prior to COD:
 Submission of Performance Security.
 Execution of Escrow Agreement.
 Legal opinion of the Legal Counsel on the concession.
•
Procurement of Right of Way to the Site within 30 days
notice given by the Concessionaire upon
providing Performance Security.
•
COD within 45 days from the date of Concession
Agreement.
•
In case of delay, damages @ 0.2% of Performance
Security for each day.
•
Provision for Change of Scope.
•
Force Majeure
Act or event which
i.
is beyond the reasonable control of the affected party.
ii.
Affected Party is unable to prevent by exercising due
diligence & Good Industry Practice.
iii.
has Material Adverse Effect on the Affected Party.

Types of Force Majeure:
i.
Non-Political Event
ii.
Indirect Political Event
iii.
Political Event
Effects of Force Majeure on Concession
 Prior to CODperiod for achieving COD shall be extended by a
period equal to the duration of Force Majeure
event.
 After COD:
•
Concession Period shall be extended in
proportion to the loss of fee on a daily basis, if daily toll
collection is less than 90% of average daily fee.
•
Loss of 25% in collection of fee as compared to
Average Daily Fee for 4 days entitles the
Concessionaire to extension of 1 day in the
Concession Period.
Initiatives of MPRDC - BOT(OMT)MODEL
TYPES OF
FORCE
MAJEURE
ACTS
ALLOCATION OF COST
AFTER COD
TERMINATION
PAYMENT
Non-Political
Event
Act of God, epidemic, adverse
weather conditions, earthquake,
landslide, cyclone, flood, strikes,
boycotts etc.
Party shall bear their
respective Force Majeure
Cost & neither party shall
require to pay to the other
party any cost.
50% of debt due
less insurance
cover payable to
the
concessionaire
Indirect
Political
Event
Act of war, industry or state wide
strike, civil commotion, political
agitation
Force Majeure cost shall
be reimbursed by MPRDC
to the concessionaire.
Amount equal
to the debt due
Payable to the
Concessionaire
Political
Event
Change in Law, unlawful
revocation of any clearance,
license, permit, authorization,
NOC, consent, approval of
exemption required by the
concessionaire.
Force Majeure cost shall
be reimbursed by MPRDC
to the concessionaire.
Amount equal
to the debt due
payable to the
Concessionaire
NOTE: - Upon Occurrence of Force Majeure prior to COD, the parties shall bear their
respective cost & no Party shall pay to other party any cost.
Initiatives of MPRDC - BOT(OMT)MODEL
Termination & Termination Payment
Termination
Termination Payment
Termination for
Concessionaire Default
During Construction Period:
Amount equal to 50% of
debt due.
Termination for Authority
Default
i.
ii.
Debt Due
Product of Average
Daily Fee multiplied by
60.
Projects identified for OMT
S. No.
Name of Road
SH. No.
Length
(in Kms.)
1
Bhopal-Vidisha Road
SH-18
36.15
2
Vidisha-Kurwai Road
SH-19
74.6
3
Sagar-Rehli Road
SH-15
42.2
4
Tikamgarh- Orchha Road
SH-11A
78.4
5
Jabalpur-Amarkantak Road
SH-22
221.8
6
Mandla- Kanha Road
SH-38
59
7
Khargone- Barwani Road
SH-26
85.2
8
Barwah- Damnod Road
SH-38
60
9
Badnawar- Thandla Road
SH- 18
78.8
10
Pachor- Shujalpur- Ashta- Kannod Road
SH-41 & 51
127.4
11
Budhi-Rehti-Nasrullaganj-Khategaon
SH- 22
87.40
12
Bela- Govindpur- Churhat Road
SH-18
56.6
SH-52
104.7
13
Nagod- Jasso- Sahela-Mohindra- Amarganj
Road
14
Porsa- Mohgaon- Seondha Road
SH-19
77.4
15
Lukwasa-Ishagarh- Chanderi Road
SH-10
73.4
Total
1263.05
OMT Projects
S.N NAME OF ROAD
O
S.
H.
N
O.
LENGTH
(in KM)
CAPITAL
NAME OF
COST
CONCESSIONAIRE
(in
CRORES)
PREMIUM
(Per Year)
1
BadwahDhamnod
38
60
18.49
Agroh Infra
2.07 Cr.
2
BadnawarThandla
18
78.8
8.68
Eagle Infra
0.35 Cr.
3
Budhni-RehtiNasrullaganjKhategaon
22
87.40
5.50
Madhav Infracon
2.52 Cr.
226.2
32.67
4.94
OMT Project Under Tender Stage
S.NO
1
NAME OF ROAD
Bela-GovindhgarhChurhat Road
S.H.
NO.
18
LENGTH (in
KM)
56.60
CAPITAL
COST
(in CRORES)
12.20
Our Strengths
• Concessionaire’s faith in MPRDC due to transparency in
bidding process.
• Lender’s faith in MPRDC ensuring Financial Closure of BOT
Projects.
• Most of the projects of MPRDC have achieved Financial
Closure in spite of nationwide scenario of Infrastructure
sector wherein Financial Closures have become difficult.
• MPRDC facilitates Concessionaires to achieve
FinancialClosure.
• Deployment of Supervision and Quality Control
Consultants with international expertise.
• Deployment of capable construction agencies with
introduction of advance machineries and
equipments.
Our Strengths
• Adequate Budget provision for Annuity &VGF
payments by the State Government.
• Annuity payment along with bonus on due date.
• Outsourcing of Expertise.
• Consultants are appointed for Feasibility Report/DPR
and Supervision of Construction.
• Experts like Legal Advisor, Chartered Accountant,
Company Secretary, Environment expert, MIS expert,
Road Data System Engineer are engaged in house.
• In-house financial analysis.
• Planning is done well in advance at the head office
level.
• Fast decision making.
Our Strengths
• Political commitment & support.
• Concessionaires are treated as partner.
• Bills are cleared in 2 to 4 working days.
• All Stake holders are facilitated.
• Land Acquisition and Environmental Clearances are
planned and executed well in advance.
• Chief General Manager at Head Office & Divisional
Manager coordinate with District Administration.
• NOC of State Forest Department, permissions for utility
shifting, tree cutting permission etc are procured
before Appointed date.
State Highway Fund
GoMP has enacted the Madhya Pradesh Rajmarg Nidhi Adhiniyam
2012 to provide for the establishment of a Fund for investments in the
highways & infrastructure projects of the State.
Corpus of the Fund is 125 Crores (approx).
Executive Committee under the Chairmanship of Chief Secretary to
administer the fund.
Sources of Fund
Application of Fund
All payments of Premium
For Maintenance and Repair of
Highways
Proceeds towards encashment of
Performance Security or Bid
Security
For Meeting any Development Cost
of Highway or Infrastructure
Project
All returns on investments
made out of the Fund
For Project Preparation, Pre Tender
Activities, Cost towards Utility
Shifting, Land Acquisition
Accident Response System
•
Implementation of ARS system on PPP mode is probably a first in the
world.
•
State wide implementation of ARS will be first in country.
•
ARS to address safety requirements in the larger perspective.
•
Technical Assistance through ADB for capacity building in road safety.
•
Accident Response System & Traffic Management Centre in
Madhya Pradesh including operation & maintenance for 5
years with estimated cost of Rs.12.50 crores has been proposed.
•
A Road Safety Cell is created in MPRDC.
•
MPRDC has engaged an agency for ARS on Annuity basis.
•
ARS includes centralized call centre, GIS based automatic
vehicle tracking system (AVTS), Computer aided
dispatch system, Traffic Management Centre.
A country has to pay for its roads.
Whether it has them or not, it pays
more for those it does not have.
So Lets Have them…..
Connecting People Through Quality
Infrastructure