Draft Terms of Reference for Appointment of a Consultant for the Development of Kollam

Draft Terms of Reference for appointment of a consultant for the development of Kollam (Thankassery) Port in Kerala

1. Introduction

Kollam (Thankassery) port is situated in the Kollam district about 150 km south of Cochin .At present 2 breakwaters are in place creating a calm basin. There is a depth of about 6m inside the basin. A wharf of about 116 m is already complete along the leeward wharf and can be extended by another 150 m. The seaward breakwater is about 2100 m long and it is proposed to construct additional berths alongside this. Now it has been decided to develop Kollam (Thankassery) in to an all weather commercial port capable of handling large vessels.

1. Objective of the assignment

2.1 The objective of this assignment is to engage a consultant who will be associated with the project to develop the port at Kollam(Thankassery) in Kerala through Public Private Partnership (PPP), right from conceptualization till commencement of commercial operation. The assignment is to develop the existing port of Kollam (Thankassery) to all weather commercial port. The consultant is required to study the location in terms of draft, existing infrastructure, feasibility of infrastructure required to meet the cargo projections, hinterland connectivity, prepare cost estimates, financial structuring, assistance in selecting a developer for the project and assist Government of Kerala (Gok) till the commencement of commercial operation.

2.2 The consultant shall prepare a Detailed Feasibility Report (DFR), containing analysis of all relevant aspects required to undertake the project including technical viability and detailed cost estimates. After approval of DFR by GoK, the consultant will help the implementing agency in the process of selection of a developer for the successful implementation of the project.

3.Scope of the assignment

The broad scope work shall cover the following activities, phased into 3 distinct components:-

1. Preparation of detailed feasibility report (DFR)

2. Selection of developer for the project.

3. Assistance towards technical and financial closure until commencement of

Commercial port operation.

An outline of works under each phase is given below. The consultant is expected to adequately detail these activities/components as part of their Technical Proposal. The consultant is also free to suggest any alternatives/changes to meet the objectives better, provided that such deviations are properly justified and implemented in an optimal manner.

Component I

3.I Preparation of Detailed feasibility report (DFR)

a.Technical

• Study the development of the existing port for maximum viable draft after

conducting detailed technical study.

• Study different parameters / condition like marine, meteorological,

hydrographic, morphological, hydrological, geotechnical, topographical etc

and suggest proposal for improvement.

• Methodology for developing the port and back up area for storage and

development of ancillary facilities

• Examine and established the existing and potential hinterland.

• Provision of rail, road and inland water connectivity with respect to

mainland and requirement for development of other infrastructure facilities such as water and electric supply,polutllion control,enviormental impact mitigation.

• Traffic analysis includingtraffic forecast for 20 years after assessing the

market potential

• Detailed geo-hydro-morpho & meteorological investigations followed by

technical analysis to develop the port.

• Based on trends in the global and Indian shipping, determination of the profile of ships likely to call at the port in respect of the types of cargo to be handled.

• Determine and fix levels to which capital and maintenance dredging is required, based on ship sizes likely to call at the port. Determine exclusive berth location for state-of-art cargo including hazardous cargo and container handling facilities
• Environmental analysis including EIA and EMP studies and suggest required mitigation measures
• Detailed port planning and selecting a layout most suitable from the point of operational convenience, economic capital and maintenance cost, environmental consideration and prospective future expansion with out affecting the functioning of the fishing harbours.
• Details of Navigational Aids and port crafts required. Details of fire fighting, sanitary arrangement, water and waste water management.
• Preparation of proper security plan under ISPS code.

• Collect data available with the Port and Harbour Engineering Department, Government of Kerala(GoK) the details of which would be provided by the Director of Ports upon execution of agreement.

• Development Plans

Port and berth layout plan(s)

• Approach channel and its alignment
• Current/wave conditions at port entrance
• Existing breakwater protection and need for extension
• Berth orientation
• Berth dimension
• Tug and other floating craft required for berthing/un-berthing of vessels
• Turning Circle in the basin
• Navigational requirements
• Inland waterway connectivity

On shore layout

• Identify area requirements also to suggest rehabilitation proposals if necessary.
• Detailed land acquisition plan with sketch and survey numbers
• Identify services/facilities required/equipments required
• Establish type of handling equipment for loading/unloading and cargo movement from berth to storage area
• Road/rail connection within the port premises
• Establish connectivity with the mainland

Utilities/Pollution Control

• Requirement of water, electricity and effluent disposal system and
• other utilities
• Requirement of sewage/effluent disposal from ships and treatment
• for pollution control
• To conduct detailed Environmental Impact Assessment and
• suggest suitable mitigation measures.

Operational Requirement

• The Information Technology and communication – position fixing

system requirement in the operation and management of state-of-art

port including VTMS surveillance

Clearances

• List out environmental clearances required
• List of other clearances required.

b. Financial

• Prepare cost estimates based on the detailed project designs and shall be based on market prices.

1. Capital costs (in phases)

• Marine works – Channel, buoys, dredging of approach channel and DockBasin
• Port works - Breakwaters/Extension, if required
• Quay structures – Evaluate alternative structures, as applicable
• On shore development – Storage, utilities, services, roads, hinterland connection Operational facilities - Offices including IT and communication position fixing requirement & VTMS surveillance
• Equipment - Marine: pilot boats, tugs, and other craft

-Terminal: Cargo Handling/Transfer/Stacking equipment

1. Operation / maintenance costs

• Management, labour, fuel, utilities / services, maintenance of structures, equipment and craft including maintenance dredging

1. Viability Analysis of the project including Sensitivity analysis

• Fixation of tariff structure and revenue estimates
• Economic impact and financial analysis of the project
• Project structuring options along with recommendations
• Project implementation methodology (Phasing) and time schedule
• Risk analysis and mitigation measures

1. Examination of possible project implementation formats (BOT, BOOT, BOLT, BOST etc) and recommending an appropriate one.
2. Recommendation on the structure of Special Purpose Company (SPC)
3. Assess the legal frame work governing the implementation of the project on a commercial format, which may be required. The study shall address the legal frame work at the centre and state levels.
4. Funding options/Arrangements for the entire project and to identify the resources for meeting the project cost.
5. Evaluate the possibility for establishing alternate source of revenue like commercial complexes, SEZ etc.

3.2Component II - Selection of Developer for the project

After approval of the DFR, which covers the technical and financial aspects, by the Competent Authority, the consultant shall:

• Prepare a project information memorandum which would be required for prospective investors to express interest in the project

• Assist the Government of Kerala in marketing the bid to domestic and international Ports operators / developers / investors and developing suitable strategy to invite Global tenders
• Assist the Government of Kerala in inviting Expression of Interest from prospective bidders by providing necessary inputs
• Assist Government of Kerala in conducting investors meet,seminars to promote interest among investors.
• Assist Government of Kerala to short list candidates by evolving suitable criteria to evaluate the Expression of Interest received.
• Prepare Request for Proposal (RFP) document

• Assist the Government of Kerala in fixing criteria for evaluating the bids
• Assist in Evaluation of bids (technical and financial)
• To provide clarifications / answers to queries raised by the bidders in respect of the bid documents raised and provide related assistance during bidding/selection process.
• Assist Government of Kerala in evaluating deviations made by bidders in technical proposal including cost evaluation
• Make presentations to prospective investors bidders or any other Committees as directed by Government of Kerala to convince and clarify them regarding marketability / viability of the project
• To give necessary assistance to Government of Kerala in selecting the developer
• Prepare draft concession agreement to be executed between Government of Kerala and the preferred developer.

3.3 Component III Assistance towards technical and financial closure and until commencement of commercial port operation

• Assist GoK in sorting out any technical, financial, environmental and social issues in the advanced development phase

• Assist GoK in discussions with the preferred bidder to finalise all aspects that are necessary to bring the project to a technical and financial closure
• Overall Supervision of the project on behalf of GoK including periodic site inspection
• Monitoring of the project implementation schedule and submission of monthly progress report to GoK
• Taking all steps necessary to expedite the work with the approval of GoK
• Reporting of any changes/deviations made by the developer from the Master plan/Concession agreement originally agreed to by GoK
• Assisting the GoK in taking decisions on any technical problem that may arise during execution of work
• Preparation of draft plan on the structure and functioning of SPC .The Consultant while recommending the structure of SPC, shall suggest the extent of contribution of GoK and the Operator towards SPC
• Act on behalf of GoK to obtain speedy clearance from various agencies that may become necessary for the commencement of commercial operation

4.Requirements for Submission of Proposals

4.1The proposal shall contain detailed information about the Consultant / firm and the team proposed to be deployed for the assignment along with the technical and professional qualification, experience of personnel’s; in the consultancy/ project management for similar projects.

5.Preparation of Proposal

5.1Bidders shall submit their proposal with a covering letter enclosing the following labeled appendices:

6.Submission of Proposal

6.1The Technical and Financial proposals must be submitted simultaneously but in separate sealed envelopes so as to reach in the office of the Director of Ports not later than 1500 hrs. IST on 30th April 2008. Both inner sealed envelopes shall indicate the name and address of the bidder. The first inner envelope shall contain the bidder’s technical proposal duly identified as technical proposal and marked “Original” and “Copy”. The second inner envelope shall include the financial proposal duly identified as such. Proposal where Financial proposal not received in separate sealed envelope will not be considered. If the envelopes are not sealed and marked as instructed, the Port Department, Government of Kerala will assume no responsibility for misplacement or pre-mature opening of the proposals submitted.

6.2Technical Proposal duly identified as such must be submitted in one Original, clearly marked as such, with three (3) additional copies. The Technical proposal (both Original and Copies) must be sealed in a specially marked envelope/package, marked “Technical Proposal - For Appointment of Consultant for Development of Kollam (Thankassery) Port in Kerala”.

6.3Financial Proposal must be submitted in one separately sealed envelope, marked “Financial Proposal - For Appointment of Consultant for Development of Kollam (Thankassery) Port in Kerala”.

6.4The Technical Proposal, Financial Proposal and Certificate of Authority to Sign the Proposals duly sealed along with the Covering Letter should be put in a specially marked envelope/package, marked “Appointment of Consultant for Development of Kollam (Thankassery) Port in Kerala” and should be addressed as follows for mailing:

The Director of Ports,

Directorate of Ports,

5th Floor, New CorporationBuilding,

Vikas Bhavan P.O.,

Thiruvananthapuram – 695 033.

KERALA.

7.Amendment of Bid Documents

In order to afford prospective bidders reasonable time in which to take the amendments, if any, into account in preparing their offers, the Director of Ports on behalf of the Government of Kerala may, at his discretion, extend the deadline for submission of offers.

8.Deadline for Submission of Proposals

8.1The Director of Ports, Government of Kerala must receive the proposals not later than 1500 hrs (IST) on 30th April 2008. No response for extension of the deadline shall be entertained. If the date of submission of the Proposals is declared a public holiday, the proposal may be delivered upto 1500 hrs on next working day.

8.2The “Certificate of Authority to sign proposals” attached must be executed by a representative of the bidder, who is duly authorized to execute contracts and bind the Bidder. Signature on the Certificate represents that the bidder has read this document, understands it and agrees to be bound by its terms and conditions. The Bidder’s proposal with any subsequent modifications and counter-proposals, if applicable, become an integral part of any resulting contract.

8.3The bids will be opened on 1600hrs on the last date of receipt of proposals as mentioned in 8.1 above, in the presence of the bidders, who wish to be present, at the Directorate of Ports, Thiruvananthapuram, India by a Committee constituted for this purpose.

9.Eligibility Criteria

9.1For the purpose of qualification, the bidder should satisfy the following minimum eligibility criteria and submit the supporting documents:

• The bidder should have undertaken similar consultancy project in port sector as lead consultant, of which at least one project worth of not less than Rs. 250 crores (US $ 55 million) has been successfully implemented during the last 5 years.

10.Selection and Evaluation Criteria

The bidding process will be based on two cover system viz. Technical cover and Price cover. The technical proposals shall be examined by a Committee to be constituted by the Government of Kerala to determine whether the proposals received are complete as indicated in Para 6 - Submission of Proposal.

10.1Technical Proposal

10.1.1Bidders meeting the eligibility criteria are required to submit details of experience in the subject work including names of resource persons/experts with durations proposed to be deployed for the assignment together with their qualification and experience and concept plan & methodology proposed to be followed for carrying out the said assignment. Bidders may be called upon to make a presentation of their proposals, at their own cost, to the Evaluation Committee appointed by the Government of Kerala, which will carry out the technical evaluation applying the criteria and points rating as listed in the table below:

10.1.2On each of these parameters, the bidder would be required to achieve a minimum 60% of the Technical score assigned to that parameter.

10.1.3The maximum achievable total Technical Score for any bidder would be 100.

10.2Experience

10.2.1Bidders should indicate the number of completed projects, including the name of the port / party for whom the assignment has been carried out.

10.2.2Bidder’s experience in respect of this criterion should be supported by documentary evidence in the form of certificate from the client, clearly stipulating the services rendered by the Consultant. Alternatively, copies of the contracts awarded by the client could also be submitted provided the contract clearly specifies the scope of work of the Consultant. Copy of the evidences should be in English or supported by way of authenticated English translation.

10.2.3Evaluation Committee of the Government of Kerala would evaluate the experience of each firm/bidder in respect of eligible projects and assign score on its evaluation.

10.3 Team Composition

10.3.1Bidders would need to provide details of the experts proposed to be deployed together with the time / duration for each phase of the proposed assignment

10.3.2 The Curriculum Vitae (CV) of each expert proposed to be deployed for the assignment may be given along with the duration proposed for this assignment.

10.3.3Evaluation Committee of the Government of Kerala would evaluate each member proposed to be associated based on their qualifications, experience, duration, etc., and assign score for every bidder based on its evaluation.

10.4Project concept

10.4.1The bidders are required to furnish the following details as part of their technical bid for the project:

• Understanding of the Terms of Reference of the assignment;
• Recommended approach;
• Proposed methodology; and
• Work Plan
• Evaluation Committee of the Government of Kerala would evaluate each item of project concept indicated above and assign appropriate score to every bidder based on its evaluation.

10.5Total Technical Score

The total Technical Score of any bidder would be an arithmetic sum of scores obtained by the bidder for each of the parameter indicated above viz. experience, team composition and concept plan & methodology.

10.6Financial Proposal

10.6.1The successful bidder will be paid a fee which will consist of two components namely, a lump sum amount and a certain percentage of the project cost as success fee. The lump sum amount shall be payable towards feasibility study and preparation of DFR. The successful bidder shall be paid 1% of the estimated cost of the project (arrived at the stage of technical closure) as success fee which will be released as per the schedule described in papa 14.2.This success fee shall be paid by the Special Purpose Company in which the developer shall hold them majorityshares. In the Financial proposal, the bidders are required to indicate their lump sum fees inclusive of all taxes, duties and other out-of-pocket expenses for undertaking the assignment. In case the bidder fails to associate with the project during the Technical and Financial Closure and until commencement of commercial port operation or the project does not fructify, he will not be entitled to receive the success fee, as indicated above or any compensation whatsoever.