Hyderabad Metro Rail in PPP Mode Presentation to the 6 th Global Infrastructure Leadership Forum New York Feb 2013 NVS Reddy Managing Director w w w. h Hyderabad m r. g o Metro v. i Rail n Ltd.
Hyderabad Metro Rail Project A completely elevated MRT project in Hyderabad, Southern India 3 Corridors/Lines (72 km) taken up in Phase I UMT sector - World s largest Metro Rail project in PPP mode Main project cost : USD 2.66 b + Property Devpt. ph.i (USD 0.41b) + Land + other costs (USD 0.37 b) = USD 3.44 b Implementing Entity: Concessioning Authority: Hyderabad Metro Rail Limited (Govt. of AP) Concessionaire (Pvt. Sector): L&T Metro Rail (Hyderabad) Limited, an SPV of USD 12 b L&T 1
Hyderabad city geographical location India India Hyderabad 2
Traffic & Transportation Scenario in Hyderabad Hyderabad, a city of 8m pop Capital of the Southern State of Andhra Pradesh Historical City now hub of pharma industry, research institutes, IT/ ITES Service Sector Economy Severe traffic congestion & increasing pollution levels Lack of efficient, reliable & comfortable PTS increase in personal vehicles: 3.0 million vehs + addition of 0.3 m p.a Total motorized trips: 7 m per day Bus + local rail: 44%; Two wheelers: 30%; Autos: 16%; cars: 10% 3
Hyderabad Metro Rail as Transit + Phase I: 3 corridors; 72 km; 66 stations & 3 Depots Integration/Interchange with Main rail terminals & Bus Depots Transit + concept: Last mile connectivity with Feeder Buses, NMT, Pedestrian Facilities & Street Furniture Not a simple Metro, but an urban redesign & rejuvenation effort to transform Hyderabad into a people friendly green city Eco-friendly stations with natural ventilation, skywalks, bicycle stations & tracks and other commuter friendly facilities Expected to generate about INR 500 b (USD 9.43 b) investments in Hyderabad & it s surroundings Creation of 50,000 jobs in & around Hyderabad 4
PPP Format 35 yr concession, extendable by another 25 yrs World s largest Metro in ppp mode Project cost: USD 2.66 b. 10% (USD 0.27 b) of it as capex grant + additionally, land cost, R&R, utility shifting etc. (USD 0.37 b) by State (provincial) govt. Commercial risk by Concessionaire & no traffic guarantees Well balanced & bankable Concession Agreement; transparent global bid process Technology neutral & performance based output oriented MSS (tech specs) RfQ & RfP stages DCA; MSS & SHA 5
PPP Format Scope for design innovation & reduction in life cycle costs 269 acres (109 Ha) land; commercial exploitation of air space to create 18.5 m SFT lease rentals Prefixed tariff & fare escalation formula; differential tariff (peak vs off peak hours) Stations as hubs of activity shopping malls, multiplexes & leisure; hotels & eateries; hospitals, clinics, office space etc Ridership & property development boosting each other financial viability 6
Project cost : USD 3.07 b (MRT : 2.66 b + Property Devpt : 0.41 b) Senior Debt : USD 2.16 b Subordinate Debt : USD 0.18 b Equity : USD 0.46 b Other Sources (VGF) : USD 0.27 b Total : USD 3.07 b Financial Closure achieved in March 2011 Revenue Model: 50% from Fare box; 45% from Property devpt; 5% Misc (Ads + Parking fee) IRR Funding Pattern & Financial model Project IRR : 13.89% Equity IRR : 17.50% 7
The Team (Authority, Concessionaire, Consultants etc.,) Authority : Hyderabad Metro Rail Limited (GoAP) Concessionaire : L&TMRHL Independent Engineer : Louis Berger, USA Safety Consultant : Eptisa, Spain Concessionaire s Engineer(CE) Programme Manager Lenders Engineer Independent Safety and RAM Assessor Consultants for Carbon Credits Lenders Insurance Consultant-Marsh India Pvt. Ltd. Operation & Maintenance Contractor 8
Engineering, Procurement & Construction contractors Packages Viaduct, Stations & Depots Rolling Stock Power supply + SCADA Traction Signaling & Train Control Communication Track works (Turnouts / Rails / Fastening system) O&M Operator Automatic Fare Collection (AFC) Vendors L&T Construction Hyundai Rotem, South Korea L&T Construction L&T Construction Thales, Canada (French company) Thales, Portugal (French company) L&T Construction along with (Voest Alpine, Austria + Tata Corus, France + Vossloh, Germany) Keolis France Samsung, South Korea 9
Contact Information Name : Mr N.V.S.Reddy Company : Hyderabad Metro Rail Ltd. Role in Project : Managing Director Phone : +91 40 2338 8580 / 81 (Fax 82) Email : nvsreddyiras@gmail.com Website : www.hmr.gov. in Name : Mr V.B.Gadgil Company : L&T Metro Rail (Hyderabad) Ltd. Role in Project : Managing Director Phone : +91 40 67295500 Fax: +91 40 23123015 Email : vbg@ltmetro.com Website : www.ltmetro.in 10
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N.V.S.Reddy