TIRUPATI URBAN DEVELOPMENT AUTHORITY - TIRUPATHI ...

Tirupathi Urban Development Authority
SECTION 8 (COVER 3)
COMMERCIAL OFFER EVALUATION
8.1 Objective of Commercial Offer Evaluation
The Commercial Offer evaluation seeks to select the entity offering the best commercial
terms.
8.2 Evaluation Financial Model
For the purpose of evaluating the comparative attractiveness of Commercial Offers of
various Bidders, TUDA has prepared a nominal business plan for the Integrated Tourism
Temple Township (“Evaluation Financial Model”). The Evaluation Financial Model is
solely for the purpose of evaluating the comparative attractiveness of different
Commercial Offers on common and transparent platform and the cashflows assumptions
do not represent TUDA’s assessment of revenues from the Project over the years. The
Evaluation Financial Model does not constitute any representation, warranty, commitment
or expectation on the part of TUDA from the Project. The actual cashflows generated
from the Project may be materially different from the ones projected in the Evaluation
Financial Model and this shall not in any way affect or compromise the selection process
or the commitments made by the Selected Developer under the Development
Agreement.
The Evaluation Financial Model shall be given along with this RFP (Exhibit 13) and the
Bidders are advised that their Commercial Offer shall be evaluated with respect to the
same.
8.3 Commercial Offer Parameters
Bidders are required to quote their best offer in terms of the fixed amount of money to be
paid upfront to TUDA and/ or revenue sharing with TUDA from residential and
commercial space. The revenue sharing shall be in the form of a share (“Percentage
Share”) of gross revenue from sale of all residential and commercial assets (“Revenue
Share”). The Revenue Share shall also be due in respect of unsold residential/
commercial units at the end of the 7 years from the Drop Dead Date. The Revenue Share
would be payable at the end of each quarter. If the Project Company wants to retain the
residential/ commercial space (so that it may lease it out), the Project Company would
have to first purchase the said residential/ commercial space by paying TUDA the
Revenue Share that would be due. The Revenue Share would be based on a price to be
determined by a professional agency appointed by TUDA. If the price is disputed by the
Project Company, as an alternative, TUDA may exercise the right to retain for itself the
Percentage Share of the residential/ commercial space at a location of its choice. The
Successful Bidder would get the right of freehold on such retained residential/
commercial space on discharge of its obligations to TUDA.
Request For Proposal
Development of Integrated Tourism Temple Township on Public Private Partnership Basis
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