CHENNAI PORT TRUST Development of Dry Dock facility at Timber ...

CHENNAI PORT TRUSTDevelopment of Dry Dock facility atTimber Pond/Boat Basin in Chennai Portunder PPP modeAuthority’s response to QueriesPage 1 of 8

Chennai Port Trust Authority’s response to queriesSl.No.Existing Clause Clarification and suggested Modifications Authority’s reply to Biddersquery1) Clause 1.4 (Page No. 9 of 118)Kindly confirm that in case the consultant has Confirmed.The document can also be downloaded from downloaded the document, the applicant shallthe Official Website of the Authority. In case of be exempt from payment of Bid Document Feea downloaded form, the Applicant need not (i.e. INR 1000 plus VAT).deposit the aforesaid fee.2) Conditions of Eligibility of Applicants –Clause 2.2.2 (D) (Page No. 13-14 of 118)Educational Qualification for Port sector Expertcum-TeamLeader (the “Team Leader”) -Graduate in Civil EngineeringRequest ChPT to modify the EducationalQualification requirement to – Graduate/ PostGraduate in Engineering / FinanceRFP conditions prevail.3) Conditions of Eligibility of Applicants –Clause 2.2.2 (D) (Page No. 13-14 of 118)Educational Qualification for Financial Expert -Chartered Accountant / ICWA or equivalent4) Conditions of Eligibility of Applicants –Clause 2.2.2 (D) (Page No. 13-14 of 118)Traffic-cum-Safety Expert5) Technical Proposal – Clause 2.14.2 (k) (PageNo. 23-24 of 118)(k) no Key Personnel should have attained theage of 75 (seventy five) years at the time ofsubmitting the proposal;6) Eligible Assignments – Clause 3.1.4 (PageNo. 35-36 of 118)Provided that the Applicant firm claiming creditWe understand that MBA in Finance shallalso be considered qualified for the position.Please confirmWe wish to highlight that Traffic Assessmentand Safety are different streams and requiretotally different expertise. Further, consideringthe scope of services in the RFP, a SafetyExpert may not necessarily be required as aKey Personnel and thus, we request ChPT tosuitably modify this requirement.This is not in line with the generally acceptedpractice in any tender. We request ChPT tokindly remove age limits on the proposed KeyPersonnel.We wish to mention that the fees towardsconsultancy services is linked to the cost ofmanpower of consultants and the strategicMBA in Finance shall also beconsidered.Independent Traffic and safetyexperts could be deployedsubject to adherence to otherconditions of RFP.RFP conditions prevail.RFP conditions prevail.Development of Dry Dock at Timber Pond / Boat Basin Page 2 of 8

Chennai Port Trust Authority’s response to queriesSl.No.Existing Clause Clarification and suggested Modifications Authority’s reply to Biddersquery(1) after a period of 5 yearsfrom completion of thisassignment;and(2) to further consultancy /advisory services performed forthe authority.An associate is an entityholding more than 5% of thesubscription and paid up sharecapital of the consultant.Associates, shall be disqualified fromsubsequently providing goods or works orservices related to the construction andoperation of the same Project and any breachof this obligation shall be construed as Conflictof Interest; provided that the restriction hereinshall not apply after a period of 5 (five) yearsfrom the completion of this assignment or toconsulting assignments granted by banks/lenders at any time; provided further that thisrestriction shall not apply to consultancy/advisory services performed for the Authority incontinuation of this Consultancy or to anysubsequent consultancy/ advisory servicesperformed for the Authority in accordance withthe rules of the Authority. For the avoidance ofdoubt, an entity affiliated with the Consultantshall include a partner in the Consultant’s firmor a person who holds more than 5% (five percent) of the subscribed and paid up sharecapital of the Consultant, as the case may be,and any Associate thereof.9) Proposal Due Date – Clause 2.17 (Page No.27 of 118)10) Substitution of Key Personnel – Clause2.25.2 (Page No. 31-32 of 118)2.25.2 The Authority expects all the KeyPersonnel to be available duringRequest ChPT the Applicants shall be given atleast two weeks’ time from the date ofissuance of clarifications to Pre-bid queries tosubmit the proposal.Request ChPT to absolve the Applicant fromany such deductions if the substitution of KeyPersonnel is in agreement with and tocomplete satisfaction of the AuthorityAccepted. Revised PDD is17.8.2012.(Please see the Amendment)RFP conditions prevail.Development of Dry Dock at Timber Pond / Boat Basin Page 4 of 8

Chennai Port Trust Authority’s response to queriesSl.No.Existing Clause Clarification and suggested Modifications Authority’s reply to Biddersqueryimplementation of the Agreement. The Authoritywill not consider substitution of Key Personnelexcept for reasons of any incapacity or due tohealth. Such substitution shall ordinarily belimited to one Key Personnel subject to equallyor better qualified and experienced personnelbeing provided to the satisfaction of theAuthority. As a condition to such substitution, asum equal to 2% (two per cent) of the acceptedbasic cost of the assignment shall bededucted from the payments due to theConsultant. In the case of a second substitutionhereunder, such deduction shall be 5% (fiveper cent) of the accepted basic cost of theassignment. Any further substitution may leadto disqualification of the Applicant or terminationof the Agreement.11) Indemnity – Clause 2.26 (Page No. 32 of 118)The Consultant shall, subject to the provisionsof the Agreement, indemnify the Authority for anamount not exceeding 3 (three) times the valueof the Agreement for any direct loss or damagethat is caused due to any deficiency in services.12) Short-listing of Applicants – Clause 3.2(Page No. 36 of 118)Of the Applicants ranked as aforesaid, not morethan five shall be pre-qualified and short-listedfor financial evaluation in the second stage.However, if the number of such pre-qualifiedApplicants is less than two, the Authority may,As per the industry norms, the amount ofindemnity is usually capped at fee of theConsultants.In view of the above, request ChPT to kindlymodify the Indemnity clause and limit theamount to the fee received by the Applicant.As there is a minimum Technical Scorerequirement for Applicants to qualify for theopening of Financial Proposal, request ChPTto clarify the approach that will be adopted toshortlist five players if more than five playersqualify as per the Evaluation Criteriamentioned in the RFP.RPF conditions prevail.Top ranked five shall be shortlisted subject to their meetingthe threshold criteria onTechnical Score requirement.Development of Dry Dock at Timber Pond / Boat Basin Page 5 of 8

Chennai Port Trust Authority’s response to queriesSl.No.Existing Clause Clarification and suggested Modifications Authority’s reply to Biddersqueryin its sole discretion, pre-qualify the Applicant(s)whose technical score is less than 70 pointseven if such Applicant(s) do(es) not qualify interms of Clause 3.1.2; provided that in such anevent, the total number of pre-qualified andshort-listed Applicants shall not exceed two.13) Terms of Reference – Clause 1.2 (Page No.45 of 118)1.2 The Consultant shall be guided in itsassignment by the Model ConcessionAgreement.14) Scope of Services – Clause 3.1 (Page No. 45-46 of 118)Assisting the Authority in clarifying the queriesraised on the FR should remain with theconsultant only till the submission of FinalReport.15) Scope of Service – Clause 3.15 (Page No. 47-48 of 118)Financial analysis and bid process16) Scope of Service – Clause 3.15.4 (Page No.48 of 118)3.15.4 If the IRR of the Project, based on theaforesaid calculations is less than 12% (twelvepercent), an effort should be made to reducethe capital costs in consultation with theAuthority. This may be done either by omitting/modifying some of the proposed structures orby phasing them after a suitable period, suchKindly clarify the requirements as per thisclause.Request ChPT to kindly clarify the timelines onconsultant’s obligation to clarify the queriesraise on the FR. In line with practice adoptedby Government Agencies, this obligationWe understand that rendering bid processmanagement services is not envisaged as partof the scope of work. Kindly confirm andmodify the clause accordingly.Suggesting alternate business options wouldrequire a separate study and would be insignificant deviation to the scope of workproposed as per the RfP. Hence, thisrequirement may kindly be removed.“MCA” is a reference documentto understand theimplementation process – mayhelp in finalizing the ‘FR”.Assistance for clarifying querieson the ‘FR’ is obviously theresponsibility of the consultantbeing the author of the Report.Time line may be consideredas 1 year.The Clause remains.RFP conditions prevail.Development of Dry Dock at Timber Pond / Boat Basin Page 6 of 8

Chennai Port Trust Authority’s response to queriesSl.No.Existing Clause Clarification and suggested Modifications Authority’s reply to Biddersquerythat the IRR reaches a minimum of 12% (twelvepercent). If the present proposal is notfinancially viable other business options may besuggested.17) Deliverables – Clause 4 A. (Page No. 49 of118)In the event that a viable project does not seemfeasible, the Consultant shall not proceed withthe Consultancy and the same shall standterminated. The Consultant shall be entitled to apayment of 10% (ten per cent) of theAgreement Value upon such termination18) Time and Payment Schedule – Clause 6.2(Page No. 51 of 118)Time schedule for important Deliverables (the“Key Dates”) of the Consultancy and thepayment schedule linked to the specifiedDeliverables is given below:Milestone Week No. PaymentInception Report 2 -Draft feasibility report 14 60%Final Feasibility Report 18 40%The viability would be assessed at asignificantly later stage and the same is to bepresented in the Draft Feasibility Report.Further it is also inappropriate to terminate thestudy on the grounds of viability; as this isbeyond the control of the consultant. Hence,request you to kindly delete this clause.Request ChPT to kindly modify the paymentschedules as:Milestone Week No. PaymentInception Report 2 30%Draft feasibility report 14 50%Final feasibility report 18 20%RFP conditions prevail.RFP conditions prevail.19) Completion of Services – Clause 11.1 (PageNo. 53-54 of 118)11.1 All the study outputs including primary datashall be compiled, classified and submitted bythe Consultant to the Authority in soft form apartRequest ChPT to modify this clause as:All the study outputs including primary datashall be compiled, classified and submitted bythe Consultant to the Authority in soft formapart from the reports indicated in theThe line “and execution ofConcession Agreement or 52 (Fifty Two) weeks from theeffective date, whichever isearlier” is deleted.Development of Dry Dock at Timber Pond / Boat Basin Page 7 of 8

Chennai Port Trust Authority’s response to queriesSl.No.Existing Clause Clarification and suggested Modifications Authority’s reply to BiddersqueryDeliverables (para 4). The study outputs shallremain the property of the Authority and shall (Please see the Amendment)not be used for any purpose other than thatintended under these Terms of Referencewithout the permission of the Authority. TheConsultancy shall stand completed onacceptance by the Authority of all theDeliverables of the Consultant or 20 (twenty)weeks from the Effective Date provided theDraft Feasibility Report has been submitted,whichever is earlier. The Authority shall issue acertificate to that effect. The Consultancy shallin any case be deemed to be completed uponexpiry of 28 weeks from Effective Date, unlessextended by mutual consentfrom the reports indicated in the Deliverables(para 4). The study outputs shall remain theproperty of the Authority and shall not be usedfor any purpose other than that intended underthese Terms of Reference without thepermission of the Authority. The Consultancyshall stand completed on acceptance by theAuthority of all the Deliverables of theConsultant and execution of the ConcessionAgreement or 52 (fifty two) weeks from theEffective Date, whichever is earlier. TheAuthority shall issue a certificate to that effect.The Consultancy shall in any case be deemedto be completed upon expiry of 1 (one)] yearfrom the Effective Date, unless extended bymutual consent of the Authority and theConsultant.20) Generic Structure of DPR – Page 56 of 118 Kindly confirm that this is only a guideline forthe DPR structure and consultant need notcompulsorily adhere to this structure.Consultant need to adhere tothe generic structure.Development of Dry Dock at Timber Pond / Boat Basin Page 8 of 8