Rail in PPP Mode Presentation to the 6th Global Infrastructure Leadership Forum

NVS Reddy New York Managing Director Feb 2013 w w w . hHyderabad m r . g oMetro v . i Rail n Ltd. Rail Project

 A completely elevated MRT project in Hyderabad, Southern  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

w w w . h m r . g o v . i n 1 Hyderabad city – geographical location

India

India

Hyderabad

w w w . h m r . g o v . i n 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%

w w w . h m r . g o v . i n 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

w w w . h m r . g o v . i n 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

w w w . h m r . g o v . i n 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

w w w . h m r . g o v . i n 6 Funding Pattern & Financial model

 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 . Project IRR : 13.89% . Equity IRR : 17.50% w w w . h m r . g o v . i n 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

w w w . h m r . g o v . i n 8 Engineering, Procurement & Construction contractors

Packages Vendors Viaduct, Stations & Depots L&T Construction Rolling Stock , Power supply + SCADA L&T Construction Traction L&T Construction Signaling & Train Control Thales, Canada (French company) Communication Thales, Portugal (French company) L&T Construction along with Track works (Voest Alpine, Austria + Tata Corus, (Turnouts / Rails / Fastening system) France + Vossloh, Germany) O&M Operator France Automatic Fare Collection (AFC) Samsung, South Korea

w w w . h m r . g o v . i n 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 : [email protected] 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 : [email protected] Website : www.ltmetro.in

w w w . h m r . g o v . i n 10 w w w . h m r . g o v . i n 11 w w w . h m r . g o v . i n 12 N.V.S.Reddy

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