Transit-Oriented Redevelopment of the Dwaraka Bus Station — Feasibility Study Final Report

Smart City Master Planning and Sector-specific Smart City Infrastructure Projects for Visakhapatnam

TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION — FEASIBILITY STUDY FINAL REPORT

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM i

ii VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT

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December 2017

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TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM iii

TABLE OF CONTENTS

Executive Summary 1

1. Project Rationale 3 Alignment with Smart City Vision 4

2. Assessment of Existing Conditions 9 Inter-City Bus 15 Local/City Bus 16 Future Transit Access 18 Land Use Regulation 23 Climatic Analysis 24

3. Development of Technical Options 27 Variable Design Options for Transit Facilities 28 Variable design options for TOD development 37 Asset Class—RESIDENTIAL 39 Asset Class—COMMERCIAL (OFFICE) 40 Asset Class—COMMERCIAL (RETAIL) 41 Asset Class—HOSPITALITY & RECREATION 42

4. Estimation of Project Cost 51

5. Preliminary Financial and Economic Analysis 53

6. Business Model and Project Financing 55

7. Institutional Arrangements for Project Implementation 57

8. Anticipated Social Impacts 59 Benefits to Citizens 60 Benefits to Transit Owning Agency 60 Benefits to Land, Road & Service Owning Agencies 60

9. Anticipated Environmental Impacts 61

Positive Environmental Impacts 61 Negative Environmental Impacts 61

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vi VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT

Acronyms and Abbreviations APEPDCL Andhra Pradesh Eastern Power Distribution Company Ltd.

APGENCO Andhra Pradesh Power Generation Company CEO Chief Executive Officer CMAR Construction Manager at Risk DB Design-Build DBF Design-Build-Finance DBFOM Design-Build-Finance-Operate-Maintain DBOM Design-Build-Operate-Maintain EoI Expression of Interest GHG Greenhouse Gas GVMC Greater Visakhapatnam Municipal Corporation HPSC High Powered Steering Committee IT Information Technology kV kilovolt MW megawatts NREDCAP New & Renewable Energy Development Corporation of Andhra Pradesh Limited O&M Operations and Maintenance OT Operational Technology PV Photovoltaic RFP Request for Proposals RFQ Request for Qualifications SCADA Supervisory Control and Data Acquisition SOQ Statement of Qualification SPV Special Purpose Vehicle ULB Urban Local Bodies VfM Value for Money VUDA Visakhapatnam Urban Development Authority

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viii VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM Executive Summary

EXECUTIVE SUMMARY

The purpose of this project is to study the feasibility of redeveloping Visakhapatnam’s Dwaraka Bus Station, also known as the RTC Complex, and the adjacent administrative offices of the Greater Visakhapatnam Municipal Corporation (GVMC) into an improved bus station, new GVMC administrative offices, and new mixed-use transit-oriented development. In addition to strengthening an important intermodal transit hub, the project is meant to create unique cosmopolitan public space, civic, entertainment and commercial destinations that reinforce the heart of a growing Visakhapatnam.

Transit-oriented redevelopment of the Dwaraka Bus Station is an important step in realizing the Smart City Vision for Visakhapatnam. At its most basic level, the project demonstrates key smart infrastructure and development principles such as:

Bringing people to services while at the same time bringing services to people Prioritizing system retrofits over redevelopment or greenfield expansion Cultivating resilient, networked systems to build capacity and reduce vulnerability.

The RTC Complex includes 2.68 hectares (6.7 acres) in the heart of central Visakhapatnam. The complex currently acts as a bus transfer hub connecting intra-city routes with regional inter-city service. The site is located between VUDA Central Park, GVMC headquarters, the City’s water distribution hub and a thriving retail district. At present the RTC Complex consists of a perimeter bus loop, central terminal and ticketing facilities, and vending and accessory services. The Ambica Building, located along the northern edge of the site, has been leased by a jewelery retailer for the near term. The upper floors of the terminal structure have been vacant for many years.

In addition to improving inter-city and local bus service, there are significant opportunities to connect to future rapid transit services including enhanced BRT bus-ways and MRT connections throughout

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 1 Executive Summary

the city and to the planned Bhogapuram Airport. BRT bus-way corridors converge at the site creating a convenient link between distant communities, the RTC Complex, Madipalem Bus Depot and the train station. These bus-ways are proposed to be enhanced as part of a separate Smart City project.

A concept plan has been developed in consultation with the Andhra Pradesh State Road Transportation Corporation (APSRTC) and GVMC for the redevelopment. The new transit operations will be located on a lower level, including 40 intercity bus bays, seven local bus bays, parcel services and associated commercial space, ticketing, waiting and pedestrian space.

The terrace level above will include mixed-use development and public space amenities. The 930,000 square foot development will include office space, service apartments, hotels, retail, cinema and performing arts venues, civic space and GVMC offices. The public terrace will connect pedestrians to all transit services and provide a cosmopolitan setting for social events, dining, shopping and civic gatherings.

This USD 160 million project is anticipated to be completed through Public-Private-Partnership between APSRTC and the real estate development community.

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1. PROJECT RATIONALE

The purpose of this project is to study the feasibility of redeveloping Visakhapatnam’s Dwaraka Bus Station, also known as the RTC Complex, and the adjacent administrative offices of the Greater Visakhapatnam Municipal Corporation (GVMC) into an improved bus station, improved GVMC administrative offices, and new mixed-use transit oriented development. In addition to becoming an increasingly important intermodal transit hub, the project is meant to create unique cosmopolitan public space, civic, entertainment and commercial destinations that reinforce the heart of a growing Visakhapatnam.

As the population of Visakhapatnam grows and the broader region urbanizes further, there will be an increasing need for infrastructure interventions that build capacity where it can best serve the most people. This can be achieved by guiding more intense development where key services are already in place, or new infrastructure hubs can be built at the heart of densely populated areas, or in the most intelligent and elegant cases, cities can do both simultaneously, in the same place. Redevelopment of Visakhapatnam’s Dwaraka Bus Station, also referred to as the RTC Complex, is such an opportunity.

The project concept as articulated here evolved through a number of converging needs and opportunities. The Andhra Pradesh State Road Transport Corporation (APSRTC) owns and manages the Dwaraka Station and had identified the need to upgrade the stations capacity and circulation in order to better serve intercity bus and local bus services. The need for these improvements is described in a 2016 assessment of the station prepared by the Shakti sustainable energy foundation and SGA Architects.

In addition, The Greater Visakhapatnam Municipal Corporation (GVMC) and Andhra Pradesh Municipal Administration and Urban Development (MAUD) have taken the next step in considering a possible Metrorail Transit system that would connect destinations throughout central Visakhapatnam with surrounding communities and possibly the future Bhogapuram Airport. The previously proposed network of MRT lines can intuitively converge at the Dwaraka Station, providing an efficient multimodal transit hub at the geographic center of greater Visakhapatnam.

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Finally, in response to growth projections, the regional growth framework articulated as part of Visakhapatnam’s Smart City Integrated Framework Plan emphasizes infill development and intensification in close proximity to expandable existing infrastructure and employment centers. As the heart of regional employment and the epicenter of both population and services, Central Visakhapatnam will need to accommodate future population growth within its boundaries in order to maximize the benefit of both existing and proposed infrastructure systems. The central city must be able to support new residential, commercial, institutional and recreational amenities in order to achieve Visakhapatnam’s potential. This will involve the development of mixed- use infill sites and a hierarchy of improved corridors to better connect these destinations with existing hubs of activity.

The RTC complex should be reconfigured and redeveloped to create a mixed-use development accommodating new multi-modal transit connections between local bus, intercity bus, BRT and the proposed rail link to the Bhogapuram Airport. The intended Transit Oriented Development (TOD) would improve pedestrian amenities and safe, animated connectivity between VUDA central park to the south and the retail district to the North. Additional vertical land uses to consider for the site include, residential, hotel, office, theatres and gathering venues. As part of the project, The GVMC Headquarters site is being considered as well for complimentary redevelopment with synergistic uses and amenities as well as new municipal offices and community space. The two sites together represent strategic catalysts, anchoring a broader urban transformation strategy based upon the evolution of critical connections and destinations throughout the city

Redevelopment of the exiting RTC complex and potentially the GVMC Headquarters will better integrate mixed-use development and multimodal connections between pedestrians, vehicles, BRT, and MRT, and provide spaces for supporting amenities and livelihood-generation. In addition, the project can build on the adjacent shopping area to the north to create an entertainment district that will support the needs of 21st century industry and employees. Alignment with Smart City Vision Transit oriented redevelopment of the Dwaraka Bus Station is an important step in realizing the Smart City Vision for Visakhapatnam. At its most basic level, the project demonstrates key Smart infrastructure and development principles such as:

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The Unified Traffic, Transportation and Infrastructure Planning and Engineering Centre (UTTIPEC) of Delhi’s Development Authority define the Smart features of TOD in this way:

Transit Oriented Development (TOD) is essentially any development, macro or micro that induces people to prefer the use of public transportation. The Primary Goals of TOD are to:

Reduce private vehicle dependency and induce public transport use – through design, policy & enforcement measures.

Provide transit access to the maximum number of people through densification and enhanced connectivity.

Transit Oriented Development (TOD) is generally characterized by compact, mixed use development near new or existing public transportation infrastructure that provides housing, employment, entertainment and civic functions within walking distance of transit. Pedestrian-oriented design features of TODs are essential to encourage residents and workers to drive their cars less and ride public transit more. TOD can also be a significant source of non-farebox revenue for the participating transport agency.

But within Visakhapatnam specifically, the project is part of a wave of investment in maintaining and advancing the cities inherent livability. Overtime, significant infrastructure investments led to rapid changes in Visakhapatnam’s economy. Now, the infrastructure of livability promises to accelerate the knowledge economy, and set a platform that benefits all economic sectors. These investments will shape an economy based on clean commerce, driven by complimentary elements of Green Living and Smart Business.

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 5 1. Project Rationale

Figure 1 Diagram depicting the evolution of investments in Visakhapatnam that spurred economic growth.

The RTC redevelopment can provide a platform that supports both green living and Smart Business by improving transit connectivity, providing new office space for existing and future companies and by providing the amenities desired by both people and businesses. With an infusion of new space, Central Visakhapatnam is well positioned to serve all aspects of the growing regional economy.

Figure 2 Illustration depicting the role of Central Visakhapatnam in integrating and accelerating commerce within the region.

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Like the beachfront, The RTC Complex is an important destination, acting as one of the major activity hubs serving the entire city.

Figure 3 Diagram depicting the urban framework for Central Visakhapatnam and the prominence of the RTC Complex.

The project also address concerns specifically identified in the community. As part of the Integrated Smart City Framework Planning effort, a representative 600 households were interviewed to gather data on people’s satisfaction and references regarding the systems that support their daily lives. Key findings that relate to project included:

The first two important factors that the households wanted to add to their neighbourhood are: (i) 24 hours water supply (39.4%) and (ii) better bus services (36.3%). The study also found that 28.7 % of the members of the households are traveling more than 15 kilometres to reach their work places. Most of the household members use auto rickshaws (56.5 %) and public bus (53.5 %) as mode of transport to get to work.

As the Dwaraka Station is a critical hub in the Visakhapatnam’s bus network, enhancements at this location can improve daily commutes for a significant portion of the population.

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2. ASSESSMENT OF EXISTING CONDITIONS

The RTC complex includes 2.68 hectares (6.7 acres) in the heart of Central Visakhapatnam. The site currently acts as a bus transfer hub connecting intra- city routes with regional inter-city service and is located between VUDA Central Park, The GVMC headquarters, the city’s water distribution hub and a thriving retail district. At present the site consists of a perimeter bus loop and central terminal and ticketing facilities, vending and accessory services. The Ambica Building, located along the northern edge of the site, has been leased by a jewellery retailer for the near term. The upper floors of the terminal structure have been vacant for many years.

Figure 4 Diagram locating the two subject properties

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 9 2. Assessment of Existing Conditions

Figure 5 Dwaraka Bus Station existing site plan diagram (source: APSRTC)

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Figure 6 Current condition of bus circulation

Figure 7 Current condition of city bus bays

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Figure 8 Current condition of vending and waiting areas

Figure 9 Current condition of bus exit

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Figure 10 Current condition of pedestrian circulation

Figure 11 Current condition of existing structures

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Figure 12 Current condition of city bus bays

Figure 13 Current condition of idle bus parking

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Inter-City Bus The recent Dwaraka Bus Station Assessment by APSRTC describes current Inter-City Bus Service conditions relative to their target in the following way:

Daily bus flow 446 buses Peak Hour Flow 73 buses per hour Estimated Peak Hour Passenger Flow 3350 Estimated Peak Passenger Accumulation 1240

No. of Bays / Area Required/ Proposed Capacity Current Capacity Shortfall

Size Medium Medium —

Operations Fixed Fixed —

Layover Time 40 40 —

Offloading Bays 4 28 0

Boarding Bays 22

Idle Parking 32 15 17

Arrival Concourse (Sq. m.) 3,422 1372 2,050 Departure Concourse (Sq. m.)

712 (total)

Parking (ECS) 45 667 Admin – 40, Comm. Pass – 222 – 450

IPT Bays Area (sq. m.) 265 265 —

Source: APSRTC assessment of Dwaraka Bus Station 2017 by Shakti Sustainable Energy Foundation and SGC Architects

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Local/City Bus The recent Dwaraka Bus Station Assessment by APSRTC describes current Local Bus Service conditions relative to their target in the following way:

Per day flow 1244 Peak Flow (through site) 87 buses per hour Total Peak Demand 110 buses per hour Estimated Peak Hour Passenger Flow 600 Estimated Peak Passenger Accumulation 55

No. of Bays / Area Required/ Proposed Capacity Current Capacity Shortfall

Size Medium Medium —

Operations Fixed Fixed —

Peak Hour Flow 110 110 —

Layover Time 10 10 —

Boarding Bays 22 4 18 Offloading Bays 0

Idle Parking 0 0 0

Arrival Concourse (Sq. m.) 0 0 0 Departure Concourse (Sq. m.)

0 Parking (ECS) 0 0 Admin – 0 Comm. – 0

IPT Bays Area (sq. m.) 74 68 6

Source: APSRTC assessment of Dwaraka Bus Station 2017 by Shakti Sustainable Energy Foundation and SGC Architects

The study identified the following observations that can inform future planning efforts:

Passengers currently cross the bus way at unmarked and unplanned crossings at least 3 locations – leading to conflicts with bus traffic. The terminal infrastructure does not include defined arrival bays and buses drop passengers in the middle of a large open space between the entrance and the terminal building – leading to criss-crossing of bus way by arriving passengers.

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Buses parking at 90 degrees towards the north edge of the terminal need to back out at a difficult angle. Current bus bay width is 3.5-3.6m, with no passenger boarding lip. This also means that rear gate and baggage area may not be accessible. Parcel booking office is located near the entrance, and part of the bus way is used by tempos and trucks for loading and unloading parcels. Parcels are loaded from the back of the buses on the bus driveway – creating conflicts. The infrastructure includes most of the functions, recommended for a terminal of this Size – this includes PIS systems, CCTV cameras, Crew restrooms, admin office, etc. However, passenger infrastructure and wayfinding (signage) are missing. Fire-fighting systems have not yet been installed. Re-design bus bays with 3.0m bay width and 1.8 to 2.0m wide passenger boarding area or lip. This shall also facilitate access to rear door and cargo bay in the bus.

The GVMC Headquarters is a structure of 9000 square meters on a 1.3 hectare (3.3 acre) site. At a current FSI of .68 the site could be redeveloped at a higher intensity with a broader mix of uses. The facility currently hosts GVMC administrative offices, community meetings space, the centralized Command and Communication Centre and parking. Redevelopment of the site must include new headquarters space for GVMC.

Figure 14 Current condition of GVMC Headquarters building

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Future Transit Access In addition to improving inter-city and local bus service at the site, there are significant opportunities to connect to future rapid transit services including enhanced BRT bus-ways and MRT connections throughout the city and to the planned Bhogapuram Airport.

Figure 15 Diagram illustrating connectivity of planned rapid transit enhancements relative to the project site.

MRT corridors are being planned by GVMC and The State Municipal Administration. The following letter describes the process.

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BRT bus-way corridors converge at the site connecting creating a convenient link between distant communities, the RTC complex, The Madipalem Bus Depot and the train station. These bus-ways are proposed to be enhanced as part of another Smart City project.

Figure 16 Diagram illustrating the proposed BRT bus way enhancement corridors in relation to the Airport link and RTC Complex.

Figure 17 Diagram illustrating the proposed regional land use framework

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Land Use Regulation The current proposed zoning and land use plan for Visakhapatnam shows the RTC Complex as Transportation and the GVMC Headquarters site as Public and Semi-public facility. The land use plans must be updated to account for the proposed mixing of uses.

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Climatic Analysis The following climatic analysis was completed to inform the design process and improve energy efficiency and overall sustainability of the planned development.

Sun Path High sun altitude in summer peaking at (95° ) and winter solstice angle at (49° ). The sun azimuth ranges from 68° TO 105°.

Outside Dry Bulb Temperature Visakhapatnam has a tropical wet and dry climate (Koppen Aw). Cooling and dehumidification dominant climate - the outside temperature is above 78 F for approximately 72% of the time in a year. The hours when the outside temperature is between the range 78F to 63F are approx. 2313 or 26% of the year. The time when outside temperature is within comfort range is highly variable and dependent on the Monsoon timeline as well as the local effects of temperature and humidity. May is the warmest month, Jan is the coolest, and October is the month with the most rainfall. There are distinct dry and wet seasons in a year Dec-Mar = dry and Jun-Oct = wet.

Figure 18 Diagrams depicting solar access influences

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Relative Humidity The Relative humidity is higher than 75% for approximately 62% of the time in a year which is roughly 5468 hours. These hours are predominantly scattered in the late night and morning hours except during July, august, September, October and parts of November where the monsoon season starts to control the climatic dynamics. These monsoon months can get very humid and create a significant load on the HVAC for dehumidification purposes as the temperatures are high. Passive strategies need to be utilized for dehumidification to utilize energy savings from 62% of the time in the year which is very significant.

Wind 85% of the time (5581 hours) Between 1 February and 31 October (6552 hours) , the winds are hot (ABOVE 78 F+) The predominant directions of these hot winds are SW, SSW and WSW. Even though these are hot winds, they may help reduce the effect of humidity in certain outdoor comfort conditions, hence they should be allowed to flow through the site in certain sections.

Optimum orientation There is no heating period The compromise orientation is 11.5° from geographic North direction. The orientation angle can range from 90° to 130° degrees.

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3. DEVELOPMENT OF TECHNICAL OPTIONS

The Unified Traffic, Transportation and Infrastructure Planning and Engineering Centre (UTTIPEC) of Delhi’s Development Authority outlines the following goals for successful TOD projects. While developed for projects in Delhi, these universal principles can be applied to TOD planning in Visakhapatnam. These concepts served as a framework for evaluating technical options and informed the chosen direction.

Synergy between Transport and Land Use, overall, results in lower levels of energy consumption per person for the city for the transport sector, besides numerous city/ local level benefits, as explained below. Mobility Options for all – Change the paradigm of mobility by enabling a shift from use of private vehicles towards the use of public transport and alternative modes. Provide variety of choices for safe, affordable and efficient modes of public transport to all sections of society. Better Quality of Life for All – Provide a variety of high-density, mixed-use, mixed-income housing, employment and recreation options within walking/cycling distance of each other and of MRTS stations - in order to induce a lifestyle change towards healthier living and better quality of life. Integrate varied income communities rather than segregating them, to reduce social stigma and dissent. Give Everyone a Home – Increase the formal supply of housing stock and supporting commercial space which would bring down prices and increase options for different income groups in the city. Market Participates in Better City – Open up development opportunity to the private sector to bring in investment into the city’s growth and revenue, and also help cross-subsidize social amenities, affordable housing and public transport, using a variety of possible development models. Low-income groups can be provided space and shared amenities in integrated mixed-income communities, thereby reducing further proliferation of gentrified slums and unauthorized colonies. Self-Sufficiency – Create mixed-use high density development wherever missing, to make decentralized infrastructure provision and management techniques more feasible, thus making it more economical to recycle water/sewage locally to meet community needs.

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 27 3. Development of Technical Options

Cheaper Public Transport – Value capture the increased land values near MRTS stations for long term cross-subsidy/ non-farebox revenue for the provision, maintenance and possibly reduced ticket prices of public transportation. Reduce Environmental Degradation – Compact planned growth minimizing virgin land urbanization and facilitating the preservation of wetlands, forests, canals, rivers and other environmental resources. Save Public Money – City level reduced infrastructure costs (reduced additional length of roads, pipes, cables, tunnels, etc.) by accommodating the overall planned population within lesser net land area, in a more sustainable way Multi-disciplinary Multi-Departmental Approach – Provide a shift to a more holistic paradigm of planning where all sectors work together – mobility, planning policy, urban design, infrastructure and economics – to deliver integrated planned development.

Variable Design Options for Transit Facilities The following variables were considered in developing site plan options for the future Dwaraka bus station transit facilities:

Amount of redesign and redevelopment Alternative bus circulation routes Alternative pedestrian circulation routes Relationship between inter-city and local bus bays Balance between alighting bays, boarding bays and idle bus parking Quantities of each type of bus-bay Viable locations for future MRT station MRT station above or below grade Location of the parcel service drop-off and pick-up. Location of 2-Wheel parking Location of 3-Wheel pick-up and drop-off Location of 4-Wheel pick-up and drop-off Single level of transit operations or multiple Location and quantity of vending / waiting / ticketing space Vertical circulation locations to upper level development

After consultation with APSRTC and GVMC, the following site plan for transit operations emerged as the chosen concept.

Extent of redesign and redevelopment The suggested plan involves complete demolition of the existing buildings, driving surfaces and pedestrian accesses with the exception of the Ambica building currently subject to long term lease. Previous

28 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Figure 20 Site plan depicting proposed transit facilities at lower level

Figure 19 Site plan depicting proposed Terrace Level development

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 29 3. Development of Technical Options

Figure 21 Section A-A’ depicting the relationship between the transit level and the upper level circulation.

Figure 22 Section B-B’ depicting the relationship between the transit level and the upper level circulation.

studies prepared for APSRTC attempt to maintain more of the structures to reduce upfront cost. These options were not able to yield enough new bus bays and or provide adequate circulation space for buses. These options also do not adequately facilitate air-rights development over the remainder of the site. While they may result in marginal improvements in bus station facility quality, they do not safely facilitate multi-modal transfers to an eventual MRT system and they do not result in transformative redevelopment.

Alternative bus circulation routes The proposed plan utilizes similar bus entry and exit points as the current condition and provides one-way circulation throughout the site to minimize conflicts. In addition, a second entry point has been added along the southern edge of the site to accommodate diverse traffic. Local bus boarding and alighting are accomplished on the northern side

30 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

of the site using sawtooth style bus bays that facilitate safe and convenient movements in short dwell time situations. These bays can be access from the western entry point . The local bus loop is located to maximize transfer convenience between city buses and minimize the need for pedestrians to cross vehicular circulation routes. Intercity bus bays are organized around a center island that facilitates ticketing, waiting and vertical circulation to upper level amenities. 6 bays are designated as optional alighting bays and can be easily accessed form the southern entry point. Arriving buses can be directed here, passengers can depart and the bus can then be routed to either the parcel service facility or the appropriate boarding bay. Smart parking systems can help APSRTC staff manage the flow of buses to maximize the use of space within the new facility. These systems are discussed later in this chapter.

Previous plans prepared for APSRTC by others explored alternative circulation patterns. In some cases, alternatives included multiple entry or exit points in close proximity along the same street that could cause confusing or congested conditions. In other cases the local bus traffic was completely shifted to the curb side adjacent to the site. This complicates transfers between buses.

Alternative pedestrian circulation routes The proposed plan organizes pedestrian circulation into a series of intuitive corridors that cross bus circulation routes using raised high visibility crosswalks and or vertical circulation linking centre islands with upper level amenities. The plan also maintains pedestrian circulation around the edge of the site and encourages a signalized mid-block crossing between the site and VUDA Central Park to connect future amenities along a significant desire line.

Quantities of each type of bus bay The proposed plan includes 40 intercity head–in bus bays each including a 3m wide parking zone and a 2m wide loading area. Currently, there are 22 boarding bays and 32 idle bays used to meet the demand. The proposed plan allows for more buses to park once and accommodate boarding/alighting/layover without the need to move multiple times. This also allows for expansion of intercity routes/timetables if needed.

The plan also includes 7 sawtooth bays for local bus boarding and alighting. Currently, the demand of 110 peak hour buses is met by curb side bus stops at the edge of the site and 4 internal tangent bus bays that require the lead bus to move before the following uses can reach the bus bay. The proposed bays can accommodate a significant increase in throughput.

Location of the parcel service drop-off and pick-up The proposed plan locates the parcel service facility and 4 additional head-in bays in the SE corner of the site. These spaces can be used for parcel operations without conflicting with bus circulation.

Viable locations for future MRT station As the timing and design parameters of the MRT system are unknown at this point the proposed plan allows for the redevelopment of the RTC complex and the development of MRT to happen independently. The conceptual east/west and north/south alignments of the MRT lines could be made to converge in common station along the western edge of the site within the Seethammapetha Road right of way. The station can be accessed from the SW corner of the site in the vicinity of the fish market today. The connection point would allow for smooth transfers from Inter-City buses, Local buses and general pedestrian traffic. Alternative locations for the station would require multiple stations (to address N/S and E/W movements) and increase complications with the Telugu Talli Fly over along the north side of the site. The plan for the RTC complex allows for a flexible connection to MRT in the SW corner either to a below grade station or an above grade station.

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 31 3. Development of Technical Options

Location of 2-wheel parking APSRTC suggests that significant on-site parking is needed for 2-wheeler parking as many people ride to station and take the bus from that point forward in their day. To avoid potential conflicts with bus circulation and pedestrians, the proposed plan allocates over 1000 square meters on the terrace level above for 2-wheeler parking. This area is covered and also provides access to the retail and entertainment destinations on the terrace level.

Location of 3-wheel pick-up and drop-off 3-Wheeler pick-up and drop-off space is proposed along the curb side along the southern edge of the site. This site allows 3-wheelers the optimal access to local bus, inter-city bus and MRT passengers without complicating internal site circulation.

Location of 4-wheel pick-up, drop-off and parking The proposed plan includes two 4-wheeler drop-off and pick-up areas on the terrace level accessed from northbound Jail Rd. The southern pick-up and drop-off loop will provide transit access via vertical circulation in building RTC 2. The more northern loop will provide pick-up and drop-off access for the mixed-use development as well as EMS and loading access. Currently there is no on-site 4-wheeler parking for RTC riders. This practice should continue as there are many ways to get to the site and no need to waste space with parking for 4-wheeled vehicles. 4-Wheeler parking is provided for the mixed-use development in the basement level of the GVMC site.

Single level of transit operations or multiple levels The proposed plan maintains all bus operations on the same level. While splitting operations over two levels could allow more room for transit expansion, the structural requirements would significantly increase costs unnecessarily, constrain ease of transfer and reduce potential for well-connected public space above.

Location and quantity of vending/waiting/ticketing space The proposed plan locates vending waiting and ticketing space at the edge of the site where is can be accessed by the most people and or at the center of each bus loop where it is most convenient. The plan includes an increase in leasable vending space to accommodate the current shortfall.

Vertical circulation locations to upper level development Vertical circulation is proposed at four internal locations as well as stairs at the terrace edge in key locations. Vertical circulation points connect the terrace level with the MRT entrance and three locations along the center island of the bus terminal.

32 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Figure 23 Diagram depicting multimodal circulation patterns

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 33 3. Development of Technical Options

Smart bus and vehicle parking strategies A smart Parking Guidance System (PGS) will allow APSRTC to make best use of available parking space and optimize the flow of buses into, through and out of the RTC terminal. The solution should provide tracking, monitoring & dispatch functions for the APSRTC buses using the RTC Complex at Visakhapatnam and can be further extended to manage the proposed public 4 wheeler parking lot if desired. The parking capabilities mentioned in this document should be a part of and integrate with the broader Smart Transit solution platform and will leverage the existing GPS capabilities already available on APSRTC buses. The broad objective of the Parking Guidance system (PGS) is to enhance operational efficiency, provide real-time information and support decision making.

The PGS shall use existing GPS based location tracking devices mounted on the vehicle as its primary source of data. The location and associated data acquired from the on board devices shall be used for tracking and other operational processes. The PGS system shall enable the APSRTC operations team to monitor vehicle movement in near real-time, aggregate and deliver information to the display systems inside the bus, the control room’s portal, a mobile application and the passenger information display within the RTC terminal.

The key objectives met by the PGS are:

Arrival and departure tracking at the bus terminal to optimize turnaround time. Parking management to allow APSRTC to make optimum use of available bus bays and parking spots for buses Address scheduling related issues, the APSRTC control room at the RTC complex requires technology which can track the arrival and departure time of buses at the terminal as well as parking spots. This will allow APSRTC to track if defined trip schedules are maintained. Prevent unauthorized access of vehicles from areas reserved for buses.

Shown below is a conceptual view of the PGS solution for buses within the terminal.

34 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Figure 24 Bus smart parking process flow

Shown below is an extension of the PGS solution for the proposed Public parking in the RTC complex after redevelopment

Figure 25 Public parking conceptual architecture

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 35 3. Development of Technical Options

Some of the requirements to be met by the PGS are:

The PGS should be equipped to monitor and manage indoor (covered) parking and open (outdoor) parking present in the RTC bus terminal and the proposed new public parking facility. Each parking lot/platform or bay should be mapped to a single parking sensor. The PGS should have a visual display at the entrance of the bus terminal directing drivers to the assigned parking slots/platform or bay as per the schedule or route planned, after access is granted via the RFID equipped access barrier. All sensors, devices and equipment used in the PGS solution should provide two-way communication to send and receive data. The PGS should provide data in near real time. The PGS shall provide reports and analytics for greater visibility into parking related activities like usage, peak/premium parking demands, etc. allowing APSRTC staff to make better decisions. This Parking Guidance System should be able to operate in an offline mode i.e., that is, if the sensors and display should continue to keep count and send data to the visual display even when the servers are down. The PGS system should allow users to configure alerts when buses stay at a specific location beyond a pre-defined interval. Monitor the buses entering the depot to ensure the bus that enters has a pre-defined free space to park. The parking sensors used should track if a spot is used by integrating with a display sign i.e. green if available and red if occupied. The PGS solution should provide the capability to generate reports of occupancy and availability in near real time. The PGS system should provide real time monitoring of the status of the system. The PGS system should generate an alert when devices are not connected or when equipment fails. The PGS system should provide the users with the complete layout of the RTC bus terminal with locations of buses and parking bays. The PGS system should allow users to down information and configure fields for maintenance.

Listed on the right is a sample Bill of Materials and sample pricing for the proposed solution. The pricing is indicative and for budgetary purposes only and is non-binding. Installation costs will be extra.

36 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Unit Price Total Price Sample Bill of Materials for the PGS Components Unit Quantity (Rs) (Rs)

1 Entry/Exit Boom Barrier Gate Nos 4 187,500 750,000 2 Entry Ticket Dispense/Smart Card Reader/QR Code Unit Nos 1 500,000 500,000 3 Entry/Exit Fixed CCTV Comers Nos 4 31,250 125,000 RFID Reader - RFID Tag - 4 Exit Ticket verifier workstation with Smart Card Reader/SM Card Reader Nos 2 93,750 187,500 5 Thermal Receipt Printer Nos 1 31,250 31,250 6 QR Code Reader Nos 2 25,000 50,000 7 Parking Occupancy Sensors for Individual slots (geo magnetic) Nos 500 18,750 9,375,000 8 Non-Contact/Non-intrusive Sensors for Parking Occupancy Count only Nos 10 31,250 312,500 9 Parking Guidance Signal Nos 10 31,250 312,500 10 Parking Controller Nos 2 375,000 750,000 11 Parking Availability Display Type A Nos 2 125,000 250,000 12 Parking Availability Display Type B Nos 10 50,000 500,000 13 MLCP Local Server and accessories Nos 1 500,000 500,000 14 Server Racks Nos 1 62,500 62,500 15 Handheld Terminal (POS) Nos 2 125,000 250,000 16 GSM?GPRS connectivity from Handheld Nos 2 - - C Parking Guidance & Management System - 1 PGS Application Software Nos 1 2,500,000 2,500,000 2 PGS Workstation Nos 2 62,500 125,000 3 Parking Mobile Application Nos 1 1,000,000 1,000,000 4 PGS Server Nos 1 625,000 625,000 D Networking - 1 Networking 3 625,000 1,875,000 E Installation & Commissioning Service - 1 Installation Services 3 1,250,000 3,750,000

Variable design options for TOD development The following variables were considered in developing site plan options for the future TOD above the Dwaraka Bus Station transit operations:

Incorporating the GVMC site Synergies with surrounding into the TOD redevelopment properties Pedestrian circulation to and Type of public space to be through the site created Light and ventilation strategies Public safety for transit level. Scale of potential development Building footprints Parking strategy Land uses considered Potential for innovative, efficient systems

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 37 3. Development of Technical Options

Incorporating the GVMC site into the TOD redevelopment By including the GVMC site into the TOD redevelopment the project gains scale and flexibility in providing necessary amenities and infrastructure. For example the GVMC site can be used to provide temporary transit facilities during the RTC complex construction.

Pedestrian circulation to and through the site The proposed plan organizes the development around and central pedestrian promenade that connects VUDA Central Park, the RTC Complex and the GVMC site. The promenade extends over Jail Road to create a seamless experience between the sites. Pedestrians access the promenade from all sides via stairs or at-grade plazas.

Light and ventilation strategies for transit level The pedestrian promenade is part of a structured landscape terrace that covers a majority of the transit operations below. Light and passive ventilation are provided to the transit level through wide openings in the terrace. These openings are strategically placed to not interrupt the promenade, allow light and air through but keep the front of each bus bay covered to shield riders from the elements. Covering more of the transit level would increase costs unnecessarily and require active ventilation and extensive lighting at all times.

Building footprints Building footprints were located and shaped to provide a variety of floor plate options that could support targeted land uses while maximizing opportunities for daylighting. While the buildings will be relatively tall, the shape of the footprints is meant to minimize the appearance of their scale relative to adjacent structures.

Targeted Land uses The TOD targets mixed-use development at a variety of price-points based upon conversations with industry leaders and the Visakhapatnam development community. Key land uses include:

Civic/cultural New GVMC Headquarters, welcome center, museum space, multi-purpose space, and library.

Entertainment Cinema, theatre/concert venue.

Retail Restaurants and shopping opportunities at a variety of price-points possibly including new fish market.

Residential Service apartments at various price-points and lease periods.

Office Multiple floor plate options and price-points for rental space including healthcare-oriented and standard commercial tenants.

38 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Evidence of Market Demand With the largest harbor in India, Visakhapatnam fares in export-import, shipping, fisheries, petroleum, Pharma, and heavy industries sectors. The city is also a center for education, IT, and Defense. The National Highway (NH-5) traversing through the middle of the city, drives the real estate development along it. The proposed Visakhapatnam-Chennai Industrial Corridor along with state’s focus on developing IT and electronics sector will further boost the real estate prospects of the city.

Real Estate market in Visakhapatnam is considered to be an end user driven market. According to a study conducted in September 2015, the city was ranked three among top 19 tier-II cities on the basis of substantial rate of real estate construction and new launches followed by significant sales. According to the report, 10 key parameters were taken into account to generate the rankings which included price, supply, absorption, inventory, and new launch trends. The study has also looked at execution delays and the size of the market in value terms. (Source: PropEquity Report)

Section provides a brief overview of the market conditions across various asset classes:

Asset Class—RESIDENTIAL

City Overview1 Traditionally, Visakhapatnam’s residential activity was concentrated around the CBD areas of the city, comprising of micro markets such as Siripuram, Beach Road, Lawson’s Bay, Waltair Uplands, etc. However, due increasing population, escalating land values in established residential hubs, growth of IT/ITeS segment in Madhurawada – Pendurthi – Gajuwaka region, the real estate development activity in the residential segment is witnessing a gradual transition from central areas to suburban areas, and subsequently to the peripheral areas of the city. Most of the residential developments are 20 – 50 dwelling units in size; however, the city has seen several large scale developments (in excess of 100 DUs) in recent years. The increase in larger proposed developments is likely to gain momentum in the coming years, due to an influx of larger/national developers to the region. About 60% of the total residential supply has been introduced in the past 2 years—Madhurwada and Yendada micro markets have been major contributors.

Micro-Market Overview The average pricing for residential apartments in the Micro-market around RTC complex ranges from Rs 3,000 – Rs 5,800 per sqft as illustrated in the table below:

S. No. Locality Average Sale Price (Rs per sqft) 1 CBM Compound Road 5,600 2 Seethammapetha Road, Dwaraka Nagar 5,000 3 Ramatakies Road 5,100 4 Ram Nagar 3,000 5 Jaganadhapuram 3,500 6 Lalitha Nagar 5,800 Source: www.makaan.com & www.magicbricks.com

1 Source: CBRE Report

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 39 3. Development of Technical Options

Asset Class—COMMERCIAL (OFFICE)

City Overview1 Most of the organized activity in the commercial segment in the city is concentrated in the IT/ITeS segment. The city is home to prominent IT/ITeS companies such as Wipro, Tech Mahindra, etc. Two of the more prominent commercial markets in the city are Asilmetta – Waltair Uplands and the IT hub of Madhurawada – Rushikonda. Non-IT building supply mainly driven by BFSI, Telecom, and Technology Segment in Visakhapatnam. Non-IT commercial spaces have seen an upward trend (10-12%) in rents in the past two years. Increase in IT/ITeS activity is expected to have a spillover effect on non-IT activity as well. Limited land availability has led to high capital values for land in the region.

Micro-Market Overview The Micro-market around RTC complex is one of the prominent markets of the city in terms of Grade-A developments for Office spaces. Asilmeta houses about 52% of the city’s Grade-A developments while the rest is spread through NAD Road, Waltair Uplands and Ramnagar. (Source: CBRE Report) Limited land availability in this region has led to higher capital values of land which in turn has resulted in higher sale and rental pricings. (Source: Discussion with CBRE Representative) The current supply of Grade-A Office spaces is very low in the micro-market around the RTC complex. (Source: Discussion with CBRE Representative) The available inventories of Grade-A Office spaces in the micro-market around the RTC complex have average sale price ranging from Rs 6,500 – Rs 8,200 per sqft as illustrated in the table below:

S. No. Locality Average Sale Price (Rs per sqft) 1 Dwaraka Nagar 8,200 2 Asilmeta 6,500 3 Daba Garden Road 7,600 4 Siripuram 7,000 Source: www.magicbricks.com

The average rental pricing for the available inventories of Grade-A office spaces in the micro-market around RTC complex ranges between Rs 50-55 per sqft per month as illustrated in the table below:

Average Rental Price S. No. Locality (Rs per sqft per month) 1 Dwaraka Nagar 55 2 Asilmeta 50 3 CBM Compound Road 55 4 Siripuram 50

1 Source: CBRE Report

40 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Asset Class—COMMERCIAL (RETAIL)

City Overview1 Retail developments in Visakhapatnam are typically part of larger mixed-use developments. Organized retail activity has seen a marginal increase in the last few years, however, the same is still in its nascent stages in this market. Two retail malls (Visakhapatnam Central and Chitralaya Mall) have recently been added to the Daba Gardens-Jagdamba junction micro market.

Micro-Market Overview Dwaraka Nagar and Waltair Uplands micro market which includes regions such as Asilmetta, Ramnagar, Telugu Talli Flyover Road, VIP Road, etc are predominately characterized by organized retail/big box retail.1 The stretch near RTC complex (between Asilmetta Junction and Telugu Talli Flyover) is regarded as prominent commercial and retail hubs, owning to its strategic location at the center of the city. This high street retail hub is characterized by presence of a mix of local, national and international brands.1 CMR Central, the biggest retail mall in Visakhapatnam lies within the micro market.1 The current supply of retail spaces is almost negligible in the micro-market around the RTC complex.2 The average rental pricing for the available inventories of retail spaces in the micro-market around RTC complex ranges between Rs 60-65 per sqft per month as illustrated in the table below:

Average Rental Price S. No. Locality (Rs per sqft per month) 1 Dwaraka Nagar 65 2 Akkayapalem 60 3 Siripuram 65 Source: www.quicker.com & www.magicbricks.com

1 Source: CBRE Report 2 Source: Discussion with CBRE Representative

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 41 3. Development of Technical Options

Asset Class—HOSPITALITY & RECREATION

City Overview1 City has approximately 1000 rooms in 3-5 star category. The average occupancies range between 70-75% throughout the year. The existing occupancies are largely due to the corporates that travel to Visakhapatnam for business. Hospitality Business from corporates is growing and at present there is a need for adding 500-600 keys in the 3-5 star category segment in next 4-5 years. Presently ITC, Marriott and Key Hotel have plans to add around 300 keys (3-5 star category) to the city. The local populace is conservative with less willingness to spend on recreation. However, due to the presence of GITAM University (Gandhi Institute of Technology and Management) and Andhra University in the city, it has a significant number of young populace looking forward for amusement and recreation infrastructure in the city.

Micro-Market Overview The existing benchmarks available under 4 & 5 star category hotel segment in the micro-market around RTC complex are illustrated below:

Average Room Rent S. No. Name of Hotel Location Category (Rs per night) Waltair Uplands, 1 Four Points by Sheraton 5 Star ~6500 Siripuram 2 Fortune Inn Sree kanya Dwaraka Nagar 4 Star ~4000 3 Dolphin Hotel Daba Gardens 4 Star ~4500 4 Welcome Hotel Grand Bay Waltair Main Road 4 Star ~8500 Source: www.cleartrip.com

1 Source: Key informant interview with Novotel during Phase-I

42 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Activating uses at the terrace level The redevelopment creates the opportunity for new activated publicly accessible space in the heart of Visakhapatnam. The concept plan encourages activating uses at then terrace level that reinforces activity areas on the terrace itself.

Figure 26 Diagram depicting terrace level activating uses.

Synergies with surrounding properties The proposed plan builds off of the retail/commercial activity to the North and East to create an entertainment district and gives residential and office uses views of the central park and surrounding city.

Type of public space to be created The promenade will feature publicly accessible gatherings spaces and event venues as well as outdoor dining opportunities activated by adjacent restaurants and shopping. Dedicated space for shopping kiosks will organize commercial activity in the public space.

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 43 3. Development of Technical Options

Figure 27 Site plan depicting public space activity areas

Activity Spaces- a. Activity Space A will serve as central gathering space and stage for performances, festivals and other events. b. Activity Space B will serve as a linear shopping and dining space connecting the MRT with the Mixed-use development. c. Activity Space C will serve as an active civic square, where visitors can dine and play within an interactive water feature. d. Activity Space D will serve as a shaded seating area for outdoor dining and social interaction.

Public safety Lighting will be provided to create an ambient level of white light that rewards visual acuity and creates a sense of comfort for residents, visitors and employees. Pedestrian pathways will be activated by adjacent land uses creating a sense of visibility that supports public safety.

Scale of potential development The proposed plan is scaled to intensify development without overwhelming the adjacent parcels. The building heights are in

44 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Figure 28 Artist’s illustration depicting the potential character of the terrace level in activity area A.

Figure 29 Artist’s illustration depicting the potential character of the terrace level in activity area D.

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 45 3. Development of Technical Options

alignment with the Smart City Integrated Framework Plan guidance on TOD infill projects in the Central City. Setbacks have been provided as per Government of Andhra Pradesh , Municipal Administration and Urban Development Department document G.O.Ms. No 119, dated 28.03.201.

Potential for innovative, efficient systems The density of the development and the diversity of the targeted land uses allows for the implementation of district-level sustainability initiatives directed at reducing the site’s energy and water use intensity.

Due to its location in a high-temperature, high-humidity area, the RTC Complex is expected to have a large cooling demand throughout the year. Preliminary estimates of the energy demand (which for this site is tightly related to the cooling demand) for the proposed development program show a baseload demand at all hours of the day with a sizeable peak in the early to midafternoon.

Figure 30 RTC Complex Annual Cooling Demand

Figure 31 RTC Complex Peak Day Electrical Demand

46 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

For a development of this scale, the centralization of cooling systems at the district level can result in significant efficiency gains when compared to stand-alone systems at the building level. One approach to district cooling includes the use of electric chillers and cooling towers to produce chilled water at a central location and distribute it to the buildings in the development. A second approach to district cooling trades electric chillers for absorption chillers, which use a heat source such as hot water to produce chilled water. This type of district cooling system can achieve very high efficiencies by taking advantage of waste heat from industrial or power generation processes, or by using other efficient methods for generating heat.

An innovative approach to producing heat for absorption-based district cooling systems is to use a Combined Heat and Power (CHP) plant. CHP is a technology that uses an engine to generate electricity while recovering the excess heat to produce steam or hot water that can be used in the absorption cooling process. The gas used to power the CHP can be obtained from gasifying liquid natural gas, or through anaerobic digestion of organic waste such as plant refuse or livestock waste.

If gas or industrial waste heat cannot be made available, higher district cooling efficiencies can be achieved by replacing traditional cooling towers used for heat rejection with a ground-source loop that uses the earth as a heat sink. This exchange would have the dual effect of reducing both the energy required for cooling and the amount of water required for heat rejection, both valuable resources in the region.

In all district cooling scenarios, providing cooling for the development will require a significant amount of electricity. The RTC Complex should consider using rooftop solar photovoltaics paired with battery energy storage systems to generate a portion of the electricity needed for the development.

Figure 32 Illustrative massing diagram looking northwest

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 47 3. Development of Technical Options

Figure 33 Illustrative massing diagram looking southeast

Figure 34 Illustrative massing diagram looking east

48 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 3. Development of Technical Options

Parking Strategy The 4-Wheeler parking for the development will be located on the GVMC parcel in a multi-level below grade garage. The goal of the parking strategy being to provide for vehicular access but not overwhelm the destination with vehicular traffic in a transit–oriented development.

Figure 35 Diagram illustrating the proposed development footprints

Building Footprint (SF) Proposed gross area (SF) Civic (SF) Office (SF) Residential (SF) Hotel (SF) Retail (SF) Entertain. (SF) RTC 1 159,588 151,457 8,131 RTC 2 227,300 164,905 51,872 10,523 RTC 3 53,954 46,246 7,708 RTC 4 existing building RTC 5 125,977 122,275 3,702 RTC 6 3,355 3,355 Sub total 570,174 0 319,978 164,905 51,872 25,711 7,708 Gross FSI

GVMC 1 111,948 102,318 9,631 GVMC 2 100,640 90,327 10,313 GVMC 3 33,851 26,519 7,332 GVMC 4 111,557 111,557 Sub total 357,996 138,076 0 102,318 90,327 19,943 7,332

Project total (SF) 928,170 138,076 319,978 267,223 142,198 45,655 15,040

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 49 3. Development of Technical Options

The following land uses are anticipated in each proposed building:

RTC 1- Terrace level retail + office above RTC 2- Terrace level retail + hotel and residential above RTC 3- Concert venue/theatre + office above RTC 4- Existing Ambica building (retail) RTC 5- Terrace level retail and 2-wheeler parking + office above RTC 6- Fish market to replace current market GVMC 1- Terrace level retail + residential above GVMC 2- Terrace level retail + hotel above GVMC 3- Terrace level cinema + Museum above GVMC 4- GVMC headquarters

50 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 4. Estimation of Project Cost

4. ESTIMATION OF PROJECT COST

The anticipated rough order of magnitude construction costs for the redevelopment of the RTC complex and GVMC site are describes in the following table.

Total Square Feet Anticipated Construction Cost (USD) Const. cost USD (Dollar per Square Meter) Const. cost USD (Dollar per Square Foot) Office - Class A 273,732 $17,801,374 $700 $65

Office - Class B 46,246 $2,577,842 $600 $56

Residential - High 164,905 $14,554,216 $950 $88

Residential - Moderate 102,318 $9,030,363 $950 $88

Hotel - High 90,327 $12,587,464 $1,500 $139

Hotel - Moderate 51,872 $6,746,656 $1,400 $130

Retail - Kiosk 6,710 $374,021 $600 $56

Retail - Restaurant 28,285 $2,102,213 $800 $74

Retail - shopping 14,015 $1,041,609 $800 $74

Entertanment - Cinema 7,332 $476,827 $700 $65

Entertainment - Concert venue 7,708 $501,247 $700 $65

Civic - City Hall 98,693 $5,501,326 $600 $56

Civic - Welcome Center 12,864 $717,090 $600 $56

Civic - Museum 7,332 $408,709 $600 $56

Civic - Multi-purpose space 11,855 $660,806 $600 $56

Civic - Auditorium 7,332 $408,709 $600 $56

4 wheeler - Parking 57,078 $1,590,814 $300 $28

Public space - on structure (plaza and plantings) 242,761 $7,893,636 $350 $33

Public space - on grade (plaza and plantings) 202,840 $5,653,334 $300 $28

Skyway 3,842 $124,925 $350 $33

Street crosswalks and striping allowance $100,000

Interactive Waterfeature + Public Art Allowance $2,000,000

Concrete Roadway (for bus station/busbays) 160,636 $2,984,713 $200 $19

Retail & ticketing space 24,813 $1,383,120 $600 $56

Demolition allowance $5,000,000

Maintenance of traffic and staging allowance $5,000,000

Bus operations technology $750,000

Utility upgrade allowance $10,000,000

Design and Construction Contingency $29,166,305

Design + permiting fees $19,444,203

$166,581,524 Accuracy of costs estimates is +/- 50%

The areas of each development type are based on the conceptual planning to date. The unit costs for construction in India were informed by the following sources:

AECOM Cost Consulting Research Digest, 2017, Draft AECOM Property and Construction Handbook, International Edition 2014. www.aecom.com/content/wp-content/uploads/sites/2/2015/10/ Blue-Book-2014.pdf Arcadis Cost Handbook, India, 2016. www.langdonseah.com/en/sg/ files/download/3773 Turner and Townsend International Construction Market Survey, 2016. www.turnerandtownsend.com/media/1518/international- construction-market-survey-2016.pdf

These estimates do not include cost of financing.

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52 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 5. Preliminary Financial and Economic Analysis

5. PRELIMINARY FINANCIAL AND ECONOMIC ANALYSIS

The preliminary cash flow analysis is based on average revenue assumptions based on land-use, a 3 year construction period, and a debt-repayment period of 12 years.

Inflation Factor 1.00 1.05 1.10 1.16 1.22 1.28 1.34 1.41 1.48 1.55 1.63 1.71 1.80 1.89 1.98 2.08 2.18 2.29 2.41 2.53 2.65 2.79 2.93 3.07 3.23 3.39 3.56 3.73 3.92 4.12 4.32 4.54 4.76 5.00 5.25 Year No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Operations Year 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32

Capital Expenses (Rs Million) Construction Cost 11,622 2,905 3,051 6,406 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Interest During Construction 1,376 127 400 849 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Total Capital Expenses 12,998 3,033 3,450 7,256 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Debt Disbursement and Repayment Schedule (Rs Million) Debt Disbursement 8,243 1,820 2,070 4,353 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Repayment Schedule 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% 8% Debt Repayment 687 687 687 687 687 687 687 687 687 687 687 687 DSCR 0.2 0.4 0.4 0.5 0.4 0.6 0.7 0.8 0.9 0.8 1.2 1.5

O&M Expenses (Rs Million) Annual Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Periodic Maintenance ‐ ‐ ‐ ‐ ‐ ‐ ‐ 193 ‐ ‐ ‐ ‐ 247 ‐ ‐ ‐ ‐ 315 ‐ ‐ ‐ ‐ 402 ‐ ‐ ‐ ‐ 513 ‐ ‐ ‐ ‐ 655 ‐ ‐ Marketing & Brokerage Expenses ‐ ‐ ‐ 8 12 14 15 15 16 17 18 19 20 21 22 23 24 25 27 28 29 31 32 34 36 37 39 41 43 46 48 50 53 55 58 Total O& M Expenses ‐ ‐ ‐ 8 12 14 15 209 16 17 18 19 267 21 22 23 24 340 27 28 29 31 434 34 36 37 39 554 43 46 48 50 707 55 58

Revenues (Rs Million) Office ‐ Class A ‐ ‐ ‐ 118 168 212 212 225 237 250 262 275 287 312 325 337 350 374 387 412 424 449 474 499 524 549 574 612 637 674 699 736 774 811 849 Office ‐ Class B ‐ ‐ ‐ 17 23 30 32 32 34 36 38 40 42 44 46 49 51 53 55 59 61 65 67 72 74 78 82 86 91 95 101 105 110 116 122 Serviced Apartment ‐ High ‐ ‐ ‐ 70 106 111 117 128 134 139 145 150 161 167 178 184 195 206 217 223 234 250 262 273 289 301 317 334 351 367 384 406 423 445 468 Serviced Apartment ‐ Moderate ‐ ‐ ‐ 44 66 69 73 79 83 86 90 93 100 104 111 114 121 128 135 138 145 155 162 169 180 186 197 207 218 228 238 252 262 276 290 Hotel ‐ High ‐ ‐ ‐ 59 94 97 102 108 114 120 125 131 137 145 151 159 168 176 185 193 205 213 225 236 248 259 273 287 302 316 333 350 367 384 404 Hotel ‐ Moderate ‐ ‐ ‐ 32 49 52 56 57 60 64 67 70 74 77 80 85 90 93 98 103 108 114 119 126 132 139 145 152 160 168 176 185 194 204 214 Retail ‐ Kiosk ‐ ‐ ‐ 3 4 5 5 5 6 6 6 6 7 7 7 8 8 9 9 9 10 10 11 11 12 13 13 14 14 15 16 17 17 18 19 Retail ‐ Restaurant ‐ ‐ ‐ 14 20 25 26 27 28 30 31 34 35 36 39 40 43 44 46 49 52 54 57 59 62 66 68 72 76 80 84 88 92 97 102 Retail ‐ shopping ‐ ‐ ‐ 7 10 12 13 13 14 15 15 17 17 18 19 20 21 22 23 24 26 27 28 29 31 33 34 36 38 40 42 43 45 48 50 Entertanment ‐ Cinema ‐ ‐ ‐ 3 4 5 5 6 6 6 6 7 7 7 8 8 9 9 10 10 10 11 12 12 13 13 14 15 15 16 17 18 19 20 21 Entertainment ‐ Concert venue ‐ ‐ ‐ 4 4 5 6 6 6 7 7 7 7 8 8 9 9 9 10 10 11 12 12 13 13 14 15 15 16 17 18 19 20 21 22 Civic ‐ City Hall ‐ ‐ ‐ 25 34 46 50 50 53 56 60 63 66 70 73 76 80 83 86 93 96 103 106 113 116 123 129 136 143 149 159 166 172 182 192 Civic ‐ Welcome Center ‐ ‐ ‐ 3 4 6 6 6 7 7 8 8 9 9 10 10 10 11 11 12 13 13 14 15 15 16 17 18 19 19 21 22 22 24 25 Civic ‐ Museum ‐ ‐ ‐ 2 3 4 4 4 4 5 5 5 5 6 6 6 6 7 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 15 16 Civic ‐ Multi‐purpose space ‐ ‐ ‐ 3 5 6 6 7 7 8 8 8 9 9 10 10 10 11 12 12 13 13 14 15 16 16 17 18 19 20 21 22 23 24 25 Civic ‐ Auditorium ‐ ‐ ‐ 2 3 4 4 4 4 5 5 5 5 6 6 6 6 7 7 7 8 8 9 9 10 10 11 11 12 12 13 13 14 15 16 Parking Spaces ‐ ‐ ‐ 10 12 15 17 17 17 20 20 22 22 22 25 25 27 27 30 32 32 35 37 37 39 42 44 47 49 52 54 57 59 62 64 Total Revenue ‐ ‐ ‐ 415 608 703 733 775 815 857 897 942 991 1,046 1,100 1,145 1,203 1,269 1,327 1,395 1,455 1,542 1,617 1,697 1,783 1,867 1,962 2,071 2,170 2,280 2,389 2,512 2,628 2,762 2,899

Interest (Rs Million) Loan Opening balance ‐ 1,820 3,890 8,243 7,556 6,869 6,182 5,496 4,809 4,122 3,435 2,748 2,061 1,374 687 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0 0 0 0 0 Additions 1,820 2,070 4,353 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Repayments ‐ ‐ ‐ 687 687 687 687 687 687 687 687 687 687 687 687 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Closing balance 1,820 3,890 8,243 7,556 6,869 6,182 5,496 4,809 4,122 3,435 2,748 2,061 1,374 687 (0) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0 0 0 0 0 Average outstanding loan for the Year 910 2,855 6,067 7,900 7,213 6,526 5,839 5,152 4,465 3,778 3,091 2,404 1,717 1,030 343 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0 0 0 0 0 Interest Payable 127 400 849 1,106 1,010 914 817 721 625 529 433 337 240 144 48 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0 0 0 0 0

Depreciation (Rs Million) SLM Depreciation Buildings ‐ ‐ ‐ 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 Total SLM Depreciation ‐ ‐ ‐ 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217 217

WDV Depreciation Residual Value ‐ ‐ ‐ 13,739 13,070 12,433 11,828 11,252 10,704 10,183 9,687 9,215 8,766 8,339 7,933 7,547 7,179 6,830 6,497 6,181 5,880 5,593 5,321 5,062 4,815 4,581 4,358 4,145 3,944 3,752 3,569 3,395 3,230 3,072 2,923 Depreciation ‐ ‐ ‐ 669 636 605 576 548 521 496 472 449 427 406 386 368 350 333 316 301 286 272 259 247 235 223 212 202 192 183 174 165 157 150 142 Total WDV Depreciation ‐ ‐ ‐ 669 636 605 576 548 521 496 472 449 427 406 386 368 350 333 316 301 286 272 259 247 235 223 212 202 192 183 174 165 157 150 142

Tax (Rs Million) EBIDT ‐ ‐ ‐ 407 596 689 719 566 799 840 880 923 724 1,025 1,078 1,122 1,179 929 1,301 1,367 1,426 1,511 1,183 1,663 1,747 1,830 1,923 1,517 2,126 2,235 2,341 2,462 1,921 2,707 2,841 Depreciation ‐ ‐ ‐ 669 636 605 576 548 521 496 472 449 427 406 386 368 350 333 316 301 286 272 259 247 235 223 212 202 192 183 174 165 157 150 142 EBIT ‐ ‐ ‐ (262) (40) 84 143 18 277 344 408 474 297 619 692 754 830 596 984 1,066 1,139 1,239 924 1,417 1,513 1,607 1,711 1,315 1,934 2,052 2,167 2,296 1,764 2,557 2,698 Interest ‐ ‐ ‐ 1,106 1,010 914 817 721 625 529 433 337 240 144 48 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0 0 0 0 0 Earnings before tax ‐ ‐ ‐ (1,368) (1,050) (830) (675) (703) (348) (185) (25) 138 57 475 644 754 830 596 984 1,066 1,139 1,239 924 1,417 1,513 1,607 1,711 1,315 1,934 2,052 2,167 2,296 1,764 2,557 2,698 Carry forward losses ‐ ‐ ‐ ‐ (1,368) (1,050) (830) (675) (703) (348) (185) (25) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Taxable income ‐ ‐ ‐ (1,368) (2,418) (1,880) (1,505) (1,378) (1,051) (532) (210) 113 57 475 644 754 830 596 984 1,066 1,139 1,239 924 1,417 1,513 1,607 1,711 1,315 1,934 2,052 2,167 2,296 1,764 2,557 2,698 Tax ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 39 20 164 223 261 287 206 341 369 394 429 320 490 524 556 592 455 669 710 750 795 610 885 934

Cashflow (Rs Million) Total Revenue ‐ ‐ ‐ 415 608 703 733 775 815 857 897 942 991 1,046 1,100 1,145 1,203 1,269 1,327 1,395 1,455 1,542 1,617 1,697 1,783 1,867 1,962 2,071 2,170 2,280 2,389 2,512 2,628 2,762 2,899 Total cost 3,033 3,450 7,256 8 12 14 15 209 16 17 18 19 267 21 22 23 24 340 27 28 29 31 434 34 36 37 39 554 43 46 48 50 707 55 58 Net_Cashflow‐Pre Tax (3,033) (3,450) (7,256) 407 596 689 719 566 799 840 880 923 724 1,025 1,078 1,122 1,179 929 1,301 1,367 1,426 1,511 1,183 1,663 1,747 1,830 1,923 1,517 2,126 2,235 2,341 2,462 1,921 2,707 2,841 Tax ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 39 20 164 223 261 287 206 341 369 394 429 320 490 524 556 592 455 669 710 750 795 610 885 934 Net Cashflow‐Post Tax (3,033) (3,450) (7,256) 407 596 689 719 566 799 840 880 884 705 861 855 861 892 722 960 998 1,031 1,083 863 1,173 1,224 1,274 1,331 1,062 1,457 1,525 1,591 1,667 1,311 1,822 1,907

Project IRR 5%

Project cash flows (3,033) (3,450) (7,256) 407 596 689 719 566 799 840 880 884 705 861 855 861 892 722 960 998 1,031 1,083 863 1,173 1,224 1,274 1,331 1,062 1,457 1,525 1,591 1,667 1,311 1,822 1,907 Add : Debt 1,820 2,070 4,353 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Less : Debt Repayment ‐ ‐ ‐ 687 687 687 687 687 687 687 687 687 687 687 687 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Less : Interest on debt 127 400 849 1,106 1,010 914 817 721 625 529 433 337 240 144 48 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ 0 0 0 0 0 Cashflow to Equity (Post Tax) (1,340) (1,780) (3,752) (1,386) (1,101) (911) (786) (842) (513) (376) (240) (139) (223) 30 120 861 892 722 960 998 1,031 1,083 863 1,173 1,224 1,274 1,331 1,062 1,457 1,525 1,591 1,667 1,311 1,822 1,907

Equity NPV (7,512) Rs Million Equity IRR 3%

Accuracy of costs estimates is +/- 50%

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 53 5. Preliminary Financial and Economic Analysis

Project IRR 5%

Equity NPV (7,512) Rs Million Equity IRR 3%

54 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 6. Business Model and Project Financing

6. BUSINESS MODEL AND PROJECT FINANCING

The project will be financed with private capital through a Private- Public-Partnership. Working with support from the GVMC and APSRTC, the private sector will finance the project with land development rights acquired from the public sector. The private sector will then be responsible for the planning, design, and construction of the project. In addition to receiving the land development rights, the private sector will also receive future leasing revenues for an agreed upon set period of time.

By off-setting the initial costs of development, the public sector will receive new facilities in return at a lower cost and higher quality than they would otherwise be able to acquire.

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 55 6. Business Model and Project Financing

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56 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 7. Institutional Arrangements for Project Implementation

7. INSTITUTIONAL ARRANGEMENTS FOR PROJECT IMPLEMENTATION

The project owner / sponsor has several project procurement options available, ranging from a traditional Design-Bid-Build (DBB) to an alternative procurement delivery method where the private sector expertise on financing and maintenance can be leveraged to support the planned improvements.

The project can be broadly categorized into two components:

Mandatory Components – This would be the bus terminal facility including related amenities such as ticketing spaces, pedestrian walkways, skyway, public spaces, etc. Optional Components – This would include commercial development up to maximum permissible FSI as per development control norms. The commercial development could include mall, multiplex, retail, hypermarket, entertainment, hotel, serviced apartment, offices, banks, etc. As the Mandatory Components do not have sufficient revenue generating potential, the revenues from the Optional Components (i.e. commercial development) would be the major sources of return on the investments made in the project. From a commercial and financial viability perspective, a Design-Build-Finance-Operate-Maintain (DBFOM) model could be a suitable procurement structure for implementation of the proposed project. The criteria for evaluating technical proposals from prospective bidders should be structured in a manner that prioritizes the technical & financial capabilities of a bidder as well as the aesthetics & cost efficiency of the designs proposed. The parameters for evaluation may be considered based on the following options:

Lowest Viability Gap Funding (VGF) required from the public partner (project owner / sponsor); or Lowest present value of Annual Payments (AP) required from the public partner (project owner / sponsor) Under both options, the capital costs to be incurred by the private partner for Mandatory Components would be fixed at the outset (based on the technical proposal of the bidder) before executing the definitive agreements.

In return for their services, the private partner will be entitled to receive pre-determined payments based on payment plans described below:

If a VGF model is adopted, then payments would be linked to various stages of construction of the Mandatory Components If an AP model is adopted, then annual payments would be linked to each deliverable completion date, till the end of a pre-determined concession period

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 57 7. Institutional Arrangements for Project Implementation

Regardless of the model adopted (i.e. VGF or AP), the payments would be made to the private sector after making deductions / adjustments against penalties (if any) for non-compliance of the private partner to the performance standards (such penalties will be pre-determined as part of the definitive agreements).

Under the proposed project structure, the private partner will take on the responsibility for the following obligations:

Prepare the detailed engineering designs and plans for the project based on prescribed minimum design and performance standards specified by the public partner (project owner / sponsor) Mobilize funds towards capital expenses to be incurred for the project Take up construction of the project as per the minimum development obligations specified by the public partner (project owner / sponsor) Operate and maintain the project (for a pre-determined concession period) in conformity with the applicable standards and performance standards stipulated by the public partner (project owner / sponsor) Carry out the commercial business (at the private partner’s option) and collect any revenues generated from the same Hand-over the project to the project owner / sponsor at the end of the concession period The public partner (project owner / sponsor) will fulfill the below obligations:

Hand over of the physical possession of encumbrance free land for the project (with necessary right of way to the private partner) Grant all such approvals, permissions and authorisations which the private partner may require or is obliged to seek from public partner (project owner / sponsor) in connection with implementation of the project Review the detailed architectural & engineering designs prepared by the private partner in terms of its compliance with the prescribed standards and specifications Inspect to determine whether the project is constructed, operated and maintained in accordance with the approved plans, specifications, standards and costs under the definitive agreements; and Provide Viability Gap Funding (VGF) support or Annual Payments (AP) to the private partner

58 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 8. Anticipated Social Impacts

8. ANTICIPATED SOCIAL IMPACTS

Using publicly owned land, the project will improve bus transfers as well as provide new capacity to integrate LRT or MRT, BRT, pedestrian and vehicular circulation. Simultaneously, the real estate component of the project will establish a center of gravity in the heart of Visakhapatnam, providing a gateway to the city as new arrivals from the airport disembark and provide the cosmopolitan destinations, lodging and residential options requested by potential investors and visitors. The project will raise property values in the surrounding vicinity and can improve pedestrian safety in the urban core. The scale of the redevelopment will offer the opportunity to incorporate pilot programs in district cooling and potentially leverage synergies with the adjacent water distribution hub.

Additional publicly accessible space for gatherings and events Mixed-income + Mixed- use destinations Anchor for Airport connectivity Fish market disturbance Redevelopment of GVMC

The Unified Traffic, Transportation and Infrastructure Planning and Engineering Centre (UTTIPEC) of Delhi’s Development Authority describe the goals and potential benefits of TOD in this way:

TOD can make public transport the preferable mode of transportation by making it easily accessible, efficient, reliable and safe for maximum number of people TOD can promote social equity through equal and safe access to public transportation for all TOD can help achieve Clean-Air Quality Targets TOD can make provide a variety and high-density mix of housing, employment and recreation options within walking/cycling distance of each other and of MRTS stations–in order to induce a lifestyle change towards healthier living and better quality of life TOD can help reduce the severe housing deficit by providing affordable housing stock within accessible distance of public transport and amenities, through redensification TOD can provide savings in public money through reduction of investments in physical infrastructure like additional roads, piping/ cabling costs, as well as large savings in the time‐cost currently lost in traffic congestion

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 59 8. Anticipated Social Impacts

TOD can utilize the induced private‐sector investment near MRTS nodes to provide funding for public transport improvements as well as provision of social amenities TOD can help save environmentally sensitive lands and virgin lands through high-density compact development

Benefits to Citizens: Opportunity to walk/ cycle to a fast, convenient, safe and affordable Public Transport mode Equity of access to Transit and other amenities to all sections of society Reduced dependency of private car reduces air pollution Opportunity to meet the housing deficit/ needs with minimal public investment Opportunity to utilize private investment for funding of public facilities/ infrastructure/ affordable housing Potential to generate long term funding for participating public transport agency Opportunity to conserve environmentally sensitive/ virgin lands through compact development

Benefits to Transit Owning Agency: Increased ridership due to more population living/working within walking distance Value Capture for long term funding & maintaining public transportation system

Benefits to Land, Road & Service Owning Agencies: Potentially increased revenue from land within TOD “influence zone” Potential for long term funding/ maintenance of streets, parks, public spaces City level reduced infrastructure costs (reduced length of roads, pipes, cables, tunnels, etc.) Increased feasibility for sustainable decentralized physical infrastructure Increased shared social infrastructure facilities

60 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM 9. Anticipated Environmental Impacts

9. ANTICIPATED ENVIRONMENTAL IMPACTS

As the current Dwaraka Bus Station was built in the 1970’s, the site’s current environmental impact is high compared to the proposed project. Dwaraka’s open layout means that bus emissions are released into the open, resulting in higher levels of green-house gasses that subsequently lead to increased air pollution in the surrounding environment. With the design and layout of the proposed project, these emissions should be reduced drastically. However, the process of demolishing the current bus station and building the new development will result in negative environmental impacts related to moving materials and the negative impacts associated with tearing down an existing building.

The moving of materials and the siting of where they will be dumped remains one of the more important negative environmental impacts to determine. Haphazardly dumping materials can compound the negative environmental impacts of construction, with the potential for materials to contaminate water and food supplies.

Positive Environmental Impacts: Reduction in air pollution levels and GHG emissions due to busses more efficiently picking up and dropping off customers Reduction in air pollution levels and GHG emissions due to busses idling less often Green building materials to be used for all project buildings Less noise pollution as busses will be located under project deck

Negative Environmental Impacts: Emissions related to demolition of existing building on RTC & GVMC site Emissions related to moving of materials from site to dumping site Potential sediment erosion that can lead to structural problems for surrounding buildings

AECOM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT VISAKHAPATNAM 61 9. Anticipated Environmental Impacts

Potential stormwater runoff from completed project decks Potential for remediation of site (due to oil and gas coming from car and bus engines) Potential contamination from site materials on dumping site Potential Health Impacts: Maintenance of traffic during traffic construction Worker training to prevent injury

62 VISAKHAPATNAM TRANSIT-ORIENTED REDEVELOPMENT OF THE DWARAKA BUS STATION - FEASIBILITY STUDY FINAL REPORT AECOM