CHIEF MINISTER BUS RAPID TRANSIT SYSTEM FOR CITY OF LAHORE REQUEST FOR PROPOSALS (RFP) FOR TRANSACTION ADVISORY SERVICES FOR ESTABLISHING BUS RAPID TRANSIT (BRT) SYSTEM ON TWO CORRIDORS IN LAHORE December 21, 2010 Page 1 of 44 Transport Department Contents 1. Definitions .................................................................................................................................... 3 2. Introduction .................................................................................................................................. 5 3. Instructions to the Bidders ....................................................................................................... 6 4. Technical and Financial Proposals ......................................................................................... 8 ANNEXURE-1: TERMS OF REFERENCE (TORs) ................................................................... 9 ANNEXURE-2: FORMAT FOR PREPARATION AND SUBMISSION OF PROPOSALS . 18 ANNEXURE-3: PROCEDURE AND CRITERIA FOR PROPOSALS‟ EVALUATION ........ 20 APPENDIX-A: FORMAT FOR FINANCIAL PROPOSAL ....................................................... 42 APPENDIX-B: SAMPLE LETTER TO SUBMIT PROPOSALS .............................................. 43 APPENDIX-C: INDICATIVE FEE PAYMENT SCHEDULE .................................................... 44 Page 2 of 44 REQUEST FOR PROPOSALS FOR HIRING TRANSACTION ADVISOR (TA) 1. Definitions Unless the context otherwise requires, the following terms, wherever used in this RFP, shall have the following meanings: a) "Advisory Fee" means amount of compensation that will be paid as per schedule of payment subject to submission and approval of the deliverables. b) "Agreement" means the Agreement signed between the Client and the Transaction Advisor (TA) to carry out the Assignment. c) "Applicable Law” means the laws of Islamic Republic of Pakistan. d) "Assignment" means the advisory work to be performed by the TA for the development and implementation of the Project. e) “Client” means the Lahore transport Company (LTC), a company incorporated under section 42 of the Companies Ordinance, 1984. f) “Consortium” means any entity with whom the TA has made arrangements to provide any part of the Services as joint venture (JV) before submission of proposals. g) “Company(ies)” means a Company or Companies selected to implement the Project. h) “Contract” means Contract signed between the Client and the selected Company(ies) to implement the Project. i) "Effective Date" means the date on which Agreement/Contract is signed between the Parties. j) "End Date" means the date on which the period of assignment as given in the TORs expires, unless agreed in writing by the Parties. k) “Entity” means any firm which has legal entity i.e. registration with Security and Exchange Commission of Pakistan (SECP) or Registrar of Firms (ROFs). l) "Force Majeure" for the purpose of this Agreement means i. An event or circumstance which is beyond the reasonable control of a Party, and which makes a Party's performance of its obligations under this Agreement impossible, and includes, but is not limited to, war, riots, civil disorder, earthquake, fire, explosion, storm, flood or other adverse weather conditions, strikes, lockouts, Page 3 of 44 other industrial action or any sanction or restriction imposed by any governmental authority or body within or outside Pakistan; which has a material adverse affect on the ability of the TA to carry out the Services. ii. Force Majeure shall not include: (i) any action or failure to take action by a Party; (ii) any event which is caused by the negligence or willful act or omission of a Party or that Party's personnel, and (iii) any event which a diligent Party could reasonably have been expected both: (a) to have taken into account at the time of the Effective Date of this Agreement; and (b) to have avoided or overcome in the course of carrying out its obligations under this Agreement. m) “Foreign Personnel” means such professionals and support staff who at the time of being so provided had their domicile outside Pakistan; n) “Local Personnel” means such professionals and support staff who at the time of being so provided had their domicile inside Pakistan. o) "Party" means the Client and the Transaction Advisor (TA) as the case may be and the Client and the TA shall collectively mean the "Parties". p) “Personnel” means professionals and support staff provided by the TA or by any of their consortium member to perform the Services or any part thereof; q) “Project” means Establishment of Rapid Bus Transit (BRT) System to be launched by the Client. r) “Proposals” means the Technical Proposal and the Financial Proposal. s) "Starting Date" means the starting date of the Assignment as specified in the Agreement t) "Services" means the Advisory Services to be provided by the TA for the Assignment. u) “Terms of Reference” (TORs) means the document included in the RFP as Annexure-1 which explains the objectives, scope of work, activities, tasks to be performed, prescribed core team, and expected results and deliverables of the Assignment. v) "Third Party" means any person or entity other than the LTC, DOT and the TA. w) “Transaction Advisor” means the Firm hired to provide services as specified under the Agreement. Page 4 of 44 2. Introduction The present conditions of the bus transport system cause extreme hardship and stress for the people of Lahore in the course of their day to day lives, impacting significantly on social and economic wellbeing and the quality of life. Furthermore, the wider urban transit problems of traffic congestion, air and noise pollution cause significant economic and social costs to the city, and for its people, and a decline in health and quality of life, including the loss of opportunity in work, education and social activities. Rapid increase in population, average distance traveled by the commuters and failure of adequate maintenance of the existing public transport system has contributed extensively to the deterioration of transport system of the city. With the financial and banking sector boom in the country from 2004 till 2008 and the subsequent easing of car lease terms, the city has experienced an exponential rise in private vehicle ownership leading to deteriorating traffic and environmental conditions in the city. The total numbers of the registered motor vehicles in Lahore in 2005 were 1.2 million as compared to 0.5 million in 1998 (Source: Excise & Taxation Department Government of Punjab 2006). The city of Lahore amongst all the five big cities of Punjab has the highest annual vehicle growth rate of about 16 percent. Keeping in view the growth rate of 16 % the total number of vehicles in Lahore in 2009 was approximately 2.30 million. There are around 700 large size buses operating in Lahore. Most of the public transport is through overcrowded, poorly managed and rashly driven mini-buses and vans. There is a need to organize the public transport infrastructure, such as terminals, halting points and routes. The privately-operated bus system, while providing extensive coverage and high frequency is not meeting the full demand, and generally provides a low standard of service which is often unsafe and uncomfortable to use. The informal institutional frameworks and the economic structures, under which private transporters operate, result in marginal returns. Contributing to the problems is low level of regulatory control Page 5 of 44 which often results in unsafe operations and a high level of traffic accidents and passenger deaths and injuries. The Punjab Road Transport Corporation wound up its operations in 1998. The task of bus service provision was taken over by the private sector. The competition between High Occupancy Vehicle (HOV) and Low Occupancy Vehicle (LOV) operators, in addition to high diesel prices and the fare system has been blamed for the failure of urban transport system (UTS). Presently the system has great difficulty in attracting private sector investment on larger scales and therefore level of service is deteriorating under higher costs and lack of efficient / effective monitoring mechanism, which has resulted in the collapse of the public transport in Lahore. The transport problems in Lahore are now being taken up very seriously by Government of the Punjab (GoPb) as vision of the Chief Minister to provide comfortable, affordable and safe mode of transportation for the masses. With the availability of a good deal of knowledge base about these problems in the form of a number of studies conducted in the city for various mass transit initiatives, efforts are now underway to evolve a permanent solution to the problem by carving out future transport plans for the city on modern lines with an integration of: Bus Rapid Transit system Feeder service and large city buses Lahore Rapid Mass Transit System 3. Instructions to the Bidders 3.1 The perspective firms should familiarize themselves with Assignment conditions and services to be provided and take these into account in preparing their Proposals. 3.2 The Client will timely provide at no cost to the firms all the inputs, assist the firm in obtaining licenses and permits needed to carry out the services (if any), and make available relevant project data and reports. Page 6 of 44 3.3 The firms shall bear all costs associated with the preparation and submission of their proposals. The Client is not bound to accept any proposal, and reserves the right to annul the selection process at