Republic of India Republic of India Study on Urban Transport Sector in India Final Report June, 2013 Japan International Cooperation Agency (JICA) Mitsubishi Research Institute, Inc. Japan International Consultants for Transportation Co., Ltd. Republic of India Republic of India Study on Urban Transport Sector in India Final Report June, 2013 Japan International Cooperation Agency (JICA) Mitsubishi Research Institute, Inc. Japan International Consultants for Transportation Co., Ltd. Table of Contents Chapter 1 Objectives and Implementation................................................................................... 1 1.1. Background and Objectives.............................................................................................. 1 1.1.1. Background................................................................................................................ 1 1.1.2. Objectives.................................................................................................................. 1 1.1.3. Target Rail Modes: Metro, LRT & Monorail ............................................................ 2 1.2. Implementation ................................................................................................................. 3 1.2.1. Research Flow ........................................................................................................... 3 1.2.2. Domestic Interview ................................................................................................... 3 1.2.3. On-site Research........................................................................................................ 4 Chapter 2 Current situation & Issues on the Urban Transport Sector.......................................... 6 2.1. Policies, Administration & Legal System......................................................................... 6 2.1.1. Policies ...................................................................................................................... 6 2.1.2. Administration & Legal System.............................................................................. 12 2.1.3. Organization ............................................................................................................ 14 2.1.4. Budget...................................................................................................................... 20 2.1.5. Issues ....................................................................................................................... 21 2.2. Role-sharing between Public and Private Finances........................................................ 25 2.2.1. Funding for Urban Transport Development ............................................................ 25 2.2.2. Infrastructure Development by PPP in India........................................................... 26 2.2.3. Argument for and against PPP Adoption in Metro Rail Projects ............................ 31 2.2.4. Issue......................................................................................................................... 33 2.3. Trends and Hurdles in Private Financing........................................................................ 34 2.3.1. Macroeconomic Environment ................................................................................. 34 2.3.2. Examples of Metro Rail PPP Projects ..................................................................... 39 2.3.3. Issues ....................................................................................................................... 46 2.4. Movement of Japanese Companies and Their Interests.................................................. 49 2.4.1. Track Records in India............................................................................................. 49 2.4.2. Movement and Interests .......................................................................................... 49 2.4.3. Issues ....................................................................................................................... 50 2.5. Movement of Foreign Companies and their Interests..................................................... 51 2.5.1. Track Record in India .............................................................................................. 51 2.5.2. Movement and Interests .......................................................................................... 53 2.5.3. Issues ....................................................................................................................... 54 2.6. Movements of International/Foreign Donors ................................................................. 55 2.6.1. World Bank and ADB Assistance............................................................................ 55 2.6.2. ODA from Governments of Countries .................................................................... 60 2.6.3. Issues ....................................................................................................................... 60 i Chapter 3 Projects in the Urban Transport Sector...................................................................... 61 3.1. List .................................................................................................................................. 61 3.1.1. Methodology............................................................................................................ 61 3.1.2. List........................................................................................................................... 62 3.2. Summary Sheet............................................................................................................... 64 3.2.1. Methodology............................................................................................................ 64 Chapter 4 Case Study (Kochi Metro as a Model Project).......................................................... 65 4.1. Review of DPR (Detailed Project Report)...................................................................... 65 4.1.1. About DPR .............................................................................................................. 65 4.1.2. Overall Evaluation................................................................................................... 66 4.1.3. Demand Forecast & Economic Analysis................................................................. 68 4.1.4. E&M (Electrical & Mechanical) — Rolling Stocks ............................................... 73 4.1.5. E&M (Electrical & Mechanical) — Signaling & Telecommunication................... 76 4.1.6. Civil & Track........................................................................................................... 78 4.1.7. Operation Planning.................................................................................................. 82 4.1.8. O&M (Operation & Maintenance).......................................................................... 84 4.2. Proposal of Procurement Packages & Contract Styles ................................................... 85 4.2.1. Procurement Packages Considered to be Applied for Kochi Metro Project ........... 85 4.2.2. Options to be Applied for Kochi Metro Project ...................................................... 89 4.3. Bid Evaluation Methods & Criteria................................................................................ 90 4.3.1. Review of ‘Evaluation Guide for Prequalification and Bidding under Japanese ODA Loans’ by JICA ................................................................................................ 90 4.3.2. Evaluation System considered to be applied for Kochi Metro Project ................... 92 4.3.3. Evaluation method to be studied for Kochi Metro Project...................................... 93 4.4. Consideration of Technical Cooperation ........................................................................ 94 4.4.1. Methodology............................................................................................................ 94 4.4.2. Areas Necessary for Technical Cooperation............................................................ 94 Chapter 5 Recommended Procurement Packages, Contract styles and Evaluation Methods... 98 5.1. World Urban Rail Examples ........................................................................................... 98 5.1.1. Methodology............................................................................................................ 98 5.1.2. Countries.................................................................................................................. 98 5.2. Proposal of Procurement Package and Contract Styles for Urban Railway Projects in India ................................................................................................................................ 100 5.2.1. Classification of Procurement Packages & Contract Styles.................................. 100 5.2.2. Features of Each Package...................................................................................... 100 5.2.3. Case Study in India and Other Countries .............................................................. 106 5.2.4. Comparison of the Procurement Packages and Implications ................................ 115 5.2.5. Proposal ................................................................................................................. 118 ii 5.3. Study of Evaluation Methods for Urban Railway Projects