REQUEST FOR PROPOSAL VOLUME I PROJECT INFORMATION MEMORANDUM FOR DEVELOPMENT OF INTEGRATED COMMERCIAL / RESIDENTIAL COMPLEX OVER 3.260 HECTARES ( 8.056 ACRES) OF LAND AT CHANDRASEKHARPUR , BHUBANESWAR , ODISHA , THROUGH PRIVATE SECTOR PARTICIPATION (PSP) ISSUED BY “BHUBANESWAR DEVELOPMENT AUTHORITY” RFP No. 886/EM/BDA, Bhubaneswar Akash Shova Building, Pandit Jawaharlal Nehru Marg Bhubaneswar – 751001, Odisha November 2012 Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP) Table of Contents 1. DISCLAIMER……………………………………………………03 2. ABBREVIATIONS………………………………………………05 3. SCHEDULE OF BIDDING PROCESS……………………….06 4. PROJECT SUMMARY…………………………………………07 5. PROJECT DEVELOPMENT & BIDDING PROCESS……………………………………………………….13 6. INTRODUCTION TO BHUBANESWAR………………….....15 7. SITE APPRECIATION…………………………………….…...18 8. DEVELOPMENT CONTROLS………………………………..24 9. ESTIMATED PROJECT COST…………………………….....26 10. ANNEXURES- COMMERCIAL MARKET SCENARIO IN BHUBANESWAR………………………….....28 2 Request for Proposal (Volume I): Project Information Memorandum Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP) 1. DISCLAIMER Though adequate care has been taken in the preparation of this Request for Proposal (hereinafter referred to as “RfP”) document, the Bidders should satisfy themselves that the document is complete in all the respect and the information provided is correct. In case of discrepancy, if any, intimation should be given to the Officer Concerned in Bhubaneswar Development Authority (whose contact details is mentioned in this document) immediately on or before the due date specified in the Schedule of Bidding Process. If no intimation is received by the said officer within the date as mentioned in Schedule of Bidding Process as mentioned in this Document, it shall be deemed that the bidder is satisfied that the RfP document is complete in all respects. Neither BDA nor their employees or Project Consultants make any representation or warranty as to the accuracy, reliability or completeness of the information in this RfP and it is not possible for BDA to consider the investment objectives, financial situation and particular needs of each party who reads or uses this RfP concerning the project. Certain prospective bidders may have better knowledge of the project compared to the others and BDA encourages all the prospective bidders to conduct their own due diligence, investigations & analysis and check for accuracy, reliability and completeness of this RfP. The bidders are free to obtain the independent advice from the sources appropriate to them. Neither BDA nor their employees or Project Consultants will have any liability to any prospective bidder or any other person under the law of contract, tort, the principles of restitution or unjust enrichment or otherwise for any loss, expenses or damage which may arise from or to be incurred or suffered in connection with anything contained in this RfP, any matter deemed to form part of this RfP, the award of the project, the information and any other information supplied by or on behalf of BDA or their employees or their consultant or otherwise arising in anyway from the selection process of this project. BDA reserves the right to reject any or all of the bids submitted in response to this RfP at any stage without assigning any reasons whatsoever and without any liability of BDA in any manner. BDA also reserves the right to hold or withdraw or cancel the process at any stage under intimation to the bidders, who submit the RfP, without assigning any reasons whatsoever. BDA reserves the right to modify or amend or add to any or all of the provisions of this RfP Document or annul the present process. Such change would be intimated to all the parties procuring this RfP. 3 Request for Proposal (Volume I): Project Information Memorandum Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP) Neither BDA nor their employees or Project Consultants will have any liability in case addition, modification, amendment, alteration, cancellation and /or of non-receipt of any correspondence from them to the bidders due to the postal delays. The Applicable law for the purpose is the laws in India. Civil Courts of Bhubaneswar will have jurisdiction over the matter concerning and arising out of this RfP. 4 Request for Proposal (Volume I): Project Information Memorandum Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP) 2. ABBREVIATIONS BDA Bhubaneswar Development Authority PSP Private Sector Participation EoI Expression of Interest RfQ Request for Qualification RfP Request for Proposal IE Independent Engineer LOA Letter of Award SPV Special Purpose Vehicle ULP Upfront Lease Premium INR Indian National Rupee(s) CF Commercial Facility LP Lease Premium 5 Request for Proposal (Volume I): Project Information Memorandum Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP) 3. SCHEDULE OF BIDDING PROCESS (a) Issue of Advertisement : 20 November 2012 (b) Last date of receiving queries : 05 December 2012 (c) Pre-Bid Meeting (at BDA Conference Hall) : 11 December 2012 (d) Last date of receipt of Bids : 11 January 2013 (by 5:00 PM ) (e) Opening of Technical Bids : 11 January 2013 (at 6: 00 PM) (f) Opening of Financial Bids : 20 January 2013 6 Request for Proposal (Volume I): Project Information Memorandum Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP) 4. PROJECT SUMMARY (For details please refer to the RFP documents (Vol I, IIand III ) Development of Integrated Commercial cum Residential Complex over 8.056 Acres of land at Mauza 1. NAME : Gadakana Plot Nos: 4704 (Pt), at Chandrasekharpur, Bhubaneswar, Odisha through Private Sector Participation (PSP). 2. LOCATION Bhubaneswar, Odisha 3. NODAL AGENCY Bhubaneswar Development Authority Integrated Commercial cum Residential Complex • Commercia l Zone comprising Office space, PROJECT COMPONETS Retail etc : Minimum 5,87,697 sq.ft. (approx) of 4. (as per DCR prevailing built up space. in Bhubaneswar) • Residential Zone: Maximum 3,74,216 sq.ft (approx) of built up space 3.2 60 hectares ( 8.0 56 acres ) 5. LAND AREA (approx.) The developer has the flexibility to develop combination of various type of commercial, office , retail and residential 6. ZONING FLEXIBILITY units confirming to the minimum and maximum built up space defined in 4 above. ESTIMATED BUILT -UP 7. 9,61,913 sq.ft . (approx.) utilizing an FAR of 2.75; AREA EST IMATED PROJECT 8. INR 235 Crores (approx.) COST Long Term Lease (90 years ) of 6,61,913 sq.ft. of BUA IMPLEMENTATION 9. along with lease hold right of proportionate land area. FORMAT 90 years (renewable on mutually agreed terms) from the 10. LEASE FORMAT date of signing of the Lease Deed INSTITUTIONAL • Project to be implemented by the Special Purpose 11. STRUCTURE Vehicle (SPV)- a company to be formed by the 7 Request for Proposal (Volume I): Project Information Memorandum Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP) preferred bidder, who is selected through this selection process, under Company’s Act 1956. • Complete all approval, clearance process within 12 months from signing of Development Agreement; CONSTRUCTION 12. • Complete the Project within 4 ( four) Years from PERIOD signing of the Lease Deed • The Developer has to hand over 3, 00,000 ( three lakhs) sq.ft. (approx) of Commercial Built up area to BDA free of cost within a period of 48 months from signing of the Leased Deed. The area to be decided solely by BDA during finalization of the Development scheme. FIXED PARAMETERS 13. ** If FAR is increased in the subsequent period by amendment to the existing regulation or on enactment of new Regulation , then a proportion ( i.e.3,00,000 / 9,61,913 ) of the additional area will have to be provided to BDA over and above the fixed parameter of 3,00,000 sq.ft. Upfront Lease Premium (ULP) - payable to BDA in 14. BID PARAMETER installments The Developer to pay BDA • 25% of ULP to be paid before signing of Development Agreement (1 st installment) • 25% of ULP within 12 months from the date of signing of Development Agreement (2 nd UPFRONT LEASE 15. installment) and before signing of Lease Deed * PREMIUM (whichever is earlier). No interest charged for this period. • 50% of ULP before completion of 24 months from the date of signing of Development Agreement plus interest thereof (3 rd installment)** 8 Request for Proposal (Volume I): Project Information Memorandum Integrated Commercial cum Residential Complex over 3.260 hectares (8.056 acres ) of land at Chandrasekharpur , Bhubaneswar, Odisha, India through Private Sector Participation (PSP) *Along with payment of 2 nd installment, the Developer is required to submit a Bank Guarantee equivalent to 50% of ULP amount . ** The compound interest annually charged on the outstanding amount will be SBI Base Rate + 5% as interest thereof and will be charged for period from the submission of BG till payment of the full amount. The Base Rate, as published, will be the rate of the last of day of the preceding month. The Lease Deed will be signed on payment of full amount of Lease Premium or on payment of 2 nd Installment plus BG of 50% of ULP. The Developer has the option of making pre payment at every stage. Annual Lease Rental at the rate of Rs. 300.00 ( three hundred ) per acre per annum is to be paid by the ANNUAL LEASE Developer.. The rent and cess shall be subject to variations 16.