Structuring and Financing Options For Urban Transport Projects
Structuring and Financing Options For Urban Transport Projects
Structuring and Financing Options For Urban Transport Projects
Foundation
Connecting Urban Agglomerates by Trains Providing Reliable City Bus Service Promoting Non-motorized Transport
2001 2011
Background of RRTS
National Capital Region Planning Board prepared Transportation Plan for NCR 2032 a Integrated
Findings Indicated that more than 11 lakh vehicles cross Delhi Borders every day (year 2007)
External-External (EE)
22.9%
GNCTD
Internal-External (IE)
38.4%
TO
K NHARNAL 1
NARAH
PANIPAT
NHUZAFFARNA 58 G AR
YAMUNA RIVER
10
AN SI
EAST YA
MUN
TO
71
A CA NAL
TO M
TO
JI ND
GOHANA
NH A 71
TO SH
HINDAN RIVER
SONEPAT BAGHPAT
TO BHIWANI
ROHTAK
KUNDLI
MEERUT
GANGA RIVER
NH 71
BAHADURGARH
JHAJJAR
South-West
GHAZIABAD
NH24
HAPUR GULAOTHI TO MURADABAD
DELHI
NOIDA
TO
MA H
HARYANA
EN D RA GA RH
GURGAON FARIDABAD
UTTAR PRADESH
BULANDSHAHR
AGRA CANAL
TO NA
L R NAU
REWARI
NH 71B
BHIWADI PALWAL
BALLABGARH
AIRPORTS
International Airport-Existing International Airport-Proposed Already 4-lane Highways
SAHIBI
RIV ER
TO ALIGARH
NH 91
NHAIPU 8 R
HODAL
TO
TO MA RA TH U
NH
ALWAR
RAJASTHAN
TO JAIPUR
Vision of RRTS
hi-speed, high quality system, seated accommodation non-stop journey : 45- 50 mins interchange with the existing Metro Broad gauge track and coaches
Proposed Alignment
Panipat IOCL Pnt Samalkha Gannuar Terminus & Depot Gannuar KMP Intr
Murthal RGEU
Kundl i
Kashmere Gate
EMU Passenger Rs 15 2-2.5hrs Kalka Shatabdi (AC Chair Car) Rs 285 (actual); Rs151 70-80 mins (Prorated based on distance) Jan Shatabdi (AC Chair Car) State Transport bus (Non AC) State Transport AC Volvo Bus RRTS Rs 210 Rs. 65 (approx) Rs. 200 (approx) 100 85 mins 1.5 2 hrs 1.5 hrs 74 mins.
DMRC Phase I Phase 2 Phase 3 Delhi Airpt Lnk Bangalore Chennai Kolkata Mumbai L1 Mumbai L2 Hyderabad Panipat RRTS Meerut RRTS Alwar RRTS
10,571 18,894 35,242 3,869 11,609 14,600 4,874 2,356 8,250 12,132 14,638 16,592 24,595
163 152 341 170 274 324 332 214 258 170 130 182 137
Nil Nil Nil 46 Nil Nil Nil 71.9 80.9 88 3010 3010 3010
TOD zones
Three potential TOD sites have been in vicinity of IOCL Panipat, Samalkha and Gannaur Depot Stations.
TOD zones
TOD zones
Financial Feasibility
1 2 3
Sr. No. 1 2 a b c d
Description Total Area Developed Area Residential Commercial Office Green Area Roads/Common /others
Developed Area
FAR
Built-up Area
/ area
3 3 4 -
Financial Feasibility
Transaction Cess
In addition to commercial development at stations additional resources by way of cess on each property transaction in the identified zones/ TOD zones
Total Cess = Unit cess X Total TOD area X velocity of transaction Cess collected during construction: Used for Govt Equity & rehabilitation grant Cess collected during Operations: Used for Repayment of soft loan and rehabilitation grant
Sr. No. 1 2 Description Land /Site/Plot Developed Area a Residential b Commercial c Office Unit Per sq.m / transaction Per sq.m/ transaction Per sq.m/ transaction Per sq.m/ transaction Rate Rupees 1,000 1,000 2,000 1,500
Financial Feasibility
It is assumed that the state government would come out with development plan for TOD area within next six months itself. Total Cess for the year = per unit cess X Total TOD area X velocity of transaction for the corresponding year.
Cess collected during construction of the project could be utilized towards state governments equity contribution for the project.
3 4
Fare box 7,575 Revenues from 987 station commercial Revenue from 76 advertisement Transaction Cess on TOD post construction 6,075 Total Project 14,713 Revenue
63,835 5,575
139
313
638
5,670 21,839
4,232 39,275
2,534 72,582
50%
NCRTC
Project Structure
Repayment Lenders JICA/WB/ ADB
State Govts. Initial Equity & Loan Repayment TOD Cess Civil works, Pway, Traction and etc
Infraco
Private Sector
Rolling Procurement, Signaling, construction of elevated stations and O&M
Shareholders Agreement
Rollco
Turnkey Contractor(s) Civil Contract Civil Contractor E&M Contract E&M Contractor
Contractor/ Operator
Revenue Streams
Civil Maintainer
E&M Maintainer
In order to obtain a reasonable level of control, it is suggested that 10% equity of Rollco is held by Infraco
Features Captures upfront values linked to higher speculations in the initial years and slows down when the system stabilizes With inflation, the real cess rate comes down, however, loan repayment remains protected
Easy to explain to lenders , who can Difficult to monitor see a clear estimation of loan Lower realization vis--vis repayments actual market prices Easy to monitor higher compliance The rates could also be made telescopic
Area in Ha
~ 1500 ha (at 3 to 4 4500 ha ( say 300 ha @ 10,000 ha ( say locations) each station) 500 m on each side)
Features Captures upfront May lead to issues related to existing values linked to municipal bodies higher speculations Demand for higher FSI norms (leading to concerns from urban planners, revised master plan preparation etc.) Easy to monitor higher compliance Low success rate potential Many locations development plans have been prepared, an investors have put in their investments
Geographical Area Identified TOD zones ~ 1500ha (Option A) All stations ~ 4500ha (Option B) Along the corridor ~ 10000ha(Option C)
Comparison with DMRC Phase III Project IRR 4.3% Economic IRR 21.73%
Year 1940-50 1971 1973-74 1975 1981 1982 1991 1992 1993 2002 2002 (April)
Number of Permits 108 permits 100 mini buses 120 mini buses 100 mini buses 68 permits 300 permits 100 permits 3000 permits 609 permits 637 permits 2,772 permits
City 2,957 2,144 3,106# 3,849 986 Interstate 2,727 1,421 338 .. ..
Light Contract carriage DTC (Stage Carriage) Private Stage Carriages (Blueline) DMRC and other mini buses
#
Includes 213 CNG buses plying in National Capital Region Source: STA as of 25 October 2007 and DTC Operational Statistics
Promoters
political
economic
Understanding risks+rewards
technical
social
Operators Developers
Strategic Objectives
Effective, economic, efficient and safe Duty to provide a high quality, affordable public transport Mitigate safety risk competition for the market, not in the market Minimum scale required to ensure appropriate management skills Clear contractual obligations and responsibilities Maintain service levels on existing routes, extend coverage Ensure flexibility for the future Current route network is not rationalised or optimised Need scope to redeploy resources to respond to shifts in demand Ability to respond to demographic changes and economic growth Capability to accommodate changes in regulatory policy (eg fares)
Bid Parameters
Cost to operate a defined schedule for a set of services = base bid Specified outputs: Bus-kms Bus hours Minimum peak buses in service Long term marginal rate for service changes increasing output: i Rs per extra bus/day + j Rs per extra bus hour + k Rs per extra buskm (by bus type) Short term marginal rate for additional resources: x Rs per extra bus/day + y Rs per extra bus hour + z Rs per extra buskm (by bus type)
Gross Cost
Resource contract with fare collection on behalf of Government Tender for defined package of service schedules and functional specifications Define costs per bus-km by type of bus for base bid Defined rates for marginal service increments + + + + + Flexibility to add routes, change frequency, redeploy resources (metro, BRT, LRT) Fares and ticketing policy revised at will (incremental % incr. In fare) Full acceptance of all ticket types including concession fares/passes Payments related to type of bus (quality of service) provided Reduced cost of finance due to secure income stream (from Government)
Concession Period
Concession will be based on current permit legislation = 5 year term Motor Vehicle Act means permit allocated to vehicle owner rather than operator Requirement to procure CNG buses with limited market outside Delhi means costs must be recovered within concession period Concession term therefore set at 10 years close to expected bus life
100%
Non-Operated Mileage
Deduction for service not operated due to factors within operator control
-%
Elements at Risk
Proportional to mileage not run or service standards below minimum specifications Cap at -10%
Cleanliness /Condition
-%
Basic Reliability
-%
Punctuality
+15%
No. of Buses A 200 Service Kms per Year D 18,000,000 Service Hours per year G 1,000,000
Rs. / Bus B
Consumables Year Capital Charges CNG (70%) Others (30%) T o t a l Cost per km 4.00 4.42 4.88 5.40 5.96 6.59 7.28 8.04 8.89 9.82 T o t a l Manpower Total Payment
Payment in PV terms
Cost per km 1 2 3 4 5 6 7 8 9 10 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Assumptions : CPI CNG Disc Rate 7% 5% 10% 24 24 24 24 24 24 24 24 24 24
Cost per km 9.33 9.80 10.29 10.80 11.34 11.91 12.50 13.13 13.79 14.48
Cost per km 10 11 11 12 13 14 15 16 17 18 47.46 49.04 50.74 52.56 54.51 56.61 58.87 61.30 63.92 66.73 47 45 42 39 37 35 33 31 30 28 369
The key to any good urban transportation system is connectivity the ability to shuffle from one transit mode to another without great delay or distance. Provide commuters an option to use cycles for connectivity
Food /Tuition centers
M / B etro us
Metro / Bus
M / B etro us
Residence
College
Key Elements : Needs to be user friendly enough (original ids hassle) how to do away with id (original document submission), without a COST/ Fixed deposit Needs to be flexible to cater to user requirements Pick and drop Value delivered is up market feel (Nano vs 800) Pride Value delivered PLUS delivery (we love discounts!)
Key Elements : Market aggressively FM, TV (advertorials !!), hoardings, internet Women friendly Through design and usage Weather Is a constraint Exclusive management with high domain interest, with capacity to expand quickly, and adapt to different types of solutions
Key Features
Comfortable, Light weight cycles with advanced Technology Unisex cycles with unique color combination Station to have 10 cycles for rental in a stand and extra 5-10 spaces for cycle parking own cycles of users Brand Name for Cycle Services : Cyclo City / City Bike / Smart Bike Rental charges- Rs. 5/- per Hour Sufficient Inventory to be maintained by ferrying cycles in a Mini Van Timings - 0700 to 1900 Hrs
Operating System
All stands to be equipped with hand held Computer Tabs Pick and drop at any cycle station No need for depositing original ID by user - The computer Tab to capture the Photograph of the ID document of the user at the time of issue of cycle, the same to be verified at the time of depositing the cycle at any location. Station A Effectively DIMTS shall be the Program Manager responsible for success of the scheme in partnerships with various set of stakeholders
Station B
Station D
Station C
Business Model
Cycle Rental
DIMTS
MCD Revenue
IT Developmen t and Management Cost
Manpower
Manpower
IT+ Electricity
Transport+ Misc.
Business Model
- DIMTS Role - Project Planning and implementation - Inventory Management - Marketing and popularizing cycle sharing scheme through Public awareness campaigns in all media - Corporate Tie ups and Cross Promotions - Form a cycling club to promote Green Transport - Integration with Bus and Metro Tickets in future. -MCD share @ 50% on MCD Road and 25% on Non - MCD Roads -- Agreement Period - 20 Years
Residential
Outram Lines GTB Nagar Batra Cinema
Residential
Vijay Nagar Roop Nagar Maurice Nagar Patel Chest
Campus
Commerci al
Campus Statistics
Category Total Colleges in North Campus Total Departments in North Campus Total Non-Formal Cells Total Total Number of Students in colleges in departments (partly correspondence) in Non formal cells (correspondence courses) Total Total College Hostels Total Strength Total University Hostels Total Strength Total
Carried out Opinion Surveys of 100 college students Distributed survey formats
Main questions asked: a) Mode taken to college b) Intermediate trip area c) Mode used in intermediate trip d) Willing to take cycle or not e) Suggest convenient location
Metro Station
Residence to College
20% 34% Residenc e 46% Rickshaw Walk Others (+) (+) 80 % 40%
(+) (+)
25% 57%
Intermediate Percentag Trip Area e (%) Hudson Lane GTB nagar Kamla Nagar Patel Chest Shakti Nagar Vijay Nagar Suggested Locations Hudson Lane Kamla Nagar Patel Chest SRCC metro 8.62 3.45 29.31 5.17 6.90 3.45 Percentage (%) 6.90 8.62 6.90 10.34 24.14
57% 43%
Opinion Survey - conclusions
Higher tendency to shift to cycles may be evident in : Students at present using Cycle rickshaw Residences within 2km
12 10 9 11 7 8
Delhi University
1.Faculty of Management Studies 2.Bunglow Road 3.Kamla Nagar 4.Hindu College 5.Central Library 6.SRCC/Patel Chest 7.Hudson Lane 8.Vishwa Vidyalaya Metro 9.GTB Metro 10.Hakikat Nagar 11. Khalsa College 12.Batra Cinema 3 2 6
5 4 1
BRT Corridor
1.Moolchand 2.Entry Defence colony 3.Defence Colony Petrol Pump 4.Near Jungpura Metro Station 5.Opp. Jungpura Metro Station 6.Near Petrol Pump Sanchar Bhawan 7.Near Blind School, Lodhi Road Flyover 8.Near Jheel Purana Qila 9.Pragati Maidan, Near Gate No. 9
Additional Cycle Stands Free of Cost to be provided by DIMTS 1.Delhi Zoological Park- 2 No.
2.Inside Pragati Maidan- 2 No.
Proposed Design
Future Scope
-In Future Areas to be covered on successful completion and implementation of this model - JNU Campus - Delhi University South Campus - CGO/ Lodhi Road -Jamia university