Request For Qualification: UT Administration Lakshadweep

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UT Administration

Lakshadweep

INTERNATIONAL COMPETITIVE BIDDING UNDER TWO STAGE


BIDDING

PROCESS FOR

Development of Suheli Island, Eco-Tourism Resort

Request for Qualification

October 2019
Request for Qualification

Contents

Contents........................................................................................................................... ii
Disclaimer........................................................................................................................ v
Glossary......................................................................................................................... vii
1 Introduction...............................................................................................................1
1.1 Background........................................................................................................1
1.2 Brief description of Bidding Process...................................................................2
1.3 Schedule of Bidding Process.............................................................................4
1.4 Pre-Application Conference...............................................................................6
2 Instructions to Applicants..........................................................................................7
A. General.............................................................................................................. 7
2.1 Scope of Application..........................................................................................7
2.2 Eligibility of Applicants.......................................................................................7
2.3 Change in composition of the Consortium........................................................13
2.4 Number of Applications and costs thereof........................................................14
2.5 Site visit and verification of information............................................................14
2.6 Acknowledgement by Applicant.......................................................................15
2.7 Right to accept or reject any or all Applications/ Bids.......................................15
B. Documents.......................................................................................................17
2.8 Contents of the RFQ........................................................................................17
2.9 Clarifications....................................................................................................17
2.10 Amendment of RFQ.........................................................................................18
C. Preparation and Submission of Application......................................................18
2.11 Language.........................................................................................................18
2.12 Format and signing of Application....................................................................18
2.13 Sealing and Marking of Applications................................................................19
2.14 Application Due Date.......................................................................................20
2.15 Late Applications..............................................................................................20
2.16 Modifications/ substitution/ withdrawal of Applications.....................................20
D. Evaluation Process..........................................................................................20
2.17 Opening and Evaluation of Applications...........................................................20
2.18 Confidentiality..................................................................................................21
2.19 Tests of responsiveness..................................................................................21
2.20 Clarifications....................................................................................................22
E. Qualification and Bidding.................................................................................23
2.21 Short-listing and notification.............................................................................23
2.22 Submission of Bids..........................................................................................23
2.23 Proprietary data...............................................................................................23
2.24 Correspondence with the Applicant..................................................................23
3 Criteria for Evaluation..............................................................................................24
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3.1 Evaluation parameters.....................................................................................24


3.2 Technical Capacity for purposes of evaluation.................................................24
3.3 Details of Experience.......................................................................................25
3.4 Financial information for purposes of evaluation..............................................26
3.5 Short-listing of Applicants.................................................................................26
4 Fraud and Corrupt Practices...................................................................................27
5 Pre-Application Conference....................................................................................29
6 Miscellaneous......................................................................................................... 30
Appendix-I: Letter Comprising the Application for Pre-Qualification...............................32
Annex-I: Particulars of the Applicant...........................................................................36
Annex-II: Technical Capacity of the Applicant@...........................................................38
Annex-III: Financial Capacity of the Applicant.............................................................40
Annex-IV: Details of Eligible Projects..........................................................................42
Annex-V: Statement of Legal Capacity.......................................................................47
Appendix-II: Power of Attorney for signing of Application and Bid..................................48
Appendix-III: Power of Attorney for Lead Member of Consortium...................................50
Appendix-IV: Joint Bidding Agreement...........................................................................53
Appendix-V.................................................................................................................... 60
Appendix-VI: CRZ Clearance.........................................................................................62
Appendix-VII: Other Clearances.....................................................................................63

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Request for Qualification (RFQ)

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Disclaimer

The information contained in this Request for Qualification document (the “RFQ”)or
subsequently provided to Applicant(s), whether verbally or in documentary or any other
form, by or on behalf of the Authority or any of its employees or advisors, is provided to
Applicant(s) on the terms and conditions set out in this RFQ and such other terms and
conditions subject to which such information is provided.

This RFQ is not an agreement and is neither an offer nor invitation by the Authority to
the prospective Applicants or any other person. The purpose of this RFQ is to provide
interested parties with information that may be useful to them in the formulation of their
application for qualification pursuant to this RFQ (the “Application”). This RFQ includes
statements, which reflect various assumptions and assessments arrived at by the
Authority in relation to the Project. Such assumptions, assessments and statements do
not purport to contain all the information that each Applicant may require. This RFQ may
not be appropriate for all persons, and it is not possible for the Authority, its employees
or advisors to consider the investment objectives, financial situation and particular needs
of each party who reads or uses this RFQ. The assumptions, assessments, statements
and information contained in this RFQ may not be complete, accurate, adequate or
correct. Each Applicant should therefore, conduct its own investigations and analysis
and should check the accuracy, adequacy, correctness, reliability and completeness of
the assumptions, assessments, statements and information contained in this RFQ and
obtain independent advice from appropriate sources.

Information provided in this RFQ to the Applicant(s) is on a wide range of matters, some
of which may depend upon interpretation of law. The information given is not intended to
be an exhaustive account of statutory requirements and should not be regarded as a
complete or authoritative statement of law. The Authority accepts no responsibility for
the accuracy or otherwise for any interpretation or opinion on law expressed herein.

The Authority, its employees and advisors make no representation or warranty and shall
have no liability to any person, including any Applicant or Bidder, under any law, statute,
rules or regulations or tort, principles of restitution or unjust enrichment or otherwise for
any loss, damages, cost or expense which may arise from or be incurred or suffered on
account of anything contained in this RFQ or otherwise, including the accuracy,
adequacy, correctness, completeness or reliability of the RFQ and any assessment,
assumption, statement or information contained therein or deemed to form part of this
RFQ or arising in any way with pre-qualification of Applicants for participation in the
Bidding Process.

The Authority also accepts no liability of any nature whether resulting from negligence or
otherwise howsoever caused arising from reliance of any Applicant upon the statements
contained in this RFQ.

The Authority may, in its absolute discretion but without being under any obligation to do
so, update, amend or supplement the information, assessment or assumptions
contained in this RFQ.

The issue of this RFQ does not imply that the Authority is bound to select and short-list
pre-qualified Applications for Bid Stage or to appoint the selected Bidder or
Concessionaire, as the case may be, for the Project and the Authority reserves the right
to reject all or any of the Applications or Bids without assigning any reasons whatsoever.

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The Applicant shall bear all its costs associated with or relating to the preparation and
submission of its Application including but not limited to preparation, copying, postage,
delivery fees, expenses associated with any demonstrations or presentations which may
be required by the Authority or any other costs incurred in connection with or relating to
its Application. All such costs and expenses will remain with the Applicant and the
Authority shall not be liable in any manner whatsoever for the same or for any other
costs or other expenses incurred by an Applicant in preparation or submission of the
Application, regardless of the conduct or outcome of the Bidding Process.

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Glossary

Applicant(s) As defined in Clause 1.2.1


Application As defined in the Disclaimer
Application Due Date As defined in Clause 1.1.5
Associate As defined in Clause 2.2.9
Authority As defined in Clause 1.1.1
Bids As defined in Clause 1.2.3
Bid Due Date As defined in Clause 1.2.3
Bid Security As defined in Clause 1.2.4
Bidders As defined in Clause 1.1.1
Bidding Documents As defined in Clause 1.2.3
Bidding Process As defined in Clause 1.2.1
Bid Stage As defined in Clause 1.2.1
Concessionaire As defined in Clause 1.1.2
Concession Agreement As defined in Clause 1.1.2
Concession Fee As defined in Clause 1.2.8
Conflict of Interest As defined in Clause 2.2.1(c)
Consortium As defined in Clause 2.2.1(a)
DBFOT As defined in Clause 1.1.1
Eligible Experience As defined in Clause 3.2.1
Eligible Projects As defined in Clause 3.2.1
Estimated Project Cost As defined in Clause 1.1.4
Experience Score As defined in Clause 3.2.6
Financial Capacity As defined in Clause 2.2.2 (B)
Government Government of India
Highest Bidder As defined in Clause 1.2.8
Jt. Bidding Agreement As defined in Clause 2.2.6 (g)
Lead Member As defined in Clause 2.2.6 (c)
LOA Letter of Award
Member Member of a Consortium
Net Worth As defined in Clause 2.2.4 (ii)
O&M Operation and Maintenance
PPP Public Private Partnership
Project As defined in Clause 1.1.1
Qualification As defined in Clause 1.2.1
Qualification Stage As defined in Clause 1.2.1
Re. or Rs. or INR Indian Rupee
RFP or Request for Proposals As defined in Clause 1.2.1
RFQ As defined in the Disclaimer
SPV As defined in Clause 2.2.6
Technical Capacity As defined in Clause 2.2.2 (A)
Threshold Technical Capacity As defined in Clause 2.2.2 (A)
UT Union Territory of India

The words and expressions beginning with capital letters and defined in this document
shall, unless repugnant to the context, have the meaning ascribed thereto herein above.

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Invitation for Qualification

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1 Introduction$

1.1 Background

1.1.1 The UT Administration of Lakshadweep(the “Authority”)is engaged in


development of sustainable eco-tourism projects in the Union Territory (UT) of
Lakshadweep Islands and as part of this endeavour, the Authority has decided to
undertake development and operation/ maintenance of the Suheli Island, Eco-
Tourism Resort (the “Project”) through Public-Private Partnership (the “PPP”) on
Design, Build, Finance, Operate and Transfer (the “DBFOT”) basis, and has,
therefore, decided to carry out the bidding process for selection of a private entity
as the bidder to whom the Project may be awarded. Brief particulars of the
Project are as follows:

Name of the Project Suheli Island, Eco-Tourism Resort

Suheli island, Lakshadweep Union Territory of


Location
India
Total Land Area 3.82 Ha
Total Lagoon Area 6.00 Ha
Total keys = 110
 60 keys for Beach villas
No. of keys
 50 keys for Water villas

Estimated Project Cost Rs.247 Cr.


 0.11 MLD RO/Desalination Plant
Supporting infrastructure
 715 kW DG Set
to be created by the
developer  1589 kW (Rooftop + Floating) Solar Power
Source
Prior/In-principle CRZ Clearance for the project shall be
CRZ Clearance obtained by the Authority. Refer Appendix VI for details
of CRZ Clearance.
Prior/In-principle approval for Conversion of Land
Conversion of Land Use Use (CLU) and License to store and serve alcohol
(CLU) and License to in the Resort for the project shall be obtained by
store and serve alcohol the Authority upfront. Refer Appendix VII for details
in the Resort of approval for Conversion of Land Use (CLU) and
License to store and serve alcohol in the Resort.

$$
Instructions for Applicants
Note 1: The provisions in curly brackets shall be suitably modified by the Applicant after the RFQ
is issued. (See Appendix-VI)
Note 2: Blank spaces contain formats that are to be used by the Applicant after the RFQ is
issued. (See Appendix-VI)
Note 3: Footnotes marked “$” in the relevant Clauses of the RFQ arefor guidance of the
Applicants. In case of Appendices, the footnotes marked “$” or in other non-numerical characters
shall be omitted by the Applicants while submitting their respective Applications. (See Appendix-
VI)

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Lakshadweep Administration shall facilitate the


concessionaire in obtaining applicable permits subject to
Other clearances concessionaire submitting timely complete application.
Refer Appendix VII for details of other clearances
required for the project.
Type of construction Eco friendly material and/or pre- cast concrete
proposed technology.
Concession Period is 75 years including maximum
Concession period 3 years of construction period, commencing from the
Appointed Date.
Other than the proposed Eco-tourism Resort at
Kadmat, Minicoy and Suheli Islands, no non-
islander will be allowed to undertake any
Other development in development, operation and maintenance of a
the island resort or tourist home or any other tourism
based establishment directly or indirectly in the
inhabited or uninhabited islands without prior
permission of the Lakshadweep Administration.

The Authority intends to pre-qualify and short-list suitable Applicants (the


“Bidders”) who will be eligible for participation in the Bid Stage, for awarding the
Project through an open competitive bidding process in accordance with the
procedure set out herein.

1.1.2 The selected Bidder, who is either a company incorporated under the Companies
Act, 1956/2013 or undertakes to incorporate as such prior to execution of the
concession agreement (the “Concessionaire”) shall be responsible for
designing, engineering, financing, procurement, construction, operation and
maintenance of the Project under and in accordance with the provisions of the
concession agreement (the “Concession Agreement”) to be entered into
between the Concessionaire and the Authority in the form provided by the
Authority as part of the Bidding Documents pursuant hereto.

1.1.3 The scope of work will broadly include designing, financing, procurement and
construction of the Project and the management, operation and maintenance
thereof.

1.1.4 Indicative capital cost of the Project (the “Estimated Project Cost”) will be
revised and specified in the Bidding Documents of the Project. The assessment
of actual costs, however, will have to be made by the Bidders.

1.1.5 The Authority shall receive Applications pursuant to this RFQ in accordance with
the terms set forth herein as modified, altered, amended and clarified from time
to time by the Authority, and all Applications shall be prepared and submitted in
accordance with such terms on or before the date specified in Clause 1.3 for
submission of Applications (the “Application Due Date”).

1.2 Brief description of Bidding Process

1.2.1 The Authority has adopted a two-stage bidding process (collectively referred to
as the “Bidding Process”) for selection of the Bidder for award of the Project.
The first stage (the “Qualification Stage”) of the process involves qualification
(the “Qualification”) of interested parties/ consortia who make an Application in
accordance with the provisions of this RFQ(the “Applicant”, which expression

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shall, unless repugnant to the context, include the Members of the Consortium).
Prior to making an Application, the Applicant shall pay to the Authority anon-
refundable sum of Rs.25,000 (Rupees Twenty-Five Thousand Only) by way of a
Demand Draft drawn in favour of “SPORTS Ltd.”, from any
Nationalized/Scheduled bank, payable at Kavaratti,as the cost of the RFQ
process. At the end of this stage, the Authority expects to announce a short-list of
up to [6 (six)] suitable pre-qualified Applicants who shall be eligible for
participation in the second stage of the Bidding Process (the “Bid Stage”)
comprising Request for Proposals (the “Request for Proposals” or “RFP”).

Government of India has issued guidelines (see Appendix-V) for qualification of


bidders seeking to acquire stakes in any public-sector enterprise through the
process of disinvestment. These guidelines shall apply mutatis mutandis to this
Bidding Process. The Authority shall be entitled to disqualify an Applicant in
accordance with the aforesaid guidelines at any stage of the Bidding Process.
Applicants must satisfy themselves that they are qualified to bid, and should give
an undertaking to this effect in the form at Appendix-I.

1.2.2 In the Qualification Stage, Applicants would be required to furnish all the
information specified in this RFQ. Only those Applicants that are pre-qualified
and short-listed by the Authority shall be invited to submit their Bids for the
Project. The Authority is likely to provide a comparatively short time span for
submission of the Bids for the Project. The Applicants are, therefore, advised to
visit the site and familiarise themselves with the Project.

1.2.3 In the Bid Stage, the Bidders will be called upon to submit their financial offers
(the “Bids”) in accordance with the RFP and other documents to be provided by
the Authority (collectively the “Bidding Documents”). The Bidding Documents
for the Project will be provided to every Bidder on payment of a process fee for
RFP which will be about four times the amount specified in Clause 1.2.1.The Bid
shall be valid for a period of not less than 120 days from the date specified in
Clause 1.3 for submission of Bids(the “Bid Due Date”).

1.2.4 In terms of the RFP, a Bidder will be required to deposit, along with its Bid, a bid
security Rs. 4.94 Crore (Rupees Four Crore Ninety-Four Lakh Only) (the “Bid
Security”), refundable no later than 60(sixty) days from the Bid Due Date, except
in the case of the selected Bidder whose Bid Security shall be retained till it has
provided a Performance Security under the Concession Agreement. The Bidders
will have an option to provide Bid Security in the form of a demand draft or a
bank guarantee acceptable to the Authority$. In case a bank guarantee is
provided, its validity period shall not be less than 180 (one hundred and eighty)
days from the Bid Due Date, inclusive of a claim period of 60 (sixty) days, and
may be extended as may be mutually agreed between the Authority and the
Bidder from time to time. Where a demand draft is provided, its validity shall not
be less than 80 (eighty) days from the Bid Due Date for the purposes of
encashment thereof by the Authority. The Bid shall be summarily rejected if it is
not accompanied by the Bid Security.

1.2.5 Deleted.

1.2.6 During the Bid Stage, Bidders are invited to examine the Project in greater detail,
and to carry out, at their cost, such studies as may be required for submitting
their respective Bids for award of the concession including implementation of the
Project.
$$
The format for the bank guarantee shall be published as part of the RFP document
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1.2.7 As part of the Bidding Documents, the Authority will provide a draft Concession
Agreement and feasibility report prepared by the Authority/ its consultants and
other information pertaining/ relevant to the Project available with it.

1.2.8 Bids will be invited for the Project on the basis of the highest financial offer to pay
concession fee,(the “Concession Fee”) to the Authority for award of the
concession. The concession period shall be 75 years, and will be indicated in the
draft Concession Agreement forming part of the Bidding Documents. The amount
shall constitute the sole criteria for evaluation of Bids. The Project shall be
awarded to the Bidder quoting the highest Concession Fee. The Concession Fee
shall Annual Upfront Concession Fee which will be indicated in the draft
Concession Agreement forming part of the Bidding Documents.

In this RFQ, the term “Highest Bidder” shall mean the Bidder who is offering the
highest Concession Fee.

1.2.9 The Concessionaire shall, in consideration of its investment and services, be


entitled to levy and collect a pre-determined user fee.

1.2.10 Details of the process to be followed at the Bid Stage and the terms thereof will
be spelt out in the Bidding Documents.

1.2.11 Any queries or request for additional information concerning this RFQ shall be
submitted in writing or by fax and e-mail to the officer designated in Clause
2.13.3 by the specified date. The envelopes/ communications shall clearly bear
the following identification/ title:

“Queries/ Request for Additional Information: Suheli Island, Eco-Tourism


Resort”.

1.3 Schedule of Bidding Process

The Authority shall endeavour to adhere to the following schedule:

Event Description Date

Qualification Stage
1. Last date for receiving queries 15 November 2019
2. Pre-Application Conference 20 November 2019
3. Authority response to queries latest by 30 November 2019
4. Application Due Date 5 December 2019
5. Announcement of short-list Within 15 days of
Application Due Date

Bid Stage Estimated Date


1. Sale of Bid Documents To be specified
2. Last date for receiving queries To be specified
3. Pre-Bid Conference – 1 To be specified

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4. Authority response to queries latest by To be specified


5 Bid Due Date To be specified
6. Opening of Bids On Bid Due Date
7. Letter of Award (LOA) Within 30 days of Bid Due
Date
8. Validity of Bids 120 days of Bid Due Date
9. Signing of Concession Agreement Within 30 days of award of
LOA

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1.4 Pre-Application Conference

The date, time and venue of the Pre-Application Conference shall be:

Date: 20 November 2019

Time: 11:00 AM

Venue:
SAJ Earth Resort and Convention Centre
Kochi
Near Cochin International Airport
Nedumbassery, Kochi, Kerala - 683572

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INSTRUCTIONS TO APPLICANTS

A. General

1.5 Scope of Application

2.1.1 The Authority wishes to receive Applications for Qualification in order to short-list
experienced and capable Applicants for the Bid Stage.

2.1.2 Short-listed Applicants may be subsequently invited to submit the Bids for the
Project.
1.6 Eligibility of Applicants

2.2.1 For determining the eligibility of Applicants for their pre-qualification hereunder,
the following shall apply:

(a) The Applicant for pre-qualification may be a single entity or a group of entities
(the “Consortium”), coming together to implement the Project. However, no
applicant applying individually or as a member of a Consortium, as the case may
be, can be member of another Applicant. The term Applicant used herein would
apply to both a single entity and a Consortium.

(b) An Applicant may be a natural person, private entity, government-owned


entity or any combination of them with a formal intent to enter into an agreement
or under an existing agreement to form a Consortium. A Consortium shall be
eligible for consideration subject to the conditions set out in Clause 2.2.6 below.

(c) An Applicant shall not have a conflict of interest (the “Conflict of Interest”)
that affects the Bidding Process. Any Applicant found to have a Conflict of
Interest shall be disqualified$. An Applicant shall be deemed to have a Conflict of
Interest affecting the Bidding Process, if:

(i) the Applicant, its Member or Associate (or any constituent thereof) and
any other Applicant, its Member or any Associate thereof (or any
constituent thereof) have common controlling shareholders or other
ownership interest; provided that this disqualification shall not apply in
cases where the direct or indirect shareholding of an Applicant, its
Member or an Associate thereof (or any shareholder thereof having a
shareholding of more than 5 per cent of the paid up and subscribed share
capital of such Applicant, Member or Associate, as the case may be) in
the other Applicant, its Member or Associate is less than 5 per cent of the
subscribed and paid up equity share capital thereof; provided further that
this disqualification shall not apply to any ownership by a bank, insurance
company, pension fund or a public financial institution referred to in sub-
section (72) of section 2 of the Companies Act,2013. For the purposes of
this Clause 2.2.1(c), indirect shareholding held through one or more
intermediate persons shall be computed as follows: (aa) where any
intermediary is controlled by a person through management control or

$$
The provisions of sub-clauses (i), (iii) and (v) shall not apply to government companies.
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otherwise, the entire shareholding held by such controlled intermediary in


any other person (the “Subject Person”) shall be taken into account for
computing the shareholding of such controlling person in the Subject
Person; and (bb) subject always to sub-clause (aa) above, where a
person does not exercise control over an intermediary, which has
shareholding in the Subject Person, the computation of indirect
shareholding of such person in the Subject Person shall be undertaken
on a proportionate basis; provided, however, that no such shareholding
shall be reckoned under this sub-clause (bb) if the shareholding of such
person in the intermediary is less than 26% of the subscribed and paid up
equity shareholding of such intermediary; or

(ii) a constituent of such Applicant is also a constituent of another Applicant;


or

(iii) such Applicant, or any Associate thereof receives or has received any
direct or indirect subsidy, grant, concessional loan or subordinated debt
from any other Applicant, or any Associate thereof or has provided any
such subsidy, grant, concessional loan or subordinated debt to any other
Applicant, its Member or any Associate thereof; or

(iv) such Applicant has the same legal representative for purposes of this
Application as any other Applicant; or

(v) such Applicant, or any Associate thereof has a relationship with another
Applicant, or any Associate thereof, directly or through common third
party/ parties, that puts either or both of them in a position to have access
to each other’s information about, or to influence the Application of either
or each other; or

(vi) such Applicant, or any Associate thereof has participated as a consultant


to the Authority in the preparation of any documents, design or technical
specifications of the Project.

(d) An Applicant shall be liable for disqualification if any legal, financial or


technical adviser of the Authority in relation to the Project is engaged by the
Applicant, its Member or any Associate thereof, as the case may be in any
manner for matters related to or incidental to the Project. For the avoidance of
doubt, this disqualification shall not apply where such adviser was engaged by
the Applicant, its Member or Associate in the past but its assignment expired or
was terminated prior to the Application Due Date. Nor will this disqualification
apply where such adviser is engaged after a period of 3 (three) years from the
date of commercial operation of the Project.

Explanation: In case an Applicant is a Consortium, then the term Applicant as


used in this Clause 2.2.1, shall include each Member of such Consortium.

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2.2.2 To be eligible for pre-qualification and short-listing, an Applicant shall fulfil the
following conditions of eligibility:

(A) Technical Capacity: For demonstrating technical capacity and experience (the
“Technical Capacity”), the Applicant shall, over the past 5 (five) financial years
preceding the Application Due Date, have:

(i) owned a functional 3 star and/or 4 star and/ or 5 star and/ or 5 star
Deluxe and above hotels or hotels having minimum Average Room Rate
(ARR) of Rs.10,000/- exclusive of taxes (per room per night) and having a
minimum of 50 residential rooms; or

(ii) operated, maintained and managed a functional 3 star and/or 4


star and/ or 5 star and/or 5 star Deluxe and above hotels or hotels having
minimum Average Room Rate (ARR) of Rs.10,000/- exclusive of taxes
(per room per night) and having a minimum of 50 residential rooms.

such that the sum total of residential rooms is more than 275 residential
rooms (the “Threshold Technical Capacity”).

 Note: “Star” category could be equivalent for international hotels.


 Only rooms having Average Room Rate (ARR) of Rs. 10,000/- and
above shall be considered and Average Room Rate (ARR) to be
calculated by taking average revenue earned from room and dividing
it by number of rooms sold. Further, Average Room Rate (ARR) to be
certified by Chartered Accountant and matched with the profit & loss
account

(B) Financial Capacity: The Applicant shall have a minimum Net Worth (the
“Financial Capacity”) of Rs.60 Crore (Rupees Sixty Crore only) at the close of
the preceding financial year.

In case of a Consortium, the combined technical capacity and Net Worth of those
Members, who shall have an equity share of at least 26% (twenty six per cent)
each in the SPV, should satisfy the above conditions of eligibility; provided that
each such Member shall, for a period of 2 (two) years from the date of
commercial operation of the Project, hold equity share capital not less than: (i)
26% (twenty six per cent) of the subscribed and paid up equity of the SPV; and
(ii)5% (five per cent) of the Total Project Cost specified in the Concession
Agreement.

2.2.3 O&M Experience: In the event that the Applicant does not have the requisite
O&M experience, it shall either enter into an agreement, for a period of 5 (five)
years from COD, with an entity having the aforesaid experience relating to the
performance of O&M obligations, or engage experienced and qualified personnel
for discharging its O&M obligations in accordance with the provisions of the
Concession Agreement, failing which the Concession Agreement shall be liable
to termination.

2.2.4 The Applicant shall enclose with its Application, to be submitted as per the format
at Appendix-I, complete with its Annexes, the following:

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(i) Certificate(s) from statutory auditors$of the Applicant or its Associates or


the concerned client(s) stating the payments made/ received or works
commissioned, as the case may be, during the past 5 (five) years in
respect of the projects specified in paragraph 2.2.2(A) above. In case a
particular job/ contract has been jointly executed by the Applicant (as part
of a consortium), it should further support its claim for the share in work
done for that particular job/ contract by producing a certificate from its
statutory auditor or the client; and

(ii) certificate(s) from statutory auditors of the Applicant or its Associates


specifying the Net Worth of the Applicant, as at the close of the preceding
financial year, and also specifying that the methodology adopted for
calculating such Net Worth conforms to the provisions of this Clause
2.2.4(ii). For the purposes of this RFQ, net worth (the “Net Worth”) shall
mean the sum of subscribed and paid up equity and reserves from which
shall be deducted the sum of revaluation reserves, miscellaneous
expenditure not written off and reserves not available for distribution to
equity shareholders.

2.2.5 The Applicant should submit a Power of Attorney as per the format at Appendix-
II, authorising the signatory of the Application to commit the Applicant. In the
case of a Consortium, the Members should submit a Power of Attorney in favour
of the Lead Member as per format at Appendix-III.

2.2.6 Where the Applicant is a single entity, it may be required to form an appropriate
Special Purpose Vehicle, incorporated under the Indian Companies Act,2013
(the “SPV”), to execute the Concession Agreement and implement the Project. In
case the Applicant is a Consortium, it shall, in addition to forming an SPV,
comply with the following additional requirements:

(a) Number of members in a consortium shall not exceed 6 (six), but


information sought in the Application may be restricted to 4 (four)
members in the order of their equity contribution;

(b) subject to the provisions of sub-clause (a) above, the Application should
contain the information required for each member of the Consortium;

(c) members of the Consortium shall nominate one member as the lead
member (the “Lead Member”), who shall have an equity share holding of
at least 26% (twenty six per cent) of the paid up and subscribed equity of
the SPV. The nomination(s) shall be supported by a Power of Attorney,
as per the format at Appendix-III, signed by all the other members of the
Consortium;

(d) the Application should include a brief description of the roles and
responsibilities of individual members, particularly with reference to
financial, technical and O&M obligations;

(e) an individual Applicant cannot at the same time be member of a


Consortium applying for pre-qualification. Further, a member of a
particular Applicant Consortium cannot be member of any other Applicant
Consortium applying for pre-qualification;
$$
In case duly certified audited annual financial statements containing the requisite details are provided, a separate
certification by statutory auditors would not be necessary in respect of Clause 2.2.4. In jurisdictions that do not have
statutory auditors, the firm of auditors which audits the annual accounts of the Applicant or its Associate may provide the
certificates required under this RFQ.
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(f) the members of a Consortium shall form an appropriate SPV to execute


the Project, if awarded to the Consortium;

(g) members of the Consortium shall enter into a binding Joint Bidding
Agreement, substantially in the form specified at Appendix-IV (the “Jt.
Bidding Agreement”), for the purpose of making the Application and
submitting a Bid in the event of being short-listed. The Jt. Bidding
Agreement, to be submitted along with the Application, shall, inter alia:

(i) convey the intent to form an SPV with shareholding/


ownership equity commitment(s) in accordance with this RFQ,
which would enter into the Concession Agreement and
subsequently perform all the obligations of the Concessionaire in
terms of the Concession Agreement, in case the concession to
undertake the Project is awarded to the Consortium;

(ii) clearly outline the proposed roles and responsibilities, if


any, of each member;

(iii) commit the minimum equity stake to be held by each


member;

(iv) commit that each of the members, whose experience will


be evaluated for the purposes of this RFQ, shall subscribe to 26%
(twenty six per cent) or more of the paid up and subscribed equity
of the SPV and shall further commit that each such member shall,
for a period of 2 (two) years from the date of commercial operation
of the Project, hold equity share capital not less than: (i) 26%
(twenty six per cent) of the subscribed and paid up equity share
capital of the SPV; and (ii) 5% (five per cent) of the Total Project
Cost specified in the Concession Agreement;

(v) members of the Consortium undertake that they shall


collectively hold at least 51% (fifty one per cent) of the subscribed
and paid up equity of the SPV at all times until the second
anniversary of the commercial operation date of the Project; and

(vi) include a statement to the effect that all members of the


Consortium shall be liable jointly and severally for all obligations of
the Concessionaire in relation to the Project until the Financial
Close of the Project is achieved in accordance with the
Concession Agreement; and

(h) except as provided under this RFQ and the Bidding Documents, there
shall not be any amendment to the Jt. Bidding Agreement without the
prior written consent of the Authority.

2.2.7 Any entity which has been barred by the Central/ State Government, or any entity
controlled by it, from participating in any project (BOT or otherwise), and the bar
subsists as on the date of Application, would not be eligible to submit an
Application, either individually or as member of a Consortium.

2.2.8 An Applicant including any Consortium Member or Associate should, in the last
3 (three) years, have neither failed to perform on any contract, as evidenced by

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imposition of a penalty by an arbitral or judicial authority or a judicial


pronouncement or arbitration award against the Applicant, Consortium Member
or Associate, as the case may be, nor has been expelled from any project or
contract by any public entity nor have had any contract terminated by any public
entity for breach by such Applicant, Consortium Member or Associate. Provided,
however, that where an Applicant claims that its disqualification arising on
account of any cause or event specified in this Clause 2.2.8 is such that it does
not reflect (a) any malfeasance on its part in relation to such cause or event; (b)
any wilful default or patent breach of the material terms of the relevant contract;
(c) any fraud, deceit or misrepresentation in relation to such contract; or (d) any
rescinding or abandoning of such contract, it may make a representation to this
effect to the Authority for seeking a waiver from the disqualification hereunder
and the Authority may, in its sole discretion and for reasons to be recorded in
writing, grant such waiver if it is satisfied with the grounds of such representation
and is further satisfied that such waiver is not in any manner likely to cause a
material adverse impact on the Bidding Process or on the implementation of the
Project.

2.2.9 In computing the Technical Capacity and Net Worth of the Applicant/ Consortium
Members under Clauses 2.2.2, 2.2.4 and 3.2, the Technical Capacity and Net
Worth of their respective Associates would also be eligible hereunder.

For purposes of this RFQ, Associate means, in relation to the Applicant/


Consortium Member, a person who controls, is controlled by, or is under the
common control with such Applicant/ Consortium Member (the “Associate”). As
used in this definition, the expression “control” means, with respect to a person
which is a company or corporation, the ownership, directly or indirectly, of more
than 50% (fifty per cent) of the voting shares of such person, and with respect to
a person which is not a company or corporation, the power to direct the
management and policies of such person by operation of law.

2.2.10 The following conditions shall be adhered to while submitting an Application:

(a) Applicants should attach clearly marked and referenced continuation


sheets in the event that the space provided in the prescribed forms in the
Annexes is insufficient. Alternatively, Applicants may format the
prescribed forms making due provision for incorporation of the requested
information;

(b) information supplied by an Applicant (or other constituent Member if the


Applicant is a Consortium) must apply to the Applicant, Member or
Associate named in the Application and not, unless specifically
requested, to other associated companies or firms. Invitation to submit
Bids will be issued only to Applicants whose identity and/ or constitution is
identical to that at pre-qualification;

(c) in responding to the pre-qualification submissions, Applicants should


demonstrate their capabilities in accordance with Clause 3.1 below; and

(d) in case the Applicant is a Consortium, each Member should substantially


satisfy the pre-qualification requirements to the extent specified herein.

2.2.11 While Qualification is open to persons from any country, the following provisions
shall apply:

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(a) Where, on the date of the Application, 25% (twenty five percent) or more
of the aggregate issued, subscribed and paid up equity share capital in an
Applicant or its Member is held by persons resident outside India or
where an Applicant or its Member is controlled by persons resident
outside India; or

(b) if at any subsequent stage after the date of the Application, there is an
acquisition of 25% (twenty five percent) or more of the aggregate issued,
subscribed and paid up equity share capital or control, by persons
resident outside India, in or of the Applicant or its Member;

then the Qualification of such Applicant or in the event described in sub clause
(b) above, the continued Qualification of the Applicant shall be subject to
approval of the Authority from national security and public interest perspective.
The decision of the Authority in this behalf shall be final and conclusive and
binding on the Applicant.

The holding or acquisition of equity or control, as above, shall include direct or


indirect holding/ acquisition, including by transfer, of the direct or indirect legal or
beneficial ownership or control, by persons acting for themselves or in concert
and in determining such holding or acquisition, the Authority shall be guided by
the principles, precedents and definitions contained in the Securities and
Exchange Board of India (Substantial Acquisition of Shares and Takeovers)
Regulations, 2011, or any substitute thereof, as in force on the date of such
acquisition.

The Applicant shall promptly inform the Authority of any change in the
shareholding, as above, and failure to do so shall render the Applicant liable for
disqualification from the Bidding Process.

2.2.12 Notwithstanding anything to the contrary contained herein, in the event that the
Application Due Date falls within 3 (three)months of the closing of the latest
financial year of an Applicant, it shall ignore such financial year for the purposes
of its Application and furnish all its information and certification with reference to
the 5 (five) years or 1 (one) year, as the case may be, preceding its latest
financial year. For the avoidance of doubt, financial year shall, for the purposes
of an Application hereunder, mean the accounting year followed by the Applicant
in the course of its normal business.

1.7 Change in composition of the Consortium

2.3.1 Change in the composition of a Consortium will not be permitted by the Authority
during the Qualification Stage.

2.3.2 Where the Bidder$ is a Consortium, change in the composition of a Consortium


may be permitted by the Authority during the Bid Stage, only where:

a) the application for such change is made no later than 15 (fifteen) days prior to the
Bid Due Date;

$$
The option of change in composition of the Consortium which is available under Clause 2.3.2 may be exercised by any
Applicant who is pre-qualified either as a Consortium or as a single entity. In the case of a single entity Applicant adding a
Consortium Member at the Bid Stage, the single entity Applicant shall be the Lead Member of the Consortium. Provided,
however, that no member of such Consortium shall be an Applicant or the member of a Consortium which has been pre-
qualified.
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b) the Lead Member continues to be the Lead Member of the Consortium;

c) the substitute is at least equal, in terms of Technical Capacity, to the Consortium


Member who is sought to be substituted and the modified Consortium shall
continue to meet the pre-qualification and short-listing criteria for Applicants; and

d) the new Member(s) expressly adopt(s) the Application already made on behalf of
the Consortium as if it were a party to it originally, and is not an
Applicant/Member/Associate of any other Consortium bidding for this Project.

2.3.3 Approval for change in the composition of a Consortium shall be at the sole
discretion of the Authority and must be approved by the Authority in writing.

2.3.4 The modified/ reconstituted Consortium shall submit a revised Jt. Bidding
Agreement before the Bid Due Date.

2.3.5 Notwithstanding anything to the contrary contained in sub-clause (c) (i) of Clause
2.2.1, an Applicant may, within 10 (ten) days after the Application Due Date,
remove from its Consortium any Member who suffers from a Conflict of Interest,
and such removal shall be deemed to cure the Conflict of Interest arising in
respect thereof.

1.8 Number of Applications and costs thereof

2.4.1 No Applicant shall submit more than one Application for the Project. An applicant
applying individually or as a member of a Consortium shall not be entitled to
submit another Application either individually or as a member of any Consortium,
as the case may be.

2.4.2 The Applicants shall be responsible for all of the costs associated with the
preparation of their Applications and their participation in the Bidding Process.
The Authority will not be responsible or in any way liable for such costs,
regardless of the conduct or outcome of the Bidding Process.

1.9 Site visit and verification of information

Applicants are encouraged to submit their respective Applications after visiting


the Project site and ascertaining for themselves the site conditions, traffic,
location, surroundings, climate, availability of power, water and other utilities for
construction, access to site, handling and storage of materials, weather data,
applicable laws and regulations, and any other matter considered relevant by
them.

1.10 Acknowledgement by Applicant

2.6.1 It shall be deemed that by submitting the Application, the Applicant has:

(a) made a complete and careful examination of the RFQ;

(b) received all relevant information requested from the Authority;

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(c) accepted the risk of inadequacy, error or mistake in the information


provided in the RFQ or furnished by or on behalf of the Authority relating
to any of the matters referred to in Clause 2.5 above; and

(d) agreed to be bound by the undertakings provided by it under and in terms


hereof.

2.6.2 The Authority shall not be liable for any omission, mistake or error in
respect of any of the above or on account of any matter or thing arising out of or
concerning or relating to the RFQ or the Bidding Process, including any error or
mistake therein or in any information or data given by the Authority.

1.11 Right to accept or reject any or all Applications/ Bids

2.7.1 Notwithstanding anything contained in this RFQ, the Authority reserves the right
to accept or reject any Application and to annul the Bidding Process and reject all
Applications/ Bids, at any time without any liability or any obligation for such
acceptance, rejection or annulment, and without assigning any reasons therefor.
In the event that the Authority rejects or annuls all the Bids, it may, in its
discretion, invite all eligible Bidders to submit fresh Bids hereunder.

2.7.2 The Authority reserves the right to reject any Application and/ or Bid if:

(a) at any time, a material misrepresentation is made or uncovered, or

(b) the Applicant does not provide, within the time specified by the Authority,
the supplemental information sought by the Authority for evaluation of the
Application.

If the Applicant/Bidder is a Consortium, then the entire Consortium may be


disqualified/ rejected. If such disqualification/ rejection occurs after the Bids have
been opened and the Highest Bidder gets disqualified/ rejected, then the
Authority reserves the right to:

(i) invite the remaining Bidders to match the Highest Bidder/ submit their
Bids in accordance with the RFP; or

(ii) take any such measure as may be deemed fit in the sole discretion of the
Authority, including annulment of the Bidding Process.

2.7.3 In case it is found during the evaluation or at any time before signing of the
Concession Agreement or after its execution and during the period of
subsistence thereof, including the concession thereby granted by the Authority,
that one or more of the pre-qualification conditions have not been met by the
Applicant, or the Applicant has made material misrepresentation or has given any
materially incorrect or false information, the Applicant shall be disqualified
forthwith if not yet appointed as the Concessionaire either by issue of the LOA or
entering into of the Concession Agreement, and if the Applicant/SPV has already
been issued the LOA or has entered into the Concession Agreement, as the case
may be, the same shall, notwithstanding anything to the contrary contained
therein or in this RFQ, be liable to be terminated, by a communication in writing
by the Authority to the Applicant, without the Authority being liable in any manner
whatsoever to the Applicant and without prejudice to any other right or remedy

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which the Authority may have under this RFQ, the Bidding Documents, the
Concession Agreement or under applicable law.

2.7.4 The Authority reserves the right to verify all statements, information and
documents submitted by the Applicant in response to the RFQ. Any such
verification or lack of such verification by the Authority shall not relieve the
Applicant of its obligations or liabilities hereunder nor will it affect any rights of the
Authority thereunder.

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B. Documents

1.12 Contents of the RFQ

This RFQ comprises the disclaimer set forth hereinabove, the contents as listed
below, and will additionally include any Addenda issued in accordance with
Clause 2.10.

Invitation for Qualification

Section 1. Introduction
Section 2. Instructions to Applicants
Section 3. Criteria for Evaluation
Section 4. Fraud &Corrupt Practices
Section 5. Pre- Application Conference
Section 6. Miscellaneous

Appendices

I. Letter comprising the Application


II. Power of Attorney for signing of Application
III. Power of Attorney for Lead Member of Consortium
IV. Joint Bidding Agreement for Consortium
V. Guidelines of the Department of Disinvestment
VI. List of Application-specific provisions

1.13 Clarifications

2.9.1 Applicants requiring any clarification on the RFQ may notify the Authority in
writing by speed post/ courier/ special messenger and by e-mail in accordance
with Clause 1.2.11. They should send in their queries before the date specified in
the schedule of Bidding Process contained in Clause 1.3. The Authority shall
endeavour to respond to the queries within the period specified therein, but no
later than 10(ten) days prior to the Application Due Date. The responses will be
sent by e-mail. The Authority will forward all the queries and its responses
thereto, to all purchasers of the RFQ without identifying the source of queries.

2.9.2 The Authority shall endeavour to respond to the questions raised or clarifications
sought by the Applicants. However, the Authority reserves the right not to
respond to any question or provide any clarification, in its sole discretion, and
nothing in this Clause shall be taken or read as compelling or requiring the
Authority to respond to any question or to provide any clarification.

2.9.3 The Authority may also on its own motion, if deemed necessary, issue
interpretations and clarifications to all Applicants. All clarifications and
interpretations issued by the Authority shall be deemed to be part of the RFQ.
Verbal clarifications and information given by Authority or its employees or
representatives shall not in any way or manner be binding on the Authority.

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1.14 Amendment of RFQ

2.10.1 At any time prior to the deadline for submission of Application, the
Authority may, for any reason, whether at its own initiative or in response to
clarifications requested by an Applicant, modify the RFQ by the issuance of
Addenda.

2.10.2 Any Addendum thus issued will be sent in writing to all those who have
purchased the RFQ.

2.10.3 In order to afford the Applicants a reasonable time for taking an


Addendum into account, or for any other reason, the Authority may, in its sole
discretion, extend the Application Due Date.

C. Preparation and Submission of Application

1.15 Language

The Application and all related correspondence and documents in relation to the
Bidding Process shall be in English language. Supporting documents and printed
literature furnished by the Applicant with the Application may be in any other
language provided that they are accompanied by translations of all the pertinent
passages in the English language, duly authenticated and certified by the
Applicant. Supporting materials, which are not translated into English, may not be
considered. For the purpose of interpretation and evaluation of the Application,
the English language translation shall prevail.

1.16 Format and signing of Application

2.12.1 The Applicant shall provide all the information sought under this RFQ. The
Authority will evaluate only those Applications that are received in the required
formats and complete in all respects. Incomplete and /or conditional Applications
shall be liable to rejection.

2.12.2 The Applicant shall prepare 1 (one) original set of the Application (together with
the documents required to be submitted pursuant to this RFQ) and clearly
marked as “ORIGINAL”. In addition, the Applicant shall submit 1 (one) copy of
such Application and documents, which shall be marked as “COPY”. The
Applicant shall also provide 2 (two) soft copies thereof on a Compact Disc (CD).
In the event of any discrepancy between the original and the copy, the original
shall prevail.

2.12.3 The Application and its copy shall be typed or written in indelible ink. It shall be
signed by the authorised signatory of the Applicant who shall also initial each
page of the Application (including each Appendix and Annex) in blue ink. In case
of printed and published documents, only the cover shall be initialled. All the
alterations, omissions, additions or any other amendments made to the
Application shall be initialled by the person(s) signing the Application. The
Application shall contain page numbers and shall be bound together in a manner
that does not allow replacement of any page.

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1.17 Sealing and Marking of Applications

2.13.1 The Applicant shall submit the Application in the format specified at Appendix-I,
together with the documents specified in Clause2.13.2, and seal it in an envelope
and mark the envelope as “APPLICATION”. The Applicant shall seal the original
and the copy of the Application, together with their respective enclosures, in
separate envelopes duly marking the envelopes as “ORIGINAL” and “COPY”.
The envelopes shall then be sealed in an outer envelope which shall also be
marked in accordance with Clauses 2.13.2 and 2.13.3.

2.13.2 Each envelope shall contain:


(i) Application in the prescribed format (Appendix-I) along with Annexes and
supporting documents;
(ii) Power of Attorney for signing the Application as per the format at
Appendix-II;
(iii) if applicable, the Power of Attorney for Lead Member of Consortium as
per the format at Appendix-III;
(iv) copy of the Jt. Bidding Agreement, in case of a Consortium, substantially
in the format at Appendix-IV;

(v) copy of Memorandum and Articles of Association, if the Applicant is a


body corporate, and if a partnership then a copy of its partnership deed;
(vi) copies of Applicant’s duly audited balance sheet and profit and loss
account for the preceding five years; and
(vii) 2 (two) soft copies of the Application on a Compact Disc (CD).

Each of the envelopes shall clearly bear the following identification:

“Application for Qualification: Suheli Island, Eco-Tourism Resort”

and shall clearly indicate the name and address of the Applicant. In addition, the
Application Due Date should be indicated on the right hand corner of each of the
envelopes.

2.13.3 Each of the envelopes shall be addressed to:

Managing Director
SPORTS (Lakshadweep Tourism)
Kavaratti - 682555
Phone: +91 4896-263001, +91 4896-262356
Fax: +91 4896-262356
Email: [email protected]

2.13.4 If the envelopes are not sealed and marked as instructed above, the Authority
assumes no responsibility for the misplacement or premature opening of the
contents of the Application and consequent losses, if any, suffered by the
Applicant.

2.13.5 Applications submitted by fax, telex, telegram or e-mail shall not be entertained
and shall be rejected.
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1.18 Application Due Date

2.14.1 Applications should be submitted before 1500 hours IST on the Application Due
Date, at the address provided in Clause 2.13.3 in the manner and form as
detailed in this RFQ. A receipt thereof should be obtained from the person
specified in Clause 2.13.3.

2.14.2 The Authority may, in its sole discretion, extend the Application Due Date by
issuing an Addendum in accordance with Clause 2.10 uniformly for all
Applicants.

1.19 Late Applications

Applications received by the Authority after the specified time on the Application
Due Date shall not be eligible for consideration and shall be summarily rejected.

1.20 Modifications/ substitution/ withdrawal of Applications

2.16.1 The Applicant may modify, substitute or withdraw its Application after
submission, provided that written notice of the modification, substitution or
withdrawal is received by the Authority prior to the Application Due Date. No
Application shall be modified, substituted or withdrawn by the Applicant on or
after the Application Due Date.

2.16.2 The modification, substitution or withdrawal notice shall be prepared, sealed,


marked, and delivered in accordance with Clause 2.13, with the envelopes being
additionally marked “MODIFICATION”, “SUBSTITUTION” or “WITHDRAWAL”, as
appropriate.

2.16.3 Any alteration/ modification in the Application or additional information supplied


subsequent to the Application Due Date, unless the same has been expressly
sought for by the Authority, shall be disregarded.

D. Evaluation Process

1.21 Opening and Evaluation of Applications

2.17.1 The Authority shall open the Applications at 1530 hours IST on the Application
Due Date, at the place specified in Clause 2.13.3 and in the presence of the
Applicants who choose to attend.

2.17.2 Applications for which a notice of withdrawal has been submitted in accordance
with Clause 2.16 shall not be opened.

2.17.3 The Authority will subsequently examine and evaluate Applications in


accordance with the provisions set out in Section 3.

2.17.4 Applicants are advised that pre-qualification of Applicants will be entirely at the
discretion of the Authority. Applicants will be deemed to have understood and

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agreed that no explanation or justification on any aspect of the Bidding Process


or selection will be given.

2.17.5 Any information contained in the Application shall not in anyway be construed as
binding on the Authority, its agents, successors or assigns, but shall be binding
against the Applicant if the Project is subsequently awarded to it on the basis of
such information.

2.17.6 The Authority reserves the right not to proceed with the Bidding Process at any
time without notice or liability and to reject any or all Application(s) without
assigning any reasons.

2.17.7 If any information furnished by the Applicant is found to be incomplete, or


contained in formats other than those specified herein, the Authority may, in its
sole discretion, exclude the relevant project from computation of the Experience
Score of the Applicant.

2.17.8 In the event that an Applicant claims credit for an Eligible Project, and such claim
is determined by the Authority as incorrect or erroneous, the Authority shall reject
such claim and exclude the same from computation of the Experience Score, and
may also, while computing the aggregate Experience Score of the Applicant,
make a further deduction equivalent to the claim rejected hereunder. Where any
information is found to be patently false or amounting to a material
misrepresentation, the Authority reserves the right to reject the Application and/
or Bid in accordance with the provisions of Clauses 2.7.2 and 2.7.3.

1.22 Confidentiality

Information relating to the examination, clarification, evaluation, and


recommendation for the short-listed pre-qualified Applicants shall not be
disclosed to any person who is not officially concerned with the process or is not
a retained professional advisor advising the Authority in relation to, or matters
arising out of, or concerning the Bidding Process. The Authority will treat all
information, submitted as part of Application, in confidence and will require all
those who have access to such material to treat the same in confidence. The
Authority may not divulge any such information unless it is directed to do so by
any statutory entity that has the power under law to require its disclosure or is to
enforce or assert any right or privilege of the statutory entity and/ or the Authority
or as may be required by law or in connection with any legal process.

1.23 Tests of responsiveness

2.19.1 Prior to evaluation of Applications, the Authority shall determine whether each
Application is responsive to the requirements of the RFQ. An Application shall be
considered responsive if:

(a) it is received as per format at Appendix-I;

(b) it is received by the Application Due Date including any extension thereof
pursuant to Clause 2.14.2;

(c) it is signed, sealed, bound together in hard cover, and marked as


stipulated in Clauses 2.12 and 2.13;
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(d) it is accompanied by the Power of Attorney as specified in Clause 2.2.5,


and in the case of a Consortium, the Power of Attorney as specified in
Clause 2.2.6 (c);

(e) it contains all the information and documents (complete in all respects) as
requested in this RFQ;

(f) it contains information in formats same as those specified in this RFQ;

(g) it contains certificates from its statutory auditors in the formats specified
at Appendix-I of the RFQ for each Eligible Project;

(h) it contains an attested copy of the receipt of the Authority towards the
cost of the RFQ process as specified in Clause 1.2.1;

(i) it is accompanied by the Jt. Bidding Agreement (for Consortium), specific


to the Project, as stipulated in Clause 2.2.6(g);

(j) it does not contain any condition or qualification; and

(k) it is not non-responsive in terms hereof.

2.19.2 The Authority reserves the right to reject any Application which is non-responsive
and no request for alteration, modification, substitution or withdrawal shall be
entertained by the Authority in respect of such Application. Provided, however,
that the Authority may, in its discretion, allow the Applicant to rectify any
infirmities or omissions if the same do not constitute a material modification of the
Application.

1.24 Clarifications

2.20.1 To facilitate evaluation of Applications, the Authority may, at its sole discretion,
seek clarifications from any Applicant regarding its Application. Such
clarification(s) shall be provided within the time specified by the Authority for this
purpose. Any request for clarification(s) and all clarification(s) in response thereto
shall be in writing.

2.20.2 If an Applicant does not provide clarifications sought under Clause 2.20.1 above
within the prescribed time, its Application shall be liable to be rejected. In case
the Application is not rejected, the Authority may proceed to evaluate the
Application by construing the particulars requiring clarification to the best of its
understanding, and the Applicant shall be barred from subsequently questioning
such interpretation of the Authority.

E. Qualification and Bidding

1.25 Short-listing and notification

After the evaluation of Applications, the Authority would announce a list of short-
listed pre-qualified Applicants (Bidders) who will be eligible for participation in the
Bid Stage. At the same time, the Authority would notify the other Applicants that

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they have not been short-listed. The Authority will not entertain any query or
clarification from Applicants who fail to qualify.
1.26 Submission of Bids

The Bidders will be requested to submit a Bid in the form and manner to be set
out in the Bidding Documents.

Only pre-qualified Applicants shall be invited by the Authority to submit their Bids
for the Project. The Authority is likely to provide a comparatively short time span
for submission of the Bids for the Project. The Applicants are therefore advised to
visit the site and familiarize themselves with the Project by the time of submission
of the Application. No extension of time is likely to be considered for submission
of Bids pursuant to invitation that may be issued by the Authority.
1.27 Proprietary data

All documents and other information supplied by the Authority or submitted by an


Applicant to the Authority shall remain or become the property of the Authority.
Applicants are to treat all information as strictly confidential and shall not use it
for any purpose other than for preparation and submission of their Application.
The Authority will not return any Application or any information provided along
therewith.
1.28 Correspondence with the Applicant

Save and except as provided in this RFQ, the Authority shall not entertain any
correspondence with any Applicant in relation to the acceptance or rejection of
any Application.

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Request for Qualification

2 Criteria for Evaluation

2.1 Evaluation parameters

3.1.1 Only those Applicants who meet the eligibility criteria specified in Clauses 2.2.2
and 2.2.3 shall qualify for evaluation under this Section 3. Applications of firms/
consortia who do not meet these criteria shall be rejected.

3.1.2 The Applicant’s competence and capability is proposed to be established by the


following parameters:

(a) Technical Capacity; and

(b) Financial Capacity.

2.2 Technical Capacity for purposes of evaluation

3.2.1 Subject to the provisions of Clause 2.2, the following categories of experience
would qualify as Technical Capacity and eligible experience (the “Eligible
Experience”) in relation to eligible projects as stipulated in Clauses 3.2.3 and
3.2.4 (the “Eligible Projects”):

Category 1: Owned and / or operated, maintained and managed a functional 3


Star category hotel, as recognised by Ministry of Tourism,
Government of India, or equivalent category for international
hotels, or hotels with Average Room Rate (ARR) of minimum
Rs.10,000/- excluding taxes per room per night, with a minimum of
50 residential rooms

Category 2: Owned and / or operated, maintained and managed a functional 4


Star category hotel, as recognised by Ministry of Tourism,
Government of India, or equivalent category for international
hotels, or hotels with Average Room Rate (ARR) of minimum
Rs.12,000/- excluding taxes per room per night, with a minimum of
50 residential rooms

Category 3: Owned and / or operated, maintained and managed a functional 5


Star category hotel, as recognised by Ministry of Tourism,
Government of India, or equivalent category for international
hotels, or hotels with Average Room Rate (ARR) of minimum
Rs.15,000/- excluding taxes per room per night, with a minimum of
50 residential rooms

Category 4: Owned and / or operated, maintained and managed a functional 5


Star Deluxe and above category hotel, as recognised by Ministry
of Tourism, Government of India, or equivalent category for
international hotels, or hotels with Average Room Rate (ARR) of
minimum Rs.20,000/- excluding taxes per room per night, with a
minimum of 50 residential rooms

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Suheli Island of Lakshadweep Islands
Request for Qualification

3.2.2 Eligible Experience in respect of each category shall be measured only


for Eligible Projects.

3.2.3 For a project to qualify as an Eligible Project under Categories 1, 2, 3 and 4, the
entity claiming experience should have held, in the company owning or operating
the Eligible Project, a minimum of 26% (twenty six per cent) equity during the
entire year for which Eligible Experience is being claimed.

3.2.4 Double counting for a particular Eligible Project shall not be permitted in any
form.

3.2.5 The Applicant shall quote experience in respect of a particular Eligible Project
under any one category only, even though the Applicant (either individually or
along with a member of the Consortium) may have played multiple roles in the
cited project. Double counting for a particular Eligible Project shall not be
permitted in any form.

3.2.6 An Applicant’s experience shall be measured and stated in terms of a score (the
“Experience Score”). The Experience Score for an Eligible Project in a given
category, as specified in Clause 3.2.1, would be measured in terms of residential
rooms in the respective hotel whereby each room will get a score of one. This
score will then be multiplied by the applicable factor in Table 3.2.6 below. In case
the Applicant has experience across different categories, the score for each
category would be computed as above and then aggregated to arrive at its
Experience Score

Table 3.2.6: Factors for Experience across categories

Categories Factor
Category 1 1.00
Category 2 1.25
Category 3 1.50
Category 4 2.00

3.2.7 The Experience Score determined in accordance with Clause 3.2.6 in respect of
an Eligible Project situated in a developed country which is a member of OECD
shall be further multiplied by a factor of 0.5(zero point five) and the product
thereof shall be the Experience Score for such Eligible Project.

3.2.8 Experience for any activity relating to an Eligible Project shall not be claimed by
two or more Members of the Consortium. In other words, no double counting by a
Consortium in respect of the same experience shall be permitted in any manner
whatsoever.

2.3 Details of Experience

3.3.1 The Applicant should furnish the details of Eligible Experience for the last 5 (five)
financial years immediately preceding the Application Due Date.

3.3.2 The Applicants must provide the necessary information relating to Technical
Capacity as per format at Annex-II of Appendix-I.

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Request for Qualification

3.3.3 The Applicant should furnish the required Project-specific information and
evidence in support of its claim of Technical Capacity, as per format at Annex-IV
of Appendix-I.

2.4 Financial information for purposes of evaluation

3.4.1 The Application must be accompanied by the Audited Annual Reports of the
Applicant (of each Member in case of a Consortium) for the last 5 (five) financial
years, preceding the year in which the Application is made.

3.4.2 In case the annual accounts for the latest financial year are not audited and
therefore the Applicant cannot make it available, the Applicant shall give an
undertaking to this effect and the statutory auditor shall certify the same. In such
a case, the Applicant shall provide the Audited Annual Reports for 5 (five) years
preceding the year for which the Audited Annual Report is not being provided.

3.4.3 The Applicant must establish the minimum Net Worth specified in Clause 2.2.2
(B),and provide details as per format at Annex-III of Appendix-I.

2.5 Short-listing of Applicants

3.5.1 The credentials of eligible Applicants shall be measured in terms of their


Experience Score. The sum total of the Experience Scores for all Eligible
Projects shall be the ‘Aggregate Experience Score’ of a particular Applicant. In
case of a Consortium, the Aggregate Experience Score of each of its Members,
who have an equity share of at least 26% in such Consortium, shall be summed
up for arriving at the combined Aggregate Experience Score of the Consortium.

3.5.2 The Applicants shall then be ranked on the basis of their respective Aggregate
Experience Scores and short-listed for submission of Bids. The Authority expects
to short-list upto 6 (six) pre-qualified Applicants for participation in the Bid Stage.
The Authority, however, reserves the right to increase the number of short-listed
pre-qualified Applicants by adding additional Applicant.

3.5.3 The Authority may, in its discretion, maintain a reserve list of pre-qualified
Applicants who may be invited to substitute the short-listed Applicants in the
event of their withdrawal from the Bidding Process or upon their failure to
conform to the conditions specified herein; provided that a substituted Applicant
shall be given at least 30 (thirty) days to submit its Bid.

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3 Fraud and Corrupt Practices

4.1 The Applicants and their respective officers, employees, agents and advisers
shall observe the highest standard of ethics during the Bidding Process.
Notwithstanding anything to the contrary contained herein, the Authority may
reject an Application without being liable in any manner whatsoever to the
Applicant if it determines that the Applicant has, directly or indirectly or through
an agent, engaged in corrupt practice, fraudulent practice, coercive practice,
undesirable practice or restrictive practice in the Bidding Process.

4.2 Without prejudice to the rights of the Authority under Clause 4.1 hereinabove, if
an Applicant is found by the Authority to have directly or indirectly or through an
agent, engaged or indulged in any corrupt practice, fraudulent practice, coercive
practice, undesirable practice or restrictive practice during the Bidding Process,
such Applicant shall not be eligible to participate in any tender or RFQ issued by
the Authority during a period of 2 (two) years from the date such Applicant is
found by the Authority to have directly or indirectly or through an agent, engaged
or indulged in any corrupt practice, fraudulent practice, coercive practice,
undesirable practice or restrictive practice, as the case may be.

4.3 For the purposes of this Clause4, the following terms shall have the meaning
hereinafter respectively assigned to them:

(a) “corrupt practice” means (i) the offering, giving, receiving, or soliciting,
directly or indirectly, of anything of value to influence the actions of any
person connected with the Bidding Process (for avoidance of doubt,
offering of employment to, or employing, or engaging in any manner
whatsoever, directly or indirectly, any official of the Authority who is or
has been associated in any manner, directly or indirectly, with the Bidding
Process or the LOA or has dealt with matters concerning the Concession
Agreement or arising therefrom, before or after the execution thereof, at
any time prior to the expiry of one year from the date such official resigns
or retires from or otherwise ceases to be in the service of the Authority,
shall be deemed to constitute influencing the actions of a person
connected with the Bidding Process); or (ii) save and except as permitted
under sub clause (d) of Clause 2.2.1, engaging in any manner
whatsoever, whether during the Bidding Process or after the issue of the
LOA or after the execution of the Concession Agreement, as the case
may be, any person in respect of any matter relating to the Project or the
LOA or the Concession Agreement, who at any time has been or is a
legal, financial or technical adviser of the Authority in relation to any
matter concerning the Project;

(b) “fraudulent practice” means a misrepresentation or omission of facts or


suppression of facts or disclosure of incomplete facts, in order to
influence the Bidding Process;

(c) “coercive practice” means impairing or harming or threatening to impair


or harm, directly or indirectly, any person or property to influence any
person’s participation or action in the Bidding Process;

(d) “undesirable practice” means (i) establishing contact with any person
connected with or employed or engaged by the Authority with the
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Request for Qualification

objective of canvassing, lobbying or in any manner influencing or


attempting to influence the Bidding Process; or (ii) having a Conflict of
Interest; and

(e) “restrictive practice” means forming a cartel or arriving at any


understanding or arrangement among Applicants with the objective of
restricting or manipulating a full and fair competition in the Bidding
Process.

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4 Pre-Application Conference

5.1 A Pre-Application Conference of the interested parties shall be convened at the


designated date, time and place. Only those persons who have purchased the
RFQ document shall be allowed to participate in the Pre-Application Conference.
Applicants who have downloaded the RFQ document from the Project
Management Agency’s website should submit a Demand Draft for the amount
specified in Clause 1.2.1 towards the cost of the RFQ process, through their
representative attending the conference. A maximum of three representatives of
each Applicant shall be allowed to participate on production of authority letter
from the Applicant.

5.2 During the course of Pre-Application Conference, the Applicants will be free to
seek clarifications and make suggestions for consideration of the Authority. The
Authority shall endeavor to provide clarifications and such further information as
it may, in its sole discretion, consider appropriate for facilitating a fair,
transparent and competitive Bidding Process.

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5 Miscellaneous

6.1 The Bidding Process shall be governed by, and construed in accordance with,
the laws of India and the Courts in Kerala in which the Authority has its
headquarters shall have exclusive jurisdiction over all disputes arising under,
pursuant to and/ or in connection with the Bidding Process.

6.2 The Authority, in its sole discretion and without incurring any obligation or liability,
reserves the right, at any time, to;

(a) suspend and/ or cancel the Bidding Process and/ or amend and/ or
supplement the Bidding Process or modify the dates or other terms and
conditions relating thereto;

(b) consult with any Applicant in order to receive clarification or further


information;

(c) pre-qualify or not to pre-qualify any Applicant and/ or to consult with any
Applicant in order to receive clarification or further information;

(d) retain any information and/ or evidence submitted to the Authority by, on
behalf of, and/ or in relation to any Applicant; and/ or

(e) independently verify, disqualify, reject and/ or accept any and all
submissions or other information and/ or evidence submitted by or on
behalf of any Applicant.

6.3 It shall be deemed that by submitting the Application, the Applicant agrees and
releases the Authority, its employees, agents and advisers, irrevocably,
unconditionally, fully and finally from any and all liability for claims, losses,
damages, costs, expenses or liabilities in any way related to or arising from the
exercise of any rights and/ or performance of any obligations hereunder and the
Bidding Documents, pursuant hereto, and/ or in connection with the Bidding
Process, to the fullest extent permitted by applicable law, and waives any and all
rights and/ or claims it may have in this respect, whether actual or contingent,
whether present or in future.

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Appendices

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Appendix-I: Letter Comprising the Application for Pre-


Qualification
(Refer Clause 2.13.2)
Dated: 
To,
Mr *******
*******
UT Administration,
Lakshadweep Islands

Sub: Application for pre-qualification for Suheli Island, Eco-Tourism Resort

Dear Sir,

1. With reference to your RFQ document dated ………..$, I/we, having examined
the RFQ document and understood its contents, hereby submit my/our
Application for Qualification for the aforesaid project. The Application is
unconditional and unqualified.

2. I/ We acknowledge that the Authority will be relying on the information provided


in the Application and the documents accompanying such Application for pre-
qualification of the Applicants for the aforesaid project, and we certify that all
information provided in the Application and in Annexes I to V is true and correct;
nothing has been omitted which renders such information misleading; and all
documents accompanying such Application are true copies of their respective
originals.

3. This statement is made for the express purpose of qualifying as a Bidder for the
development, construction, operation and maintenance of the aforesaid Project.

4. I/ We shall make available to the Authority any additional information it may find
necessary or require to supplement or authenticate the Qualification statement.

5. I/ We acknowledge the right of the Authority to reject our Application without


assigning any reason or otherwise and hereby waive, to the fullest extent
permitted by applicable law, our right to challenge the same on any account
whatsoever.

6. I/ We certify that in the last three years, we/ any of the Consortium Members or
our/ their Associates have neither failed to perform on any contract, as evidenced
by imposition of a penalty by an arbitral or judicial authority or a judicial
pronouncement or arbitration award, nor been expelled from any project or
contract by any public authority nor have had any contract terminated by any
public authority for breach on our part.

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Suheli Island of Lakshadweep Islands
Request for Qualification

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Suheli Island of Lakshadweep Islands
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7. I/ We declare that:
a) I/ We have examined and have no reservations to the RFQ document,
including any Addendum issued by the Authority;

b) I/ We do not have any conflict of interest in accordance with Clauses


2.2.1(c) and 2.2.1(d) of the RFQ document;

c) I/We have not directly or indirectly or through an agent engaged or


indulged in any corrupt practice, fraudulent practice, coercive practice,
undesirable practice or restrictive practice, as defined in Clause 4.3 of the
RFQ document, in respect of any tender or request for proposal issued by
or any agreement entered into with the Authority or any other public
sector enterprise or any government, Central or State; and

d) I/ We hereby certify that we have taken steps to ensure that in conformity


with the provisions of Section 4 of the RFQ document, no person acting
for us or on our behalf has engaged or will engage in any corrupt practice,
fraudulent practice, coercive practice, undesirable practice or restrictive
practice.

8. I/ We understand that you may cancel the Bidding Process at any time and that
you are neither bound to accept any Application that you may receive nor to
invite the Applicants to Bid for the Project, without incurring any liability to the
Applicants, in accordance with Clause 2.17.6 of the RFQ document.

9. I/ We believe that we/ our Consortium/ proposed Consortium satisfy (ies) the Net
Worth criteria and meet(s) all the requirements as specified in the RFQ document
and am/ are qualified to submit a Bid.

10. I/ We declare that we/ any Member of the Consortium, or our/ its Associates are
not a Member of a/ any other Consortium applying for pre-qualification.

11. I/ We certify that in regard to matters other than security and integrity of the
country, we/ any Member of the Consortium or any of our/ their Associates have
not been convicted by a court or indicted or adverse orders passed by a
regulatory authority which could cast a doubt on our ability to undertake the
Project or which relates to a grave offence that outrages the moral sense of the
community.

12. I/ We further certify that in regard to matters relating to security and integrity of
the country, we/ any Member of the Consortium or any of our/ their Associates
have not been charge-sheeted by any agency of the Government or convicted by
a court.

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Suheli Island of Lakshadweep Islands
Request for Qualification

13. I/ We further certify that no investigation by a regulatory authority is pending


either against us/ any Member of the Consortium or against our/ their Associates
or against our CEO or any of our directors/ managers/ employees.

14. I/ We further certify that we are qualified to submit a Bid in accordance with the
guidelines for qualification of bidders seeking to acquire stakes in Public Sector
Enterprises through the process of disinvestment issued by the GOI vide
Department of Disinvestment OM No. 6/4/2001-DD-II dated 13th July, 2001
which guidelines apply mutatis mutandis to the Bidding Process. A copy of the
aforesaid guidelines form part of the RFQ at Appendix-V thereof.

15. I/We further certify that we/ any Member of the Consortium or any of our/ their
Associates are not barred by the Central Government/ State Government or any
entity controlled by it, from participating in any project (BOT or otherwise), and no
bar subsists as on the date of Application.

16. I/ We undertake that in case due to any change in facts or circumstances during
the Bidding Process, we are attracted by the provisions of disqualification in
terms of the provisions of this RFQ, we shall intimate the Authority of the same
immediately.

17. The Statement of Legal Capacity as per format provided at Annex-V in Appendix-
I of the RFQ document, and duly signed, is enclosed. The power of attorney for
signing of Application and the power of attorney for Lead Member of consortium,
as per format provided at Appendix II and III respectively of the RFQ, are also
enclosed.

18. I/ We understand that the selected Bidder shall either be an existing Company
incorporated under the Indian Companies Act, 1956/2013, or shall incorporate as
such prior to execution of the Concession Agreement.

19. I/ We hereby confirm that we shall comply with the O&M requirements specified
in Clause 2.2.3.

20. I/ We hereby irrevocably waive any right or remedy which we may have at any
stage at law or howsoever otherwise arising to challenge or question any
decision taken by the Authority in connection with the selection of Applicants,
selection of the Bidder, or in connection with the selection/ Bidding Process itself,
in respect of the above mentioned Project and the terms and implementation
thereof.

21. I/ We agree and undertake to abide by all the terms and conditions of the RFQ
document.

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Suheli Island of Lakshadweep Islands
Request for Qualification

22. I/ We certify that in terms of the RFQ, my/our Net Worth is Rs. ………………..
(Rupees …………………………………….) and the Aggregate Experience Score
is …………………… (in figures) …………..………………………………… (in
words).

23. We agree and undertake to be jointly and severally liable for all the obligations of
the Concessionaire under the Concession Agreement till occurrence of Financial
Close in accordance with the Concession Agreement.

24. In witness thereof, I/ we submit this Application under and in accordance with the
terms of the RFQ document.

Yours faithfully,

Date: (Signature, name and designation of the Authorized Signatory)

Place: Name and seal of the Applicant/ Lead Member

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Suheli Island of Lakshadweep Islands
Request for Qualification

Appendix I
Annex-I
Annex-I: Particulars of the Applicant

1. (a) Name:
(b) Country of incorporation:
(c) Address of the corporate headquarters and its branch office(s), if any,
in India:
(d) Date of incorporation and/ or commencement of business:

2. Brief description of the Company including details of its main lines of business
and proposed role and responsibilities in this Project:

3. Particulars of individual(s) who will serve as the point of contact/


communication for the Applicant:
(a) Name:
(b) Designation:
(c) Company:
(d) Address:
(e) Telephone Number:
(f) E-Mail Address:

4. Particulars of the Authorised Signatory of the Applicant:


(a) Name:
(b) Designation:
(c) Address:
(d) Phone Number:
(e) Fax Number:

5. In case of a Consortium:
(a) The information above (1-4) should be provided for all the Members of
the Consortium.
(b) A copy of the Jt. Bidding Agreement, as envisaged in Clause 2.2.6(g)
should be attached to the Application.
(c) Information regarding the role of each Member should be provided as
per table below:

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Request for Qualification

Appendix I
Annex-I

Sl. Name of Member Role$ Percentage of equity in the


No. Consortium$$
1.
2.
3.
4.
$
The role of each Member, as may be determined by the Applicant, should
be indicated in accordance with Clause 2.2.6 (d) and instruction 4 at Annex-
IV.
$$
The percentage of equity should be in accordance with Clause 2.2.6 (a), (c)
and (g).

6. The following information shall also be provided for the Applicant, including
each Member of the Consortium:
Name of Applicant/ member of Consortium:
No. Criteria Yes No
1. Has the Applicant/ constituent of the Consortium
been barred by the Central/ State Government, or
any entity controlled by it, from participating in any
project (BOT or otherwise)?
2. If the answer to 1 is yes, does the bar subsist as on
the date of Application?
3. Has the Applicant/ constituent of the Consortium
paid liquidated damages of more than 5% of the
contract value in a contract due to delay or has been
penalized due to any other reason in relation to
execution of a contract, in the last three years?

7. A statement by the Applicant and each of the Members of its Consortium


(where applicable) or any of their Associates disclosing material non-
performance or contractual non-compliance in past projects, contractual
disputes and litigation/ arbitration in the recent past is given below (Attach
extra sheets, if necessary):

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Appendix I
Annex-II
Annex-II: Technical Capacity of the Applicant @
(Refer to Clauses 2.2.2(A), 3.2 and 3.3 of the RFQ)

Applicant Member Project Cate- Experience Experience


type# Code¥ Code¥¥ gory$ (number of rooms) Score££
NIL
Number of Multiplying
(7)
residential factor
(1) (4)
rooms in (6)
(8)
the hotel
(5)

(2) (3)

Single entity a
Applicant b
c
d
Consortium 1a
Member 1 1b
1c
1d
Consortium 2a
Member 2 2b
2c
2d
Consortium 3a
Member 3 3b
3c
3d
Aggregate Experience Score =

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Appendix I
Annex-II
@
Provide details of only those projects that have been undertaken by the Applicant
under its own name and/ or by an Associate specified in Clause 2.2.9 and/ or by a
project company eligible under Clause 3.2.3. In case the Application Due Date falls
within 3(three) months of the close of the latest financial year, refer to Clause 2.2.12.
#
An Applicant consisting of a single entity should fill in details as per the row titled
Single entity Applicant and ignore the rows titled Consortium Member. In case of a
Consortium, the row titled Single entity Applicant may be ignored. In case credit is
claimed for an Associate, necessary evidence to establish the relationship of the
Applicant with such Associate, in terms of Clause 2.2.9, shall be provided.
¥
Member Code shall indicate NA for Not Applicable in case of a single entity
Applicant. For other Members, the following abbreviations are suggested viz. LM
means Lead Member, TM means Technical Member, FM means Financial Member,
OMM means Operation & Maintenance Member, OM means Other Member.
¥¥
Refer Annex-IV of this Appendix-I. Add more rows if necessary.
$
Refer Clause 3.2.1.

££Divide the number of rooms in the Experience column by one room and then
multiply the result thereof by the applicable factor set out in Table 3.2.5 to arrive at
the Experience Score for each Eligible Project. In the case of an Eligible Project
situated in an OECD country, the Experience Score so arrived at shall be further
multiplied by 0.5, in accordance with the provisions of Clause 3.2.7, and the product
thereof shall be the Experience Score for such Eligible Projects.

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Appendix I
Annex-III
Annex-III: Financial Capacity of the Applicant
(Refer to Clauses 2.2.2(B), 2.2.4 (ii) and 3.4 of the RFQ)

(In Rs. crore$)


Applicant Member Net Cash Accruals Net
type $$ Code£ Worth££
Year Year Year Year Year Year
1 2 3 4 5 1
(1) (2) (3) (4) (5) (6) (7) (8)
Single entity
Applicant

Consortium
Member 1

Consortium
Member 2

Consortium
Member 3

Consortium
Member 4
TOTAL

Name & address of Applicant’s Bankers:

$
For conversion of other currencies into rupees, see notes below Annex-II of
Appendix-I.
$$
An Applicant consisting of a single entity should fill in details as per the row titled
Single entity Applicant and ignore the rows titled Consortium Members. In case of a
Consortium, row titled Single entity Applicant may be ignored.
£
For Member Code, see instruction 4 at Annex-IV of this Appendix-I.
££
The Applicant should provide details of its own Financial Capacity or of an
Associate specified in Clause 2.2.9.

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Appendix I
Annex-III
Instructions:

1. The Applicant/ its constituent Consortium Members shall attach copies of the
balance sheets, financial statements and Annual Reports for 5 (five) years
preceding the Application Due Date. The financial statements shall:

(a) reflect the financial situation of the Applicant or Consortium Members


and its/ their Associates where the Applicant is relying on its
Associate’s financials;

(b) be audited by a statutory auditor;

(c) be complete, including all notes to the financial statements; and

(d) correspond to accounting periods already completed and audited (no


statements for partial periods shall be requested or accepted).

2. Net Cash Accruals shall mean Profit After Tax + Depreciation.

3. Net Worth shall mean (Subscribed and Paid-up Equity + Reserves) less
(Revaluation reserves + miscellaneous expenditure not written off + reserves
not available for distribution to equity shareholders). 1
4. Year 1 will be the latest completed financial year, preceding the bidding. Year
2 shall be the year immediately preceding Year 1 and so on. In case the
Application Due Date falls within 3 (three) months of the close of the latest
financial year, refer to Clause 2.2.12.
5. In the case of a Consortium, a copy of the Jt. Bidding Agreement shall be
submitted in accordance with Clause 2.2.6 (g) of the RFQ document.

6. The Applicant shall provide an Auditor’s Certificate specifying the Net Worth
of the Applicant and also specifying the methodology adopted for calculating
such Net Worth in accordance with Clause 2.2.4 (ii) of the RFQ document.

1
To further explain, Net worth is aggregate value of the paid-up share capital and all reserves created out of the
profits and securities, premium account, after deducting the aggregate value of the accumulated losses, deferred
expenditure and miscellaneous expenditure not written off, as per the audited balance sheet, but does not include
reserves created out of revaluation of assets, write-back of depreciation and amalgamation
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Appendix I
ANNEX-IV
Annex-IV: Details of Eligible Projects
(Refer to Clauses 2.2.2(A), 3.2 and 3.3 of the RFQ)

Project Code: Member Code:


Item Refer Particulars of the Project
Instruction
(1) (2) (3)
Title & nature of the project
Category 5
Year-wise Number of 6 Year Number of
Rooms in the Hotel Rooms
Year 1
Year 2
Year 3
Year 4
Year 5
Total
Five Year
Average (Total
divided by 5 -
No. of rooms
to be
considered for
column no. 5
of the table in
Annex-II)
Location and address of the 7
Hotel
Date of commencement of 8
Hotel
Equity shareholding 9
(with period during which
equity was held)
Whether credit is being 13
taken for the Eligible
Experience of an Associate
(Yes/ No)

Instructions:

1. Applicants are expected to provide information in respect of each Eligible


Project in this Annex. Information provided in this section is intended to serve
as a back-up for information provided in the Application. Applicants should
also refer to the Instructions below.
2. For a single entity Applicant, the Project Codes would be a, b, c, d etc. In
case the Applicant is a Consortium then for Member 1, the Project Codes
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Request for Qualification

would be 1a, 1b, 1c, 1d etc., for Member 2 the Project Codes shall be 2a, 2b,
2c, 2d etc., and so on.
3. A separate sheet should be filled for each Eligible Project.
4. Member Code shall indicate NA for Not Applicable in case of a single entity
Applicant. For other Members, the following abbreviations are suggested viz.
LM means Lead Member, TM means Technical Member, FM means Financial
Member, OMM means Operation & Maintenance Member; and OM means
Other Member. In case the Eligible Project relates to an Associate of the
Applicant or its Member, write “Associate” along with Member Code.
5. Refer to Clause 3.2.1 of the RFQ for category number.
6. The five-year average number of rooms for each Eligible Project for the entire
5 years (total divided by 5) is to be stated in Annex-II of this Appendix-I. The
figures to be provided here should indicate the break-up for the past 5 (five)
financial years. Year 1 refers to the financial year immediately preceding the
Application Due Date; Year 2 refers to the year before Year 1, Year 3 refers to
the year before Year 2, and so on (Refer Clause 2.2.12)
For the project to be Eligible for a particular year within last 5 financial years,
the hotel needs to have total number of operational rooms more than or equal
to 50 in that year, in accordance with Clause 2.2.2 (A).
7. Particulars such as name, address and contact details of owner may be
provided for all Eligible Projects.
8. The date of commissioning of the project should be indicated for all Eligible
Projects.
9. For all Eligible Projects, the equity shareholding of the Applicant, in the
company owning the Eligible Project, held continuously during the period for
which Eligible Experience is claimed, needs to be given (Refer Clause 3.2.3).
In case the project is owned/ operated, maintained and managed by the
Applicant Company, please indicate accordingly (Refer Clause 3.2.3).
10. Experience for any activity relating to an Eligible Project shall not be claimed
by two or more Members of the Consortium. In other words, no double
counting by a consortium in respect of the same experience shall be
permitted in any manner whatsoever.

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11. Certificate from the Applicant’s statutory auditor $or its respective clients must
be furnished as per formats below for each Eligible Project. In jurisdictions
that do not have statutory auditors, the auditors who audit the annual
accounts of the Applicant/ Member/Associate may provide the requisite
certification.
12. The Applicant shall provide a certificate from the statutory auditor of the
Applicant, or its Associate, in the format below:

Certificate from the Statutory Auditor regarding Hotels

Based on its books of accounts and other published information authenticated by it,
this is to certify that …………………….. (name of the Applicant/Member/Associate)
is/ was an equity shareholder in ……………….. (title of the project company) and
holds/held Rs. ………cr. (Rupees ………………………….. crore) of equity (which
constitutes ……..%€ of the total paid up and subscribed equity capital) of the project
company from …………...(date) to ……………..(date)¥. The project was/is likely to be
commissioned on …………….(date of commissioning of the project).

We certify that ……………….. (title of the project company) {owned/ operated,


maintained and managed} a …………….(insert name of the hotel) having a capacity
of …….(insert number) residential rooms and the total number of residential
rooms{owned/ operated, maintained and managed} by them works out to ……………
(insert number of residential rooms in words and figure) during the past five financial
years as per year-wise details noted below:

(Give year wise details)

………………………
………………………

We certify that the star category of the project is ………. As per the following
certification process method: …………………………. / We certify that the Average
Room Rate (ARR) in the hotel is Rs. …………. /- excluding taxes, calculated in
accordance with Clause 2.2.2 (A) of the RFQ Document for the Project.

We also certify that the project is in operation from ……………………………… and


presently functional.

Name of the audit firm:


Seal of the audit firm:(Signature, name and designation of the authorized
signatory)Date:

$$
In case duly certified audited annual financial statements containing the requisite details are provided, a separate
certification by statutory auditors would not be necessary.

 Provide Certificate as per this format only. Attach explanatory notes to the Certificate, if necessary. In jurisdictions
that do not have statutory auditors, the firm of auditors which audits the annual accounts of the Applicant or its
Associate may provide the certificates required under this RFQ.
€€
Refer instruction no. 10 in this Annex-IV.
¥¥
In case the project is owned by the Applicant company, this language may be suitably modified to read: “It is
certified that …………….. (name of Applicant) owned/ operated/ managed the ………….. (name of project) from
……………….. (date) to ………………… (date).”

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Request for Qualification

Appendix I
Annex-IV

13. In the event that credit is being taken for the Eligible Experience of an Associate,
as defined in Clause 2.2.9, the Applicant should also provide a certificate in the
format below:

Certificate from the Statutory Auditor/ Company Secretary regarding


Associate$

Based on the authenticated record of the Company, this is to certify that more than
50% (fifty per cent) of the subscribed and paid up voting equity of ………………
(name of the Applicant/ Consortium Member/ Associate) is held, directly or
indirectly£, by ……………….. (name of Associate/ Applicant/ Consortium Member).
By virtue of the aforesaid share-holding, the latter exercises control over the former,
who is an Associate in terms of Clause 2.2.9 of the RFQ.

A brief description of the said equity held, directly or indirectly, is given below:

{Describe the share-holding of the Applicant/ Consortium Member and the


Associate. In the event the Associate is under common control with the Applicant/
Consortium Member, the relationship may be suitably described and similarly
certified herein.}

Name of the audit firm:


Seal of the audit firm: (Signature, name and designation of Date:
the authorised signatory).

$
In the event that the Applicant/ Consortium Member exercises control over an
Associate by operation of law, this certificate may be suitably modified and copies of
the relevant law may be enclosed and referred to.
£
In the case of indirect share-holding, the intervening companies in the chain of
ownership should also be Associates i.e., the share-holding in each such company
should be more than 50% in order to establish that the chain of “control” is not
broken.

14. It may be noted that in the absence of any detail in the above certificates, the
information would be considered inadequate and could lead to exclusion of
the relevant project in computation of Experience Score.

Refer Clause 3.2.6 of the RFQ.
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Request for Qualification

Annex-V: Statement of Legal Capacity

(To be forwarded on the letterhead of the Applicant/ Lead Member of Consortium)

Ref. Date:

To,
Mr *******
*******
UT Administration,
Lakshadweep Islands

Dear Sir/Madam,

We hereby confirm that we/ our members in the Consortium (constitution of which
has been described in the Application) satisfy the terms and conditions laid out in the
RFQ document.

We have agreed that ……………………(insert member’s name) will act as the Lead
Member of our consortium.$

We have agreed that ………………….. (insert individual’s name) will act as our
representative/ will act as the representative of the consortium on its behalf $ and has
been duly authorized to submit the RFQ. Further, the authorised signatory is vested
with requisite powers to furnish such letter and authenticate the same.

Thanking you,

Yours faithfully,

(Signature, name and designation of the authorised signatory)

For and on behalf of……………………………..

$$
Please strike out whichever is not applicable.
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Appendix-II: Power of Attorney for signing of Application and


Bid$
(Refer Clause 2.2.5)

Know all men by these presents, We…………………………………………….. (name


of the firm and address of the registered office) do hereby irrevocably constitute,
nominate, appoint and authorise Mr/ Ms (name), ……………………
son/daughter/wife of ……………………………… and presently residing at
…………………., who is presently employed with us/ the Lead Member of our
Consortium and holding the position of ……………………………., as our true and
lawful attorney (hereinafter referred to as the “Attorney”) to do in our name and on
our behalf, all such acts, deeds and things as are necessary or required in
connection with or incidental to submission of our application for pre-qualification and
submission of our bid for the …………………………… Project proposed or being
developed by the …………………….................. (the “Authority”) including but not
limited to signing and submission of all applications, bids and other documents and
writings, participate in Pre-Applications and other conferences and providing
information/ responses to the Authority, representing us in all matters before the
Authority, signing and execution of all contracts including the Concession Agreement
and undertakings consequent to acceptance of our bid, and generally dealing with
the Authority in all matters in connection with or relating to or arising out of our bid for
the said Project and/ or upon award thereof to us and/or till the entering into of the
Concession Agreement with the Authority.

AND we hereby agree to ratify and confirm and do hereby ratify and confirm all acts,
deeds and things done or caused to be done by our said Attorney pursuant to and in
exercise of the powers conferred by this Power of Attorney and that all acts, deeds
and things done by our said Attorney in exercise of the powers hereby conferred
shall and shall always be deemed to have been done by us.

IN WITNESS WHEREOF WE,…………………………., THE ABOVE NAMED


PRINCIPAL HAVE EXECUTED THIS POWER OF ATTORNEY ON THIS ………
DAY OF ………….2…..

For
…………………………..

(Signature, name, designation and address)


Witnesses:

1.
(Notarised)
2.

$$
To be submitted in original.
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Appendix II
Page 2

Accepted

……………………………
(Signature)

(Name, Title and Address of the Attorney)

Notes:

 The mode of execution of the Power of Attorney should be in accordance with the
procedure, if any, laid down by the applicable law and the charter documents of
the executant(s) and when it is so required, the same should be under common
seal affixed in accordance with the required procedure.

 Wherever required, the Applicant should submit for verification the extract of the
charter documents and documents such as a board or shareholders ’resolution/
power of attorney in favour of the person executing this Power of Attorney for the
delegation of power hereunder on behalf of the Applicant.

 For a Power of Attorney executed and issued overseas, the document will also
have to be legalised by the Indian Embassy and notarised in the jurisdiction
where the Power of Attorney is being issued. However, the Power of Attorney
provided by Applicants from countries that have signed the Hague Legislation
Convention 1961 are not required to be legalised by the Indian Embassy if it
carries a conforming Appostille certificate.

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Appendix-III: Power of Attorney for Lead Member of


Consortium$
(Refer Clause 2.2.5)

Whereas the ……………………………….. (“the Authority”) has invited applications


from interested parties for the ……………………………. Project(the “Project”).

Whereas,…………………….., ……………………..,……………………..and
…………………….. (collectively the “Consortium”) being Members of the Consortium
are interested in bidding for the Project in accordance with the terms and conditions
of the Request for Qualification document (RFQ), Request for Proposal (RFP)and
other connected documents in respect of the Project, and

Whereas, it is necessary for the Members of the Consortium to designate one of


them as the Lead Member with all necessary power and authority to do for and on
behalf of the Consortium, all acts, deeds and things as may be necessary in
connection with the Consortium’s bid for the Project and its execution.

NOW THEREFORE KNOW ALL MEN BY THESE PRESENTS

We,……………………..having our registered office at……………………..,M/s.


……………………..having our registered office at……………………..,M/s.
……………………..having our registered office at ……………………..,and
……………………..having our registered office at……………………..,(hereinafter
collectively referred to as the “Principals”) do hereby irrevocably designate, nominate,
constitute, appoint and authorise M/S……………………..having its registered office
at……………………..,being one of the Members of the Consortium, as the Lead
Member and true and lawful attorney of the Consortium (hereinafter referred to as the
“Attorney”). We hereby irrevocably authorise the Attorney (with power to sub-
delegate) to conduct all business for and on behalf of the Consortium and any one of
us during the bidding process and, in the event the Consortium is awarded the
concession/contract, during the execution of the Project and in this regard, to do on
our behalf and on behalf of the Consortium, all or any of such acts, deeds or things
as are necessary or required or incidental to the pre-qualification of the Consortium
and submission of its bid for the Project, including but not limited to signing and
submission of all applications, bids and other documents and writings, accept the
Letter of Award, participate in bidders’ and other conferences, respond to queries,
submit information/ documents, sign and execute contracts and undertakings
consequent to acceptance of the bid of the Consortium and generally to represent
the Consortium in all its dealings with the Authority, and/ or any other Government
Agency or any person, in all matters in connection with or relating to or arising out of
the Consortium’s bid for the Project and/ or upon award thereof till the Concession
Agreement is entered into with the Authority.

$$
To be submitted in original.
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Appendix III
Page 2

AND hereby agree to ratify and confirm and do hereby ratify and confirm all acts,
deeds and things done or caused to be done by our said Attorney pursuant to and in
exercise of the powers conferred by this Power of Attorney and that all acts, deeds
and things done by our said Attorney in exercise of the powers hereby conferred
shall and shall always be deemed to have been done by us/ Consortium.

IN WITNESS WHEREOF WE THE PRINCIPALS ABOVE NAMED HAVE


EXECUTED THIS POWER OF ATTORNEY ON THIS …………………. DAY OF
……….2..…

For ……………………..
(Signature)
……………………..
(Name & Title)

For ……………………..
(Signature)

……………………..
(Name & Title)

For ……………………..
(Signature)

……………………..
(Name & Title)

Witnesses:

1.

2.

………………………………………

(Executants)

(To be executed by all the Members of the Consortium)

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Appendix III
Page 3

Notes:

 The mode of execution of the Power of Attorney should be in accordance with the
procedure, if any, laid down by the applicable law and the charter documents of
the executant(s) and when it is so required, the same should be under common
seal affixed in accordance with the required procedure.

 Also, wherever required, the Applicant should submit for verification the extract of
the charter documents and documents such as a board or shareholders’
resolution/ power of attorney in favour of the person executing this Power of
Attorney for the delegation of power hereunder on behalf of the Applicant.

 For a Power of Attorney executed and issued overseas, the document will also
have to be legalised by the Indian Embassy and notarised in the jurisdiction
where the Power of Attorney is being issued. However, the Power of Attorney
provided by Applicants from countries that have signed the Hague Legislation
Convention 1961 are not required to be legalised by the Indian Embassy if it
carries a conforming Appostille certificate.

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Appendix-IV: Joint Bidding Agreement


(Refer Clause 2.13.2)
(To be executed on Stamp paper of appropriate value)

THIS JOINT BIDDING AGREEMENT is entered into on this the ………… day
of ………… 20…

AMONGST

1. ………… Limited, a company incorporated under the Companies Act,


1956/2013 and having its registered office at ………… (hereinafter referred to
as the “First Part” which expression shall, unless repugnant to the context
include its successors and permitted assigns)

AND

2. ………… Limited, a company incorporated under the Companies Act,


1956/2013 and having its registered office at ………… (hereinafter referred to
as the “Second Part” which expression shall, unless repugnant to the context
include its successors and permitted assigns)

AND

3. {………… Limited, a company incorporated under the Companies Act,


1956/2013 and having its registered office at ………… (hereinafter referred to
as the “Third Part” which expression shall, unless repugnant to the context
include its successors and permitted assigns)}

AND

4. {………… Limited, a company incorporated under the Companies Act,


1956/2013 and having its registered office at ………… (hereinafter referred to
as the “Fourth Part” which expression shall, unless repugnant to the context
include its successors and permitted assigns)}$

The above mentioned parties of the FIRST, SECOND, {THIRD and FOURTH}
PART are collectively referred to as the “Parties” and each is individually
referred to as a “Party”

WHEREAS,

(A) UT Administration of Lakshadweep, under the aegis of Ministry of Home


Affairs, represented by its

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Appendix IV
Page 2

Chairman and having its principal offices at ………………………………………


(hereinafter referred to as the “Authority” which expression shall, unless
repugnant to the context or meaning thereof, include its administrators,
successors and assigns) has invited applications (the Applications”) by its
Request for Qualification No. ………… dated …………(the “RFQ”) for pre-
qualification and short-listing of bidders for development, operation and
maintenance of the ……………………….. Project (the “Project”) through
public private partnership.

(B) The Parties are interested in jointly bidding for the Project as members of a
Consortium and in accordance with the terms and conditions of the RFQ
document and other bid documents in respect of the Project, and

(C) It is a necessary condition under the RFQ document that the members of the
Consortium shall enter into a Joint Bidding Agreement and furnish a copy
thereof with the Application.

NOW IT IS HEREBY AGREED as follows:

1. Definitions and Interpretations

In this Agreement, the capitalized terms shall, unless the context otherwise
requires, have the meaning ascribed thereto under the RFQ.

2. Consortium

2.1 The Parties do hereby irrevocably constitute a consortium (the “Consortium”)


for the purposes of jointly participating in the Bidding Process for the Project.

2.2 The Parties hereby undertake to participate in the Bidding Process only
through this Consortium and not individually and/ or through any other
consortium constituted for this Project, either directly or indirectly or through
any of their Associates.

3. Covenants

The Parties hereby undertake that in the event the Consortium is declared the
selected Bidder and awarded the Project, it shall incorporate a special
purpose vehicle (the “SPV”) under the Indian Companies Act,2013 for
entering into a Concession Agreement with the Authority and for performing
all its obligations as the Concessionaire in terms of the Concession
Agreement for the Project.

4. Role of the Parties

The Parties hereby undertake to perform the roles and responsibilities as


described below:

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Appendix IV
Page 3

(a) Party of the First Part shall be the Lead member of the Consortium
and shall have the power of attorney from all Parties for conducting all
business for and on behalf of the Consortium during the Bidding

Process and until the Appointed Date under the Concession


Agreement when all the obligations of the SPV shall become effective;

(b) Party of the Second Part shall be {the Technical Member of the
Consortium;}

{(c) Party of the Third Part shall be the Financial Member of the
Consortium; and}

{(d) Party of the Fourth Part shall be the Operation and Maintenance
Member/ Other Member of the Consortium.}

5. Joint and Several Liability

The Parties do hereby undertake to be jointly and severally responsible for all
obligations and liabilities relating to the Project and in accordance with the
terms of the RFQ, RFP and the Concession Agreement, till such time as the
Financial Close for the Project is achieved under and in accordance with the
Concession Agreement.

6. Shareholding in the SPV

6.1 The Parties agree that the proportion of shareholding among the Parties in
the SPV shall be as follows:

First Party:

Second Party:

{Third Party:}

{Fourth Party:}

6.2 The Parties undertake that a minimum of 26% (twenty six per cent) of the
subscribed and paid up equity share capital of the SPV shall, at all times till
the second anniversary of the date of commercial operation of the Project, be
held by the Parties of the First, {Second and Third} Part whose experience
and Net Worth have been reckoned for the purposes of qualification and
short-listing of Applicants for the Project in terms of the RFQ.

6.3 The Parties undertake that each of the Parties specified in Clause 6.2 above
shall, at all times between the commercial operation date of the Project and
the second anniversary thereof, hold subscribed and paid up equity share
capital of SPV equivalent to at least 5% (five per cent) of the Total Project
Cost.

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Appendix IV
Page 4

6.4 The Parties undertake that they shall collectively hold at least 51% (fifty one
per cent) of the subscribed and paid up equity share capital of the SPV at all
times until the second anniversary of the commercial operation date of the
Project.

6.5 The Parties undertake that they shall comply with all equity lock-in
requirements set forth in the Concession Agreement.

7. Representation of the Parties

Each Party represents to the other Parties as of the date of this


Agreement that:

(a) Such Party is duly organized, validly existing and in good standing
under the laws of its incorporation and has all requisite power and
authority to enter into this Agreement;

(b) The execution, delivery and performance by such Party of this


Agreement has been authorized by all necessary and appropriate
corporate or governmental action and a copy of the extract of the
charter documents and board resolution/ power of attorney in favour of
the person executing this Agreement for the delegation of power and
authority to execute this Agreement on behalf of the Consortium
Member is annexed to this Agreement, and will not, to the best of its
knowledge:

(i) require any consent or approval not already obtained;

(ii) violate any Applicable Law presently in effect and having


applicability to it;

(iii) violate the memorandum and articles of association, by-laws or


other applicable organizational documents thereof;

(iv) violate any clearance, permit, concession, grant, license or


other governmental authorization, approval, judgment, order or
decree or any mortgage agreement, indenture or any other
instrument to which such Party is a party or by which such
Party or any of its properties or assets are bound or that is
otherwise applicable to such Party; or

(v) create or impose any liens, mortgages, pledges, claims,


security interests, charges or encumbrances or obligations to
create a lien, charge, pledge, security interest, encumbrances
or mortgage in or on the property of such Party, except for
encumbrances that would not, individually or in the aggregate,
have a material adverse effect on the financial condition or
prospects or business of such Party so as to prevent such
Party from fulfilling its obligations under this Agreement;

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Appendix IV
Page 5

(c) this Agreement is the legal and binding obligation of such Party,
enforceable in accordance with its terms against it; and

(d) there is no litigation pending or, to the best of such Party's knowledge,
threatened to which it or any of its Associates is a party that presently
affects or which would have a material adverse effect on the financial
condition or prospects or business of such Party in the fulfillment of its
obligations under this Agreement.

8. Termination

This Agreement shall be effective from the date hereof and shall continue in
full force and effect until the Financial Close of the Project is achieved under
and in accordance with the Concession Agreement, in case the Project is
awarded to the Consortium. However, in case the Consortium is either not
pre-qualified for the Project or does not get selected for award of the Project,
the Agreement will stand terminated in case the Applicant is not pre-qualified
or upon return of the Bid Security by the Authority to the Bidder, as the case
may be.

9. Miscellaneous

9.1 This Joint Bidding Agreement shall be governed by laws of India.

9.2 The Parties acknowledge and accept that this Agreement shall not be
amended by the Parties without the prior written consent of the Authority.

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Appendix IV
Page 6

IN WITNESS WHEREOF THE PARTIES ABOVE NAMED HAVE EXECUTED AND


DELIVERED THIS AGREEMENT AS OF THE DATE FIRST ABOVE WRITTEN.

SIGNED, SEALED AND DELIVERED SIGNED, SEALED AND DELIVERED


For and on behalf of
LEAD MEMBER by: SECOND PART

(Signature) (Signature)
(Name) (Name)
(Designation) (Designation)
(Address) (Address)

SIGNED, SEALED AND DELIVERED SIGNED, SEALED AND DELIVERED

For and on behalf of For and on behalf of


THIRD PART FOURTH PART

(Signature) (Signature)
(Name) (Name)
(Designation) (Designation)
(Address) (Address)

In the presence of:


1. 2.

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Appendix IV
Page 7

Notes:

1. The mode of the execution of the Joint Bidding Agreement should be


in accordance with the procedure, if any, laid down by the Applicable Law
and the charter documents of the executant(s) and when it is so required, the
same should be under common seal affixed in accordance with the required
procedure.

2. Each Joint Bidding Agreement should attach a copy of the extract of


the charter documents and documents such as resolution / power of attorney
in favour of the person executing this Agreement for the delegation of power
and authority to execute this Agreement on behalf of the Consortium
Member.

3. For a Joint Bidding Agreement executed and issued overseas, the


document shall be legalized by the Indian Embassy and notarized in the
jurisdiction where the Power of Attorney has been executed.

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Appendix-V2

GUIDELINES OF THE DEPARTMENT OF DISINVESTMENT


(Refer Clause1.2.1)

No. 6/4/2001-DD-II
Government of India
Department of Disinvestment
Block 14, CGO Complex
New Delhi.
Dated 13th July, 2001.

OFFICE MEMORANDUM

Sub: Guidelines for qualification of Bidders seeking to acquire stakes in Public Sector
Enterprises through the process of disinvestment

Government has examined the issue of framing comprehensive and


transparent guidelines defining the criteria for bidders interested in PSE-
disinvestment so that the parties selected through competitive bidding could
inspire public confidence. Earlier, criteria like Net Worth, experience etc. used
to be prescribed. Based on experience and in consultation with concerned
departments, Government has decided to prescribe the following additional
criteria for the qualification/ disqualification of the parties seeking to acquire
stakes in public sector enterprises through disinvestment:

(a) In regard to matters other than the security and integrity of the country,
any conviction by a Court of Law or indictment/ adverse order by a
regulatory authority that casts a doubt on the ability of the bidder to
manage the public sector unit when it is disinvested, or which relates to a
grave offence would constitute disqualification. Grave offence is defined to
be of such a nature that it outrages the moral sense of the community.
The decision in regard to the nature of the offence would be taken on
case to case basis after considering the facts of the case and relevant
legal principles, by the Government of India.
(b) In regard to matters relating to the security and integrity of the country,
any charge-sheet by an agency of the Government/ conviction by a Court
of Law for an offence committed by the bidding party or by any sister
concern of the bidding party would result in disqualification. The decision
in regard to the relationship between the sister concerns would be taken,
based on the relevant facts and after examining whether the two concerns
are substantially controlled by the same person/ persons.
(c) In both (a) and (b), disqualification shall continue for a period that
Government deems appropriate.

2
These guidelines may be modified or substituted by the Government from time to time.
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Appendix V
Page-2

(d) Any entity, which is disqualified from participating in the disinvestment


process, would not be allowed to remain associated with it or get
associated merely because it has preferred an appeal against the order
based on which it has been disqualified. The mere pendency of appeal
will have no effect on the disqualification.
(e) The disqualification criteria would come into effect immediately and would
apply to all bidders for various disinvestment transactions, which have not
been completed as yet.
(f) Before disqualifying a concern, a Show Cause Notice why it should not be
disqualified would be issued to it and it would be given an opportunity to
explain its position.
(g) Henceforth, these criteria will be prescribed in the advertisements seeking
Expression of Interest (EOI) from the interested parties. The interested
parties would be required to provide the information on the above criteria,
along with their Expressions of Interest (EOI).The bidders shall be
required to provide with their EOI an undertaking to the effect that no
investigation by a regulatory authority is pending against them. In case
any investigation is pending against the concern or its sister concern or
against its CEO or any of its Directors/ Managers/ employees, full details
of such investigation including the name of the investigating agency, the
charge/ offence for which the investigation has been launched, name and
designation of persons against whom the investigation has been launched
and other relevant information should be disclosed, to the satisfaction of
the Government. For other criteria also, a similar undertaking shall be
obtained along with EOI.

sd/-
(A.K. Tewari)
Under Secretary to the Government of India

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Suheli Island of Lakshadweep Islands
Request for Qualification

Appendix-VI: CRZ Clearance

It is proposed that the project shall be developed in environmentally sustainable


manner and upfront CRZ clearance shall be obtained by the Authority. The process
followed for obtaining upfront CRZ clearance are as under:

1. Submit the documents for CRZ clearance to LCZMA. Documents for CRZ
include:
a. Detailed Project Report, site layout and drawings prepared by IPE Global Ltd

b. CRZ map in 1:4000 scale prepared by National Centre for Sustainable


Coastal Management (NCSCM)

c. Rapid EIA study undertaken by National Institute of Ocean Technology


(NIOT)

d. NOCs from Lakshadweep Pollution Control Committee, Department of


environment & Forest and concerned Panchayat.

2. LCZMA shall appraise the project and provide recommendations. The project
shall be forwarded to MoEF
3. Project shall be then scrutinized by Expert Appraisal Committee (EAC) at
MoEF.
4. Once EAC approves the project, MoEF shall grant the CRZ clearance to the
project.

It is expressly provided that the responsibility of the Authority shall be limited to


providing upfront CRZ clearance, subject to compliance during the concession, if
any. The Concessionaire, at its own risk and cost, shall be solely responsible for
adhering to the conditions of CRZ clearance. The Concessionaire shall be
responsible for making itself fully aware about terms and conditions of the CRZ
clearance.

Any violation of the terms & conditions of the CRZ clearance obtained by the
Authority to facilitate the Concessionaire shall be treated as Concessionaire’s default
and relevant provisions of default of the Concession Agreement shall be applicable
for such occurrence

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Suheli Island of Lakshadweep Islands
Request for Qualification

Appendix-VII: Other Clearances


a) Conversion of Land Use: The Authority shall, as required under Applicable
Laws, obtain the Conversion of Land Use(CLU) Permit for the project site on or
before the Appointed Date.

b) License to store and serve alcohol in the Resort: Commitment to license to


store and serve alcohol shall be provided at the date of signing of agreement.
Actual license shall be contingent upon compliance to fire and other approvals
as per extant provisions and shall be provided after completion of construction.

c) Other Clearances: The following list of Applicable Permits for construction,


operation and maintenance of the Eco-Tourism Resort is indicative only. The
actual Applicable permits will be contingent upon the nature of construction and
operation envisaged by the Concessionaire.

The estimated timeframe for obtaining following approvals is 30 days, subject to


the Concessionaire submitting its applications complete in all respect in a timely
manner. The Authority will provide reasonable support and assistance to the
Concessionaire in procuring Applicable Permits required from any Government
Instrumentality for implementation and operation of the Project.

S. When Relevant Timeline


Clearance/Permit
No. required? Department
Before Revenue 30 days
1 Land Diversion
Construction Department
Transfer of land lease to Before Registrar / Sub- 30 days
2
Legal Entity – Lease Registry Construction Registrar
LCZMA: 60 days
MoEF: 60 days
Before Total: 120 days
3 CRZ Clearance LCZMA + MoEFCC
Construction (Max.)
(as per CRZ
notification 2011)
30 days
Before Land Lakshadweep (as per
4 Development Permit
Development PWD Lakshadweep
Building Bye-Laws)
30 days
Before erection Lakshadweep (as per
5 Building Permit
of building PWD Lakshadweep
Building Bye-Laws)
After Land 30 days
development (as per
Lakshadweep
6 Development Certificate but before Lakshadweep
PWD
building Building Bye-Laws)
construction
7 Occupancy Certificate After Building Lakshadweep 15 days
Construction PWD (as per
but before Lakshadweep

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Suheli Island of Lakshadweep Islands
Request for Qualification

occupation Building Bye-Laws)


Lakshadweep 1 week after
Before
8 Provisional NOC Pollution Control receiving the
Construction
Committee project drawings
Lakshadweep 1 week after
Before
9 Consent to Establish Pollution Control receiving the
Construction
Committee project drawings
Lakshadweep 15 days
Pollution Control
After Building
Committee&
Construction
10 Consent to Operate concerned
but before
departments like
operation
PWD & Revenue
Department
Before Village / Dweep 15 days
11 Panchayat NOC
Construction Panchayath
30 days after
Clearance from Department of
Before receiving the
12 Environment Dept (in case Environment and
Construction approved project
of water villas) Forest
drawings
90 days
(as per Guidelines
Provisional Permit for Eco- Before
13 for setting up eco-
friendly Tourist Resorts Construction
Evaluation friendly tourist
Committee under resorts)
the Tourism 30 days
After
Department (as per Guidelines
Operational Permit for Eco- Construction
14 for setting up eco-
Friendly Tourist Resorts and Before
friendly tourist
Operation
resorts)
Department of 15 days
Health,
Lakshadweep;
Food License & Hygiene Before
15 Food Safety &
Clearance Operation
Standards
Authority of India
(FSSAI)
Port Management 30 days
Before
Approval for construction of Board&
16 construction of
floating jetty Environment
jetty
Department
Before 15 days
Department of
Approval for Adventure operation of
17 Tourism,
sports/water sports activity water sports
Lakshadweep;
activity
Fire 15 days
Before Department/Polic
18 Fire Clearance
operation e Department,
Lakshadweep
19 Liquor License During Currently, liquor is Liquor license will
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Suheli Island of Lakshadweep Islands
Request for Qualification

be given within
banned in UT one month of the
operation (Bangaram is an submission of
exception) application by the
successful bidder

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Suheli Island of Lakshadweep Islands

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