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Rampura-Amulia-Demra Expressway (RAD) Market Awareness Brochure
Rampura-Amulia-Demra Expressway (RAD) Market Awareness Brochure
Rampura-Amulia-Demra Expressway (RAD) Market Awareness Brochure
Rampura-Amulia-Demra Expressway (RAD) Market Awareness Brochure
Anzeige
Rampura-Amulia-Demra Expressway (RAD) Market Awareness Brochure
Rampura-Amulia-Demra Expressway (RAD) Market Awareness Brochure
Rampura-Amulia-Demra Expressway (RAD) Market Awareness Brochure
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Rampura-Amulia-Demra Expressway (RAD) Market Awareness Brochure

  1. Rampura-Amulia-Demra Expressway Project Brief for the Opportunity to Design, Build, Finance, Operate, and Maintain Urban Connectivity Infrastructure in Bangladesh’s Capital City THE RAMPURA-AMULIA-DEMRA EXPRESSWAY (“RAD” OR THE “PROJECT”) IS A KEY PROJECT OF BANGLADESH’S PUBLIC-PRIVATE PARTNERSHIP AUTHORITY (PPPA) AND ROADS AND HIGHWAYS DEPARTMENT (RHD). THE PROJECT IS INTENDED TO SERVE AS A GATEWAY CONNECTING CENTRAL DHAKA TO NATIONAL HIGHWAYS TO CHITTAGONG, SYLHET AND THE EASTERN REGIONS OF BANGLADESH. A compelling opportunity exists for a consortium of leading road developers and operators to: ▪ Provide a much-awaited congestion relief road to traffic entering Dhaka, by developing a 13.5km expressway connecting National Highways N1 and N2 to the city center. ▪ Capitalize on Bangladesh’ economic and urban growth by providing critical connectivity infrastructure for the country. Bangladesh’s national GDP has been following a steady growth path of more than 6% per year over the last decade, and road traffic in Dhaka soared by more than 130% over the same period. ▪ Be part of Bangladesh’s growing PPP program, initiated through the establishment of the PPP Authority and enactment of the PPP Law in 2015. PPPA’s pipeline of projects currently encompasses more than 40 projects with an estimated capital value of over fourteen billion US dollars, including 13 transport infrastructure projects.
  2. THE PEOPLE’S REPUBLIC OF BANGLADESH The People’s Republic of Bangladesh (Bangladesh) is a South Asian country sharing land borders with India and Myanmar. People’s Republic of China, Nepal and Bhutan are also nearby. Dhaka is its capital and largest city, followed by Chittagong which has the country's largest port (carries over 90 percent of the country’s sea-borne imports and exports and 1.5 million TEUs containers in 2010-11). With over 160 million people and a total area of only 150,000 km2 , Bangladesh is the most densely populated large country in the world. Dhaka itself is one of the world's most populated cities, with a population of 17 million people in the Greater Dhaka Area. It is also the third most densely populated city in the world. The market-based economy of Bangladesh is the 44th largest in the world in nominal terms, and 32nd largest by purchasing power parity; it is classified as one of the most promising emerging market economies by several independent parties. According to the IMF, Bangladesh's economy is one of the fastest growing major economies of 2016 in the world, with a rate of 7.1%. Dhaka and Chittagong are the principal financial centers of the country, being home to the Dhaka Stock Exchange and the Chittagong Stock Exchange. Bangladesh has an extensive and diversified transport system of roads, railways, inland waterways, two seaports, and civil aviation facilities. Roads carry over eighty percent (80%) of national passenger traffic, providing the backbone of the transport sector. However, existing infrastructure suffers from under-investment, and congestion within cities, primarily Dhaka and Chittagong, and on major highways is a major constraint to the country’s economic growth. In August 2010, the Government launched the Policy and Strategy for Public Private Partnership (PPP) to establish a revised framework for the PPP program, which introduced a number of key changes and innovations. Procurement Guidelines for PPP projects were updated under the PPP law and issued in May 2016, providing transparency and clarity on the methodology for processing and evaluating PPP projects. The PPP Office was formed under the 2010 Policy, and became operational in 2012.The Bangladesh Public- Private Partnership Act No. 18 of 2015 reconstituted the office into the PPP Authority as an independent statutory organization within the Prime Minister’s Office. The PPP Authority establishes the policy framework and provides central co-ordination and monitoring for the implementation of PPP projects by the various Government agencies and ministries. The governance framework for the PPP Authority was strengthened with the establishment of a Board of Governors, chaired by the Prime Minister. Attributable in large part to the concerted efforts of the PPP Authority, Bangladesh’s PPP project pipeline has now grown to forty-four projects with an estimated capital value of over fourteen billion US dollars spread across multiple sectors. More than half the value stems from the Roads and Highways Department (RHD), Ministry of Road Transport and Bridges and the country now has a strong pipeline of road PPP projects to develop in the coming years.
  3. OVERVIEW OF THE PROJECT The proposed road starts at Chittagong Road (National Highway N1) and ends at Hatirjheel near Rampura Bridge Road. The Project is 13.5 km in length and is expected to establish a strong connectivity among the capital city Dhaka to Chittagong, Sylhet, Narayangonj and other eastern districts of Bangladesh. Based on a feasibility study conducted by WSP / MMM Group Limited (MMM) of Canada, construction of the Project, based on the underlying assumptions noted therein, including infrastructure costs, tolling equipment, and other expenses is expected to cost approximately 250 million US dollars. The road will be partially elevated and partially at grade and will include two interchanges, one at each end of the road, and one intermediate exit and entry ramp. The traffic study is forecasting around 40,000 vehicles per day in 2030 (Figure 1). Source: MMM (2017) Given the significant level of traffic that is likely to be attracted to this route from the congested National Highways N1 & N2, RHD has proposed that this project is developed on a PPP model. The project has been screened by the PPP Authority and has received approval from the Cabinet Committee on Economic Affairs on January 26, 2016. The government will implement the project using a commercial structure wherein the government takes market risk and collects revenue, and compensates the project company using availability payments during operation. PPPA and RHD are now seeking parties with historically proven expertise in large-scale urban roads and bridges project development to provide feedback on the proposed transaction parameters. This Project Brief does not constitute a solicitation of bids for any aspect of the Project. Solicitations of bids and bidding guidelines shall be provided at a later stage in the Instructions to Prospective Bidders. Additional information on the Project may be found on PPPA’s website (http://www.pppo.gov.bd/). - 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000 2025 2030 2035 2040 2045 2050 Light passenger vehicles Bus Heavy load vehicles Figure 1: Traffic Projectionby Vehicle TypeADT
  4. TRANSACTION PARAMETERS Transaction is structured based on the following parameters: ▪ 25 year concession period to be granted by RHD, including up to 4 year construction period and 21 year operations and maintenance (O&M) period; ▪ Concessionaire to design and construct the entire infrastructure, including provision and operation of the tolling equipment; and ▪ Adequate government support to mitigate key risks and support the project financially through availability payments during operations ▪ Concessionaire will also operate and maintain the tolled expressway, with some commercial revenue opportunities available to concessionaire. Design approach for the road will be as follows: ▪ 13.5km four-lane controlled access toll highway (including a 4km at-grade section and two elevated sections totaling 9.5km) from Rampura Bridge to the junction with the National Highway N1 (Chittagong Road) and National Highway N2 (Sylhet Road); ▪ Design speed of 80 km/h ▪ Provision of a two-lane non-tolled service road (to be operated and maintained by government) under or adjacent to the access controlled road; ▪ Two main interchanges and one intermediary entry/exit point; ▪ Appropriate safety and noise protection equipment, communication, and toll collection systems. CONSORTIA STRUCTURE Bidding consortia should include: ▪ A lead member which is a going concern with net worth of at least $100 million and experience of raising debt for similarly sized project ▪ Relevant EPC experience, evidenced by at least two projects in which with following characteristics: a. minimum 4-lane carriageway configuration highway on EPC or PPP basis; b. completed and opened to operations during the last ten years; and c. minimum total project cost of USD 200 million (indexed); ▪ Special consideration will be given to consortia with experience in: a. Elevated viaduct construction b. PPP projects; and/or c. Local projects
  5. INVESTMENT HIGHLIGHTS The Project has numerous benefits for a concessionaire: 1. Project is a high priority for Government of Bangladesh ▪ The project has been screened by the PPP Authority, Office of the Prime Minister, and has received the approval from the Cabinet Committee on Economic Affairs, chaired by the Prime Minister, on January 26, 2016. ▪ The Government of Bangladesh has committed to provide adequate government support to mitigate key risks and support the project financially through availability payments. 2. Project provides necessary connectivity to existing and planned highways ▪ The Project was developed with the intent to provide connectivity with Bangladesh’s backbone: National Highways N1 and N2. In addition, ADB is supporting the upgrade of national highways N1 and N2.1 ▪ Planned projects, including the upgrading of the Dhaka Bypass (under procurement) and the construction of the Dhaka-Chittagong Expressway (under preparation) are expected to connect with RAD and provide increased reach within Dhaka. 3. High traffic projection supported by positive demographic and economic growth prospects ▪ Asian Development Bank (ADB), in its Asian Development Outlook 2016, forecasts Bangladesh GDP to grow by 6.7% in 2016 and 6.9% in 2017. Strong fundamentals are driven by garment exports and rising private consumption as government employees get wage increases. ▪ The population of Bangladesh is projected to grow to ~170 Million in 2020 while Dhaka, with its current population of 15 million people, is considered by the World Bank as the fastest-growing megacity in the world. 4. Road is utilized throughout day and night, and has high usage of trucks ▪ Road is used by passenger vehicles during the day and trucks at night, minimizing intra-day peaks ▪ Trucks, which have greater willingness to pay, comprise over 50% of average daily traffic Source: MMM (2017) 5. Project is feasible from technical perspective ▪ A feasibility study has been conducted by MMM Group and confirms that the project is feasible from a technical engineering perspective and does not present any overly complex design parameters. 1 Loan 2949-BAN: South Asia Subregional Economic Cooperation Road Connectivity Project Figure 2: Traffic Daily Distribution
  6. 6. Right of way is mostly owned by Government ▪ The proposed alignment of the road will follow the existing road right-of-way on most of its length and more than 90% of at grade right of way is already owned by the Government of Bangladesh. ▪ Any remaining land acquisition and resettlement will be funded by the Government of Bangladesh in accordance with ADB social safeguard policies 7. Bangladesh has an attractive pipeline of infrastructure and transport projects ▪ Since the establishment of the PPP Authority as a separate, autonomous office under the Prime Minister's Office in 2010, PPP project pipeline has grown to forty-four projects with an estimated capital value of over fourteen billion US dollars spread across multiple sectors. ▪ In addition to the RAD and Dhaka Bypass, approved road projects under the Public Private Partnership Programme include the Dhaka-Chittagong Expressway, the Flyover from Shantinagar to Mawa Road, and a second Padma Multipurpose Bridge at Paturia-Goalundo. ▪ RHD is currently working with PPPA to tender the Dhaka Bypass project. The project attracted interest from 11 potential bidders through its pre-qualification process and has received 3 bids from the tender process. ▪ RHD has an extensive track record of delivering complex transport infrastructure projects, including tolled roads and elevated structures. In the 20-year Road Master Plan signed in 2008, RHD committed to a programme of road construction and rehabilitation worth more than US$ 11.5 billion. 8. Robust PPP framework ▪ In 2004, the Government introduced the Private Sector Infrastructure Guidelines, which liberalized and opened up significant investment opportunities for the private sector in other core areas of public infrastructure and enabled the delivery of projects in road and land ports. ▪ In August 2010, the Government launched the Policy and Strategy for Public Private Partnership (PPP) to establish the revised framework for the PPP program. The new framework introduced a number of key changes and innovations, focusing on five key areas of reform: institutional changes, regulatory strengthening, proper project development, capacity development and provision of stimulus financing. ▪ Procurement Guidelines for PPP projects were updated under the PPP Law and issued in May 2016, providing transparency and clarity on the methodology for processing and evaluating PPP projects. ▪ The first PPP Office was formed under the 2010 Policy, and became operational in 2012.The Bangladesh Public-Private Partnership Act No. 18 of 2015, enacted on 16 September 2015, reconstituted the Public-Private Partnership (PPP) Authority as an independent statutory organization within the Prime Minister’s Office. The PPP Authority establishes the policy framework and provides central co-ordination and monitoring for the implementation of PPP projects by the various Government agencies and ministries. The governance framework for the PPP Authority was strengthened with the establishment of a Board of Governors, chaired by the Prime Minister. 9. Government of Bangladesh supported by ADB and other international reputable advisers ▪ ADB, as transaction advisor, has been working with PPPA and RHD with a view to bring a “bankable” structure to the market. ADB brings significant expertise and experience on advising and financing large infrastructure projects in emerging markets. ▪ Transportation and regional connectivity are both key priorities in ADB’s country partnership strategy for Bangladesh; ADB’s Bangladesh transport pipeline includes over $5 billion in road project development as part of its South Asia Subregional Economic Cooperation (SASEC) program.2 ▪ WSP / MMM Group of Canada, one of the leaders in the transportation industry with experience in Bangladesh, conducted a detailed feasibility study, which confirmed the technical and commercial feasibility of the Project. 2 South Asia Subregional Economic Cooperation Operational Plan 2016 – 2025
  7. INDICATIVE TIMELINE The international competitive public bidding for the Project will be conducted in accordance with the procurement rules and procedures for public bidding set out in the Bangladesh PPP Law. Indicative schedule is as follows: February 2018 Release of Request for Qualification (RFQ) Document / Start of Pre-Qualification Phase 1Q 2018 Pre-Qualification Conference 2Q 2018 Qualification Documents Submission Date and Notice of Pre-Qualified Bidders 2Q 2018 Release of Bid Documents and draft Concession Agreement to Pre-Qualified Bidders, 2Q 2018 Pre-Bid Conference 3Q 2018 Bid Submission 4Q 2018 Notice of Award CONTACT DETAILS For any queries regarding the Project please contact ADB, PPPA, and RHD via email: Pratish Halady / Ferran Vila Planas / Pierre Sarrat Office of Public–Private Partnership Asian Development Bank rad_ppp@adb.org PPP Cell Roads and Highways Department pppcellrhd@gmail.com Ahsan Habib Public Private Partnership Authority Prime Minister's Office rad-rhd@pppo.gov.bd IMPORTANT NOTICE AND DISCLAIMER This document has been prepared by ADB in conjunction with PPPA and RHD strictly for information purposes only and has no binding force. It is intended to assist prospective bidders and investors in their preliminary evaluation of the opportunity to participate in the Rampura-Amulia-Demra Expressway, but is not intended to provide a basis for any decision to participate or invest. The information contained in this document is by its nature selective and indicative, and is not intended to be complete. Each prospective bidder and investor is expected to make its own independent investigation and to obtain such independent advice as it may deem necessary or desirable in order to assess the opportunity without reliance upon the information contained in this document, or GoB, RHD, PPPA, MMM, or ADB. The information contained in this document is subject to change without notice. None of GoB, RHD, PPPA, MMM, or ADB bears any responsibility or duty of care to update, supplement or revise this document if any of the information on which it is based changes or is found to be inaccurate. This document has been issued for use by selected recipients and their advisors only and is confidential. It may not be reproduced or distributed in whole or in part, or disclosed to third parties, without the prior written consent of ADB. Nothing in this document is intended to constitute or create (i) an offer capable of acceptance or the basis of any contract or award that may be concluded in relation to the Project, (ii) a legally binding relationship between any prospective bidder, investor or other recipient of this document (on the one hand) and GoB, RHD, PPPA, MMM, or ADB (on the other), or (iii) any other duty or obligation enforceable by any prospective bidder, investor or other recipient of this document against GoB, RHD, PPPA, MMM, or ADB. Nothing in this document is, or may be relied upon as, a promise, undertaking or representation as to the future performance or policies of the Project, or should be considered as a recommendation by GoB, RHD, PPPA, MMM, or ADB to participate in the opportunity or Project. No undertakings, representations, or warranties (whether express or implied) are given or made by GoB, RHD, PPPA, MMM, or ADB (or their respective members, affiliates, advisors, employees or agents) in relation to this document or the information contained in it. No person has been authorised to give or make any undertakings, representations, or warranties in any written or oral communications with respect to the opportunity or Project and, if given or made, such undertakings, representations or warranties must not be relied upon. GoB, RHD, PPPA, MMM, or ADB (and their respective members, affiliates, advisors, employees or agents) shall have no liability for (i) any of the information contained in this document (including, without limitation, any errors or omissions), or for any written or oral communications made in the course of any interested bidder’s or investor’s assessment of the opportunity and Project or (ii) any damages, losses (including, without limitation, direct or consequential losses), costs or expenses suffered or incurred by any prospective bidder, investor or other recipient of this document in acting on any of the information contained in this document, or otherwise in connection with the opportunity or Project.
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