CHENNAI METROPOLITAN WATER SUPPLY AND SEWERAGE BOARD

Name of work: Implementing a 300/200/100 MLD Sea Water Desalination Plant as three options, at Minjur, Chennai on Design, Build, Own and Operate and Transfer (DBOOT) basis on any of bidders Technology from their own funds.

The Chennai Metropolitan Water Supply & Sewerage Board now invites sealed bids from the eligible bidders for Implementing a 300/200/100 MLD Sea Water Desalination Plant as three options, at Minjur, Chennai on Design, Build, Own and Operate and Transfer (DBOOT) basis on any of bidders Technology from their own funds.

Response is solicited from Individual Applicants/Consortia fulfilling the following criteria.

Ø The individual applicant/consortium members shall be a corporate body registered under Companies Act 1956 or equivalent laws in the case of a foreign applicant.

(i) The single tenderer shall satisfy the above criteria individually and in case of joint venture any one of the joint venture partners should satisfy the technical qualifying criteria. In case of Consortia, the lead partner should have a net worth and turnover not less than 50% of the value indicated above and the consortia members should individually have net worth and turnover not less than 30% of the value indicated above. In case of Individual Bidder/Member of Consortia, the combined parameters of the group companies will be taken into consideration, subject to such companies providing a letter of comfort to this effect.

(ii) The interested Developers are requested to bid for either or all of 100 MLD, 200 MLD, and 300 MLD capacity plants. The decision on capacity of the plant to be set up would be made after analysis of the bids received from interested Developers and analysis by CMWSSB of its cost-benefit from the project. CMWSSB shall purchase a minimum of 80% of the installed capacity on a ‘Take or Pay’ basis, with the minimum term of the Water Purchase Agreement being 25 years, extendable thereafter on mutually agreed terms and conditions. CMWSSB shall undertake to provide the operational power on payment of relevant charges. The required land would be made available by CMWSSB at Minjur.

1. Period of Completion:

The total period of completion is 24 months from the date of notice of the award of the contract for all the options.

Interested eligible bidders may obtain further information from CMWSSB and inspect the bidding document at the address given at the end, on all working days from 10.00 hours to 17.45 hours from 29.09.2003 onwards.

A complete set of bidding documents in English may be purchased by interested bidders on the submission of a written application to the address given at the end and upon payment of a non refundable fee of Rs. 22,100/- (Rupees twenty two thousand one hundred only) (inclusive of Sales Tax and Surcharge). The mode of payment will be through Pay Order or Demand Draft from a Scheduled Bank in favour of Managing Director, CMWSSB payable at Chennai, Tamil Nadu, India or by cash in the Cash counter of CMWSSB. The document may be collected in person. The document will be sent by surface mail/courier on an extra advance payment of Rs.1000/-(rupees one thousand only) However, CMWSSB does not take any responsibility for the loss or delay if any in the transmission of the document by surface mail/courier. The period of sale of documents is from 29.09.2003 to 13.11.2003.

A Pre Bid Meeting will be held on 08.10.2003 at 11.00 hours in the office of CMWSS Board at the address mentioned below.

The tenderer shall submit their offers in two covers (1) Technical bid envelope and (2) Price bid envelope.

The tender documents should be submitted in a sealed cover so as to reach the address furnished below by 15.00 hours on 14.11.2003.

All bids must be accompanied a bid security (EMD) of a value of Rs.50.00 lakhs (Rupees Fifty lakhs only) for Option-I, Rs.100.00 Lakhs (Rupees One hundred lakhs only) for Option-II, and Rs.150.00 Lakhs (Rupees One hundred and fifty Lakhs only) for Option-III, in the form and manner specified in the bid document and must be delivered along with bids. If a bidder quotes for more than one option, the initial bid security to be deposited by him would correspond to the highest capacity quoted by him. CMWSSB reserves the right to reject any or all the bids without assigning any reasons thereof. All bid clarifications, if any, will be provided by CMWSSB’s office.

Bids in Two covers viz., (1) Technical Bid envelope and (2) Price Bid envelope must be sealed and delivered to the address given below on or before the due date and time i.e. before 3.00 P.M. on 14.11.2003. All bids must be accompanied with respective Bid Security (EMD) amount in a separate sealed cover kept in the technical bid envelope. Bids received after the given date and time shall be summarily rejected.

First cover will be opened in the presence of the bidder’s representative who choose to attend at the address given below at 15.30 hours on the due date indicated in the contract. After evaluation of technical bids, the price bid envelope of the qualified bidders will be opened in the presence of responsive bidder’s representatives who choose to attend at the time and date to be intimated later at the address given below:

1. This Request for Proposal (RFP) is an invitation by Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) to the interested bidders to submit their proposals for setting up a 300/200/100 MLD Sea Water Desalination Plant as three options, at Minjur, Chennai on Design, Build, Own and Operate and Transfer (DBOOT) basis (“the Project”). It is not an agreement or an offer by CMWSSB to the bidders or any other party. The purpose of this RFP is to provide interested parties with information to assist the formulation of their proposal. The information contained in this RFP is based on publicly available documents.

2. This RFP includes statements and projections, which reflect various assumptions, which may or may not be correct. Neither CMWSSB nor its employees or consultants make any representation or warranty as to the accuracy, reliability or completeness of the information in this RFP. This RFP does not purport to contain all the information each bidder may require. Each bidder should conduct its own investigations and analysis and should check the accuracy, reliability and completeness of the information in this RFP and obtain independent advise from appropriate sources.

3. Neither CMWSSB nor its employees or consultants will have any liability to any bidder or any other person under the Law of Contract, Law of Tort, or otherwise for any loss, expense or damage which may arise from or be incurred or suffered in connection with any thing contained in this RFP, any matter deemed to form the part of this RFP, and any other information supplied by or on behalf of CMWSSB or its employees or consultants, or otherwise arising in any way from the selection process for the Project or the award of the Project.

4. This RFP and the information contained herein are confidential and for use only by the person to whom it is issued. It may not be copied or distributed by the recipient to third parties (other than in confidence to the recipient’s professional advisor). In the event that the recipient does not continue with its involvement in the Project in accordance with RFP the information contained in the RFP shall not be divulged to any other party. The information contained in the RFP must be kept confidential.

5. CMWSSB may in its absolute discretion or at the instance of Govt. of Tamil Nadu (GoTN), its Consultants or any bidder, but without being under any obligation to do so, update, amend or supplement this RFP.

6. CMWSSB reserves the right to accept or reject any or all applications or terminate the bidding process at any stage without assigning any reason whatsoever, without incurring any liability to the rejected bidders, and will not be liable to compensate or reimburse to the bidders the cost or expenses incurred or to be incurred by them in connection with the bidding process. CMWSSB shall also not be under any obligation to inform the affected bidders of the grounds for rejection of the application/ termination of the bidding process.

Chennai Metropolitan Water Supply & Sewerage Board (CMWSSB), established under the CMWSS Act 1978, looks after the supply of water and disposal of sewage / waste water in the city of Chennai. CMWSSB is currently undertaking several projects for augmentation of water sources to address the projected gap between the demand and supply of water. (A brief overview of the financials and operations of CMWSSB is furnished in the section on Demand Estimates.) As a part of its program for bridging the water demand-supply gap, CMWSSB proposes to augment its capacity by setting up a sea water desalination plant.

CMWSSB has issued a Notice (Reference contract no. CMWSSB/ CNT/WATER/DBOOT/001-A/2003) inviting experienced developers to submit their proposals for setting up a 300/200/100 MLD Sea Water Desalination Plant as three options, at Minjur, Chennai on Design, Build, Own and Operate and Transfer (DBOOT) basis (“the Project”).

All bidders who fulfil the stipulated criteria are required to submit a detailed document in accordance with the guidelines set forth in this document, in order to satisfactorily establish their competence and suitability for executing the Project.

The interested developers are requested to bid for either or all of 100 MLD, 200 MLD, and 300 MLD capacity plants. The decision on capacity of the plant to be set up would be made after analysis of the bids received from interested developers and analysis by CMWSSB of its cost-benefit from the project.

1. Scope of work

The selected bidder/ developer shall carry out and complete the work of implementing a Sea Water Desalination Plant on DBOOT basis at Minjur (plant capacity to be as decided by CMWSSB). The scope of work also includes provision of required pipeline of appropriate size, pumping machinery and construction of pump house to deliver the product water to the existing under-ground reservoir of CMWSSB at Redhills which is about 32 kms away from the Site.

2. Period of completion

The project shall be completed within the period stipulated in the Bulk Water Purchase Agreement (BWPA). The completion of the project shall be as defined in the BWPA and shall be completion of construction, commissioning and performance tests.

3. Bulk Water Purchase Agreement

CMWSSB shall purchase desalinated water equivalent to a minimum of 80% of the installed capacity of the Plant on a ‘Take or Pay’ basis, under a Bulk Water Purchase Agreement (BWPA) to be executed between CMWSSB and the Project Company. The term of the BWPA shall be 25 years, extendible thereafter on mutually agreed terms and conditions. Payments under the BWPA shall be made in Indian Rupees. The draft BWPA is given in Appendix –9. The BWPA shall be as approved by CMWSSB.

The queries and comments of the bidders on the proposed draft BWPA will be addressed at the pre-bid conference in accordance with the procedure described in the section on “Procedure for Bidding”. The changes if any will be notified through issue of an addendum as described in the aforesaid section.

The detailed terms and conditions for the Project will be as per the Bulk Water Purchase Agreement. The scope of work and other details furnished in this RFP are only for the purpose of giving an outline.

For the purpose of clarification, the term “Project Company” in this document refers to the Company/ entity through which the Project shall be implemented by the selected developer.

4. Land for the Project

The required land for the Project would be provided by CMWSSB at Minjur on lease basis (aggregate area 60 hectares). The required land would be provided at a nominal fee of Rs.1000/- per month. CMWSSB shall continue to be the owner of the land. The Project Company shall enter into a site lease agreement with CMWSSB. The site lease agreement shall follow the standard format as approved by CMWSSB.

5. Power

Necessary power for construction and operation of the plant shall be made available at the site through the grid.

On finalisation of the plant design/ process and the power requirement, CMWSSB would provide necessary infrastructure through TNEB[1] at the Project site as per the lay-out to enable necessary power drawal.

q Construction power

q Operation power

As per the proposed water tariff structure, CMWSSB shall pay the Project Company a “variable power charge”/ “energy charge” for the power consumed in production of potable water which would be the lower of

a) power cost arrived at on the basis of the power consumption in kwh/unit quoted by the developer in its price proposal, number of water units supplied and the prevailing applicable power tariff OR

b) power cost computed on the basis of the actual units billed by TNEB for water supply

In case the actual units billed by TNEB for water supply are lower than the power consumption quoted by the developer, the resultant savings would be shared between the Project Company and CMWSSB in accordance with the terms spelt out in the BWPA. The detailed procedure for payment of power charges shall be mutually worked out between CMWSSB and the developer and, if necessary, TNEB, and will be part of the BWPA.

The proposed water tariff structure is described in detail in the clause “Price Bid” of the section on “Evaluation of Proposals”. The water tariff and payment of energy charge by CMWSSB will be governed by the terms and conditions stipulated in the BWPA.

In the event of power failure, the Project Company shall be exempted from those of its obligations under the BWPA that are affected by the non-availability of power.

To facilitate uninterrupted supply of power to the Plant, GoTN shall issue necessary instructions to TNEB for exempting the Plant from power cuts/ load shedding/ according appropriate priority to the Plant for supply of power.

6. Clearances

GoTN, through CMWSSB, will provide all reasonable assistance to the Sponsor for acquiring the clearances/ approvals/ permissions required for the project. An indicative list of clearances is provided at Schedule IX of the draft BWPA. However, the final responsibility for obtaining and maintaining these clearances shall be with the Sponsor.

7. Technology and product water specifications

The plant can be implemented using any demonstrated technology and process for sea water desalination. However, captive power generation is not envisaged as a apart of the project.

The Plant shall produce potable water confirming to the prescribed water quality standards as stipulated by CMWSSB. The “product water” specifications are laid down in Schedule III of the draft BWPA. These are based on the standard IS no 11500 1991.

The Plant should be designed to operate with the sea water quality available in the Bay of Bengal near the Site (source water). The bidders shall have to identify the sea water drawl point, carry out their own data collection exercise and analysis to assess the source water characteristics such as temperature ranges, particle content, total dissolved solids, etc.

CMWSSB shall provide its full support to obtain the necessary clearances so as to facilitate sea water drawal from the abstraction point identified by the developer.

8. Associated facilities

In addition to the main Plant, the developer shall be responsible for construction and operation of systems/ accessories and any other infrastructure facilities (including township etc.) required for successful implementation of the Project.

9. Environmental standards

The developer shall be responsible for design, construction, operation and maintenance of the Project to meet all applicable environmental requirements.

10. Climatic conditions

q The climate of Chennai is warm with day time temperatures being 27 deg.C to 41 deg.C during most months. The humidity is about 70-75%.

11. Land and site details

The area being made available by CMWSSB for the Plant, including main Plant, township and roads, is 60 acres. In the event that more than 60 acres of land is required, CMWSSB shall endeavour to provide the additional area depending on CMWSSB’s assessment of appropriateness of the requirement and feasibility of providing more land.

The proposed site is located at Minjur near Chennai. Minjur is near the northern boundary of Chennai Metropolitan Area and is located at the sea-shore. It is approximately 50 kms. from Chennai Airport, and approximately 26 kms. from Chennai Central Railway Station. A map of the proposed site is attached at Appendix 8.

12. Off-take infrastructure and alignment of product water

The product water shall be delivered to CMWSSB at the “off-take point” at its existing under-ground reservoir at Redhills through a pipeline of appropriate size. (The off-take point shall be as defined and described in the BWPA..) CMWSSB will distribute the water within Chennai city and adjoining areas through its pipeline network.

The distance of the Redhills reservoir is about 32 kms from the Project site. The pipeline ILS alignment plan and map are enclosed along with the BWPA. The supplying, laying and jointing of the product water pipeline for delivery at Redhills, including construction of necessary pumping equipment and accessories and pump house, will be a part of the scope of work of the developer.

1. Eligibility criteria for bidding

a. The bidder can be a single bidder bidding on its own or on a joint venture basis with two or three partners.

b. To be eligible for bidding, each bidder on its own or on a joint venture basis should satisfy the minimum eligibility criteria as laid down in the applicable “Notice Inviting Tender” issued by CMWSSB.

Ø The individual applicant/consortium members shall be a corporate body registered under Companies Act 1956 or equivalent laws in the case of a foreign applicant.

(i) The single tenderer shall satisfy the above criteria individually and in case joint venture any one of the joint venture partners should satisfy the technical qualifying criteria. In case of Consortia, the lead partner should have a net worth and turnover not less than 50% of the value indicated above and the consortia members should individually have net worth and turnover not less than 30% of the value indicated above. In case of Individual Bidder/Member of Consortia, the combined parameters of the group companies will be taken into consideration, subject to such companies providing a letter of comfort to this effect.

(ii) For the evaluation, the lead partner of the consortium should have at least 50% of the resources and other joint venture partner should have minimum of 30% of resources. Whereas for participation the lead partner of the consortium should have at least 51% of the resources and the least joint venture partner should have at least 15% of the equity. The total equity should be 100% by all the partners.

2. Information Towards Fulfillment of Eligibility Criteria

In support of fulfilling the eligibility criteria the bidders shall furnish the required information as follows as part of the technical bid:

a. All details towards claim for technical experience (as per the format in Appendix 1)

b. Financial details including audited annual reports for the last three financial years 2000-2001, 2001-2002, 2002-2003[2] (as per the format in Appendix 2). If the latest audited results are not available, provisional results certified by the Company Secretary can be furnished.

d. Write-up on experience in raising finance from Indian/ International markets for project implementation furnishing inter alia details of projects and amount of funds raised.

e. Write up on experience in having established and maintained a R.O. based Sea Water/ Brackish Water Desalination Plant during the last 10 years.

CMWSSB reserves the right to ask the bidders/ their clients/ bankers/ insurers to provide further details/ information pertaining to their technical and financial credentials.

3. One Bid for each Bidder

Each bidder can bid either as a single bidder or as a joint venture partner. In other words, each bidder can be a part of only one bidding entity, whether as a sole bidder or a consortium.

4. Capacity for bidding

The bidders can bid for either or all of 100/200/300 MLD plant configurations. In case the bidder is submitting a proposal for more than one capacity option, the Technical Project Plan (mentioned in the contents of the Technical Bid in the next section), shall be submitted for each capacity option. Further, in case the bidder is submitting a proposal for more than one capacity option, the Price Bid (details in the next section), shall be submitted for each capacity option. The bidder can submit only one Technical Project Plan and Price Bid for a particular capacity option.

5. Cost of bidding

The bidder shall bear all costs associated with the preparation and submission of its bid and the Chennai Metropolitan Water Supply and Sewerage Board will in no case be responsible or liable for these costs.

6. Site visit and information collection

It shall be the responsibility of the bidder to visit the Project site, and conduct all necessary examination and analysis pertaining to all matters, which can in any way affect the design, construction, operation and maintenance of the Project. It shall be the responsibility of the bidder to carry out his own data collection exercise and analysis to assess the characteristics of the source sea water, which would be needed for the Project. It shall be the responsibility of the bidder to obtain his own information on all matters which may in any way affect his bid/ proposal. No monetory or other claims made by the bidder on the grounds of want of knowledge of any or all of the matters related to the bid/ Project will be entertained. The costs of visiting the site, data collection, analysis, etc. shall be at the bidders own expense.

7. Sale of RFP document

7.1 The RFP document in English may be purchased by interested bidders on the submission of a written application to the address given at the end and upon payment of a non-refundable fee of Rs. 22100/- (Rupees twenty two thousand and one hundred only) or equivalent in foreign currency. The mode of payment will be through Pay Order or Demand Draft from a Scheduled Bank in favour of Managing Director CMWSSB payable at Chennai, Tamil Nadu, India, or by cash at the Cash counter of CMWSSB.

7.2 The RFP document may also be collected in person. For this purpose the bidder shall send along with the application a letter authorizing his representative to collect the RFP document personally upon payment of the cost as specified above. The document will be sent by surface mail/ courier on an extra advance payment of Rs.1000/- (Rupees one thousand only). However, CMWSSB does not take any responsibility for the loss or delay if any in the transmission of the document by surface mail/ courier.

7.3 The application for obtaining RFP document, as well as all correspondence/ communication in connection with the RFP document, shall be made to:

All correspondence/ communication by the bidders to CMWSSB should be in writing by way of a letter/ fax. The fax copies must always be backed up by the actual letters.

7.4 The Board does not accept responsibility either for delays in receipt of completed bids or any delay experienced by the applicant in receiving the bid document including loss of document in transit. Extension of the date and time for receipt of the completed bids/ proposals will not be made on account of any such delays.

7.5 The RFP document can be purchased from the Office of the Superintending Engineer (Contracts & Monitoring) at the above address between 29.09.2003 to 13.11.2003 on all working days of the Board between 10.00 hours to 17.45 hours.

8. Non-transferability of the RFP document

The RFP document is not transferable under any circumstances. The bids shall be accepted only from those bidders in whose name the RFP document has been issued.

9. Acknowledgement

The bidder must acknowledge the receipt of the RFP by filling out and sending to CMWSSB the form attached at Appendix 3.

10. Bidder to check RFP document

Any discrepancy detected by the bidder shall be immediately intimated to the Superintending Engineer (Contracts & Monitoring) at the address specified above. Any adjustment or assumption by the bidder without such a verification shall be at his own risk and expense.

11. Priority of documents

In the event of any discrepancy between the RFP documents and the Project Agreements such as the BWPA, the documents shall be considered in the following priority for resolving any matter that may arise:

12. Clarification on the RFP Document

In general, no answer will be given to bidders in reply to an oral question. CMWSSB shall reply to the queries of the bidders at its discretion. Any information given to the bidders by means of the RFP document (including any addenda) shall not be used by the bidders as the basis of any claim or demand against the Board.

13. Pre-Bid meeting

13.1. The bidder or his authorised representative is invited to attend a pre-bid meeting which will take place at Chennai Metropolitan Water Supply & Sewerage Board, No.1, Pumping Station Road, Chennai. 600 002 on 08.10.2003 at 11.00a.m.

13.2. The bidder must preferably communicate his intention of attending the pre-bid meeting to CMWSSB in writing through letter or by fax (to be backed up by a letter).

13.3. The purpose of the pre-bid meeting will be to clarify issues and to answer questions on any matter that may be raised at that stage pertaining to the bid. Apart from the pre-bid meeting the Board may entertain further questions from the bidders only if they are submitted at least twenty days before the due date of submission of the bid. The bidder must preferably submit the questions in writing or by fax to reach the Board not later than three (3) days before the pre-bid meeting. All queries/ issues raised by the bidders at the pre-bid meeting will have to be backed up in writing by the respective bidders, if not before the meeting then subsequent to it.

13.4. The text of the questions raised by the bidders/ considered by CMWSSB, and the responses given as a result of the pre-bid meeting, shall be communicated by the Board to all bidders. Any modifications/additions/deletions to the RFP document including the Project Agreements such as the BWPA shall be communicated by the Board exclusively through the issue of an addendum and not through the minutes of the pre-bid meeting.

CMWSSB shall endeavour to circulate the responses to bidders’ queries and the addendum to the RFP preferably within thirty (30) days of the pre-bid conference.

The RFP document along with the addendums issued (if any) (which shall be construed to be part of the RFP document) shall be the basis for bidding.

13.5. Non-attendance at the pre-bid meeting will not be a cause for disqualification of a bidder.

14. Amendment to RFP document

14.1. In addition to the addendum issued after the pre-bid meeting, before the deadline for submission of bids, the Board may modify the RFP document by issuing addenda.

14.2. Any addendum thus issued shall be part of the RFP document and shall be communicated in writing or by fax to all the bidders. Bidders shall acknowledge receipt of each addendum by fax and letter to the Board.

14.3 Adequate time for submission of bids will be ensured when such addendum is issued.

15. Procedures for the Submission of Bids

15.1 Bidders are advised to go through the RFP document in full detail and understand all the provisions and stipulations contained therein before submitting the bids.

15.2 The bid shall be submitted exactly as per the procedures and requirements stipulated herein.

15.3 The bid must be submitted so as to be received within the stipulated date and time mentioned herein.

15.4 Bids submitted by telex, cable or fax will not be accepted and will be summarily rejected.

16. Bid Security

16.1 The bid shall be accompanied by an Initial Bid Security for a value of Rs. 50 lakhs for 100 MLD plant, Rs. 100 lakhs for 200 MLD plant and Rs. 150 lakhs for 300 MLD plant. If a bidder quotes for more than one option, the Initial Bid Security to be deposited by him would correspond to the highest capacity option quoted by them. No exemption of bid security will be permitted for any bidder even for any Govt. body of any country.

16.2 After the opening of the Technical Bid, the technically qualified bidders, whose price bid is proposed to be opened by CMWSSB, shall submit an Final Bid Security for a value of Rs. 250 lakhs for 100 MLD plant, Rs. 500 lakhs for 200 MLD plant and Rs. 750 lakhs for 300 MLD plant. If a bidder has been technically qualified for more than one option, the Final Bid Security to be deposited by him would correspond to the highest capacity option.

16.3 The technically qualified bidders shall submit the Final Bid Security within twenty (20) days of CMWSSB communicating their technical qualification to them and instructing them to submit the Final Bid Security.

16.4 The Initial Bid Security of the bidders who are not technically qualified will be returned within forty-five (45) days of the results of the technical evaluation.

16.5 The Initial Bid Security of the technically qualified bidders will be returned after they furnish the requisite Final Bid Security.

16.6 The Final Bid Security of the successful bidder shall be discharged after the bidder has furnished the required Development Security and signed the Bulk Water Purchase Agreement as per the prescribed format.

16.7 The Final Bid Security of unsuccessful bidders will be returned within forty-five (45) days of the signing of the BWPA.

16.8 Any bid submitted without the Bid Security in the form as specified in the RFP document shall be summarily rejected.

i. The bidder withdraws his bid after bid opening and during the bid validity period.

ii. In case of a successful bidder, if the bidder fails within the specified time limit to furnish the required Development Security, or fails to execute the Bulk Water Purchase Agreement.

iii. In case of technically qualified bidders, if they fail within the specified time limit to furnish the required Final Bid Security, then their Initial Bid Security shall be forfeited.

q The Bid Security should be in the form of a Bank Draft or Pay Order drawn on any Nationalised/ Scheduled Commercial Bank in favour of the Managing Director, CMWSSB, payable at Chennai, Tamil Nadu, India.

q The Bid Security may also be in the form of irrevocable Bank Guarantee. The format of the Bank Guarantee shall be as per Appendix 5. Bidders are to note that the format of the Bank Guarantee should not be altered under any circumstances. Bidders are advised to strictly adhere to the format and the value to avoid disqualification.

q The irrevocable Bank Guarantee shall be on a non-judicial stamp paper of value not less than Rs .20/- and shall be submitted from a Nationalised/ Scheduled Commercial Bank.

q The validity of the Bank Guarantee/Bank Draft/Pay order shall be for a period of six (6) months from the due date of submission of the bid with a claim period of two (2) months thereafter.

17. Form of the Bid

17.1 Bids which are conditional or obscure or which contain additions not called for,

17.2 The bidder shall fill up and sign all schedules, tables, forms, drawings, etc., and provide all description and information, as stipulated in this RFP document.

18. Signing of the Bid

The bid shall be signed by a person or persons duly authorised to sign on behalf of the bidder. All pages of the bid where entries or amendments have been made shall be signed by the person or persons signing the bid. The bidder shall enclose a certified copy of the Power of Attorney authorizing the signatory or signatories to sign the bid document. This certification shall be from the Company Secretary or the authorized Legal Manager of the firm.

In case of proposals from a consortium of members, the signatures would have to be those of the authorized signatory/ signatories of the consortium leader.

19. Proposals from consortium

In case of a consortium of partners bidding jointly for the project a “letter of association” shall be furnished as part of the bid on behalf of the consortium, which shall state the following:

- that the various members have decided to form a consortium to bid for the Project

- that each member has examined the bid document and is in agreement with its contents

This letter should be signed by the respective authorized signatory/ signatories of each consortium member.

It may be noted that in case of the selected bidder, a JV Agreement outlining the roles and responsibilities of the consortium members (if applicable) shall have to be executed and registered before the signing of the BWPA.

20. Due Date for Bid Submission

20.1 Bids/proposals in sealed envelope/ package as detailed below will be received by the Superintending Engineer (Contracts & Monitoring) at his office up to 3.00 pm on 14.11.2003. If the said date happens to be a holiday for the Board, the Tenders will be received up to 3.00 pm on the next working day.

20.2 The Board may extend the due date for submission of bids by issuing an addendum in which case all the rights and obligations of the Board and the bidders previously subject to the original due date for submission will then be subject to the new date for submission as extended.

21. Parts of the Bid/ Proposal

21.1 The bid shall be submitted in three parts viz. Part A (Bid Security), Part B (Technical Bid) and Part C (Price Bid). The contents of each part shall be as described in the subsequent clauses. Each part shall be placed in an independent sealed envelope. Each envelope shall be labelled as follows:

The envelopes containing Part A, Part B and Part C shall be placed inside an outer envelope and shall be labelled as follows:

SEA WATER DESALINATION PLANT PROJECT

Implementing a Sea Water Desalination Plant at Minjur, Chennai on Design, Build, Own, Operate and Transfer (DBOOT) basis.

This envelope contains --- (number of envelopes to be indicated in words and figures) independent sealed envelopes as follows:

1. Bid Validity

1.1 Bids shall remain valid for a period of one hundred and eighty (180) days from the due date of submission of the bid.

1.2 In exceptional circumstance, prior to expiry of the original time limit, the Board may request bidders to extend the period of validity for a specified additional period. The request and the bidders’ responses shall be made in writing or by fax (to be backed up in writing). A bidder may refuse the request without forfeiting his Bid Security. A bidder agreeing to the request will not be permitted to modify his bid. However, he shall extend the validity of the Bid Security Bank Guarantee for the period of the extension.

2. Bid Security Envelope

The Bid Security envelope shall contain the following as per the sequence indicated below:

i) Covering letter stating name of the bidder and capacity options for which he is bidding

ii) Letter of association for consortium bidders (as mentioned in the section “Procedure for Bidding”)

iii) The Bid Security Bank Guarantee as per Appendix 5. The Bid Security value shall correspond to the highest capacity option for which the bidder is bidding.

3. Technical Bid/ Proposal

The bidder shall submit one Technical Bid for each capacity option for which he has chosen to bid. Each Technical Bid envelope shall be marked with the appropriate capacity as described in the preceding section. The Technical Bid envelope shall contain the following as per the sequence indicated below (All contents of the Technical Bid shall be submitted in duplicate.):

i) Declaration by the bidder that his bid is without any technical and commercial deviations in the format of the letter as per Appendix 4.

ii) Certified Power of Attorney authorising a representative or representatives of the Company to sign the bid and all subsequent communication.

iii) Information towards establishing technical experience as per the Response Sheet at Appendix 1.

iv) Information towards establishing financial capacity as per the Response Sheet at Appendix 2.

v) Technological Process and Plant Design, Construction, Operation & Maintenance Plan including inter alia the following items:

(a) Full technical description of the process and technology adopted to be given, specifications of the equipment and materials to be stated.

(b) Details of other projects where similar technology has been adopted by the bidder

(c) Write-up on experience in raising finance from Indian/ International markets for project implementation furnishing inter alia details of projects and amount of funds raised.

(d) Work methodology and plan for implementing the project including Bar Charts/ Pert Charts etc.

(i) Various performance parameters like quality of product water, quality of sea water discharge, recovery levels etc.

(k) Organizational plan indicating roles and responsibilities of different departments and different consortium members (in case of consortium)

4. Price Bid/ Proposal

The bidder shall submit one Price Bid for each capacity option for which he has chosen to bid. Each Price Bid envelope shall be marked with the appropriate capacity as described in the preceding section. The envelope labelled as "Price Bid Envelope" shall contain the following in the sequence indicated below:

ii. Price for desalinated water to be paid by CMWSSB year-wise for 25 years , which shall have the following components:

To be quoted in Rs. for each year for 25 years as per the format at Appendix 6. This would go towards covering fixed costs such as interest, depreciation, ROE[3] and fixed O&M costs. The payment to the developer shall be on the basis of plant availability, in accordance with the terms spelt out in the BWPA. There shall be no provision for any escalation.

The bidder shall quote the power consumption in terms of no of units (kWH per KL) as per the format at Appendix 6. This would go towards covering the power consumption costs for water supplied. The payment to the developer shall be on the basis on power consumption quoted, water units supplied, and the prevailing applicable electricity rate, in accordance with the terms spelt out in the BWPA.

To be quoted in terms of Rs per KL as per the format at Appendix 6. This would go towards covering variable costs (other than power costs) for water supplied such as variable O&M costs and consumable costs. The payment to the developer shall be on the basis on per unit charge quoted (base value) indexed to the Indian WPI[4], and number of water units supplied, in accordance with the terms spelt out in the BWPA.

The Water Variable Charge “C” payable by CMWSSB in any billing month shall be as follows:

5. Late Bids

Any bids received by the Board after the due date & time specified herein will not be considered and will be returned unopened to the bidder.

6. Modification and Withdrawal of Bids

6.1 Bidders may modify or withdraw their bids by giving notice in writing before the due date of submission of the bid.

6.2 The bidder’s modification or withdrawal notice shall be prepared, sealed, marked and delivered in accordance with the instructions given in the section on “Procedure for Bidding”. The outer and inner envelopes should be additionally marked MODIFICATION OF TECHNICAL BID OR MODIFICATION OF PRICE BID or WITHDRAWAL as appropriate.

7. Process to be Confidential

Information relating to the examination, clarification, evaluation and comparison of bids, and recommendations for the award of contract, shall not be disclosed to bidders or any other persons not officially concerned with such process until the selection of the successful bidder has been announced. Any effort by a bidder to influence the Board in the processing of bids or award decisions may result in the rejection of his bid.

8. Bid Opening

CMWSSB will open the Bid Security and Technical Bid envelopes in the presence of the bidders or their authorised representatives at 3:30 p.m. on 14.11.2003. In the event of the specified date of bid opening being declared a holiday for the Board, the envelopes will be opened at the same time on the next working day.

9. Procedure for Bid Evaluation

To assist the examination, evaluation and comparison of bids, the Board may, at its discretion, ask any bidder for clarification on his bid. The request for clarification and the response shall be in writing or by fax (to be backed up by written communication). No change in the substance of the bid shall be permitted.

First stage evaluation: Fulfilment of minimum qualifying criteria and responsiveness of bid

CMWSSB shall first open the Bid Security and Technical Bid envelopes and assess whether the bidder fulfils the minimum qualifying criteria and whether the bids are responsive. The Board shall assess whether the proposal is in accordance with the guidelines stipulated in the RFP document viz. whether the Initial Bid Security is in the required form, and whether the various appendices and other documents and information have been submitted as required. If the bidder does not fulfil the minimum qualifying criteria, then that bidder shall be disqualified and its Price bid shall be returned. Price Bids of the firm that are substantially non-responsive shall be returned and their technical bids will not be returned.

Second stage evaluation: Evaluation of the technical proposal

CMWSSB shall then proceed with the technical evaluation of those proposals which have not been rejected. CMWSSB shall assess whether the technical design and standards are in line with its requirements. The technical proposal should meet the requirements of CMWSSB in terms of technological feasibility, environmental standards, capability to deliver the required product water specifications, and other technical criteria.

During technical evaluation, technical clarifications could be sought from the bidder and would have to be furnished by him. The technical clarifications shall not contain any price indication.

If the proposal qualifies on the basic technical criteria, CMWSSB may require the bidder to improve/ modify certain aspects of its technical design and submit revised technical specifications/ design, along with resultant changes to the price proposal (if any) in a separate sealed envelope.

Technical evaluation will be made by a Technical Consultant to be engaged by CMWSSB. The Technical proposals will be evaluated on all technical parameters.

v Their Technical capability of delivering the required quantity and quality of product water

Suitable evaluation framework will be developed in order to evaluate proposals based on different Technologies keeping in view the final objectives of CMWSSB.

Opening and Evaluation of Price Bid

CMWSSB will inform the technically qualified bidders and instruct them to submit the Final Bid Security as indicated in the previous section (Procedure for Bidding).

The Board will proceed with opening of the “Price Bid” envelope of those bidders whose Technical Bid has been accepted and who have submitted the Final Bid Security within the stipulated time-frame. The opening of the “Price Bid” envelope together with modifications (if any) will be done in the presence of those bidders or their representatives who choose to be present. The Board will inform such bidders in advance about the acceptance of their Technical Bid and the date and time of opening of the “Price Bid”.

If the price proposal is not in accordance with the guidelines stipulated herein, it may be treated as non-responsive.

10. Evaluation of price proposal

During the course of evaluating the price proposals, CMWSSB shall arrive at a decision on the capacity of the Plant based on analysis of its cost-benefit from the Project under different capacity options.

CMWSSB shall evaluate the price bids by calculating the levelized tariff on the basis of the different components of price for desalinated water quoted by the bidder using the assumptions outlined in this section. The price proposals for any capacity shall be compared, for the purpose of ranking, with price proposals of that capacity only. The bidder(s) with the lowest levelised tariff (L1 bidder) shall be ranked number.

CMWSSB shall obtain approval from its Board of Directors for the three top-most bidders as per ranking (L1, L2 and L3).

The levelized tariff shall be calculated on the basis of the different components of price for desalinated water using the assumptions as outlined in this section and detailed in Appendix 7.

The total water charge for each year shall be calculated on the basis of the different components in the following manner:

Quoted in Rs. for each year for 25 years. (The actual payment to the developer shall be on the basis of Plant availability, in accordance with the terms spelt out in the BWPA.) For the purpose of evaluation, the Water Capacity Charge quoted for each year shall be divided by the number of water units corresponding to 80% of Plant capacity to obtain the per unit Water Capacity Charge in terms of Rs. per KL (=”a”). No escalation shall be taken.

Quoted in terms of no of units (kwh) of power consumed per KL of water supplied. (The actual payment to the developer shall be on the basis on power consumption quoted, water units supplied, and the prevailing applicable electricity rate.) For the purpose of proposal evaluation, the per unit power charge for each year (=”b”) shall be calculated on the basis of power consumption factor quoted, and the base electricity rate escalated at the power tariff growth rate (given below).

To be quoted in terms of Rs per KL. (The actual payment to the developer shall be on the basis on per unit charge quoted (base value) indexed to WPI, and number of water units supplied.) For the purpose of proposal evaluation, the per unit charge for each year (=”c”) shall be calculated on the basis of the per unit charge quoted (base value) escalated at the Inflation Rate (see below).

(The economic assumptions indicated hereunder are solely for the purpose of evaluation by CMWSSB. Bidders shall not be granted any protection for any differentials arising out of actual parameters/ assumptions used by them vis-a-vis those stated hereunder.)

11. Correction of Errors

11.1. The prices quoted by the bidders will be checked by the Board for any arithmetic errors. Errors will be corrected by the Board as follows:

a. where there is a discrepancy between the figures and words, the words shall be considered.

b. a discrepancy in the total shall be corrected by considering the lower of the sum of the individual price components and the total as quoted by the bidder.

11.2. The price stated in the bid will be corrected by the Board in accordance with the above procedure for the correction of errors and shall be binding upon the bidder. If the bidder does not accept corrected amount, the bid will be rejected, and the EMD will be forfeited.

12. Issue of Letter of Intent (LOI)

12.1 The Board will issue the Letter of Intent (LoI) to the ‘L1’ bidder for the selected capacity option (the “preferred bidder”) prior to expiry of the bid validity period by registered letter or facsimile (fax to be confirmed by registered letter).

12.2 If the Price Bid of the ‘L1’ bidder is significantly at variance in relation to CMWSSB’s estimates, CMWSSB may require the bidder to produce a price analysis, to demonstrate the internal consistency of its prices.

13. Signing the Agreement

13.1 CMWSSB and the ‘L1’ bidder will hold discussions towards execution of the BWPA within the stipulated time-frame. Within thirty (30) days of the date of issue of LOI, the selected bidder will sign the BWPA as per the prescribed format. The bidder shall bear the cost of the stamp paper and other legal charges.

13.2 If the L1 bidder does not execute the BWPA and submit the Development Security within the stipulated time-frame, its LoI will stand cancelled. CMWSSB may then approach the L2 Bidder and so on.

14. Development Security

In order to demonstrate its commitment to complete the construction of the Project within the stipulated period, the successful bidder shall furnish to CMWSSB a Development Security of Indian Rs. 1000 lakhs. for 100 MLD Plant, Rs. 2000 lakhs. for 200 MLD Plant and Rs. 3000 lakhs. for 300 MLD Plant, in the form of an irrevoceable Bank Guarantee in the format prescribed in the BWPA. The Development Security shall be submitted to the Board within 30 days from the date of signing of the BWPA.

The successful bidder will be responsible for the payment of all taxes, charges, fees etc. in connection with the Development Security.

Failure of the successful bidder to comply with this requirement shall constitute sufficient grounds for cancellation of the LOI and BWPA and forfeiture of the Bid Security.

Upon the successful bidder furnishing the Development Security, and upon signing of the BWPA, the Board will promptly notify the other bidders that their bids have been unsuccessful and will arrange to return their Bid Security.

The Development Security will be governed by the terms stipulated in the BWPA. 50% of the Development Security will be released after 50% of the Project cost has been incurred as certified by the Auditors. The balance will be released to the developer after the Project reaches commercial operation on or before the date agreed upon in the BWPA, and the Project achieves the performance parameters stipulated in the BWPA, and no Liquidated Damages are payable by the developer.

CMWSSB may adjust the Liquidated Damages payable by the Sponsor against the Development Security.

In case there are delays in achieving the Project development and construction milestones as outlined in the BWPA, or there are non-achievement of performance parameters as outlined in BWPA, the Development Security will be forfeited.

15. Payment security

The payment security structure for the developer will be in accordance with the terms of the BWPA.

q Escrow of identified receivables. The format of the Escrow Agreement will be circulated at a later date.

q Letter of Credit equivalent to 3 (three) times the monthly Total Water Charges payable. For the purpose of arriving at the LC amount, the monthly Total Water Charges will be calculated in the following manner:

q For the first twelve months after Commercial Operation Date (COD), based on an estimate of the monthly Total Water Charges at Water Minimum Off-take[5] for the next succeeding month.

ü average monthly Total Water Charges for the immediately preceding 3 (three) months OR

ü average monthly Total Water Charges for the immediately preceding twelve (12) months, whichever is higher.

The LC amount will be re-calculated on a monthly basis in the first-twelve-month-period following the COD. It will be re-calculated once every twelve months thereafter.

Provided that while estimating the monthly Total Water Charges for calculating the LC amount as stated above, the Variable Power Charge, which is a component of the Total Water Charge, shall be adjusted for any revision in power tariff implemented/ announced by the concerned electricity supplier.

16. GoTN Support

CMWSS Board is an autonomous body having independent powers for handling its financial requirements. However CMWSS Board will meet the commitment towards making payment to the Developer for this Project. As such, GoTN support is not envisaged for this Project.

17. LDs for non-performance:

The Liquidated Damages payable by the developer for non-achievement of performance parameters will be as stipulated in the BWPA. The method of calculation and mode of payment of various LDs will be as per the BWPA. They are outlined here in brief, only for the purpose of giving an idea of their nature.

Liquidated Damages for delay in commissioning

If the COD for the Project is not achieved by the stipulated date, the Company shall pay to CMWSSB liquidated damages for the delay in COD as follows.

Liquidated Damages for not meeting water quality norms

If the quality of the product water doesn’t meet the “desirable limit” norms as given in the BWPA, the liquidated damages payable by the Company to CMWSSB shall be as follows:

If the quality of the product water doesn’t meet the “permissible limit” norms as given in the BWPA, CMWSSB shall not off-take any water till the quality is restored. Such an event shall be treated as “failure to supply” and the corresponding liquidated damages shall be payable.

Liquidated Damages for failure to supply required water quantity

Failure of the Company to meet the requirement of CMWSSB in providing product water up to the minimum water off-take/ take-or-pay level, would lead to payment of liquidated damages to CMWSSB, as follows:

Failure of the Company in providing product water to meet the requirement of CMWSSB over and above up to the minimum water off-take/ take-or-pay level, would lead to payment of liquidated damages to CMWSSB, as follows:

Provided that no such liquidated damages shall be payable if CMWSSB’s required supply of water corresponds to more than the Contracted Capacity of the Plant.

Chennai Metropolitan Water Supply and Sewerage Board was established on 01.08.1978, by an Act of the Tamil Nadu Legislature to address to the issues pertaining to water supply and sanitation in Chennai city in a holistic manner.

CMWSSB's role is to provide adequate supply of good quality water (along with safe disposal of sewerage/ waste water) to the citizens of Chennai at a reasonable price and through an environment-friendly system.

CMWSSB performs the following functions with respect to water supply and sewerage services in the Chennai Metropolitan Area [6]:[A1]

At present it serves a population of about 60 lakhs mostly in the Chennai city area.

The present category-wise supply in Chennai Metropolitan Area by CMWSSB is as follows:

Water quantity in MLD	FY 2002	FY 2003
Metered supply
Chennai City
Domestic	12.28	32.61
Commercial	5.44	10.37
Govt. Institutions	6.03	6.77
Municipal bulk	4.87	4.29
Industries	39.38	42.92
Sub-total (Metered supply in Chennai City)	68.00	96.96
Adjacent urban areas		3.91
Un-metered supply
Domestic	101.23	205.05
Non-domestic*	15.75	16.49
Supply through tankers, domestic PSPs	0.59	0.44
Sub-total (Un-metered supply)	117.57	221.98
Total	185.57	322.85

Thus, the total water supplied by CMWSSB in Chennai Metropolitan Area is estimated to be in the range of 200 to 300 MLD at present.

Rs crores	FY 2002	FY 2003
Contributions	264.21	306.52
Govt Grants	304.82	351.25
Long Term Borrowings	919.88	903.71
Deferred Credits & Surplus	155.11	170.14
Current Liabilities	352.59	414.17
Accumulated Surplus	157.89	165.48
TOTAL	2154.53	2311.27
Fixed Assets	1702.28	1858.46
Current Assets, Loans & Advances	452.25	452.81
TOTAL	2154.53	2311.27

The systems and operations of CMWSSB have been financed by Government contributions and grants, along with borrowings from Banks and Indian and Foreign Financial Institutions.

The Income and Expenditure Statement of CMWSSB for FY 2002 and FY 2003 is as follows:

Rs crores		FY 2002		FY 2003
	Sale of Water		126.63		146.68
	Grants & Subsidies - drought		75.00		15.45
	Water Tax & Sewerage Tax		56.78		57.55
	Other Income		25.07		30.50
	TOTAL		283.51		250.18

	Operating & Maintenance Expenditure		30.77		48.71
	Payments & Provision to Employees		50.64		53.47
	Office Administrative Expenses		2.51		2.86
	Prior Period Adjustment		4.99		3.55
	Water Lorry Hire Charges		7.39		9.27
	Drought Expenditure		82.69		8.02
	Depreciation		44.20		48.73
	Debt Service Chrages		56.15		66.85
	Provision for Doubtful Debts		2.67		1.14
	TOTAL		282.01		242.60
	Excess of Income Over Expenditure		1.50		7.58

The profitability was stressed in FY 2002 owing to drought-related expenditure. However, the situation has improved in FY 2003, with increase in level of supply from 185 MLD to 322 MLD, and improvement in water sales revenues to Rs. 146 cr.

The drinking water needs of the Chennai area are met through a combination of sources. The main sources of supply are:

· Surface water stored in the lakes/ reservoirs at Poondi, Cholavaram and Redhills (combined total capacity of 7412 mcft)

· Ground water from the six well-fields viz. Poondi, Tamaraipakkam, Flood Plains, Kannigaiper, Panjettty and Minjur

With the primary water sources, the water supply level was maintained at about 290 MLD in the period before September 1996 (translating to about 70 lpcd[7]). Additional water supply was obtained from Andhra Pradesh in September 1996, taking the total water supply to about 480 MLD (100 lpcd).

A water scarcity situation prevailed in Chennai in the recent past (starting from around 1999-2000) because of rainfall shortage. CMWSSB had to adopt contingency relief measures such as identification of new sources like agricultural well-fields and water transportation through lorries.

CMWSSB has continued to identify new water sources, to tackle water scarcity and to augment its main supply sources. Some of these are mentioned below:

Demand projections

It is expected that the water requirement for Chennai Metropolitan area would be about 1980 MLD in year 2021. Even after taking into account the full entitlement of about 930 MLD from Andhra Pradesh, and also various other sources, the estimated shortfall would be about 600 MLD.

CMWSSB is undertaking a number of projects to meet the projected water requirements. As per CMWSSB’s estimates, the demand-supply scenario is projected as follows:

It can be seen from above that a significant demand potential is expected by CMWSSB from various consumer categories in Chennai and surrounding areas. CMWSSB expects that the total demand would be in the range of 800 MLD by FY 2005.

Supply Management

Various projects are being undertaken by CMWSSB towards bridging the water demand-supply gap. CMWSSB is proposing various measures as a part of its comprehensive “water management strategy”:

q Reduction of losses in the distribution system through the “leak detection and rectification”. programme which aims to reduce the distribution losses from about 23% to about 5%

q Ground water conservation and recharging (Tamil Nadu is the second state after Gujarat to enact the Rain Water Harvesting Act, and under the Act CMWSSB is empowered to regulate ground water extraction in the notified area.)

The following projects/ programmes are proposed for water supply capacity augmentation:

CMWSSB is exploring the application of desalination technology for supply of water. As a part of this programme a beginning has been made through two Reverse Osmosis Plants one at Ayodhya kuppam and another at Kasimedu kuppam in Royapuram. These Reverse Osmosis Plants are of 0.1 MLD capacity each and their technology is used for treating brackish water and supply of good quality water to the people.

The proposed sea-water desalination project is expected to be the next important stage in this programme.

The Chennai Water Supply Augmentation Project-I enables the drawal of water from Veeranam Lake and the distribution of about 180 million litres daily of treated water to the city. This project would be executed within two years. The estimated cost of the project is Rs. 720.00 crores (as approved in 2001). The project is proposed to be funded partly by the Government and partly by the National Financial Institutions. The contracts have been awarded and the works are in progress.

The Chennai Water Supply Augmentation Project II aims at the construction of checkdams, percolation tanks, etc., to prevent rain water running off into the sea and to store surplus water in Koratalaiyar and Palar rivers. Detailed proposals are under preparation and CMWSSB would approach Financial Institutions for funding the project. This project will include:

q Augmentation of storage capacity in Redhills reservoir, Madhavaram Lake, Korattur Lake, Ambattur Lake and Rettai Eri.

CMWSSB is also preparing a Master Plan for supplying water to the Adjacent Urban Areas (AUAs) of Chennai.

Distribution Infrastructure

CMWSSB is implementing the Master Plan for Water Supply & Sewerage which envisages the following goals:

q Optimum usage of existing infrastructure and creation of additional infrastructure to draw, treat and distribute additional water flows contemplated from various projects

q Zonal distribution of water supply and creation of 16 water distribution zones to cater to the ultimate demand in year 2021: The work involves construction of additional water distribution stations, strengthening of the distribution system, and laying of feeder mains and pipelines (involving laying of transmission mains for conveying treated water from the treatment plants at Redhills and Kilpauk to all the 16 water distribution stations, which is significantly complete).

Phase 1 of the Master Plan works has been completed. The remaining works are under progress with World Bank assistance under the Second Chennai Project and are scheduled to be completed by 2003-04. The Second Chennai Project also envisages substantial additions in number of water connections.

Thus, CMWSSB has substantially enhanced and upgraded its distribution infrastructure with a view to take care of water distribution needs in the city till 2021.

CMWSSB is in the process of identifying the augmentation (if any) that would be required to distribute the water from the proposed desalination plant. The water from the desalination project will be conveyed to the Redhills reservoir from where it will be distributed to various consumer categories in the Chennai Metropolitan Area through CMWSSB’s network.

Existing Realizations for Water

The category-wise water revenues for metered consumers, and per unit realizations for water, are as follows:

For Metered supply	FY 2002 Water revenues in Rs. Lacs	FY 2003 Water revenues in Rs. lacs	FY 2002 Average water tariff in Rs./KL	FY 2003 Average water tariff in Rs./KL
Chennai city
Domestic	672.28	993.76	8.00	8.00
Commercial	604.26	1189.94	35.00	35.00
Partly-Commercial	125.19	134.52	15.00	15.00
Municipal bulk	88.88	149.77	5.00	5.00
Govt. Institutions	440.23	518.35	20.00	20.00
Industries	5604.85	6507.03	40.00	40.00
Sub-total – Metered Supply in Chennai city	7535.71	9493.37	30.00 (Average)	31.00 (Average)

· due to drought and reduced water supply through pipe line, higher sale water through tankers

The total revenues of CMWSSB from metered and un-metered consumers in FY 2003 and FY 2002 were Rs. 146 crore and Rs 127 crore respectively.

Capacity of the Plant for the bid to be given	Option-I (100 MLD)	Option-II (200 MLD)	Option-III (300 MLD)
1. Technical criteria:
(a) Experience of having constructed Sea water/ Brackish Water desalination plant of minimum capacity	15 MLD	30 MLD	45 MLD
(b) Experience of having maintained for a minimum of 12 months a Sea Water/ Brackish Water desalination plant of minimum capacity	3MLD	6 MLD	9 MLD
2. Financial Criteria:
(c) Net worth* Rs. in Million	1250	2500	3750
(d) Turnover * Rs. in Million	5000	10000	15000

Capacity of the Plant for the bid to be given	Option-I (100 MLD)	Option-II (200 MLD)	Option-III (300 MLD)
1. Technical criteria:
(a) Experience of having constructed Sea Water/ Brackish Water desalination plant of minimum capacity	15 MLD	30 MLD	45 MLD
(b) Experience of having maintained for a minimum of 12 months a Sea Water/ Brackish Water desalination plant of minimum capacity	3MLD	6 MLD	9 MLD
2. Financial Criteria:
(c) Net worth* Rs. in Million	1250	2500	3750
(d) Turnover * Rs. in Million	5000	10000	15000

PART – A	BID SECURITY ENVELOPE
Contract Reference No	CMWSSB/CNT/WATER/ DBOOT/001 – A /2003
Project	Implementing a Sea Water Desalination Plant at Minjur, Chennai on Design, Build, Own, Operate and Transfer (DBOOT) basis.
Due date/ time	14.11.2003 / 3.00 P.M.
Name of bidder	BIDDER’S NAME TO BE INSERTED
PART – B	TECHNICAL BID ENVELOPE
Contract Reference No	CMWSSB/CNT/WATER/ DBOOT/001-A /2003
Project	Implementing a Sea Water Desalination Plant at Minjur, Chennai on Design, Build, Own, Operate and Transfer (DBOOT) basis.
Due date/time	14.11.2003/ 3.00 P.M.
Name of bidder	BIDDER’S NAME TO BE INSERTED
Plant Capacity	--- MLD (as applicable)
	Note: The bidder shall submit one Technical Bid for each capacity option for which he chooses to bid. Thus, he shall submit three Technical Bid Envelopes in case he is bidding for all three capacities. Each Technical Bid Envelope should be marked with the plant capacity as appropriate.
PART - C	PRICE BID ENVELOPE
Contract Reference No	CMWSSB/CNT/WATER/DBOOT/ 001-A /2003
Project	Implementing a Sea Water Desalination Plant at Minjur, Chennai on Design, Build, Own, Operate and Transfer (DBOOT) basis.
Due date/time	14.11. 2003 / 3.00 P.M.
Name of bidder	BIDDER’S NAME TO BE INSERTED
Plant Capacity	--- MLD (as applicable)
	Note: The bidder shall submit one Price Bid for each capacity option for which he chooses to bid. Thus, he shall submit three Price Bid Envelopes in case he is bidding for all three capacities. Each Price Bid Envelope should be marked with the plant capacity as appropriate.

c	=	water variable charge per unit quoted by developer for the applicable year in Rs per KL
q	=	water units supplied in that billing month in KL
WPI_n	=	Indian Wholesale Price Index prevailing on the first day of the applicable operating year
WPI₀	=	Indian Wholesale Price Index prevailing on the Project Commercial Operation Date (COD)

S.N.	Economic Parameter	Rate	Remark
a)	Inflation Rate	4% per annum	Will be used for escalating the variable component (water variable charge).
b)	Discount Rate	12%	Will be used for arriving at the levelised tariff.
c)	Base electricity rate	Rs. 3.6 per kwh	Will be used for calculating the power charge.
d)	Power tariff growth rate	4%	Will be used for calculating the power charge.

Total LD for delay	=	(IC x D x PD )
Where,
IC	:	Intended Capacity of the Facility (as defined in the BWPA and shall depend pn whether selected capacity of the plant is 100/200/300 MLD)
D	:	the number of days of delay in achieving COD
PD	:	Rs 10,000.00 (Rupees ten thousand) per MLD per day

Liquidated damages payable	=	CC x LD x D x W
CC	:	Contracted Capacity
LD	:	Rs 2000 (Rupees two thousand) per MLD per day
D	:	the number of days between the date of receipt of “below desirable quality” certificate till date of restoration of desirable quality
W	:	(D/7), rounded off to the nearest integer at the upper range

Liquidated damages payable	=	WC x LD
WC	:	total Water Variable Charges that would have been payable by CMWSSB to the Company for the supply of water requested by CMWSSB up to the “Water Minimum Off-take”
LD	:	200%

Year (all in MLD )	2004	2005	2006	2007	2008
Total Water Demand for Chennai City, AUAs[8] and DUAs	1445	1472	1499	1526	1553
Availability from sources
Existing Ground water	67	67	67	67	67
Existing Surface water	229	229	229	229	229
De-salined water	0	0	123	246	246
Other new projects	0	490	580	620	890
Supply	296	786	999	1162	1432
Gap	1149	686	500	364	121

MLD	FY 2002	FY 2003
Ground water	93.32	66.62
Surface water	92.23	256.33
Total	185.55	322.95

For Un-metered supply	FY 2002 Water revenues in Rs. Lacs	FY 2003 Water revenues in Rs. lacs

Domestic	1774.02	1949.89
Non-domestic	940.82	1074.68
Supply through tankers	974.49*	700.52
Sewerage Revenue	1439.27	1449.27
Sub-total – Un-metered Supply	5128.60	5174.36

Consumer category	FY2003	2004-05	2005-06	2006-07	2007-08	2008-09	2009-10
Rupees per KL of water
Metered Consumers
Domestic	8.00	9.60	9.60	10.56	10.56	10.56	10.56
Commercial	35.00	42.00	42.00	46.20	46.20	46.20	46.20
Partly. Comml.	15.00	18.00	18.00	19.80	19.80	19.80	19.80
Govt. Instns.	30.00	36.00	36.00	39.60	39.60	39.60	39.60
Municipal Bulk	7.00	8.40	8.40	9.24	9.24	9.24	9.24
Industries	60.00	66.00	66.00	72.60	72.60	72.60	72.60
AUA	7.00	8.40	8.40	9.24	9.24	9.24	9.24
18. Unmetered Supplies - Rupees per month per connection
Domestic	50.00	150.00	150.00	165.00	165.00	165.00	165.00

Telephone : +91 44 2852 4388/2853 4444, Fax +91 44 2853 1243/2852 5544,

E.Mail: cmwssb@md2.vsnl.net.in

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