A project

by Soma
Submitted To: Submitted By:
Mr. Vikas Singla Parmandep sidhu
(353)
 …………………overview
Soma is one of India’s fastest growing infrastructure
developers. With more than 13 years of excellence in the
construction and development of core infrastructure
projects. It is focused on construction and development of
core infrastructure projects in the transportation, hydro
electric power and water resource sectors among others. 
Soma has recently diversified into urban infrastructure
projects including commercial and residential real estate.
In addition to construction contracts, Soma also takes up
projects on EPC / Turnkey and Build Operate Transfer
(BOT) basis
 VISION
To Endeavour comprehensive development of nation by
way of creating New Towns , roads etc. with all key
infrastructure with special emphasis on protecting and
preserving the environment thereby changing the life
style of the people of the country. 
What is BOT
A type of arrangement in which the private sector builds an
infrastructure project, operates it and eventually transfers
ownership of the project to the government. In many
instances, the government becomes the firm's only customer
and promises to purchase at least a predetermined amount
of the project's output. This ensures that the firm recoups
its initial investment in a reasonable time span.
This type of arrangement is used typically in complicated
long-term projects as seen in power plants and water
treatment facilities. In some arrangements, the government
does not assume ownership of the project. In those cases,
the company continues running the facility and the
government acts as both the consumer and regulator
 Key points involved in executing a BOT model
1. An organization does a feasibility of approach - setup the said
project on its own or work on a BOT model. If opted for BOT
model, then,
2. Service providers are shortlisted and a dialogue is initiated with
them.
3. The parameters are shared with the service providers and their intent
is ascertained – whether or not they would be keen to proceed with
such an arrangement. It is very important to find a matured service
provider as he has the right domain knowledge and expertise that
helps to get the optimal returns from the investment.
4. The initial agreement is signed which spells out the nature of
contribution that each of the participants will bring to the table. It
also spells out the time duration for the transfer of project/rights.
This is referred to as the `put' or `call' options i.e., whether one of the
participants to the venture would put their shares to be taken up
by the other or will they call for the shares of the other partner.
Key advantages that this models offers:
As per Gartner analysis, CIOs, IT leaders and business leaders in aggressive
industries should incorporate such models where offshore vendors become an
integral part of their industry value chain. They must begin building
relationships with offshore IT services companies that deliver value-added
business process services supplementing their development, production and
the delivery of final products and services.
o Opportunity to capture market share rapidly or address a crying need in a
short period of time
o Advantage of not getting distracted while setting up a new venture
o Being able to continue to focus on the organization’s core competency
o Opportunity of accessing best in class skill-sets
o Conservation of capital expenditure
o Cost effective outsourcing during the initial period of build out and operating
o Reduced operating risk and knowledge retention when related to sensitive
processes, and
o Ability to launch a complete end-to-end solution in short duration.
National Highway 1 Panipat–Jalandhar Toll Road Project
On October 23, 2008, the board of Asian Development Bank (ADB) was
presented a proposal to approve a loan of $ 240 million for National Highway
1 Panipat-Jalandhar Toll Road Project. This Project would help address the
problem of capacity shortage in the road sector in India and is important
from the point of socio-economic development and economic growth of the
country. The President of ADB, Mr. Haruhiko Kuroda, was confident that the
proposed loan would serve ADB's strategy of poverty reduction through
infrastructure-led growth.
The proposed highway runs through the so called "bread basket" of India. It is
part of the historical Grand Trunk road which runs from Sonargaon in
Bangladesh to Peshawar in Pakistan. The road was upgraded to four lanes in
the past decade and is now being expanded to six lanes due to rapid growth in
traffic and increasing congestion. There was little debate on the merits of loan
as it satisfied all the existing criteria of ADB. The loan was consistent with
ADB's private sector development strategy, country strategy, sector strategy
and the long term strategy of infrastructure development through increased
private sector participation. The proposed ADB financial assistance would be
catalytic, allowing the Project to raise long-term debt financing .
 The Project: NH-1 Panipat–Jalandhar Toll Road Project
The NH-1 Panipat–Jalandhar Toll Road Project is the largest among the
NHDP phase V projects. The project consists of six- lane of 291 km of
the existing four lane NH1 road from Panipat (96 km) to Jalandhar (387
km). It is one of the first projects to be based on DBFO pattern. In the
traditional BOT model input and output parameters are defined. But in
DBFO model, only output parameters are defined. The developer is
responsible for the design, engineering, construction, development,
finance, operation and maintenance of the road. The project also
consists of building flyovers, overpasses and underpasses on all existing
intersections to allow continuous flow of traffic. After financial closure
the concessionaire will be allowed to collect tolls for 15 years. After that
the road will be transferred back to the NHAI.
In this project, the revenue sharing model is being used for the first
time in a BOT model. In the traditional BOT model, the bid winning
criteria is annuity or up-front lump sum payment to NHAI. However, in
this project the bid winning criteria is the percentage of revenue the
bidder will share with the NHAI
The NH-1 is used by a large number of vehicles owners heading to Delhi,
Haryana, Punjab, Himachal Pradesh and Jammu and Kashmir. The Road is also
part of ambitious North-South Corridor of National Highways. This road passes
through various agricultural and industrial hubs of Northern India like Jalandhar,
Ludhiana, Gobindgarh, Ambala, and Karnal. The road also connects various
pilgrim centers like Sirhind, Fatehgarh Sahib, Amaranth, and Vaishnodevi. It also
connects the popular tourist destinations like Shimla and Kashmir.