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Government of Karnataka

Public Works, Ports & Inland Water Transport Department


Project Implementation Unit
Karnataka Road Development Corporation Limited

UPGRADING AND MAINTENANCE OF


STATE HIGHWAYS
UNDER
DESIGN, BUILD, FINANCE, OPERATE, MAINTAIN AND
TRANSFER (DBFOMT) ON ANNUITY BASIS
PROJECT NO. WCP 1
Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) of
Existing State Highway Bagewadi (NH-4)-Bailhongal Saundatti in the State of Karnataka on
DBFOMT Annuity Basis.
REQUEST FOR PROPOSALS
*******
Karnataka Road Development Corporation Limited,
1st Floor, # 16 / J,
Thimmaiah Road Cross,
Miller Tank Bed Area,
Vasanthanagar,
Bangalore 560 052

Bagewadi (NH-4)-Bailhongal Saundatti

Request for Proposal

KARNATAKA ROAD DEVELOPMENT CORPORATION LIMITED


LETTER OF INVITATION
NO :**********

Dtd*********

To,

Subject:

Project No. WCP 1 Bagewadi (NH-4)-Bailhongal Saundatti (Approx length 63.29


kms) in the State of Karnataka on DBFOMT Annuity basis.

Dear Sir,
Pursuant to your Application in response to our Request for Qualification for the above said
Project (the "RFQ"), you were qualified/ conditionally qualified as a Bidder, and asked vide our
letter dated ******* to remit non refundable fee for Bidding documents for each Package. We
hereby request you to remit a sum of Rs. 500,000 (Rs. Five Hundred thousand only) in form of DD
in favour of the Managing Director, KRDCL, Bangalore, as the cost of procuring the Bidding
documents. Please note that a scanned copy of the DD should be uploaded on the e-procurement
portal along with your bid and the original hard copy of the DD may be submitted to KRDCL on or
before the date of opening of bids.

You are requested to participate in the Bid Stage and submit a bid (the "Bid) for the
aforesaid Project No.WCP-1in accordance with terms and conditions set forth in this RFP. If you
were conditionally qualified on the basis of a Letter of Intent to formally enter into a Joint Bidding
Agreement, you are hereby reminded of the requirement in para. 2.2.6 of the RFQ to submit your
executed Joint Venture Agreement, signed by all members named in the Application, at least 15
(fifteen) days prior to the Bid Due Date.
The Karnataka Road Development Corporation Limited (KRDCL or Borrower), through the
Government of India, has received a loan from the International Bank for Reconstruction and
Development (IBRD or World Bank) towards the cost of the Karnataka State Highways
Improvement Project (KSHIP II). It is intended that part of the proceeds of this loan will be applied
to eligible payments for this Project under the DBFOMT (Hybrid Annuity) contract to be

ii

Bagewadi (NH-4)-Bailhongal Saundatti

Request for Proposal

implemented by Karnataka Road Development Corporation Limited. The Bidding will be conducted
through the International Competitive Bidding (ICB) procedures specified in the World Banks
Guidelines: Procurement under IBRD Loans and IDA Credits, (January 2011) and is open to all
bidders from eligible source countries as defined in the Guidelines. Subject to the applicable
provisions of this RFP, the Concession Agreement will be awarded to the Bidder (i) whose bid is
substantially responsive to the requirements of the Bidding Documents, (ii) who has been determined
to be qualified to perform the Concession Agreement satisfactorily and (iii) whose Bid Price requires
the lowest Annuity amount for undertaking the Project subject to clause 3.3.1 of RFP, to be
determined by the Authority through evaluation and comparison of Bids.
Thanking you,
Yours faithfully,
Managing Director,
Karnataka Road Development Corporation Ltd.,
Bangalore

Bagewadi (NH-4)-Bailhongal Saundatti

Request for Proposal

GLOSSARY
Annuity
Authority
Subsidiary
Bank Guarantee
Bid(s)
Bidders
Bidding Documents
Bid Due Date
Bidding Process
Bid Security
Bid Stage
Concession
Concession Agreement
Concessionaire
Conflict of Interest

As defined in Clause 1.1.5


As defined in Clause 1.1.1
As defined in Clause 2.2.13
As defined in Clause 2.17.1
As defined in Clause 1.2.2
As defined in Clause 1.2.1
As defined in Clause 1.2.3
As defined in Clause 1.1.7
As defined in Clause 1.2.1
As defined in Clause 2.17
As defined in Clause 1.2.2
As defined in Clause 1.1.6
As defined in Clause 1.1.2
As defined in Clause 1.1.2
As defined in Clause 2.2.13

DPR
Estimated Project Cost
Government
LOA

As defined in Clause 1.1.3


As defined in Clause 1.1.4
Government of Karnataka
As defined in Clause 3.3.2

Member

Member of a Joint Venture

PPP
Project
Re. or Rs. or INR
RFP or Request for Proposals

Public Private Partnership


As defined in Clause 1.1.1
Indian Rupee
As defined in the Disclaimer

The words and expressions beginning with capital letters and defined in this document shall, unless
repugnant to the context, have the meaning ascribed thereto herein. The words and expressions
beginning with capital letters and not defined herein, but defined in the RFQ, shall, unless repugnant
to the context, have the meaning ascribed thereto therein.

KRDCL

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Bagewadi (NH-4)-Bailhongal Saundatti

Request for Proposal

Table of Contents
DISCLAIMER..................................................................................................................................1
1. INTRODUCTION.......................................................................................................................2
1.1 Background.............................................................................................................................2
1.2 Brief description of Bidding Process.......................................................................................5
1.3 Schedule of Bidding Process...................................................................................................7
2. INSTRUCTIONS TO BIDDERS................................................................................................8
A. BIDDING DOCUMENTS.......................................................................................................8
2.1 The Bidding Documents comprise of:.....................................................................................8
B. TERMS OF BIDDING.............................................................................................................8
2.2 General Terms of Bidding.......................................................................................................8
2.3 Change in Structure or Formation of the Joint Venture.........................................................12
2.4 Changes in Ownership......................................................................................................... 12
2.5 Cost of Bidding.....................................................................................................................14
2.6 Site visit and verification of information...............................................................................14
2.7 Verification and Disqualification...........................................................................................15
2.8Clarifications......................................................................................................................... 15
2.9 Addenda to Bidding document including RFP......................................................................15
C. PREPARATION AND SUBMISSION OF BIDS...................................................................16
2.10 Format and Signing of Bid..................................................................................................16
2.11Sealing and Marking of Bids................................................................................................16
2.12 Bids Due Date/Bid Submission.......................................................................................... 18
2.13 Late Bids.............................................................................................................................18
2.14Modifications/ Substitution/ Withdrawal of Bids.................................................................18
2.15Validity of Bids....................................................................................................................19
2.16Confidentiality.................................................................................................................... 19
D. BID SECURITY....................................................................................................................20
2.17 Bid Security....................................................................................................................... 20
3. OPENING AND EVALUATION OF BIDS...............................................................................23
3.1 Opening of Bids....................................................................................................................23
3.2 Tests of responsiveness.........................................................................................................23
3.3 Evaluation of Bids, Clarification of Bids and Award of the Concession Agreement ............23
4. Fraud and corruption policy of the world bank applicable to the project...27
5. Pre-BID Conference..................................................................................................................29
APPENDIX- I: Letter Comprising the Bid.................................................................................30
APPENDIX II : Form of Bid Security.......................................................................................33
APPENDIX III: Power of Attorney for signing of Bid............................................................35
APPENDIX IV Power of Attorney for Lead Member of Joint Venture.................................37
(To be executed separately by each Member of the Joint Venture on stamp paper of
appropriate value).......................................................................................................................33
APPENDIX V: List of Public Financial Institutions..................................................................40

Bagewadi (NH-4)-Bailhongal Saundatti

Request for Proposal

DISCLAIMER
The information contained in this Request for Proposal document (the RFP) or subsequently
provided to Bidder(s), whether verbally or in documentary or any other form by or on behalf of the
Authority (as defined in Clause 1.1.1 below) or any of their employees or advisors, is provided to
Bidder(s) on the terms and conditions set out in this RFP and such other terms and conditions subject to
which such information is provided.
This RFP is not an agreement and is neither an offer by the Authority to the prospective Bidders or any
other person. The purpose of this RFP is to provide interested parties with information that may be
useful to them in making their financial offers (Bids) pursuant to this RFP. This RFP may not be
appropriate for all persons, and it is not possible for the Authority, its employees or advisors to consider
the investment objectives, financial situation and particular needs of each party who reads or uses this
RFP. The Authority has taken all reasonable measures to ensure that the information and data provided
in this RFP are correct. However, Bidders should satisfy themselves through due diligence that the
Bidding Documents listed in Clause 2.1 of this RFP contain no errors or other defects. Each Bidder
should, therefore, conduct its own investigations and analysis and obtain independent advice from
appropriate sources for taking part in the Bidding Process.
Information provided in this RFP to the Bidder(s) is on a wide range of matters, some of which may
depend upon interpretation of law. The information given is not intended to be an exhaustive account of
statutory requirements and should not be regarded as a complete or authoritative statement of law.
The Authority, its employees and advisors make no representation or warranty and shall have no
liability to any person, including any Applicant or Bidder under any law, statute, rules or regulations or
tort, principles of restitution or unjust enrichment or otherwise for any loss, damages, cost or expense
which may arise from or be incurred or suffered on account of anything contained in this RFP.

The issue of this RFP does not imply that the Authority is bound to appoint the selected Bidder
or Concessionaire, as the case may be, for the Project[s] and the Authority reserves the right to
reject all or any Bidders or Bids without incurring any liabilities to the Bidders.

KRDCL

Bagewadi (NH-4)-Bailhongal Saundatti

1.

Request for Proposal

Background

INTRODUCTION
1.1
1.1.1

The Government of Karnataka (GOK or Borrower) through the


Government of India has secured a loan from the International Bank for
Reconstruction and Development (IBRD) (herein after called the Bank)
towards the cost of the Karnataka State Highways Improvement Project - II
(KSHIP-II). It is intended that part of the proceeds of this loan will be applied
to eligible payments for this Project under the DBFOMT (Hybrid Annuity)
contract to be implemented by Karnataka Road Development Corporation
Limited.
The Karnataka Road Development Corporation Limited (KRDCL), Bangalore
(the Authority) is engaged for the development of State Highways and as
part of this endeavour, the Authority has decided to undertake development of
State Highways comprising of the package detailed below (each of the
packages being herein after referred to as Project), through public-private
partnership (PPP) on Design, Build, Finance, Operate, Maintain and Transfer
(DBFOMT) Annuity Concession basis.
The Authority has decided to carry out the bidding process for selection of the
bidder to whom the Project may be awarded. Brief particulars of the Project is
as follows:
Project
No.

Project Name

Length
in Km

WCP1

Project
No.WCP-1
Bagewadi
(NH-4)Bailhongal

Saundattiin the State of


Karnataka on DBFOMT
Annuity

63.29

Concession
Period

Estimated
Project
Cost***
in Rs Crore
10
years Rs 235.76
(Including
Crores
24 months
of
Construction
period)

*** The Estimated Project Cost includes Estimated Construction Cost,


Supervision Cost, Financing Costs, Physical and Price Contingencies.
The Bidding will be conducted through the International Competitive Bidding
(ICB) procedures specified in the World Banks Guidelines: Procurement
under IBRD Loans and IDA Credits, (January 2011) and is open to all bidders
from eligible source countries as defined in the Guidelines.

Bagewadi (NH-4)-Bailhongal Saundatti

1.1.2

Request for Proposal

The Selected Bidder shall promote and incorporate the Concessionaire (the
Concessionaire) as a limited liability company under the Companies Act,
1956 and as amended in 2013 prior to the execution of the Concession
Agreement (the Concession Agreement). The Concessionaire shall undertake
and perform the obligations and exercise the rights of the Selected Bidder
(Single Entity or Joint Venture) under the Letter of Award (LOA), including the
obligation to enter into the Concession Agreement pursuant to the LOA for
executing the Project. The Concession Agreement to be entered shall be in the
form provided by the Authority as part of the Bidding Documents pursuant

1.1.3

hereto.
The scope of work will broadly include the design, engineering, financing,
procurement, construction, operation, and maintenance for upgrading of the
existing carriageway to two-lane standard with horizontal and vertical alignment
improvements, construction of new pavement, construction and/or rehabilitation
of major and minor bridges, culverts, road intersections, interchanges, drains,
road safety enhancements, until the transfer at the end of the Concession Period.
The Bidders are advised to refer to the Detailed Project Report (DPR) attached
with and forming part of this RFP. The bidders are requested to collect a soft

1.1.4

copy of the DPR from the Authority before the bid due date.
The Estimated Project Cost has been specified in Clauses 1.1.1 above, and
includes the Estimated Construction Cost, Supervision Cost, the Financing
Costs and Physical and Price Contingencies. For the purpose of submitting bids,

1.1.5

Bidders shall make their own assessments of actual costs.


The Concessionaire is not entitled to levy and collect Toll from the users of the
Project. The KRDCL may procure Toll collecting agency separately. The
Revenues from the Tolling of the Project, if any, at the sole discretion of
KRDCL, will accrue to KRDCL.
The Concessionaire will be entitled to Lump Sum and Annuity Payments in the
manner specified in article 27 of the Concession Agreement which is part of the

1.1.6

Bidding Documents specified in Clause 2.1.


The Concession Agreement, which is attached to this RFP for reference, sets
forth the detailed terms and conditions for grant of the concession to the
Concessionaire, including the scope of the Concessionaires services,
performance and fulfilment of obligations and rights in accordance with the
provisions of this Agreement and matters incidental thereto or necessary for the
performance of any or all of the obligations of the Concessionaire under this

Bagewadi (NH-4)-Bailhongal Saundatti

1.1.7

Request for Proposal

Agreement (the Concession).


Qualified/ conditionally qualified Bidders shall prepare their Bids in accordance
with this RFP and other documents to be provided by the Authority, pursuant to
this RFP, as modified, altered, amended and clarified by the Authority. Bids
shall be submitted in accordance with this RFP and as modified, altered and
amended by the Authority on or before the date for the submission of bids, as

1.2
1.2.1

specified in Clause 1.3, (the Bid Due Date).


Brief description of Bidding Process
The Authority has adopted a two-stage process (collectively referred to as the
"Bidding Process") for selection of the Bidder for award of the Project. The
first stage (the "Qualification Stage") of the process which involved the
qualification of interested Single Entities and Joint Ventures based on the RFQ
has been completed and all Applicants have been informed of the results of the
Qualification Stage. Only applicants who were qualified/ conditionally qualified
for this Project hereinafter referred as Bidders have been requested to

1.2.2

participate in the Bidding Process and submit Bids.


In the second stage (the Bid Stage), qualified/ conditionally qualified Bidders
are being called upon to submit their financial bids (the Bids) in accordance
with the terms specified in the Bidding Documents. Bids shall be valid for a
period of not less than 120 (one hundred twenty) days from the Bid Due Date

1.2.3

specified in Clause 1.3 for submission of Bids (the Bid Validity Period).
The Bidding Documents shall mean the documents listed in Clause 2.1 (the
Bidding Documents). Subject to the provisions in Clause 2.2.3, any addenda
issued by the Authority subsequent to issuing this RFP shall be deemed to form

1.2.4

part of the Bidding Documents.


Bids are invited for the Project on the basis of the lowest Annuity required by a
Bidder for design, build, finance, operate, maintain and transfer (DBFOMT)
of the Project. Bidders shall quote in Indian Rupees, the Annuity for the Project
mentioned in Clause 1.1.1. The award of the Concession Agreement will be
made to the substantially responsive Bidder quoting the lowest Annuity (the
Lowest Evaluated Bidder), to be determined by the Authority in the manner
provided in Clause 3.3. Disqualification under Clause 2.7.2 or failure or refusal
of the Lowest Evaluated Bidder to accept the LOA as required in this RFP, or to
furnish the Performance Security in accordance with this RFP or to sign the
Concession Agreement shall constitute sufficient grounds for the annulment of
the LOA and forfeiture of the Bid Security., as indicated in Clause 2.17.6.
In such event, the Authority may award the Concession Agreement to the

Bagewadi (NH-4)-Bailhongal Saundatti

Request for Proposal

substantially responsive bidder quoting the second lowest Annuity, to be


1.2.5

determined by the Authority.


During the Bid Stage, Bidders are invited to examine the Project in detail, and
to carry out, at their own cost, such studies as may be required for submitting

1.2.6

their respective Bids for award of the Concession Agreement.


Details of the bidding and award process to be followed at the Bid Stage and

1.2.7

the terms thereof are spelt out in this RFP.


As further described in Clause 2.8, Bidders requiring any clarification
concerning this RFP may submit their queries before the Last Date for
Receiving Queries indicated in clause 1.3.
Clarification queries shall be addressed to:
The Managing Director,
Karnataka Road Development Corporation Limited,
1st Floor, # 16 / J,Thimmaiah Road Cross,
Miller Tank Bed Area, Vasanthanagar,
City: Bangalore
ZIP Code: 560 052
Telephone: 91-80-22382360 / 22380140 / 41 / 42, 080-49071400
Fax: 91-80-22380143
E-mail:mdkrdcl@gmail.com, ee4krdcl@gmail.com
The communication shall bear following identification/ title:
"Queries/ Request for Clarification: RFP for the Project WCP 1: Design,
Build, Finance, Operate, Maintain and Transfer (DBFOMT) of Bagewadi
(NH-4)-Bailhongal Saundatti in the State of Karnataka on DBFOMT
Annuity.
The responses will also be published in E-Procurement website without
identifying the source of the queries.

Bagewadi (NH-4)-Bailhongal Saundatti

1.3

Request for Proposal

Schedule of Bidding Process:


The Authority shall endeavour to adhere to the following schedule:

1 Date of Invitation to
Submit Bids on RFP
2 Last date for receiving
queries on RFP
3 Pre-Bid Conference

Bid Stage
10th April 2015
25th April 2015
A Pre-Bid Conference will take place at the
following
date, time and place:
Date: 29th April 2015
Time: 11:00 Hrs

4 Last Date for


Responding to
Queries on RFP
5 Bid Due Date

Place:.(Tentative will be intimated separately)


Karnataka Road Development Corporation
Limited,
1st Floor, # 16 / J,Thimmaiah Road Cross,
Miller Tank Bed Area, Vasanthanagar,
City: Bangalore
ZIP Code: 560 052
Karnataka State
India
Telephone: 91-80-22382360/22380140/41/42,
080-49071400
Fax: 91-80-22380143
6th May 2015

The deadline for bid


submission is: 26th May
2015, 16:00 Hrs

6 Date of Opening of Bids Time:******************


The Bid opening shall take place at:
Karnataka Road Development Corporation
Limited,
1st Floor, # 16 / J,Thimmaiah Road Cross,
Miller Tank Bed Area, Vasanthanagar,
City: Bangalore
ZIP Code: 560 052
Date : 1st June 2015
7 Letter of Award (LOA)
8 Signing of
Concession
Agreement

Time:11:00 Hours
Within Bid Validity Period of 120 days from
Bid Due Date
Within 45 days from issue of LOA

Bagewadi (NH-4)-Bailhongal Saundatti

2.

INSTRUCTIONS TO BIDDERS:

A.

BIDDING DOCUMENTS:

2.1

Request for Proposal

The Bidding Documents comprise of


Vol I
Vol II

:
:

Request for Proposal RFP


Part I Concession Agreement

Vol III
Vol IV

:
:

Part II Schedules
Drawings
Any Addenda/Corrigendum

Vol V

issued
DPR

B.
2.2

TERMS OF BIDDING
General Terms of Bidding

2.2.1

A Bidder is eligible to submit only one Bid for a Project. A Bidder bidding individually or as a
Member of a Joint Venture shall not be entitled to submit another bid either individually or as a
Member of any other Joint Venture, as the case may be. A Bidder who submits or participates in

2.2.2

more than one Bid will cause all Bids in which the Bidder has participated to be disqualified.
The Bidders shall familiarise themselves with the terms and conditions of the Concession

2.2.3

Agreement and the rights and obligations of the Concessionaire.


The Bidders shall satisfy themselves for the adequacy of the information in the DPR before

2.2.4

submitting the bids.


The Bid Price quoted by the Bidder shall consist of the Annuity which shall be payable by the

2.2.5

Authority to the Concessionaire as per the terms and conditions of the Concession Agreement.
The Bid Price shall be furnished exclusively in the format at Appendix I, (Letter Comprising
the Bid and indicated clearly in Indian Rupees in both figures and words. In the event of any
difference between the figures and words, the amount indicated in words shall be taken into

2.2.6

account. The Letter Comprising the Bid shall be signed by the Bidders authorised signatory.
For inputs from outside India during the Construction Period, as required by the Bidder and
identified in the Bid, corresponding percentages of the Specified Fixed LumpSum Payments due
to the Concessionaire, in accordance with the Concession Agreement, may be requested in up to
three foreign currencies, along with the exchange rate used in calculating these foreign currency
payment requirements. However, these Lump Sum Payments shall not be exceeded, due to the

2.2.7

cumulative costs of payments in foreign currencies.


The Bidder shall deposit, along with its Bid, a Bid Security in the amount of Indian Rs. 4.72
Crores.
The Bidder shall furnish part of the Bid Security for an amount of Rs. 1,00,000/- (Rupees One
lakh only) through E-Procurement Website, through any one of the following e-Payment options
only.

KRDCL

Bagewadi (NH-4)-Bailhongal Saundatti

1.
2.
3.
4.

Request for Proposal

Credit Card
Direct Debit
National Electronic Funds Transfer (NEFT)
Over the Counter (OTC) designated Axis Bank branches located across the country

The e-payment made under any of the above options shall remain valid for a period of 180 (One
hundred and eighty) days from the Bid Due Date, or beyond any period of extension
subsequently as determined by Authority from time to time. The Bid shall be summarily rejected
if it is not accompanied by the Bid Security.
Please note that payment submitted through cheque or demand draft shall not be accepted. For
further details regarding e-Payment, please refer to E-Procurement Website.
The remaining part of bid security shall be in accordance with clause 2.17 of this RFP.
Name of the Project

2.2.8

Bid Security

Through epayment

Through Bank
Guarantee

Design, Build, Finance, Operate,


Maintain and Transfer (DBFOMT) of
Rs
Rs
Rs
Existing State Highway Bagewadi (NH4,71,52,000
1,00,000
4,70,52,000
4)-Bailhongal Saundatti in the State of
Karnataka on DBFOMT Annuity Basis.
The Bidder shall submit a Power of Attorney as per the format at Appendix III, or another
format that is substantially compliant with it, authorising the signatory of the Bid to commit the

2.2.9

Bidder.
In case the Bidder is a Joint Venture, each Member thereof should furnish a Power of Attorney as
Lead Member of the Joint Venture in the format at Appendix IV or another format that is

substantially compliant with it.


2.2.10 The Authoritys determination of a Bids responsiveness will be based solely on the contents of
the Bid itself. A substantially responsive Bid is one that meets the requirements of the Bidding
Documents without material deviation, reservation, or omission. A material deviation,
reservation or omission is one that,
(a) if accepted would (i) affect in any substantial way the scope or performance of the
obligations in the Concession Agreement, or (ii) limit in any substantial way, inconsistent
with the Bidding Documents, the Authoritys rights or the Concessionaires obligations
under the Concession Agreement, or
(b) if rectified, would unfairly affect the competitive position of other Bidders presenting
substantially responsive Bids.
In this context, deviation shall be defined as a departure from the requirements of the Bidding
Documents. Reservation shall be defined as the setting of limiting conditions or withholding
from the complete acceptance of the requirements in the Bidding Documents. Omission shall
KRDCL

Bagewadi (NH-4)-Bailhongal Saundatti

Request for Proposal

be defined as the failure to submit part or all of the information or documentation required in the
Bidding Documents.
2.2.11 The Bid and all communications in relation to or concerning the Bidding Documents and the Bid
shall be in English language.
2.2.12 The Bidding Documents including this RFP and all attached documents, provided by the
Authority are and shall remain or become the property of the Authority and are transmitted to the
Bidders solely for the purpose of preparation and the submission of a Bid in accordance
herewith. Bidders are to treat all information as strictly confidential and shall not use it for any
purpose other than for preparation and submission of their Bid. The provisions of this clause
shall also apply mutatis mutandis to Bids and all other documents submitted by the Bidders.
2.2.13 Conflict of Interest
Any Bidder found to have a Conflict of Interest (the Conflict of Interest) shall be disqualified.
A Bidder may be considered to have a Conflict of Interest with one or more parties in this
Bidding Process, if:
(i)

They have common controlling partner, except that this disqualification shall not
apply to any ownership by a bank, insurance company, pension fund or a public
financial institution referred to in relevant section of the Companies Act, 2013.
The Applicants are advised to ascertain the updated list of Public Financial

(ii)
(iii)
(iv)

Institutions from the available sources; or


They receive or have received any direct or indirect subsidy from any of them; or
They have the same legal representative for purposes of this Bid; or
They have a relationship with each other, directly or through common third
parties, that puts them in a position to access to information about or influence on
the Bid of another Bidder, or influence the decisions of the Authority regarding

(v)

this bidding process; or


The Bidder participates in more than one Bid for the same project in this Bidding
Process either individually or as a Member in a Joint Venture. Such participation
by the Bidder in more than one Bid will result in the disqualification of all Bids in
which such Bidder is involved. However, this does not limit the inclusion of the

(vi)

same subcontractor in more than one Bid.


The Bidder, or any of its subsidiaries participated as a consultant in the
preparation of any documents, design or technical specifications of the Project

that are subject of the Bid; or


(vii) The Bidder or any of its subsidiaries has been hired (or is proposed to be hired) by
the Authority as Project Manager for the Project.
For purposes of this RFP, Subsidiary (the Subsidiary) shall be determined by law, contract or
otherwise, according to controlling ownership of the assets of the subsidiary, policy direction and
operational management by the single Applicant or a Joint Venture Member.
2.2.14 A Bidder that has been sanctioned by the World Bank in accordance with Section 4 of this RFP
or in accordance with the Bank Guidelines on Preventing and Combating Corruption in Projects
KRDCL

Bagewadi (NH-4)-Bailhongal Saundatti

Request for Proposal

Financed by IBRD Loans and IDA Credits and Grants, shall be ineligible to be awarded a Bankfinanced contract, financially or otherwise, during such period of time as the Bank shall
determine.
2.2.15 This RFP is not transferable.
2.3
2.3.1

Change in Structure or Formation of the Joint Venture


The Authority has invited bids only from Qualified/ Conditionally Qualified Bidders. Any
changes in the structure or formation of a Bidder, after being qualified/ conditionally
qualified by the Authority and invited to bid shall be subject to the written approval of the
Authority prior to the Bid Due Date. Such approval shall be denied, if as a consequence of
the change, the Lead Member of the Joint Venture is changed and the substitute is not at
least equal in terms of Technical Capacity and/or Financial Capacity, as the case may be, to
the Joint Venture Member who is sought to be substituted, or the Bidder no longer
substantially meets the technical or financial qualification criteria set forth in the RFQ or if
in the opinion of the Authority, a substantial reduction in competition may result. Bidders
shall submit requests for changes in the structure or formation of the Bidder to the Authority
not later than 30 (thirty) days prior to Bid Due Date specified in Clause 1.3 along with the
revised Joint Bidding Agreement. The Bidders who were conditionally qualified on the
basis of a Letter of Intent to formally enter into a Joint Bidding Agreement shall submit a
Joint Bidding Agreement for the changed Consortium within the aforesaid period. .The
Authority shall intimate its decision regarding acceptance or rejection of the change in

2.3.2

structure or formation of the Joint Venture not later than 15 days prior to Bid Due Date.
Subsequent to the Authoritys approval of the request for changes in the structure or
formation of the Bidder, the Bidder shall submit with its Bid a revised Joint Bidding
Agreement and a revised Power of Attorney for Lead Member of Joint Venture,
substantially in the form at Appendix-IV. or in another format that is substantially compliant
with it. The Authority will neither consider Letters of Intent to form a Joint Venture in
fulfilment of this requirement nor subsequently consider Bids which are not accompanied
by a revised Joint Bidding Agreement and revised Power of Attorney for Lead Member of
Joint Venture, in cases where the Authority has previously approved such changes at the

2.4
2.4.1

Bidders request, in accordance with sub-clause 2.3.1.


Changes in Ownership
By submitting the Bid, the Bidder shall be deemed to have acknowledged that it was
qualified on the basis of its own Technical Capacity and Financial Capacity as a single
Bidder or the collective Technical Capacity and Financial Capacity of the Joint Venture
Members, as the case may be, who shall, till the end of Concession Period, hold equity
share capital representing not less than; (i) 26% each of the subscribed and paid up equity of
the Concessionaire and (ii) not less than 5% of the Total Project Cost specified in the
Concession Agreement. However, any of such Members except the Lead Member, may,

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Request for Proposal

with the prior approval of the Authority in writing, which shall not be unreasonably
withheld reduce its shareholding below 26 % (twenty six percent) of the subscribed and
paid up equity share capital of the Concessionaire and less than 5 % (five percent) of the
Total Project Cost after a period of 2 (two) years from the date of commercial operation of
the Project, subject to all Members of the Joint Venture continuing to collectively hold at
least 26% (Twenty six percent) of the subscribed and paid up equity of the Concessionaire
and subject further to the Member providing O & M services of its own or through its
Subsidiary continuing to hold at least 5% of the subscribed and paid up equity share capital
in the Concessionaire, till the end of Concession Period.
Further, in case of a Joint Venture, the equity share capital held by the Lead Member and
Members whose Technical and Financial Capacity were considered for Qualification under
the RFQ, shall not be less than 18% of the Total Project Cost till two years from the Date of
Commercial Operation (COD) of the Project.
In case of a single entity, such entity shall hold entire subscribed and paid-up share capital
of the Concessionaire, subject to same being not less than 18% of the Total Project Cost till
two years from COD of the Project. However, the single entity may, with the prior approval
of the Authority in writing, which shall not be unreasonably withheld, reduce its
shareholding below the entire subscribed and paid-up equity of the Concessionaire, after a
period of two years from COD of the Project, subject to it continuing to hold at least 26% of
the subscribed and paid-up equity of the Concessionaire till the end of Concession Period.
The Bidder further acknowledges and agrees that the aforesaid obligation shall be in
2.4.2

addition to such other obligations as may be contained in the Concession Agreement.


In the event that there is a change in ownership of a single Bidder or a Joint Venture
Member whose Technical and Financial Capacity were considered for Qualification under
the RFQ, and such change in ownership occurs after the Letter of Award (LOA) has been
issued to the Selected Bidder, the Authority may, in its sole discretion, revoke the LOA
from the Selected Bidder and appropriate its Bid Security. In such event, the Authority may
award the Concession Agreement to the substantially responsive bidder quoting the second

2.5

lowest Annuity, to be determined by the Authority.


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

2.6
KRDCL

Site visit and verification of information


11

Bagewadi (NH-4)-Bailhongal Saundatti

2.6.1

Request for Proposal

Bidders are encouraged to visit and assess conditions at the Project site, prior to submitting
their Bids, in order to ascertain for themselves the traffic conditions, location, surroundings,
climate, availability of power, water and other utilities for construction, access to site,
handling and storage of materials, weather data, applicable laws and regulations, and any
other matter relevant for preparing the Bid and entering into the Concession Agreement.

2.6.2

The costs of visiting the Project site shall be at the Bidders own expense.
It shall be deemed, that by submitting a Bid, the Bidder has made a complete and careful
examination of the Bidding Documents set out in Clause 2.1 and all subsequent

2.7
2.7.1

amendments.
Verification and Disqualification
Notwithstanding anything contained in this RFP, the Authority reserves the right to verify
all statements, information and document submitted by the Bidder previously in response to
the RFQ, currently in response to the RFP or the Bidding Documents. Any such verification
or lack of such verification, by the Authority shall not relieve the Bidder of its obligations

2.7.2

or liabilities hereunder nor will it affect any rights of the Authority thereunder.
The Authority reserves the right to accept or reject any bid and to annul the bidding process
and reject all bids at any time prior to the award of the Concession Agreement, without
thereby incurring any liability to Bidders. In case of annulment, all bids submitted and

2.8
2.8.1

specifically, bid securities, shall be promptly returned to the Bidders.


Clarifications
Bidders requiring any clarification on the Bidding documents including RFP may notify the
Authority in writing or by fax or e-mail in accordance with Clause 1.2.7. Bidders shall send
their queries on or before the Last Date for Receiving Queries on Bidding documents
including RFP shown in the Schedule of Bidding Process in Clause 1.3. The responses will
also be published in E-Procurement website without identifying the source of the queries.
The Authority shall endeavor to respond to the queries within the period specified therein,
but no later than 15 (fifteen) days prior to the Bid Due Date. The responses will be sent by
fax or e-mail. The Authority will forward all the queries and its responses thereto, to all

2.8.2

qualified applicants of record without identifying the source of queries.


If any clarification results in changes to the Bidding documents including RFP, the
Authority shall modify the Bidding documents including RFP and issue an Addendum in

2.9
2.9.1

accordance with Clause 2.9.


Addenda to Bidding document including RFP
At any time prior to the Bid Due Date, the Authority may, for any reason, whether at its
own initiative or in response to clarifications requested by a Bidder, modify the Bidding
documents including RFP by the issuance of Addenda. The Authority may also on its own
motion, if deemed necessary, issue interpretations and clarifications to all Applicants
through E-Procurement website.

2.9.2
KRDCL

Any Addendum issued shall be sent to all the Bidders of record. Any Addendum thus issued
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Request for Proposal

will be published in E-Procurement website and the published details will be binding on the
2.9.3

Bidders.
In order to afford the Bidders a reasonable time for taking an Addendum into account, or for
any other reason, the Authority may, in its sole discretion, extend the Bid Due Date by
written notice sent to all Bidders of record. Information about extension of the Application
Due Date will be published in E-Procurement website.

C.
2.10
2.10.1

PREPARATION AND SUBMISSION OF BIDS


Format and Signing of Bid
The Bidder shall provide all the information sought under this RFP using the relevant forms
furnished in the Appendices of this RFP. These forms shall be completed without any
alterations to the text, unless it is indicated on these forms that another format substantially
compliant with it will be acceptable. All blank spaces shall be filled in with the information
requested. Where indicated on these forms, Bidders from outside India may submit forms

2.10.2

executed according to the applicable law in the Bidders country.


The Bid and its copy shall be typed or written in indelible ink and signed by the authorised
signatory of the Bidder who shall also initial each page, in indelible ink. In case of printed
and published Documents, only the cover shall be initialled. Any interlineations, erasures or
overwriting shall be valid only, if they are signed or initialled by the signatory of the

2.10.3

Bidder.
The Bidder shall exclusively use the Letter Comprising the Bid in Appendix I to enter the
amount in figures and words of his Bid in Indian Rupees as the Annuity required by the
Bidder to undertake the Project in accordance with this RFP and the Concession Agreement.

2.11
2.11.1

If there is discrepancy between figures and words, the amount in words shall prevail.
Sealing and Marking of Bids
The Letter Comprising the Bid, referred to in subparagraph 2.10.3 shall be submitted on the
E-Portal accompanied by scanned copy of the documents specified hereinafter. The
documents required shall include:
a)

Bid Security in the format of Appendix II (Form of Bid Security) or in another

b)

substantially similar format approved by the Authority prior to Bid submission;


Power of Attorney for signing of Bid in the format of Appendix III (Power of
Attorney for Signing of Bid) or another format that is substantially compliant with

c)

it, and
if applicable, the Power of Attorney from each Member authorising the Lead
Member of Joint Venture in the format of Appendix IV (Power of Attorney for

d)

Lead Member of Joint Venture; and


Concession Agreement, with each page initialled by the person authorized to
sign the Bid, in accordance with the Power of Attorney referred to in Sub-Clause
(b) hereinabove.

All documents of the bid submitted in electronic mode under this RFP shall be uploaded on
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E-Procurement website: www.eproc.karnataka.gov.in using digital signature in the correct


slots in e-procurement website.
A hardcopy of the same, excluding the Letter Comprising the Bid, shall be placed in an
envelope, sealed and marked as BID, and shall be submitted to the Authority on or before
2.11.2

the Bid Opening Date.


A true copy of the Bid, including the accompanying documents, as specified in Clause
2.11.1 above, shall be bound together in hard cover and the pages shall be numbered
serially. Each page of this true copy of the Bid shall be initialled in indelible ink by the
person authorized to sign the Bid in accordance with the Power of Attorney referred to in
Sub-Clause 2.11.1 (b) above. This true copy of the Bid shall be placed in a separate

2.11.3

envelope, sealed and marked COPY


These two envelopes containing the originals and the copies shall be placed together in an
outer envelope, which shall also be sealed. Each of the three envelopes shall bear the
following identification:
Bid for the KRDCL Project WCP 1
Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) of Bagewadi
(NH-4)-Bailhongal Saundatti in the State of Karnataka on DBFOMT Annuity.
The inner and outer envelopes shall clearly indicate the name and address of the single
Bidder, or if the Bidder is a Joint Venture, the name of the Joint Venture and the name and
address of the Lead Member of the Joint Venture. In addition, the Bid Due Date shall be

2.11.4

indicated on the right hand top corner of each of the envelopes.


Each of the envelopes shall be addressed to:
The Managing Director,
Karnataka Road Development Corporation Limited,
1st Floor, # 16 / J,Thimmaiah Road Cross,
Miller Tank Bed Area,
Vasanthanagar,
City: Bangalore ZIP Code: 560 052
Telephone: 91-80-22382360 / 22380140 / 41 / 42, 080-49071400

2.11.5

Fax: 91-80-22380143 E-mail:mdkrdcl@gmail.com, ee4krdcl@gmail.com


If the envelopes are not sealed and marked as instructed above, the Authority assumes no
responsibility for the misplacement of the contents of the Bid submitted or misidentification

2.11.6

of the Bid and consequent losses, if any, suffered by the Bidder.


Bids shall be submitted only by hand, courier or mail. Bids submitted by fax, telex,
telegram or e-mail shall not be entertained and shall be rejected and returned to the Bidders

2.12
KRDCL

who submitted them.


Bids Due Date/Bid Submission
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2.12.1

Request for Proposal

Bids shall be submitted in electronic mode in the E-Procurement portal, no later than the
date and time shown in Clause 1.3 as the Bid Due Date and at the address provided in
Clause 2.11.4 in the manner and form as detailed in this RFP. Physical submission of bids
shall be made no later than the date and time shown in Clause 1.3 as the Date of opening of
Bids and at the address provided in Clause 2.11.4 in the manner and form as detailed in this
RFP. Upon the Bidders request, a receipt thereof may be obtained from the person

2.13

specified at Clause 2.11.4.


Late Bids
Bids received by the Authority after the specified time in clause 2.12.1 shall be declared late
and rejected and shall not be eligible for consideration at the bid opening and the bid
evaluation. Bids declared late and rejected shall be returned unopened to the Bidders who

2.14
2.14.1

submitted them.
Modifications/ Substitution/ Withdrawal of Bids
The Bidder may modify, substitute or withdraw its Bid after submission, provided that such
modification, substitution or withdrawal is processed through E-procurement Portal prior to

2.14.2

Bid Due Date.


Any additional information supplied subsequent to the Bid Due Date shall be disregarded,
except as the Authority may request in writing during the evaluation of Bids, in accordance

2.15

with Clause 3.3 of this RFP.


Validity of Bids
Bids shall be valid for a period of not less than 120 (one hundred and twenty) days from the
Bid Due Date. In exceptional circumstances, prior to the expiration of the Bid Validity
Period, the Authority may request Bidders to extend the period of validity of their Bids. The
request and the responses shall be made in writing. The Bidder granting the Authoritys
request shall also extend the Bid Security validity period for sixty (60) days beyond the
extended Bid Validity Period. Furthermore, following the issuance and signing of the LOA,
the Selected Bidder shall extend the validity of its Bid Security as further described in
Clause 2.17.4. A Bidder may refuse the Authoritys request to extend the validity period of
its Bid, without forfeiting its Bid Security. A Bidder granting the request shall not be

2.16

required or permitted to modify its bid.


Confidentiality
Information relating to the examination, clarification, evaluation and recommendation for
the Bidders shall not be disclosed to any person who is not officially concerned with the
process or is not a retained professional advisor advising the Authority in relation to, or
matters arising out of, or concerning the Bidding Process, until information on the award of
the Concession Agreement is communicated to all Bidders.. The Authority will treat all
information, submitted as part of the Bid, in confidence and will require all those who have
access to such material to treat the same in confidence. The Authority may not divulge any
such information, unless it is directed to do so by any statutory entity that has the power

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Request for Proposal

under law to require its disclosure.


Any attempt by a Bidder to influence the Authority at any time in the evaluation of the Bid
or in the award of the Concession Agreement shall result in rejection of the Bidders Bid.
Notwithstanding the above if a Bidder wishes to contact the Authority on any matter
relating to the Bidding Process it shall do so only in writing and in accordance with the
D.
2.17
2.17.1

applicable provisions of this RFP.


BID SECURITY
Bid Security
The Bidder shall furnish as part of its Bid, a Bid Security referred to in Clauses 2.2.7
hereinabove in the form of an unconditional bank guarantee (Bank Guarantee) issued
either by (i) a nationalised bank in India , or (ii) a Scheduled Bank in India or (iii) a
eputable bank or financial institution, selected by the Bidder, in any eligible country as
defined in the World Bank Guidelines: Procurement under IBRD Loans and IDA Credits,
(January 2011); if the bid security is issued by a financial institution that is located outside
India, such financial institution shall have a correspondent financial institution in India to
make it enforceable, or (iv) in the form of a demand draft issued by a nationalised bank or a
Scheduled Bank in India.
The furnished Bid Security shall be in favour of the Authority and in the format at
Appendix II (the Form of Bid Security) or in another substantially similar format
approved by the Authority prior to Bid submission. A scanned copy of the Bid Security will
have to be submitted on the e-procurement portal and the original copy shall be submitted
to the Authority on or before the Date of opening of bids. In either case, the form shall
include the complete name of the Bidder.
The Bid Security of a Joint Venture shall be in the name of the Joint Venture that submits
the Bid, as set out in the Joint Bidding Agreement. The validity period of the Bid Security
shall be 60 (sixty) days beyond the original Bid Validity Period. Any Bid not accompanied
by an enforceable and substantially compliant Bid Security shall be summarily rejected by
the Authority as nonresponsive. For the avoidance of doubt, Scheduled Bank in India shall

2.17.2
2.17.3

mean a bank as defined under Section 2(e) of the Reserve Bank of India Act, 1934.
The Authority shall not be liable to pay any interest on the Bid Security.
The Bid Security of unsuccessful Bidders shall be returned by the Authority, without any
interest, as promptly as possible on acceptance of the Bid of the Selected Bidder and
issuance of the LOA or when the bidding process is cancelled by the Authority. In any case,
the Authority will endeavour to return the Bid Securities of unsuccessful Bidders, to the
address given in the Bid, within 30 (days) days following the expiration of the Bid Validity
Period. The Bid Security of the Selected Bidder shall be retained as set out in subparagraph

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Request for Proposal

2.17.4 and shall be extended at the expense of the Selected Bidder beyond the initial Bid
Security Validity period, as necessary, in accordance with the applicable requirements of the
2.17.4

Concession Agreement.
Until such time the Performance Security is provided by the Selected Bidder in accordance
with the applicable provisions of the Concession Agreement, the Bid Security of the
Selected Bidder shall remain in force and effect. Upon provision of the Performance
Security as stated hereinabove, the Authority shall release the Bid Security to the

2.17.5

Concessionaire.
The Bidder, by submitting its Bid pursuant to this RFP, shall be deemed to have
acknowledged and confirmed that the Authority will suffer loss and damage on account of
the withdrawal of its Bid or for other default by the Bidder during the Bid Validity period,

2.17.6

as set out below in para. 2.17.6.


The Bidder shall be in breach of its obligations under the Bidding Documents and its Bid
Security shall be forfeited and appropriated by the Authority:
a)

if the Bidder withdraws its Bid during the Bid Validity Period specified by the
Bidder in the Bid and as extended by mutual consent of the Bidder and the Authority;

b)

if, having been notified of the acceptance of its Bid by the Authority during the Bid
Validity Period and as extended by mutual consent of the Bidder and the Authority,

c)

if, the Selected Bidder fails or refuses to accept the LOA within 7 days as required
in this RIP ;

d)

if, the Selected Bidder fails or refuses to provide the Performance Security in
accordance with this RFP, or fails to extend the validity of the Bid Security, until the
Performance Security has been provided to the Authority;

e)

KRDCL

if, the Selected Bidder fails or refuses to execute the Concession Agreement.

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Request for Proposal

3.

OPENING AND EVALUATION OF BIDS

3.1
3.1.1

Opening of Bids
(a) The Authority shall open the Bids in public, in the presence of Bidders designated
representatives who choose to attend, at the address specified in subparagraph 2.11.4
and on the date and time specified in Clause 1.3 hereinabove.
(b) All bids shall be opened one at a time on the e-procurement portal, reading out the
name of the Bidder the Bid Price Annuity, the presence or absence of a Bid Security,
remittance of cost towards procurement of bidding document, and any other details as
the Authority may consider appropriate. Only bids that are opened and read out at bid
opening shall be considered further subject to fulfillment of test of responsiveness.
(c) The Authority shall prepare a record of the bid opening that shall include, as a
minimum: the name of the Bidder, the amount of the Bid Price Annuity as read out,
and the presence or absence of a Bid Security and any other details as the Authority
may consider appropriate. Each signed Letter Comprising the Bid, as per Appendix I,
shall be initialed by the authorised representatives of the Authority attending the bid
opening. The Bidders authorised representatives who are present shall be requested to
sign the record. The omission of a Bidders signature on the record shall not invalidate
the contents and effect of the record. A copy of the record shall be distributed to all

3.1.2

Bidders who submitted their bids on time.


The Authority will subsequently examine and evaluate the Bids in accordance with the

3.2
3.2.1

provisions set out in this Section 3.


Tests of responsiveness
Prior to the evaluation of Bids, the Authority shall determine whether each Bid is
substantially responsive to the requirements of the Bidding Documents. A Bid shall be
considered substantially responsive only if:
(a)
(b)
(c)

it is received as per the format at Appendix I;


it is submitted through E-Procurement website in the manner specified in this
document
it complies substantially with the requirements for preparation, submission, sealing
and marking as specified in Clauses 2.10 and 2.11;

(d)

it is accompanied by the Bid Security as specified in Clauses 2.2.7 and 2.17;

(e)

it is accompanied by the Power(s) of Attorney as specified in Clauses 2.2.8 and


2.2.9, as the case may be; and

(f)

it does not contain material deviations, reservations or omissions, as set out in


Clause 2.2.10.

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Bagewadi (NH-4)-Bailhongal Saundatti

(g)

Request for Proposal

An amount of Rs 5,00,000 (Rupees Five lacs only) is paid to the Authority through
Demand Draft towards cost of procuring bidding documents on or before the Bid

3.3
3.3.1

Opening Date.
Evaluation of Bids, Clarification of Bids and Award of the Concession Agreement
a) Provided that a Bid is found to be substantially responsive to the requirements of the
Bidding Documents, as summarized in Clause 3.2.1 above, the Authority may, at its
sole discretion, request that the Bidder submit the necessary information or
documentation, within a reasonable time period, to rectify nonmaterial nonconformities
in its Bid. The Authoritys request for clarification and the Bidders response shall be in
writing. No change in the Bid Price Annuity or substance of the Bid shall be sought,
offered or permitted. If a Bidder does not provide clarification of its Bid by the date and
time set by the Authority in its request for clarification, the Bidders Bid may be
rejected.
b) If a Bid is not substantially responsive to the requirements of the Bidding Documents,
as summarized in Clauses 3.2 and 3.3.1(a) above, the Authority shall reject it. It may
not be made responsive subsequently by correction of or changes in material deviations,
reservations and omissions, as set out in Clause 2.2.10.
c) Subject to the applicable provisions of the RFPs Disclaimer, the Authority shall award
the Concession Agreement to the Bidder (i) whose Bid is substantially responsive to the
requirements of the Bidding Documents , (ii) who was determined in the Qualification
Stage to be qualified to perform the Concession Agreement satisfactorily and (iii)
whose Bid Price requires the lowest Annuity amount for undertaking the Project, to be
determined by the Authority through evaluation and comparison of Bids in order to
arrive at the least cost combination for the Authority for WCP1, WCP3, WCP5, WCP6
and WCP7. An illustration of the evaluation is provided along with this RFP.
d) The opening of bids of all the five DBFOMT annuity projects will be conducted
concurrently.

3.3.2

After selection of the Lowest Evaluated Bidder, a Letter of Award (LOA) shall be issued,
in duplicate, by the Authority to the Selected Bidder. The Selected Bidder shall, within 7
(seven) days of the receipt of the LOA, sign and return the duplicate copy of the LOA in
acknowledgement thereof. In the event the duplicate copy of the LOA, duly signed by the
Selected Bidder, is not received by the stipulated date, the Authority may, unless it
consents in writing to the Selected Bidders request for an extension of time for submission
thereof, annul the LOA and appropriate the Bid Security of the Selected Bidder. In that
event, the Authority may, at its sole discretion, issue the LOA to the next lowest evaluated

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3.3.3

Request for Proposal

Bidder whose Bid is substantially responsive.


After acknowledgement of the LOA by the Selected Bidder, the Authority will endeavor to
adhere to the completion of the Bidding Process and the Signing of the Concession
Agreement, as set out in Section 1.3 and in this context, collaborate with the Selected
Bidder in finalizing the transactions precedent to the signing of the Concession Agreement.

KRDCL

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4.

FRAUD AND CORRUPTION POLICY OF THE WORLD BANK APPLICABLE


TO THE PROJECT:

4.1

As per the World Banks policy on Fraud and Corruption which is applicable to this RFP,
the Borrowers (including beneficiaries of Bank loans), as well as Bidders, suppliers, and
contractors and their agents (whether declared or not), personnel, subcontractors, subconsultants, service providers or suppliers under Bank-financed contracts, are required to
observe the highest standard of ethics during the procurement and execution of such
contracts. 1 In pursuance of this policy, the World Bank:
(a) defines, for the purposes of this provision, the terms set forth below as follows:
(i) Corrupt practice2 is the offering, giving, receiving or soliciting, directly or
indirectly, of anything of value to influence improperly the actions of another party;
(ii) fraudulent practice3 is any act or omission, including a misrepresentation, that
knowingly or recklessly misleads, or attempts to mislead, a party to obtain a
financial or other benefit or to avoid an obligation;
(iii) Collusive practice4 is an arrangement between two or more parties designed to
achieve an improper purpose, including influencing improperly the actions of
another party;
(iv) Coercive practice5 is impairing or harming, or threatening to impair or harm,
directly or indirectly, any party or the property of the party to influence improperly
the actions of a party;
(v) Obstructive practice is
(aa) deliberately destroying, falsifying, altering or concealing of evidence material
to the investigation or making false statements to investigators in order to
materially impede a Bank investigation into allegations of a corrupt, fraudulent,
coercive or collusive practice; and/or threatening, harassing or intimidating any
party to prevent it from disclosing its knowledge of matters relevant to the
investigation or from pursuing the investigation, or
(bb) acts intended to materially impede the exercise of the World Banks
inspection and audit rights provided for under sub-clause 4.1(e) below.
(vi) will reject a proposal for award if it determines that the Bidder recommended for
award has, directly or through an agent, engaged in corrupt, fraudulent, collusive,
coercive or obstructive practices in competing for the contract in question;

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Bagewadi (NH-4)-Bailhongal Saundatti

(b)

Request for Proposal

will cancel the portion of the loan allocated to a contract if it determines at any time
that representatives of the Borrower or of a beneficiary of the loan engaged in corrupt,
fraudulent, collusive, or coercive practices during the procurement or the execution of
that contract, without the Borrower having taken timely and appropriate action
satisfactory to the Bank to address such practices when they occur;

(c) will sanction a firm or individual, at any time, in accordance with prevailing Banks
sanctions procedures6 including by publicly declaring such firm or individual them
ineligible, either indefinitely or for a stated period of time (i) to be awarded a Bankfinanced contract and (ii) to be a nominated 7 sub-contractor, consultant, manufacturer
or supplier, or service provider, or service provider of an otherwise eligible firm being
awarded a Bank financed contract. And
(d) shall be permitted to inspect any accounts and records and other documents relating to
the Bid submission and contract performance, and to have them audited by auditors
appointed by the World Bank.
1

In this context, any action taken by a Applicant, bidder, supplier, contractor, or any of its personnel, or its agents, or its
subcultants, sub-contractors, service providers, suppliers and/or their employees to influence the procurement process or
contract execution for undue advantage is improper.
another party refers to a public official acting in relation to the procurement process or contract execution]. In this
context, public official includes World Bank staff and employees of other organizations taking or reviewing procurement
decisions.
a party refers to a public official; the terms benefit and obligation relate to the procurement process or contract
execution; and the act or omission is intended to influence the procurement process or contract execution.
parties refer to participants in the procurement process (including public officials) attempting to establish bid prices at
artificial, non competitive levels.
a party refers to a participant in the procurement process or contract execution.

A firm or an individual may be declared ineligible to be awarded a Bank-financed contract upon completion of the Banks
sanctions proceedings as per its sanctions procedures, including inter alia: (i) temporary suspension or early temporary
suspension in connection with an ongoing sanctions proceedings; (ii) cross-debarment as agreed with other International
Financial Institutions, including Multilateral Development Banks; and (iii) the World Bank Group corporate administrative
procurement sanctions procedures for fraud and corruption
7
A nominated sub-contractor, consultant, manufacturer or supplier, or service provider (different names are used depending on
the particular bidding document) is one which has : (i) either been included by the bidder in its pre-qualification application or
bid because it brings specific and critical experience and knowhow that allow the bidder to meet the qualification requirements
for the particular bid; or (ii) appointed by the Borrower.

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5.

PRE-BID CONFERENCE

5.1

A Pre-Bid conference of the Bidders shall be convened at the designated date, time and

5.2

place set out in Section 1.3. Attendance of the Bidders is optional but highly encouraged.
During the course of Pre-Bid conference, the Bidders will be free to seek clarifications and
make suggestions for consideration of the Authority. The Authority shall endeavor to
provide clarifications in accordance with Section 2.8. Bidders are also encouraged to seek
clarifications from the Authority prior to or after the Pre-Bid Conference, in accordance

5.3

with Clause 2.8.


The Authority shall forward copies of its response to queries raised by the Bidders at the
Pre-Bid Conference to all Bidders of record, by virtue of having paid the required fee for
this RFP document, irrespective of their attendance of the Pre-Bid conference, and upload
same on the Authoritys website. The source of the queries shall not be disclosed in the
responses.

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APPENDIX- I: Letter Comprising the Bid


(Refer Clauses 2.2.5, 2.11.1, 3.1.1 and 3.2.1)
Dated:
The Managing Director,
Karnataka Road Development Corporation Limited,
1st Floor, # 16 / J,Thimmaiah Road Cross,
Miller Tank Bed Area,Vasanthanagar,
City: Bangalore, ZIP Code: 560 052
India
Subject:

Bid for Concession Agreement - PROJECT NO. WCP 1


Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) of Bagewadi
(NH-4)-Bailhongal Saundatti in the State of Karnataka on DBFOMT Annuity

Dear Sir,
With reference to your RFP document dated *****, I/we, having examined the Bidding
Documents, including Addenda issued in accordance with this RFP Clause 2.9 and understood their
contents, hereby submit my/our Bid for the aforesaid Project.

1.

I/We hereby submit our Bid requiring an Annuity (fixed semi-annual payment) of
INR (Indian Rupees .... Only)
for undertaking the aforesaid Project.

2.

We offer to execute the Concession Agreement in conformity with the Bidding Documents
including the design, build, finance, operate, maintain and transfer of the aforesaid Project.

3.

I / We acknowledge that the Authority will be relying on the information provided in the Bid
and the documents accompanying the Bid for selection of the Concessionaire for the aforesaid
Project, and we certify that all information provided therein is true and correct; nothing has
been omitted which renders such information misleading; and all documents accompanying the
Bid are true copies of their respective originals.

4.

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

5.

I/ We declare that:
(a) I/ We have no reservations to the Bidding Documents, including any Addendum issued
by the Authority.
(b) I/We, including any subcontractors or suppliers for any part of the Concession
Agreement, do not have any Conflict of Interest in accordance with Clauses 2.2.13,

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nor are liable to be disqualified under the terms of Clause 2.2.14 of the RFP document.
(c) I/We hereby certify that I/ we, including my/our subcontractors or suppliers for any
part of the Concession Agreement, have not been declared ineligible by the World
Bank, under the laws or official regulations of India or by an act of compliance with
the United Nations Security Council. I/ we have taken steps to ensure that I/ we are in
conformance with the provisions of Section 4.of the RFP.
(d) The undertakings given by us along with the Application in response to the RFQ for
the Project, including our Technical and Financial Capacity, were true and correct as
on the date of making of the Application and are also true and correct as on the Bid
Due Date and I/We shall continue to abide by them. [If applicable] We specifically
acknowledge that the deficiencies which led to our being conditionally qualified were
fully corrected, before submitting this Bid.
6.

I/We declare that we/ any Member of the Joint Venture, or our / its Subsidiaries are/ is not a
Member of any other Joint Venture submitting a Bid for the Project.

7.

If I am/ we are notified by you that I/ we am/ are the Selected Bidder in accordance with the
RFP, I/ we understand that this Bid, together with your Letter of Award (LOA) shall constitute
a binding contract between us, until the Concession Agreement is executed. Furthermore, I/we
agree to enter into the Concession Agreement in accordance with the draft that has been
provided to me/us as part of this RFP, a copy whereof, initialed on each page by the authorized
signatory of the Bidder, is attached with this Bid. We agree to abide by the same.

8.

If I am/ we are notified by you that I am/ we are the Selected Bidder in accordance with the
RFP, we commit to obtain a performance security in accordance with the Bidding Documents.

9.

I/ We have studied all the Bidding Documents carefully and also surveyed the project highway
and traffic. We understand that the Authority has taken all reasonable measures to ensure that
the Bidding Documents listed in Clause 2.1 of this RFP are correct. Before taking part in this
bidding process, we have examined, understood and checked these Bidding Documents and
have ascertained that they contain no errors or other defects.

10. I/We enclose the Bid Security in conformance with the requirements set out in Clause 2.17 of
the RFP.
11. Our Bid shall be valid for a period of 120 (one hundred twenty) days from the Bid Due Date
shown in Clause 1.3 and shall remain binding upon us and may be accepted by you at any time
prior to the expiration of that period.
12. I / We acknowledge the right of the Authority, to suspend, cancel, modify, or amend the
Bidding Process, or accept or reject any Bid without incurring any liability to me/ us or any
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other Bidder.
13. We have paid or will pay the following commissions, gratuities or fees with respect to the
bidding process or the execution of the Concession Agreement:
Name of Recipient
Address
Reason
Amount
[If none has been paid or is to be paid, please indicate none.]
In witness thereof, I/we submit this Bid under and in accordance with the terms of the
RFP document.
14. I/ We hereby certify that I/ we have taken steps to ensure that no person acting for me/ us on
our behalf will engage in bribery.
Yours faithfully,
Date:
Place:
(Signature, name and designation of the Authorised Signatory)

Duly authorized to sign for and on behalf of:


Name and seal of the Applicant/ Lead Member

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APPENDIX II : Form of Bid Security


(Refer Clauses 2.2.7 and 2.17.1)
[To be submitted in this format or in another substantially similar format approved by the
Authority prior to Bid submission.]
Beneficiary: _____________________________
Date: ____________________________
BID GUARANTEE No.:_____________________________

We have been informed that __________________________________________ (hereinafter called


"the Bidder") has submitted to you its bid dated __________________________________________
(hereinafter called "theBid") for the execution of Concession Agreement for - PROJECT NO. WCP
1- Design, Build, Finance, Operate, Maintain and Transfer (DBFOMT) of Bagewadi (NH-4)Bailhongal Saundatti in the State of Karnataka on DBFOMT Annuity, under the Request for
Proposal No.____________dated(the RFP).
Furthermore, we understand that, according to your conditions, bids must be supported by a bid
guarantee.
At the request of the Bidder, we hereby irrevocably undertake to pay you any sum or
sums not exceeding in total an amount of ( ) upon receipt by us of your first demand in writing
accompanied by a written statement stating that the Bidder is in breach of its obligation(s) under the
bid conditions, because the Bidder:
(a) has withdrawn its Bid during the period of Bid validity specified by the Bidder in the Letter
Comprising the Bid and as extended by mutual consent of the Bidder and the Authority;
(b) having been notified of the acceptance of its Bid by the Authority during the period of Bid
Validity and as extended by mutual consent of the Bidder and the Authority,
i) the Bidder fails or refuses to sign and return the duplicate copy of the Letter of Award in
acknowledgement thereof within 7 (seven) days of its receipt, as required in this RFP ;
ii) the Bidder fails or refuses to furnish the Performance Security in accordance with this
RFP,
iii) the Bidder fails or refuses to execute the Concession Agreement
This guarantee will expire: (a) if the Bidder is the successful Bidder, upon our receipt of copies of
the Concession Agreement signed by the Bidder and the performance security issued to you upon
the instruction of the Bidder; and (b) if the Bidder is not the successful Bidder, upon the earlier of
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(i) our receipt of a copy your notification to the Bidder of the name of the successful Bidder; or (ii)
sixty days after the expiration of the Bidders bid.
Consequently, any demand for payment under this guarantee must be received by us at the office
on or before that date.
This guarantee is subject to the Uniform Rules for Demand Guarantees, ICC Publication No. 458.

[signature(s)]
Note: All italicized text is for use in preparing this form and shall be deleted from the final
product.

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APPENDIX III: Power of Attorney for signing of Bid


(Refer Clause 2.2.8)
(In India, to be executed on Stamp paper of appropriate value; for Bidders from outside India, to be
executed according to the applicable law in the Bidders country and by taking into account the
Notes shown below.)
Know all men by these presents, We, .......................................................... (name of the Bidder and
address of the registered office) do hereby irrevocably constitute, nominate, appoint and
authorise Mr. / Ms (Name), ......................................................................... and presently residing at
................................................................, who is presently employed with us/the Lead Member and
who is legal representative of our Joint Venture (strike out whichever is inapplicable), and holding
the position of , as our true and lawful attorney (hereinafter referred to as the Attorney) to do in
our name and on our behalf, all such acts, deeds and things as are necessary or required in
connection with or incidental to submission of our bid for the (Provide Project No. and Name as per
clause 1.1.1) proposed or being developed by the Managing Director, Karnataka Road Development
Corporation Limited (the Authority) including but not limited to signing and submission of all
applications, bids and other documents and writings, participate in bidders' and other conferences
and providing information / responses to the Authority, representing us in all matters before the
Authority, signing and execution of all contracts including the Concession Agreement and
undertakings consequent to acceptance of our bid, and generally dealing with the Authority in all
matters in connection with or relating to or arising out of our bid for the said Project and/or upon
award thereof to us and/or till the entering into of the Concession Agreement with the Authority.

AND we hereby agree to ratify and confirm and do hereby ratify and confirm all acts, deeds and
things lawfully done or caused to be done by our said Attorney pursuant to and in exercise of the
powers conferred by this Power of Attorney and that all acts, deeds and things done by our said
Attorney in exercise of the powers hereby conferred shall and shall always be deemed to have been
done by us.
This Power of Attorney has been executed by the person(s) mentioned below pursuant to a resolution
dated [ ] passed by the Board of Directors of the Bidder/Lead Member company.

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


PRINCIPAL HAVE EXECUTED THIS POWER OF ATTORNEY ON THIS
.....................................DAY OF...................................., 20......
For...............................................
(Signature, name, designation
and address)
Witnesses:

1.
2. Accepted

Notarised

(Signature, name, designation and address


of the Attorney)

Notes:

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

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

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

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APPENDIX IV Power of Attorney for Lead Member of Joint Venture


(To be executed separately by each Member of the Joint Venture on stamp paper of
appropriate value)
(Refer Clause 2.2.9
(For Bidders from outside India, to be executed according to the applicable law in the Bidders
country and by taking into account the Notes shown below.)
Whereas the Managing Director, Karnataka Road Development Corporation Limited (the
Authority) has invited bids from qualified and selected parties for the Project No. WCP 1 Bagewadi
(NH-4)-Bailhongal Saundatti(the Project).
Whereas, ................................,......................................... and ..................................... (collectively
the Joint Venture) being Members of the Joint Venture are interested in bidding for the Project in
accordance with the terms and conditions of the Request for Proposal and other connected
documents in respect of the Project, and

Whereas, it is necessary for the Members of the Joint Venture to designate one of them as the Lead
Member, who shall be the legal representative with all necessary power and authority to do for and
on behalf of the Joint Venture, all acts, deeds and things as may be necessary in connection with the
Joint Ventures bid for the Project and its execution.

NOW THEREFORE KNOW ALL MEN BY THESE PRESENTS


We, ............................ having our registered office at

, having our registered

office at , (hereinafter referred to as the Principal) do hereby irrevocably designate, nominate,


constitute, appoint and authorise M/s ...(mention name of Lead member) , having its registered office
at , being one of the Members of the Joint Venture, as the Lead Member and true and lawful attorney
of the Joint Venture (hereinafter referred to as the Attorney) and hereby irrevocably authorise the
Attorney (with power to sub-delegate) to conduct all business for and on behalf of the Joint Venture
and any one of us during the Bidding Process and, in the event the Joint Venture is awarded the
Concession/ Contract, during the execution of the Project, and in this regard, to do on our behalf and
on behalf of the Joint Venture, all or any of such acts, deeds or things as are necessary or required or
incidental to the submission of its bid for the Project, including but not limited to signing and
submission of all applications, bids and other documents and writings,

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accept the Letter of Award, participate in bidders and other conferences, respond to queries, submit
information/ documents, sign and execute contracts and undertakings consequent to acceptance of
the bid of the Joint Venture and generally to represent the Joint Venture in all its dealings with the
Authority, and/ or any other Government Agency or any person, in all matters in connection with or
relating to or arising out of the Joint Venture bid for the Project and/ or upon award thereof till the
Concession Agreement is entered into with the Authority.
AND hereby agree to ratify and confirm and do hereby ratify and confirm all acts, deeds and things
lawfully done or caused to be done by our said Attorney pursuant to and in exercise of the powers
conferred by this Power of Attorney and that all acts, deeds and things done by our said Attorney in
exercise of the powers hereby conferred shall and shall always be deemed to have been done by
us/Joint Venture.
This Power of Attorney has been executed by the person(s) mentioned below pursuant to a
resolution dated [ ] passed by the Board of Directors of the company.
IN WITNESS WHEREOF WE THE PRINCIPAL ABOVE NAMED HAVE EXECUTED THIS
POWER OF ATTORNEY ON THIS.......................................DAY OF.................... 20....
For....................................
(Signature, Name & Title)
Witnesses:
1.
2.
Notes:

The mode of execution of the Power of Attorney should be in accordance with the
procedure, if any, laid down by the applicable law and the charter documents of the
executant(s) and when it is so required, the same should be under common seal affixed in
accordance with the required procedure.
Wherever required, the Bidder should submit for verification the extract of the charter
documents and documents such as a board or share holders resolution/ power of attorney
in favour of the person executing this Power of Attorney for the delegation of power
hereunder on behalf of the Bidder.
For a Power of Attorney executed and issued overseas, the document will also have to be
legalised by the Indian Embassy and notarised in the jurisdiction where the Power of
Attorney is being issued. However, the Power of Attorney provided by Bidders from
countries that have signed the Hague Legislation Convention 1961 are not required to be
legalised by the Indian Embassy if it carries a conforming Appostille certificate.
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APPENDIX V: List of Public Financial Institutions


(Refer Clause 2.2.13)
As per the Applicable Laws, presently the following institutions have been declared as Public
Financial Institutions:
i)

The Life Insurance Corporation of India, established under section 3 of the Life Insurance
Corporation Act, 1956.

ii) The Infrastructure Development Finance Company Limited, a company formed and
registered under the Companies Act, 1956 so repealed by the Companies Act 2013.
iii) specified company referred to in the Unit Trust of India (Transfer of Undertaking and
Repeal) Act, 2002
iv) The institutions notified by the Central Government under sub-section (2) of section 4A of
the Companies Act, 1956 so repealed under section 465 of Companies Act, 2013
Furthermore, this list is deemed to include such other institution as may be
notified by the Central Government in consultation with the Reserve Bank of
India.

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Bagewadi (NH-4)-Bailhongal Saundatti

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Illustration
Award Decision based on financial capacity:
1.

The Total Project Cost of the five packages (Illustrative) are as below:

Total Project Cost


Min. networth required to meet fin.
capacity criteria (25% of TPC)
2.

Project C

Project
D

Project E

100

110

200

140

90

25

27.5

50

35

22.5

Project A

Project B

Project C

Project D

Project E

27
32
33
34
35

30
31
32
29
33

61
63
64
65
66

48
49
50
51
52

25
26
24
23
27

From the above table, the least annuity quotes received for various packages, project-wise L1
bidders and their networth are as below;

L1 Bidder
L1 quote
Networth of the
L1 Bidders
4.

Project B

Annuity Quotes received by Pre-qualified bidders are as below:

Bidder 1
Bidder 2
Bidder 3
Bidder 4
Bidder 5
3.

Project A

Project A

Project B

Project C

Project D

Project E

Bidder 1
27

Bidder 4
29

Bidder 1
61

Bidder 1
48

Bidder 4
23

100

60

100

100

60

Stage 1: Networth mapping


Case-1:

Cumulative Networth requirement for


Project A, Project C and Project D

(25+50+35) = 110

Networth of bidder 1
Inference

100
Networth
of bidder

< Cum. Networth requirement


of respective projects

Case-2:
Cumulative Networth requirement for
Project B and Project E

(27.5+22.5) = 50

Networth of bidder 4
Inference

60
Networth
of bidder

>

Cum. Networth requirement


of respective packages

Bidder 1 has insufficient capacity to be awarded all three projects


Bidder 4 has sufficient networth and therefore can be awarded both the projects

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Stage 2: Award decision:


Scenario 1: Bidder 1 is awarded Project A and Project C, and Project D awarded to L2

Effective
Annuity

Project A

Project B

Project C

Project D

Project E

Bidder 1

Bidder 4

Bidder 1

Bidder 2

Bidder 4

27

29

61

49

23

Total
annuity
payout by
KRDCL
189

Scenario 2: Bidder 1 is awarded Project C and Project D, and Project A awarded to L2

Effective
Annuity

Project A

Project B

Project C

Project D

Project E

Bidder 2

Bidder 4

Bidder 1

Bidder 1

Bidder 4

32

29

61

48

23

Total
annuity
payout by
KRDCL
193

Scenario 3: Bidder 1 is awarded Project A and Project D, and Project C awarded to L2

Effective
Annuity

Project A

Project B

Project C

Project D

Project E

Bidder 1

Bidder 4

Bidder 2

Bidder 1

Bidder 4

27

29

63

48

23

Total
annuity
payout by
KRDCL
190

Decision: Scenario 1 leads to least annuity payout for KRDCL at programme level, and hence
Bidder 1 is awarded Project A and Project C, and Project D awarded to Bidder 2

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