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Sr Nos Comparison heads Description BOM BOO

Build operate & Maintain Build own operate

The washery will be constructed on the finance made


available by the Owner (CIL) and the plant has to be
The washery will be constructed and operated &
operated & maintained by the BOM Operater for ten years
maintained by the BOO bidder for ten years with a
1 Concept with a provision of reviewing by the Owner
provision of reviewing by the Owner at the end of 10
at the end of 10 (ten) years for each term of five (5) years
(ten) years
thereafter on the basis of same terms & conditions for which
the BOMO will get washing charge per ton of coal

2 Ownership of the plant Remain with Owner Plant is own by bidder


3 Investment Financing the Set-up cost of washery Will be provided by CIL Will be provided by financer

PSF is a Bank Guarantee (BG) for a sum equivalent to the set-up


cost (quoted by the Preferred bidder and accepted by the
4 Project financal security(PFS) Required Not required
company), before signing of the agreement towards the security
of the project

All the consortium members(4 Nos) need to sign a JDU and share
5 JDU with Joint & several responsibilities joint & several responsibility of the project for the entire project Required Required
life i.e 10years

EPC & Technology provider may have the liberty to dissociate any
time after a minimum period of one year from the date of expiry
6 Exit cluase in JDU Exit cluase exists Exit cluase do not exists.
of
Guarantee Period of coal washery.
However, the Lead Bidder having Financial Qualifications along
with one of the associate(s) having operational experience shall
have to continue for the entire contract period i.e. 10 years
7 Investor perspective High Risk, Less return High risk , High return
7.1 Finalisation of tender Reverse auction Fixed price-L1 basis
7.2 Extension of the contract Can be extended Can be extended
7.3 CHP set-up & loading system Not in the scope of bidder In scope of bidder
7.4 Operational water & power will be provided by owner upto agreed limit Chargable

7.5 Enviormental clearence Will be obtained by Client Need to be obtained by bidder

8 TPL perspective
1) Less exposure to the market
8.1 Advantage to go ahead with PE firm 2) Completely dependent on EPC firm
3) Can sell set-up at higher cost

1) No experience in evaluating bidding price of BOM/BOO


8.2 Disadvantage to go ahead with PE firm 2) Chances of winning are less
3) Need to form consortium

1) Firms will qualify solely


Advantage to go ahead with establised firm 2) TPL will not be required to form a consortium and can be a sub-
8.3 contractor
like Monnet, Jindal
3) Firms know the economics of the business and bidding prices.
4) Firms wining chances will be high
Disadvantage to go ahead with establised Having greater technical exposure of the washery, will squeze the
8.4
firm EPC firm on set-up price