request for proposal - cuttack … for proposal volume i project information memorandum development...

Development of Residential Complex over 2.465 Hec at Sec-6, Bidanasi, Cuttack, Odisha on PSP mode

1 Project Information Memorandum

CONTENTS

REQUEST FOR PROPOSAL

VOLUME I

PROJECT INFORMATION MEMORANDUM

DEVELOPMENT OF RESIDENTIAL COMPLEX OVER 2.465

HECTARES (6.093 ACRES)

AT SECTOR-6, BIDANASI, CUTTACK

ON PSP MODE

CUTTACK DEVELOPMENT AUTHORITY

ARUNODAYA BHAWAN, LINK ROAD

Cuttack – 753012, Odisha



CONTENTS

SL.

NO.

PARTICULARS

PAGE

NO.

1 DISCLAIMER 3

2 ABBREVIATIONS 4

3 SCHEDULE OF BIDDING PROCESS 5

4 CUTTACK- City Profile 6

5 PROJECT SUMMARY 8

6 PROJECT DEVELOPMENT & BIDDING PROCESS 11

7 SITE APPRECIATION 13

8 DEVELOPMENT CONTROLS & PRODUCT MIX 14

9 APPENDIX 15



1. Disclaimer

Though adequate care has been taken in the preparation of this Request for Proposal (hereinafter referred to as

“RfP”) document, the Bidders should satisfy themselves that the document is complete in all the respect and

the information provided is correct. In case of discrepancy, if any, intimation should be given to the Officer

Concerned in Cuttack Development Authority (whose contact details is mentioned in this document)

immediately on or before the due date specified in the Schedule of Bidding Process. If no intimation is

received by the said officer within the date as mentioned in Schedule of Bidding Process as mentioned in this

Document, it shall be deemed that the bidder is satisfied that the RfP document is complete in all respects.

Neither CDA nor their employees or Project Consultants make any representation or warranty as to the

accuracy, reliability or completeness of the information in this RfP and it is not possible for CDA to consider

the investment objectives, financial situation and particular needs of each party who reads or uses this RfP

concerning the project. Certain prospective bidders may have better knowledge of the project compared to the

others and CDA encourages all the prospective bidders to conduct their own due diligence, investigations &

analysis and check for accuracy, reliability and completeness of this RfP. The bidders are free to obtain the

independent advice from the sources appropriate to them.

Neither CDA nor their employees or Project Consultants will have any liability to any prospective bidder or

any other person under the law of contract, tort, the principles of restitution or unjust enrichment or otherwise

for any loss, expenses or damage which may arise from or to be incurred or suffered in connection with

anything contained in this RfP, any matter deemed to form part of this RfP, the award of the project, the

information and any other information supplied by or on behalf of CDA or their employees or their consultant

or otherwise arising in any way from the selection process of this project.

CDA reserves the right to reject any or all of the bids submitted in response to this RfP at any stage

without assigning any reasons whatsoever and without any liability of CDA in any manner. CDA also

reserves the right to hold or withdraw or cancel the process at any stage under intimation to the bidders,

who submit the RfP, without assigning any reasons whatsoever.

CDA reserves the right to modify or amend or add to any or all of the provisions of this RfP Document or

annul the present process. Such change would be intimated to all the parties procuring this RfP.

Neither CDA nor their employees or Project Consultants will have any liability in case addition, modification,

amendment, alteration, cancellation and /or of non-receipt of any correspondence from them to the bidders

due to the postal delays.

The Applicable law for the purpose is the laws in India.



2. Abbreviations

CDA Cuttack Development Authority

PSP Public Sector Participation

EoI Expression of Interest

RfQ Request for Qualification

RfP Request for Proposal

IE Independent Engineer

LOA Letter of Award

SPV Special Purpose Vehicle

MLP Maximum Lease Premium

INR Indian National Rupee(s)

DU Dwelling Unit

LP Lease Premium



3. Schedule of Bidding Process

(a) Issue of Advertisement

11.06.2015

(b) Pre-Bid Meeting

30.06.2015, at 3.00 P.M in the Conference Hall of Cuttack

Development Authority

(c) Last date of submission of Bids

15.07.2015 till 5.P.M

(d) Opening of Technical Bids

16.07.2014 at 11.00 A.M in the Conference Hall of

Cuttack Development Authority.

(d) Financial Bid Opening To be intimated later.



4. Cuttack – City Profile

Location and Regional Setting

Cuttack city is the former capital and one of the oldest cities of Orissa. It is the administrative headquarters of

the district and is situated at a distance of about 25 km. to the north of Bhubaneswar, the present capital of

Orissa.

Broad Historic Growth Dynamics of The City

The city is located on low fine sand plateau, and it is well connected with the major Indian Metropolis like

Kolkata, Chennai and New Delhi and other urban centres of Orissa through a network of roads and rails. The

National Highway No.5 linking Kolkata and Chennai passes through Cuttack. The geography of city restricts

the growth on any direction due to existence of Kathajori and Mahanadi rivers on three sides leaving the

eastern side towards Jagatsinghpur District and Port Paradeep for limited expansion. The city is world famous

for its silver and gold filigree works, so it is called the silver city of Orissa.

Connectivity

Regional Connectivity

Cuttack is well connected with the rest of the country and the state of

Odisha by air, rail and roads. The modes of connectivity are discussed in

detail below:

Air Connectivity

The nearest airport is situated at Bhubaneswar. Cuttack is connected to

the cities of Calcutta, Delhi, Chennai, Mumbai, Vishakhapatnam,

Hyderabad, and Raipur through regular flights. Biju Patnaik Airport in

Bhubaneswar is the only major airport in the state. Till date there is no

international flight from Bhubaneswar.

Rail Connectivity

Cuttack is on the East Coast Railway with direct rail link to Kolkata,

Delhi, Hyderabad and Chennai, Bangalore, Kochi, Patna, Guwahati,

Mumbai, Bhubaneswar, Guwahati, Tirupati, and Trivandrum.

Cuttack does not have local rail service connecting different parts of the

city. However, a few passenger trains connect the city with the

adjoining region and cities such as Bhubaneswar, Puri, Bhadrak, Balugan etc

Road Connectivity

The city lies on the National Highway NH-5 and is linked to the two metro cities of Kolkata and Chennai

directly. Within the state, it has good linkages with Berhampur, Chilka, Bhubaneswar, Konark, Paradip, Puri,

Rourkela and Sambalpur. Interstate bus services operate daily between Kolkata and Puri via Bhubaneswar and

Tatanagar (Jamshedpur).

Odish

a



Linkages and Urban Structure

Local Linkages:

• Inter-city transport – Regular buses between Cuttack and other important towns of Odisha such as

Berhampur, Chilka, Bhubaneswar, Konark, Paradip, Puri, Rourkela, Sambalpur etc. Interstate buses ply

between Kolkata (West Bengal) and Tatanagar (Jharkhand)

• Intra-city transport – Mostly dependent upon Auto and cycle rickshaw services, however taxis are

available in the city.

Development of Residential Complex over 2.465 Hectares at Sec-6, Bidanasi, Cuttack, Odisha on PSP mode


5. Project Summary

1. 4 NAME Development of Residential Complex over 2.465 Hectares (6.093 acres) of

land at Sec-6, Bidanasi Project Area, Cuttack on PSP mode

2. LOCATION Cuttack, Odisha

3. NODAL AGENCY Cuttack Development Authority (CDA)

4. LIKELY PROJECT

COMPONETS

Residential land use zone: 6.093 Acres

Residential Dwelling Units

Retail

Likely Support Facilities and Infrastructure

5. LAND AREA

Total Plot area for lease: 2.465 Hectares (6.093 acres) approx.

6. ESTIMATED BUILT-UP

AREA

Plot I: 4.077 Ac with an FAR of 2.00 (as the road width is 40 Feet wide)

Buit-Up Area of Plot I: 355188.24 Sq.ft

Plot II: 2.016 Ac with an FAR of 2.50 (as the road width is 60 Feet wide)

Buit-Up Area of Plot II: 219542.4 Sq.ft

Total approximate Built-Up Area of the project: 574730.64 Sq.ft

(FAR may vary subject to modification of regulation)

Note: Clause 8.2.5 of Vol-III states that” If and only if the Developer decides

to enhance the Floor Area Ratio (“FAR”) of the project from the effective date

and during the term, due to amendment of an existing regulation or

enactment of a new Regulation and in case the plan is approved by CDA, the

Developer would pay CDA a consideration pro-rate to the quoted MLP.

7. DEVELOPMENT

CONTROLS

The developer shall have to comply with the „Planning & Building

Standards Regulations, 2010, of the Cuttack Development Authority

8. IMPLEMENTATION

FORMAT Long Term Lease

9. LEASE FORMAT 60 years (renewable on mutually agreed terms) from the date of signing of the

Lease Deed

10. INSTITUTIONAL

STRUCTURE

Special Purpose Vehicle (SPV)- a company to be formed by the Selected bidder,

who is selected through this selection process, under Company‟s Act 1956

11. CONSTRUCTION

PERIOD

Complete all approval, clearance process within 1 year from signing of

Development Agreement;

Complete the Project within 4 (four) years from signing of the Lease

Deed



12. BID PARAMETER Maximum Lease Premium (MLP) - payable to CDA in 2 equal installments as

in Pt. 14 or lump sum whichever way the selected bidder chooses so.

13. MAXIMUM LEASE

PREMIUM

The Developer to pay CDA,

1/2 of MLP (Maximum Lease Premium) to be paid before signing of

Development Agreement (1st installment)

1/2 of MLP (Maximum Lease Premium) within 12 months from the

date of signing of Development Agreement ( Last Installment) and

before signing of Lease Deed* (whichever is earlier). No interest

charged for this period.

The Lease Deed will be signed on payment of full amount of Lease Premium.

The Developer has the option of making pre- payment at every stage.

N.B: All the above payments made by the developer will be subject to

applicable taxes i.e., service tax, education cess etc.

14. ANNUAL LEASE RENTAL

AND CESS

The Rate to be specified by CDA (as per Revenue Rate)

(1% of the cost of land paid by CDA to the Govt. of Orissa) + 0.75% Cess (on

this amount)

15.

PROJECT

DEVELOPMENT FEE &

EXPENSES (NON-

REFUNDABLE AND

NON-ADJUSTABLE)

0.50% of Project Cost* (plus applicable Service Tax) to be payable to

Cuttack Development Authority (CDA) within 15 days of Issue of the

Letter of Award and before signing the Development Agreement as

reimbursement of project development expenses;

0.50% of Project Cost* (plus applicable Service Tax) to be payable to

Jones Lang LaSalle Property Consultants (India) Private Limited {JLL}

within 15 days of Issue of the Letter of Award and before signing the

Development Agreement as project development fees;

* Estimated Project Cost indicated in the Technical Bid of the preferred bidder

will be adopted for this purpose.

16. BID SUBMISSION Envelope A: General Documentation & Technical Bid

Envelope B: Financial Bid

17. ENVELOPE A:

General Documentation: Duly filled up formats as specified in Annexure A-1

to Annexure A-15, Annexure B1 of Vol-II of ITB along with all the specified

supporting documents.

18. ENVELOPE B:

Price Bid Letter quoting Maximum Lease Premium Payable to CDA



19. CONDITION TO

CONSORTIUM BIDDERS

A Consortium of maximum three members will be allowed to

participate in the Bid

Lead Consortium member to have minimum 26% equity in Project SPV

Other members to have minimum 10% equity in SPV

Consortium to demonstrate implementation Capability to execute

project

20. ELIGIBILITY CRITERIA

The Bidder may be a single entity (“Bidding Company”) or a group of

entities (“Consortium”) coming together to implement the project subject to

compliance with applicable laws, policies and guidelines of Government of

India. The term Bidder used hereinafter would therefore apply to both a

single entity and a Consortium.

An eligible entity is one which satisfies the following:

The entity is a Company under the Companies Act, 1956.

OR

The Entity is a Trust under the Indian Trusts Act, 1882

OR

The Entity is a Statutory Board/ Authority/ Corporation created in

India under a separate Law/ Act of India/ any State Govt.

Bidder (Single or Consortium) to demonstrate the capability of:

a. Minimum Development/ Construction capability of:

at least 20,000 sq.m., Residential/Commercial built up space in the last

5 years, in a Single Project; or

at least totaling 40,000 sq.m., Residential/Commercial built up space in

the last 5 years, through a maximum of 3 Projects, with minimum

10,000 sq.m. built-up space for each project.

b. Combined Minimum Net Worth: Rs.15 Crores (Rupees Fifteen Crores

only) as on March 2014. In case of Consortium the aggregate Net-Worth as

on 31 March 2014, should meet the mentioned criteria.

21. BID EVALUATION

Envelope A:

General Documentation: Pass/Fail.

Envelope B:

Maximum Lease Premium

22. COST OF RFP

DOCUMENT

INR 52,000/- (non-refundable) to be payable in the form of Demand Draft/ Pay

Order in favour of “Cuttack Development Authority” payable at Cuttack



23. BID VALIDITY

180 days from the last date of submission of bid

24. BID SECURITY

1% of the total project cost. (total project cost includes land cost and cost of

development of the project) to be submitted along with the technical bid in the

form of bank guarantee.

25.

CONSTRUCTION

PERFORMANCE

SECURITY

10% of the Bid Amount in the form of Bank Guarantee

(Maximum Lease Premium would be the Bid Amount)

26.

RELEASE OF

PERFORMANCE

SECURITY

On issuance of Project Completion Certificate by CDA to the developer.

27.

VALIDITY OF

PERFORMANCE

SECURITY

Up to issue of Construction completion certificate – 5 (five) years or any extension thereof

28.

DEVELOPER’S DEFAULT

– BEFORE SIGNING OF

LEASE DEED

Forfeit Performance Security

Return of Lease Premium without any interest thereon

Cancellation of Development Agreement

No compensation to be paid by CDA

29.

DEVELOPER’S DEFAULT

– AFTER SIGNING OF

LEASE DEED

Forfeit Performance Security

Forfeit the Lease Premium paid as on that date

No compensation to be paid by CDA

Cancellation of Development Agreement and Lease Deed or keep the

option of a substitute party to be responsible for any compensation to the

developer at the discretion of CDA.

30.

RESERVE PRICE/UPSET

PRICE OF THE COST OF

LAND

INR 3520/- per sq.ft.

31. ASSUMPTIONS 1 acre=4046.85 Sq.m

1 Sq.m=10.763 Sq.ft

6. Project Development and Bidding Process

The Project Information Memorandum (PIM) is being issued to bidders as Volume I of the Request for Proposal

(RfP) and must be read in conjunction with the other volumes of the RfP as given below:

Volume – II: Instruction to Bidders



Volume – III: Draft Development Agreement and Draft Lease Deed

This Project Information Memorandum comprises the following:

Part 1: Summary – Project Development & Bidding Process

Part-2: Site Appreciation

Part-3: Development Controls

Cuttack city is situated in between two major rivers i.e., Mahanadi and Kathajodi, as such its geographical

expansion towards north and south is limited.

The Population of the city has been increased considerably during the last few decades. To provide residential

facilities to the increased demand of population, a High Level committee under the Chairmanship of R.D.C

(CD), Cuttack was constituted with reference to Revenue Department, Memo No. 3441/R/dt. 14.8.83 regarding

extension of Cuttack city.

The committee suggested expansion of the city towards the Bidanasi area beyond the extinting protective

embankment of Kathajori and Mahanadi. About 2000 acres of land was made available for expansion of Cuttack

City and the development work was entrusted to CDA. Accordingly CDA has taken out „Bidanasi Triangle

Development Project‟ comprising of 15 sectors sectors-1, Sector-6, Sector-7, Sector-8, Sector-9, Sector-10, Sector-

11, Sector-12(P), and Sector-13.

CDA proposes to develop the Residential Complex over 2.465 Hectares (6.093 Acres) of land at Sector-6,

Bidanasi Project Area in Cuttack. CDA proposes to develop the „Project‟ with the participation of a developer,

who would Design, Engineer, Finance, Construct, Operate & Maintain and Market the facility for the Lease

Period of 60 years including 4 years of Construction Period. The Agreement is in two parts (Part A -

Development Agreement; Part B- Lease Deed) shall form the legal basis for the Project.

On completion of the lease period (60 years) the land and building along with all immovable assets at the

project site shall be handed over to CDA by the Developer. However, the Lease may be renewed based on

mutually agreed terms and conditions.

CDA has appointed M/s Jones Lang LaSalle Property Consultants (India) Private Limited, as Transaction

Advisor for development of the Project on Public Sector Participation mode.



The Selected bidder (Single or Consortium) would be required to incorporate a Special Purpose Vehicle (SPV),

as the Developer, under the Companies Act, 1956 for implementing the Project and shall hold minimum 51%

equity in the SPV. In case the selected bidder is a consortium, the Lead Member of the consortium would then

become confirming party to the Development Agreement and Lease Deed. The Lead Member of the consortium

identified in the Technical Bid would hold at least 26% of the equity of the SPV. Other members in case of

Consortium of Firms shall hold at least 10% equity each in the SPV.

The Selected bidder selected through a transparent and competitive Single Stage Bidding process would be

given the right to recover its investment through the leasing / sub-leasing / licensing of built up area (including

utilities, parking lots, parks etc.) within the plot.

The financial bid variable for selection of the bidder, subject to other qualification criteria and development

controls being met, would be the highest Maximum Lease Premium (MLP) that the bidder would pay to CDA.

Bidders are required to submit separate technical and financial bids. The financial bids of only those bidders

that comply with the General Documentation submitted as a part of their technical submission will be opened.

The detailed instructions for preparation of technical and financial bids are provided as Volume II of this RfP

document.

The lease rights for this project shall be 60 (sixty) years only including scheduled construction period of the

project commencing from the date of signing of the Lease Deed. The scheduled construction period of the

project shall be 4 (four) years from the date of execution of the Lease Deed.

The Selected bidder to pay CDA liquidated damages for delay beyond the Scheduled Construction Completion

Date @ INR 15,00,000/- (Rupees Fifteen Lakhs Only) per month of delay or part thereof, as liquidated damage

charges until such construction completion is achieved beyond 4 years. However, delay in completion of

construction by more than one (1) year from the scheduled construction completion date will be construed as a

default from the part of the Developer and would lead to termination of the agreement.

7. Site Appreciation

1. The 2.465 Hectares (6.093 Acre) site is located in Bidanasi Project Area, Cuttack, and spread over Plot

No: 1571(P), 1572 to 1577 and 1578 (P) measuring 4.077 Acres and Plot No: 1382(P), 1383 to 1386 and

1387(P) measuring 2.016 Acres.

S.No Plot No. Plot Size Land use

1 No: 1571(P), 1572

to 1577 & 1578 (P)

4.077 Acres Residential

2 1382(P), 1383 to

1386 & 1387(P)

2.016 Acres Residential



2. The Site has an immense potential for residential development

3. The site is 6 Kms. from the City Centre of Cuttack and 9 Kms from Cuttack Railway Station.

4. Power for the site will be available from CESU, Cuttack.

5. The source of water for this area can be from PHD, Cuttack.

6. The site has significant development potential as per its location and connectivity. Located within the

residential development zone and in its vicinity to the commercial development further add up to its

value.

8. Development Controls and Product Mix

Development Regulations

The Development Controls prevailing in the site is governed by the „Planning & Building Standards

Regulations, 2010, of the Cuttack Development Authority.

The Floor Area Ratio is decided on the basis of the road width on which the plot/site abuts. The height of the

building shall be governed by the limitations of Floor Area Ratio, open space (setbacks), and the width of the

street facing the plot.

Likely Project Components

The land parcels can be utilized in the most efficient way by developing the following components as per the

guidelines/norms of the local authority i.e. Cuttack Development Authority (CDA). Some of the potential

options of which are;

Residential Development

o Housing for HIG, MIG

Likely Support Infrastructure

o Landscaping

o Community hall, Children Play ground, Swimming pool, Multi gymnasium,

o Internal Roads

o Uninterrupted Power Supply, 24x7, with battery back up

o Uninterrupted Water Supply

o Basement Parking facility

o Sewerage Treatment Plant

o Intelligent Building Management System

o Surveillance & Hi-tech security installation



o Disaster management services

o Sophisticated fire detection and suppression system

o Adequate Landscaping/ Green Areas

o Rain Water Harvesting

Besides the above, planning, design, materials and construction of all buildings and infrastructure have to

follow local municipal Act including ODA Act, rule(s) framed there under as the case may be and the building

bye-laws and shall be in accordance with the relevant provisions of India Standard Specifications and Codes;

and the National Building Code of India.

8. APPENDIX

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