Project Appraisal

Term Sheet of the Proposed Concession AgreementS. No.ParticularsDescription

1. General

1.1Scope of ProjectDesign, procure, fabricate, supply, installation and commissioning of MSW processing treatment (including SLF) facility with minimum capacity of 225 MT/ day and subsequent incremental quantities@4@ per year

1.2Nature of Concession to be grantedDesign, Supply, Installation, Commissioning of MSW Processing and SLF Project and its O & M for 30 Years for Ujjain city

1.3Period of Concession and justification for fixing the period30 years

1.4Estimated capital costAs per DPR estimated project cost INR 44.14 crores (2011) but this cost is not mentioned in Tender Document

1.5Likely construction period2 years

1.6Conditions precedent, if any, for the concession to be effective

1.7Status of land acquisitioni. Out of 24 hectare land area, which is newly acquired by UMC at Gondiya village, 16 hectare will be given to the project Awardee for total life span of 30 years processing plus SLF cells. Balance 8 hectare will be used by UMC as it may deem fit.ii. Entire land area leased to the Project Developer and balance will remain Property of Ujjain Municipal Corporation, Ujjain.

2. Construction and O & M

2.1Monitoring of construction; whether an independent agency/ engineer is contemplatedi. The Project awardee has to pay Technical Fee to the agency appointed by UMC @1.50% of the agreed project cost. This fee is towards checking and clearances of drawing, designs, and specifications of plant machinery, equipments, and periodic supervision of work and help in verification of bills till project commissioning and services up to 1 year after commissioning.

2.2Minimum standard of Operation and Maintenance1. Complete compliance with the statutory requirements for pollution control / pollution prevention as per requirement of MSW Rules 2000 and conditions imposed by State PCB/CPCB and other Government Agencies & regulatory authorities.

2.3Penalties for violation of prescribed O & M standards

2.4Safety related provisionsContractor shall also comply with requirements of all statutes; regulation of state while doing execution of work. Contractor shall also follow the provision of contract labour (Regulation and abolishing) Act 1970 and all amendments there on before commencement of the work. In case the contractor engage more than 20 workers, he should obtain a license as required under the Contract Labour (regulation and Abolishing) Act-1970.He shall comply with the safety regulations.

2.5Environment related provisions1. Complete compliance with the statutory requirements for pollution control / pollution prevention as per requirement of MSW Rules 2000 and conditions imposed by State PCB/CPCB and other Government Agencies & regulatory authorities.

3. Financial

3.1Maximum period for achieving financial close180 days

3.2Nature and extent of capital grant/ subsidy contemplatedPPP contractor will bring minimum 30% of approved project cost towards add on technologies and better of project facilities

3.3Bidding parameter (capital subsidy or other parameter)

3.4Provisions for change of scope and the financial burden thereof

3.5Concession fee, if any, payable by the Concessionaire

3.6User charges/ fee to be collected by the Concessionaire

3.7Indicate how the user fee is to be determined; the legal provisions in support of user fee (attach the relevant rules/

notification); and the extent and nature of indexation for inflation

3.8Provisions, if any, for mitigating the risk of

lower revenue collection

3.9Provisions relating to escrow account, if any

3.10Provisions relating to insuranceSuccessful operator will take insurance for the project during Installation and Commissioning Phase and subsequently for entire Concession Period for value of minimum Rs15.00 Crores.

3.11Provisions relating to audit and certification of claims

3.12Provisions relating to assignment/ substitution

rights relating to lenders

3.13Provisions relating to change in law

3.14Provisions, if any for compulsory buy-back of assets upon termination/ expiryAll the assets created under this contract will remain the property of the successful bidder during the concession period and will be transferred to the Municipal Body at the end of the concession period. All such assets will be in operating conditions and well maintained.

3.15Contingent liabilities of the government

(a) Maximum Termination Payment for Government/ Authority Default

(b) Maximum Termination Payment for Concessionaire Default

(c) Specify any other penalty, compensation

or payment contemplated under theagreement

4. Others

4.1Provisions relating to competing facilities, if

any

4.2Specify the proposed Dispute Resolution Mechanism

5.3Specify the proposed governing law and jurisdiction