IN KANPUR
JUNE 2009
Nodal Agency
Project Consultants
DEVELOPMENT OF SUPER SPECIALTY HOSPITAL IN KANPUR as part of IURP Uttar Pradesh, India on
DBFOO basis
Government of Uttar Pradesh proposes development of Super Specialty Hospital in Kanpur. Awas Bandhu UP is
the nodal agency for the project.
There is a need to develop a Super Specialty Hospital in Kanpur. The Hospital is expected to be developed as
per the International standards/ Indian Public Health Standards. It is envisioned to provide Health care facilities in
selected disciplines. The broad scope of work is to develop of a 500 bed hospital at a site identified by KDA. The
Hospital may be upgraded to have research institutes along with training courses for nursing and paramedical
staff.
Kanpur Development Authority has identified and earmarked total 15 acres of plot situated opposite to Indian
Institute of Technology (IIT) Kanpur along the proposed Mandhana-Bhounti Byepass. The site shall be given on
lease for a concession period of 90 years and the lease is renewable twice during the concession period at every
30 years.
The successful bidders shall Design, Build, Finance, Own and Operate Super Specialty Hospital on the 15 acre
of plot earmarked for the purpose over the concession period of 90 years, after which the facility along with the
site shall be transferred to the Concessioning Authority. The maximum FAR allowable is 2.5 as per the prevailing
Development Control Regulations of KDA.
GoUP invites bids from the eligible developers either on their own or in consortium of up to four members for the
project in response to this RFQ cum RFP document.
The Eligibility Criteria and other terms and conditions are given in RFQ cum RFP Document. The RFQ cum RFP
may be obtained at the address given below on payment of Rs 25,000/- (Rupees Twenty Five Thousand only),
through account payee Demand Draft in favour of Awas Bandhu payable at Lucknow. The RFQ cum RFP may
also be downloaded from the web http//awas.up.nic.in and the Demand Draft as mentioned above shall be
submitted along with the Proposal.
The last date for submission of RFQ cum RFP is 1300 Hrs on 03.07.2009.
For further details please contact
The Executive Director, The Project Coordinator,
Awas Bandhu, Uttar Pradesh, Darashaw & Co. Pvt. Ltd.,
Housing & Urban Planning Department, 12th Floor, Regent Chambers,
Government Of Uttar Pradesh 208, Nariman Point, Mumbai 400021
Ist Floor, Janpath Market, Lucknow-226001 Tel: 022-66388900 Fax: 022-67470549
Tel: 0522-2237161 Fax:0522-2612098, team-consultancy@darashaw.com
E-Mail: awasbandhu@gmail.com,
Web : awas.up.nic.in
RFQ cum RFP for Design, Build, Finance, Own and Operate Super Speciality Hospital in Kanpur
Disclaimer
1. Though adequate care has been taken in the preparation of this RFQ cum RFP Document (Volumes I and
II), the Bidder should satisfy himself that the Document is complete in all respects including its legal
validity.
2. Neither Awas Bandhu, UP nor their employees or consultants make any representation or warranty as to
the accuracy, reliability or completeness of the information in this RFQ cum RFP (Volumes I and II) and it
is not possible for Awas Bandhu, UP to consider the investment objectives, financial situation and
particular needs of each party who reads or uses this document. Each prospective Bidder should conduct
his own investigations and analysis and check the accuracy, reliability and completeness of the
information in this RFQ cum RFP and obtain independent advice from appropriate sources.
3. Neither Awas Bandhu, UP nor their employees or 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, expense or damage which may arise from or be incurred or suffered in
connection with anything contained in this RFQ cum RFP, any matter deemed to form part of this RFQ
cum RFP, the award of the Project, the project information and any other information supplied by or on
behalf of Awas Bandhu UP, KDA or their employees, any consultants or otherwise arising in any way from
the selection process.
4. Awas Bandhu, UP reserves the right to reject any or all of the proposals submitted in response to this
RFQ cum RFP at any stage without assigning any reasons whatsoever.
5. Awas Bandhu, UP reserves the right to change any or all of the provisions of this RFQ cum RFP prior to
Proposal Due Date. Such changes would be intimated to all the parties being issued this RFQ cum RFP.
6. Awas Bandhu, UP reserves the right to change, modify, add to or alter the Selection Process including
inclusion of additional evaluation criteria at later stage, which in no event shall be later than the Proposal
Due Date. Any change in the Selection Process shall be intimated to all concerned parties.
Table of Contents
6.26 Clarifications 20
6.27 Qualification and Notification 20
6.28 RFQ cum RFP Document 20
6.29 Fees of the Consultants 20
7 Other Instructions 22
7.1 General Provisions 22
7.2 Confidentiality 22
7.3 Communication between Bidders and Awas Bandhu, UP 23
7.4 Interpretation of Documents 23
7.5 Enquiries concerning the RFQ cumRFP / Draft Concession Agreement 23
7.6 Amendment of RFQ cum RFP 24
7.7 Submission of Bids 24
7.8 Bid Opening 24
7.9 Earnest Money Deposit 24
7.10 Performance Security 25
7.11 Sources of Funds 26
8 DESCRIPTION OF THE SELECTION PROCESS 27
8.1 CRITERIA FOR EVALUATION 27
8.2 Evaluation of Financial Proposal (Assessment of Envelope B) 30
9 RULES REGULATING THE CONSORTIUM 31
9.1 Consortium of Bidders 31
10 METHODOLOGY & CRITERIA FOR EVALUATION OF FINANCIAL BID (ENVELOPE
B) 33
10.1 Financial Proposal Evaluation 33
APPENDICES 35
APPENDIX 1A FORMAT FOR POWER OF ATTORNEY FOR SIGNING PROPOSAL 35
APPENDIX 1B FORMAT FOR POWER OF ATTORNEY FOR LEAD MEMBER OF
CONSORTIUM 36
APPENDIX 2 DETAILS OF BIDDER 37
APPENDIX 3 FORMAT FOR LETTER OF APPLICATION 38
APPENDIX 4 INFORMATION RELATED TO EXPERIENCE 40
APPENDIX 5 FORMAT FOR ESTABLISHING FINANCIAL CAPABILITY OF THE BIDDER43
APPENDIX- 6 (INTENTIONALLY LEFT BLANK) 45
APPENDIX 7 GUIDELINES FOR PROVIDING INFORMATION RELATED TO FINANCIAL
CAPABILITY 46
APPENDIX 8 FORMAT FOR ANTI-COLLUSION CERTIFICATE 48
APPENDIX 9A FORMAT FOR PROJECT UNDERTAKING 49
APPENDIX 9B FORMAT FOR PROJECT UNDERTAKING [In case of Consortium] 50
APPENDIX 10 FORMAT FOR MEMORANDUM OF UNDERSTANDING (MOU) 51
2 Salient Information
Following are the salient aspects of information regarding this bid document (RFQ cum RFP):
MILESTONE DATE
Issue of RFQ cum RFP Document to Bidders 04.06.2009
Last Date for request for clarifications/suggestions 25.06.2009 at 1000 hrs
Last Date for Submission up to 13:00 hrs. (Proposal Due 03.07.2009 at 1300 hrs
Date) at the office of the
Executive Director,
Awas Bandhu, Uttar
Pradesh, Housing &
Urban Planning
Department,
Government Of Uttar
Pradesh
Ist Floor, Janpath
Market,
Lucknow-226001
Opening of Envelope A 03.07.2009 1400 hrs
Opening of Envelope B 06.07.2009 1400 hrs
3 Abbreviations
ABUP Awas Bandhu, UP
BEC Bid Evaluation Committee
COD Commercial Operation Date
EMD Earnest Money Deposit
EOI Expression of Interest
EPC Engineering, Procurement and Construction
FDI Foreign Direct Investment
FAR Floor Area Ratio
GoI Government of India
GoUP Government of Uttar Pradesh
Ha. Hectare or Hectares
JCI Joint Commission International
LCM Lead Consortium Member
LOI Letter of Intent
LOA Letter of Award
KDA Kanpur Development Authority
MOU Memorandum of Understanding
RFP Request for Proposal
RFQ Request for Qualification
SPV Special Purpose Vehicle
TEFR Techno-Economic Feasibility Report
UP Uttar Pradesh
4 Definitions
Associates
For a Bidding Company or a Consortium Member, only those entities would be Associates who control and is
controlled by or is under the common control with such applicant/consortium member.
Bid Document
Bid Document shall mean any document issued by Awas Bandhu, UP as part of the Bid Process.
Bid Process
Bid Process shall mean various activities taken up by Awas Bandhu, UP leading up to the selection of the
Successful Bidder/s.
Bidder(s)
Bidder(s) shall mean Bidding Company or Bidding Consortium that has submitted a Proposal in response to this
RFQ cum RFP Document.
Bidding Company
Bidding Company shall mean a corporate entity (Public or Private Limited) registered under the Companies Act,
1956 or equivalent International law1 satisfying the basic eligibility criteria of bidding.
Bid Validity Period
Bid Validity Period shall mean the period stipulated in Clause 6.13 of Section 6 of this RFQ cum RFP Document, for
which the Proposal submitted is valid.
Bank
Bank shall mean any SBI, Nationalised Bank and Indian Scheduled Commercial Bank whose networth is not less
than Rs. 300 crores as on 31st March 2008.
Consortium
Consortium shall mean Group of Entities that have jointly submitted the proposal for the project.
Consortium Member
Each entity in the Bidding Consortium shall be referred to as a Consortium Member.
Earnest Money Deposit
Earnest Money Deposit or Bid Security shall have the meaning as referred in Section 7.10 of this document.
Effective Date
Effective Date means the date on which all the Conditions Precedent are satisfied or waived in writing by both the
Parties as per the Concession Agreement.
1 Relevant Act as applicable has to be provided along in Envelope A with extract of relevant sections attached to the Act.
Letter of Acceptance
Letter of Acceptance shall have a meaning as referred in Appendix 13 of this Document. It means Letter submitted
by the bidder accepting the Award or Intention to Award the Project to the bidder.
Letter of Commitment
Letter of Commitment shall have a meaning as referred Appendix 14 of this Document.
Project
Project shall mean Design, Build, Finance, Own and Operate of Super Specialty Hospital in Kanpur more
specifically as mentioned under Clause 5.3 of Section 5.
Proposal
Proposal shall mean the Technical and Financial Proposal to be submitted by the Bidders in response to this
Request for Qualification cum Request for Proposal.
Responsiveness / Non-responsive
Responsiveness / Non-responsive shall mean as referred in Clause 6.25 of Section 6 of this document.
Request for Qualification cum Request for Proposal (RFQ cum RFP)
Request for Qualification cum Request for Proposal shall mean this document issued to Bidders inviting the
submission of Proposal to Design, Build, Finance, Own and Operate of Super Specialty Hospital in Kanpur.
Selection Process
Selection Process shall have the same meaning as the 'Bid Process'.
Subsidiary/Subsidiaries
For a Bidding Company or a Consortium Member, Subsidiary / subsidiaries shall mean only those entities in which
the Bidding Company / Consortium Member hold(s) more than 50% of the voting securities directly.
Successful Bidder
The Successful Bidder shall mean the bidder who has been issued Letter of Intent by Awas Bandhu, UP and Letter of
Award by KDA indicating him as the Successful Bidder.
5 INTRODUCTION
5.1 Background of Kanpur
Kanpur is the biggest city of the
State of Uttar Pradesh, sprawling
over an area of 260 sq km. It is
also the main centre of
commercial and industrial
activities in state. It is known for
its cotton and woolen textile and
leather industries. Apart from
leather and textile industry, the
fertilizer, chemicals, two
wheelers, soaps, Pan Masala,
hosiery and engineering
industries are also operating
prominently in the city. Kanpur is
situated on bank of holy river
Ganga and is about 126 meters
above the sea level.
To fulfil its role, the Authority seeks to coordinate in accordance with a comprehensive Master Plan along with the
work of various other agencies involved in the creation and extension of urban infrastructure.
Taking forward this development process and to redress the lack of Super Specialty Hospital in the State of UP, KDA
has proposed to set-up a 500 Bed Super Specialty Hospital in Kanpur.
Government of Uttar Pradesh (GoUP) through Awas Bandhu, UP, Lucknow intends to undertake various
infrastructure projects for implementation on Public Private Partnership (PPP) Mode under Integrated Urban
Rejuvenation Plan (IURP) scheme for selected cities of the state. Projects to be developed on PPP mode are being
identified, developed and implemented in various cities of Uttar Pradesh namely Ghaziabad, Meerut, Agra, Aligarh,
Allahabad, Varanasi, Lucknow and Kanpur.
Under this a need to develop a Super Specialty Hospital in Kanpur was felt. The Hospital is expected to develop as
per the International standards/ Indian Public Health Standards. It is envisioned to provide Health care facilities in
selected disciplines and free/ subsidized treatment to BPL population within the city and the region. The broad scope
of work is to develop of a 500 bedded hospital at a site identified by KDA. The Hospital may be upgraded to have
super specialty courses along with training courses for nursing and paramedical staff.
Kanpur Development Authority has identified and earmarked total 15 acres of plot situated opposite to Indian Institute
of Technology (IIT) Kanpur along the proposed Mandhana-Bhounti Byepass. The site shall be given on lease for a
concession period of 90 years and the lease is renewable twice during the concession period at every 30 years.
The successful bidders shall Design, Build, Finance, Own and Operate Super Specialty Hospital on the 15 acre of
plot earmarked for the purpose over the concession period of 90 years, after which the facility along with the site shall
be transferred to the Concessioning Authority.
The maximum FAR allowable is 2.5 as per the prevailing Development Control Regulations of KDA.
Awas Bandhu, UP, through this RFQ cum RFP invites the Pre-Qualified bidders to participate in the bid to
Design, Build, Finance, Own and Operate Super-Specialty Hospital in Kanpur.
The successful bidder shall construct following facilities and get all the approvals for commercial operations within 36
months from the effective date:
To build and operate 500-bedded Super-specialty hospital as per the International standards / Indian Public
Health Standard (IPHS). However, the developer is allowed to construct 250 bed capacity in initial three
years and remaining 250 bed capacity in next two years.
Atleast four specialties from the following specialties shall be developed in the Hospital.
.
Departments / Specialties
Trauma Care
Cardio Thoracic care unit (ICCU- Intensive Cardiac Care Unit)
Intervention specialty and Cerebral Intervention
Kidney Transplant (Hemodialysis)
Neurology unit
Obs & Gynecology
Pediatric unit (with NICU Neonetal Intensive Care unit)
Dental unit for surgery
Ophthalmology and ENT
Cancer unit
The hospital shall also have a round the clock emergency unit.
Optional Facilities
Service Apartments can be provided within the hospital complex to cater to the needs of the patients and
their relatives.
Institute offering Laboratory Technician courses, Nursing courses can also be developed within the hospital
complex.
Restaurants, ATMs, Pharmacy for the convenience of the patients can be provided within the hospital
complex.
Research Institutes can also be setup in the hospital complex.
Helipad for picking up patients may be provided.
All the facilities are to be developed as per the minimum quality standards set out for the purpose in the technical
schedule appended as Annexure B with this document.
While undertaking development of the Project, the Successful Bidder shall adhere to latest amended National
Building Code of India, other relevant IS Codes and practices, Development Control Rules, FAR Limits, statutory
requirements, guidelines and approvals of the Health Department of the Government of Uttar Pradesh, laws of land,
the principles of good industry practices and any other norms as applicable from time to time. The Successful Bidder
shall also take into account the guidelines issued by the State Health Department and obtain the necessary
approvals.
The successful bidder shall be responsible for all the clearances as may be required for the development and
operations of the project. Government, through UP Awas Bandhu will facilitate for single window clearance for all the
necessary approvals for the project from various authorities. The project shall be ready for operation after taking all
the clearance(s) within 36 months of the effective date.
For the purpose of providing subsidized health services to poor, the Concessionaire shall provide 1% of the revenues
of the hospital every year to the State Health Department. Revenue of the Hospital shall mean Registration Fees,
Hospital Bed Revenue, Diagnostics Laboratory tests, Consultation Charges, Operation Charges and lease rental
from the commercial facilities like Bank, Restaurant etc. Revenue of the Hospital shall not include revenue from
Pharmacy, Service Apartments, Training Institutes and Consumables cost directly reimbursed by the patients.
The project is estimated to cost Rs 2,40,00,00,000/-( Rupees Two hundred and Forty Crores Only).
In consideration of the designated plot of land given on lease for a period of 90 years, the Successful bidder shall
quote the percentage revenue that will be shared with the Concessioning Authority beginning from the eleventh year
of signing of the agreement.
The Concessionaire shall pay to the Concessioning Authority an annual lease rental equivalent to 2% of the land cost
(considered as present circle rate) per acre of land on the 15 acre land earmarked for Super Specialty Hospital for
the entire concession period of 90 years.
Bidders may please note that in case of failure of the bidder in completion of the project, as mentioned in the scope
of work and as per the minimum standards and specifications as per the technical schedule appended with this
document as Annexure B, within 36 months, the performance security furnished on the execution of the Agreement
shall be forfeited by KDA and blacklisted, as per the Provision of the draft Concession agreement. Additional
measures as the Govt. may deem fit would be applicable on such a bidder.
However, bidders may note that in case the work is being executed as per the minimum technical specifications in
Annexure B but delayed due to Force Majeure Event as defined in the Draft Concession Agreement, the remedies
pertaining to such Force Majeure Event shall be applicable as per the provisions in the Draft Concession Agreement.
6.1.1 ABUP wishes to receive Applications from experienced and capable Bidders for proposal in respect of the
Project(s)..
6.2.1 The Bidder may be a single company or a group of maximum 4 companies (hereinafter referred to as
Consortium), coming together to implement the Project. The term Bidder used hereinafter would therefore
apply to both a single entity and/or a Consortium.
6.2.2 The Bidder should submit a Power of Attorney as per the format enclosed at Appendix 1A, authorizing
the signatory of the Application to commit the Bidder.
6.2.3 Applications submitted by a Consortium should comply with the following additional requirements:
b. The Application should contain the information required for each member of the Consortium
c. The purchaser of the RFQ CUM RFP document must be the Bidder itself or member of the consortium
submitting the application.
d. An individual Bidder cannot at the same time be member of a Consortium applying for this Project. Further,
a member of a particular Consortium cannot be member of any other Consortium applying for this Project;
an undertaking towards this end needs to be submitted by all members.
e. Members of the Consortium shall nominate one member as the Lead Member. The nomination shall be
supported by a Power of Attorney as per the format enclosed at Appendix 1B
f. Members of the Consortium shall enter into a Memorandum of Understanding (MOU) as per the format
enclosed at Appendix 10 and duly notarized for the purpose of making the Application and submitting a
Proposal. The MOU shall, inter alia:
i. Convey the intent to form a Special Purpose Vehicle with shareholding commitment(s) as stipulated in this
document, which would enter into the Concession Agreements and subsequently carry out all the
responsibilities as Concessionaire in terms of the Concession Agreement, in case the Concession to
undertake the Project is awarded to the Bidder.
ii. Clearly outline the proposed roles and responsibilities of each member in case of Consortium at each
stage,
iv. include a statement to the effect that all members of the Consortium shall be liable jointly severally for the
execution of the Project in accordance with the terms of the Concession Agreement
g. In case of consortium, the Lead Member shall hold at least 51% share in the shareholding.
h. The other members of the consortium shall hold a minimum of 11% share each in the shareholding.
6.2.4 Notwithstanding anything stated elsewhere in this document, ABUP shall have the right to seek updated
information from the Bidders to ensure their continued eligibility. Bidders shall provide evidence of their
continued eligibility in a manner that is satisfactory to ABUP. Bidder may be disqualified if it is determined
by the ABUP, at any stage of the process, that the Bidder will be unable to fulfil the requirements of the
Project or fails to continue to satisfy the Eligibility Criteria. Supplementary information or documentations
may be sought from Bidders at any time and must so be provided within a reasonable time frame as
stipulated by ABUP.
6.2.5 Any entity which has been barred or disqualified either by GOI or GOUP or their Departments or agencies
from participating in projects (BOT or otherwise) and such disqualification subsists as on the Application
date, would not be eligible to submit an Application, either individually or as member of a Consortium.
Bidder to submit an affidavit to this effect
6.3.1 No change in Consortium Members shall be allowed till the completion of the project or a minimum of 3
years (whichever is later). However, the Lead Consortium Member shall not be allowed to be changed over
the entire Concession Period and shall continue to hold 51% stake in the Consortium till the start of
Commercial Operations. The Lead Consortium Member shall be allowed to dilute the stake after the
commercial operations date with the approval of the Concessioning Authority such that the stake of the
Lead Consortium Member in the consortium shall not fall below 26% at any time till the end of Concession
Period.
Each Bidder shall submit only one (1) Application in response to this RFQ cum RFP. Any Bidder, which submits or
participates in more than one Application will be disqualified and will also cause the disqualification of the
Consortiums / Bidder of which it is a member as the case may be.
The Bidder shall be responsible for all of the costs associated with the preparation of its Application and its
participation in the Selection process. ABUP will not be responsible or in any way liable for such costs, regardless of
the conduct or outcome of the qualification process.
6.6.1 It is desirable that each Bidder submits its Application after inspecting the sites; and ascertaining for itself
the location, surroundings, access, transport, right of way or any other matter considered relevant by it.
6.6.2 Site visit may be facilitated by ABUP. A prospective Bidder may notify ABUP in writing 3 days prior to
planned visit. ABUP would endeavour to facilitate the site visit depending upon the availability of the
concerned officials.
(a) Made a complete and careful examination of the RFQ CUM RFP and
(b) Received all relevant information requested from ABUP.
6.6.4 ABUP shall not be liable for any mistake or error on the part of the Bidder in respect of the above.
6.7.1 Notwithstanding anything contained in this RFQ cum RFP, ABUP reserves the right to accept or reject
any Application and to annul the bidding process and reject all Applications / Proposals, at any time
without any liability or any obligation for such acceptance, rejection or annulment, without assigning any
reasons.
(b) The bidder does not respond promptly and thoroughly to requests for supplemental information required for the
evaluation of the Application.
Such misrepresentation / improper response would lead to the disqualification of the Bidder. If the Bidder is a
Consortium, then the entire Consortium would be disqualified / rejected.
The RFQ cum RFP Document comprises the contents as given in the Table of Contents and would additionally
include any Addenda issued in accordance with the provisions of this Document.
6.9 Clarifications
Interested parties may address their queries relating to the RFQ cum RFP Document by email only at
awasbandhu@gmail.com with a mandatory copy to consultants at team-consultancy@darashaw.com. The queries
should reach the above latest by 1000 hrs on 25.06.2009.
ABUP would endeavour to respond to the queries by the date mentioned in the Schedule of Bidding Process. The
responses will be sent by fax/ email.
6.10.1 At any time prior to the deadline for submission of Application, ABUP may, for any reason,
whether at its own initiative or in response to clarifications requested by any Bidder, modify the
RFQ cum RFP Document by the issuance of an Addendum.
6.10.2 Any Addendum thus issued will be sent in writing to all those who have purchased the RFQ cum
RFP Document and shall also be uploaded on www.awas.up.nic.in
6.11 Language
The Application and all related correspondence and documents should be written in the English language.
Supporting documents and printed literature furnished by Bidder with the Application may be in any other language
provided that they are accompanied by appropriate translations of the pertinent passages in the English language
duly certified appropriately. Supporting materials, which are not translated into English, may not be considered. For
the purpose of interpretation and evaluation of the Application, the English language translation shall prevail.
6.12 Currency
The currency for the purpose of the Application shall be the Indian Rupee (INR). The conversion to Indian Rupees
shall be clearly indicated in the Appendix 4. In all such cases, the original figures in the relevant foreign currency and
the INR equivalent thereof must be given. The exchange rate(s) applied shall be clearly stated. The conversion to
Indian Rupees shall be based on the closing exchange rate published by the Reserve Bank of India as on 31st
December 2008. ABUP reserves the right to use any other suitable exchange rate for the purposes of uniform
evaluation for all Bidders.
Applications shall remain valid for a period not less than 180 days from the Application Due Date. ABUP reserves the
right to reject any Application, which does not meet this requirement.
6.14.1 The Bidder would provide all the information as per this RFQ cum RFP Document. ABUP would
evaluate only those Applications that are received in the required format and are complete in all
respects.
6.14.2 The Bidder shall prepare one original of the documents comprising the Application and clearly
marked "ORIGINAL". In addition, the Bidder shall make two copies of the Application, clearly
marked "COPY". In the event of any discrepancy between the original and the copies, the original
shall prevail.
6.14.3 The Application and its copies shall be typed or written in indelible ink and each page shall be
initialled and stamped by the Bidder. All the alterations, omissions, additions, or any other
amendments made to the Application shall be initialled by the person(s) signing the Application.
6.15.1The First Envelope should be marked as Envelope A (original and copy) and shall contain:
a) Power of Attorney for the signing authority as per the format enclosed at Appendix 1A,
b) Power of Attorney for the Lead member of the consortium as per the format enclosed at Appendix
1B, in case of Consortium;
e) Completed Format for Experience as in Appendix 4 (BRS 1 to 2), along with supporting
documents.
f) Completed Format for Financial Capability Evaluation as in Appendix 5 (BRS3 &4) and Appendix
7, along with supporting documents.
6.15.2 The second Envelope should be marked as Envelope B and shall include:
Financial Proposal as per Appendix-15.
Please note that Awas Bandhu, UP retains the right to ask for any further information/ clarification during the Bid
Process.
6.15.3 The Bidder shall also enclose in a separate envelope, enclosed in the outer envelope, a demand draft for
Rs 25,000/- (Rupees Twenty Five Thousand Only), through account payee Demand Draft in favour of
Awas Bandhu payable at Lucknow on any scheduled bank towards non refundable Document Fee.
Application unaccompanied by this demand draft will not be considered for evaluation and short-listing.
Both the Envelopes A and B shall be put together in one envelope and be sealed properly. The Bidder shall
seal the original and copy duly marking the envelopes as "ORIGINAL" and "COPY" the envelopes shall then be
sealed in an outer envelope superscribing RFQ cum RFP for DEVELOPMENT OF SUPER SPECIALTY
HOSPITAL IN KANPUR, UTTAR PRADESH and also the name(s) of bidder/consortium
If the envelope is not sealed and marked as instructed above, ABUP assumes no responsibility for the misplacement
or premature opening of the contents of the Application submitted.
Applications should be submitted before 1300 hours IST on the Application Due Date mentioned in the Schedule of
Bidding Process, at the address provided above in the manner and form as detailed in this RFQ cum RFP.
Applications submitted by either facsimile transmission, telex or e-mail will not be considered for evaluation and short
listing. However ABUP reserves the right to extend the Application Due Date and Time, at any time prior to opening
of RFQ cum RFP Applications; in such cases the applications received prior to such extension shall not be opened.
Further if the RFQ cum RFP document is materially modified along/during such extended period, the RFQ cum RFP
application received prior to extension shall be returned to the applicants and appropriate time shall be allowed for
resubmission of the Applications.
Applications received after the Application Due Date shall not be considered.
ABUP would open the Applications after 1400 hours IST on the Application Due Date mentioned in the Schedule of
Bidding Process, for the purpose of evaluation.
ABUP would subsequently examine and evaluate Applications in Accordance with the criteria set out in Section 8.
ABUP reserves the right to call for supporting documentation to verify the data provided by Bidders, at any time
during the bidding process. The Bidder in such cases would need to provide the requested clarification / documents
promptly and within the stipulated time failing which the Bidder is liable to be disqualified at any stage of the bidding
process.
6.24 Confidentiality
Information relating to the examination, clarification, evaluation, and recommendation for the short-listed Bidders
shall not be disclosed to any person not officially concerned with the process. ABUP will treat all information
submitted as part of Application in confidence and would require all those who have access to such material to treat
the same in confidence. ABUP will not divulge any such information unless it is ordered to do so by any authority that
has the power under law to require its disclosure.
6.25.1 Prior to evaluation of Applications, ABUP will determine whether each Application is responsive to the
requirements of the RFQ cum RFP. An Application shall be considered responsive if the Application:
a) is received by the Application Due Date (Clause 2.16) including any extension thereof pursuant to
Clause 2.17
b) is accompanied by MOU in case of a Consortium ( Appendix 10), if applicable, duly supported by
Board resolution and charter documents
c) contains information required as per Appendix 3, 4(BRS 1 to2), 5(BRS 3 to 4) and 7.
d) It is accompanied by Bid Document Fee of Rs. 25,000/-
e) It is accompanied by a valid Earnest Money Deposit ;
f) Letter of Undertaking for the Success fee of 1% of project cost (net of taxes) to the consultants
and Consultancy Fees as per Exhibit 10.
g) Letter of Acceptance as per Appendix-13
ABUP reserves the right to reject any Application which is non-responsive and no request for alteration, modification,
substitution or withdrawal shall be entertained by ABUP in respect of such Applications.
6.26 Clarifications
To facilitate evaluation of Applications, ABUP may at its sole discretion, seek clarifications in writing from any Bidder
regarding its Application.
After the evaluation of Applications, ABUP would announce a list of successful Bidders (Bidders) who meet
the Qualification Criteria. At the same time, ABUP would notify the other Bidders that their Applications
have been unsuccessful.
Darashaw & Company Private Limited has been appointed as a Consultant to assist Awas Bandhu, UP in handling
the bid process management for the selection of the Successful bidder.
The Success Fee of 1% of the project cost exclusive of taxes at applicable rates has been agreed by Awas Bandhu
UP, to be paid to Darashaw & Company Private Limited for providing the above mentioned advisory services. The
Success Fee shall be net of all taxes (1% of Project Cost is net of all taxes).
Every bidder shall therefore submit along with the Proposal, an undertaking as per Appendix-12 for the Success
Fees of the Consultants (calculated at the rate of 1% of the project cost as mentioned in Section 5.4 of this RFQ cum
RFP document, plus taxes as applicable) and the Consultancy fees of Rs. 1, 00,000/- (Rupees One Lakh only) to be
reimbursed to Awas Bandhu, UP.
This success fee shall be paid in the form of a Demand Draft issued by a Bank in favour of Darashaw & Company
Private Limited. Such a Demand Draft shall be extendable for a further period of 6 months by replacing it with a fresh
Demand Draft after 5 months of its issue if required and asked by Awas Bandhu, UP due to delay in signing of
Concession Agreement or otherwise beyond a period of 5 months from the date of issue of the said Demand Draft.
The Success Fee in the form of Demand Draft shall be handed over to Awas Bandhu, UP by the Successful Bidder
before the signing of the Concession Agreement. The successful bidder shall pay and deposit the amount of
withholding or other taxes to the credit of the relevant tax authorities and issue a certificate of deduction and payment
to Darashaw & Company Private Limited.
The Consultancy Fee of Rs. 1,00,000/- (Rupees One Lakh only) paid by Awas Bandhu,UP to the Consultants will be
reimbursed by the bidder to Awas Bandhu, UP within 2 weeks of signing the concession agreement between KDA
and Bidder, on receipt of invoice from Awas Bandhu, UP.
7 Other Instructions
Awas Bandhu, UP shall ensure that the rules for the Bid Process for the Project are applied in a non-discriminatory,
transparent and objective manner. Awas Bandhu, UP shall not provide to any Bidder, information with regard to the
Project or the Bidding Process, which may have the effect of restricting competition.
Each Bidder shall warrant by its Bid that the contents of its Bid have been arrived at independently. Any Bid which
has been arrived at through consultation, collusion, or understanding with any other prospective Bidder for the
purpose of restricting competition shall be deemed to be invalid and the Bidder shall lose its Earnest Money Deposit.
The anti-collusion certificate submitted at the time of submission of RFQ CUM RFP shall be applicable.
7.1.3 Inducements
Any effort by a Bidder to influence processing of Bids or award decision by Awas Bandhu, UP or any officer, agent or
Advisor thereof may result in the rejection of such Bidders Bid. In such a rejection of Bid, the Bidder shall lose its
Earnest Money Deposit.
7.2 Confidentiality
7.2.1 Awas Bandhu, UP shall treat all Bids and other documents, information and solutions submitted by Bidders
as confidential, and shall take all reasonable precautions that all those who have access to such material, treat this in
confidence. Awas Bandhu, UP will not divulge any such information unless it is ordered to do so by any authority,
which has the power to require its release.
7.2.2 Each Bidder shall, whether or not it submits a Bid, treat the RFQ cum RFP Documents and other
documents, information and solutions provided by Awas Bandhu, UP in connection with the Project or the bidding
proceedings as confidential for a period of five (5) years from the issuance of the RFQ cum RFP Documents. During
this period, the Bidder shall not disclose or utilize any such documents, information without the written approval of
Awas Bandhu, UP or as required by law or any governmental authority.
7.2.3 Awas Bandhu, UP shall have the right to release the Bid information provided by the Bidders to its Advisors for
the purpose of Bid evaluation and negotiations. Each Bidder shall have the right to release these RFQ cum RFP
Documents and other Documents to its advisors and to financial institutions for the purpose of Bid preparation,
negotiations and financing. Both Awas Bandhu, UP and the Bidder shall ensure that their Advisors and/ or financial
institutions treat this information in confidence.
7.2.4 Any information relating to examination, clarification, evaluation and comparison of bids and
recommendations for the award of a contract shall not be disclosed to Bidders or any other person not officially
concerned with the Bid Process until the award to the Successful Bidder has been communicated, except of reasons
of public transparency.
All communication to the Bidder shall be sent to the Authorised Representative & Signatory at the addresses
mentioned in the covering letters to this RFQ cum RFP, unless Awas Bandhu, UP is advised otherwise.
Awas Bandhu, UP responses, including a description of the inquiry but without identifying its source, will
be sent to all the Bidder(s) and will qualify as an Addendum
The following information will be announced at the Bid Opening and recorded:
Bidders names
Names of Consortium Members
After the Bid Opening, information relating to the examination, clarification and evaluation of Bids and
recommendations concerning the Bid Award shall not be disclosed.
The Bidder shall submit an Earnest Money Deposit (EMD) for an amount of Rs.2,40,00,000/- (Rs. Two
Crores and Forty Lakhs only) along with its Proposal.
The Earnest Money Deposit shall be in the form of a Bank Guarantee from SBI or any Nationalised Bank or
Indian Scheduled Commercial Bank whose networth is not less than Rs. 300 crores as on 31st March 2008.
The EMD shall be valid for a minimum period of 90 days more than Bid Validity Period. Upon any extension
of the Bid Validity Period, the validity of the EMD shall be extended by the corresponding period.
Awas Bandhu, UP shall have the right to reject the Proposal, which does not include the Earnest Money
Deposit as non-responsive.
The EMD of Unsuccessful Bidders, except the second successful bidder will be returned within a period of
ten (10) days from the date of acceptance of Letter of Intent by the Successful Bidder. However, the EMD of
second successful bidder shall be returned on signing of the concession agreement by the successful
bidder.
The EMD of the Successful Bidder shall be returned on submission of Performance Security by the
Successful Bidder to the Concessioning Authority.
In addition to the above, Awas Bandhu, UP will promptly release EMD of all the Bidders in the event Awas
Bandhu, UP decides to terminate the Bidding Process.
The EMD shall be forfeited by Awas Bandhu, UP, in any of the following case:
The Bidder withdraws his bid after the Proposal Due Date
Successful Bidder fails to accept Letter of Intent
Successful Bidder fails to submit the Performance Security or
As per the provisions of Draft Concession Agreement
The performance security shall be provided within 15 days of issue of Letter of Award by KDA. The Performance
Security shall be released to the Successful Bidder as per provisions of the Draft Concession Agreement as follow:
25% of the Performance Security in the form of bank guarantee shall be released to the Concessionaire on the
issuance of Construction Completion Certificate by the Concessioning Authority. The next 25% of the Performance
Security in the form of bank guarantee shall be released to the Concessionaire on the start of Commercial Operation.
The balance 50% of the Performance Security in the form of bank guarantee shall remain in force and effect beyond
the period of six months from the date of the expiry of the Concession Period It shall be duly discharged and released
to the Concessionaire beyond the period of six months from the date of the expiry of Concession Period and transfer
of the Super Specialty Hospital to KDA.
If the Agreement is terminated due to any event other than a Concessionaire Event of Default, the Performance
Security shall, subject to the Concessioning Authoritys right to receive or recover amounts, if any, due from the
Concessionaire under this Agreement, be duly discharged and released to the Concessionaire.
Upon occurrence of a Concessionaire Default, the Concessioning Authority shall, without prejudice to its other rights
and remedies hereunder or in law, be entitled to invoke and appropriate the relevant amounts from the Performance
Security as Damages for such Concessionaire Default. Upon such invocation and appropriation from the
Performance Security, the Concessionaire shall, within 15 (fifteen) days thereof, replenish, in case of partial
appropriation, the Performance Security to its original level, and in case of appropriation of the entire Performance
Security provide a fresh Performance Security, as the case may be, and the Concessionaire shall, within the time so
granted, replenish or furnish fresh Performance Security as aforesaid failing which the Concessioning Authority shall
be entitled to terminate this Agreement in accordance with Article 13 of the Concession Agreement.
In case the successful bidder fails to furnish the Performance Security within the stipulated time as mentioned herein,
the LOA shall stand void and LOI may be issued to the second successful bidder.
The responsibility to raise funds for the Project would rest with the Successful Bidder.
The Bidder's competence and capability is proposed to be established by the following parameters:
8.1.2 On each of these parameters, the Bidder would be required to meet the evaluation criteria as detailed in this
Section . Bidders meeting all the criteria only will be qualified for further evaluation of the Proposal.
Technical Experience
For the purpose of this RFQ cum RFP, the applicant which could be single entity or the consortium shall be evaluated
on the following:
Eligible project:
a) Projects awarded/awarded and under execution/completed during the last seven financial years, not
before 31st March 2001, shall only be considered.
b) Only eligible projects should be considered for category (i) above for estimation of the technical
experience. An eligible project would have minimum project cost of at least Rupees 30 crores. For such
category (i) evaluation, core infrastructure projects would mean national highways and expressway,
airports, refineries and pipelines thereof, railways, ports, power, telecom, industrial parks, SEZs, Group
Housing and Integrated/Hi-tech Township.
c) More weightage will be given to experience of similar kind of infrastructure projects or category (ii)
above than to experience of infrastructure projects. Similar kind of Infrastructure: Hospitals and medical
institutions of 100 or more beds.
d) Experience as a consortium member will be considered in proportion to the equity holding in the project
at the time of execution /construction of the Project.
Documentary evidence in the form of a CA certificate (Appendix 4) must be submitted along with the proposal:
a) a certificate from the appropriate authorities of respective clients should be submitted in support of the
above in case of completed projects.
b) Relevant pages of the Contract Agreement in projects which are awarded and under execution as per
clause 8.1.2 (a). Relevant pages shall mean the Preamble of this CA detailing the Parties and the last
pages detailing the signatories.
c) A copy of the Work Order/Letter of Award in cases where the work has been awarded within three
months before the RFQ CUM RFP application due date.
The Bidder should furnish details of technical experience as on the date of submission of RFQ cum RFP as per
Appendix 4, Bid Response Sheet No. 1.
The Bidder must provide the necessary project specific information as per Appendix 4, Bid Response Sheet No. 2.
The financial capability of the bidder / consortium will be evaluated on the basis of
(a) Turnover
(b) Net Worth and
(c) Operating Profit
The Bidders should provide information regarding the above based on audited annual accounts.
The Application must be accompanied by the audited Balance Sheet and Profit and Loss Account of the Bidder (of
each member in case of a consortium) as per Appendix 5 for the last three (3) Financial Years not prior to 2004-05.
For the purpose of Qualification, the applicant a single entity or a consortium should demonstrate the Threshold
Financial Capability measured on the following criteria:
1. Minimum Turnover of Rs. 80 crores in each of the last three financial years not earlier than 2004-05
2. Minimum Net worth of Rs. 50 Crores as on 31st March 2008 as certified by Chartered Accountant.
3. Annual Operating Profit for 3 out of last 5 years not prior to 2002-03 should be positive.
4. Single entity bidder and all members of the consortium, if applicable, should be profit-making concerns for
the last 3 yrs not prior to 2004-05.
In case the Bidder is a Consortium, turnover, net worth and operating profit would be taken as an arithmetic
sum of net worth, turnover and operating profit of each member of the Consortium, calculated in the ratio of
their stake in the consortium/JV. The Consortium would be required to meet the threshold criteria on the
basis of aggregate figures subject to provisions of this Clause.
The technical and financial capacity of the bidder will be evaluated as per following:
8.1.8 For evaluation of technical experience as per clause 8.1.2 and of financial capability as per clause 8.1.5, the
financial and technical capabilities of the group companies/associates shall also be considered (for Projects
costing Rs.200.00 cr or more). For these purposes group companies/associates shall mean the following
For the purposes hereof, associate means, in relation to the applicant/consortium member a person who
controls and is controlled by or is under the common control with such applicant/consortium member. As
used in this definition, the expression control means, with respect to a person, which is company or
corporation, the ownership, directly or indirectly of more than 50% of the voting shares of such person, and
with respect to a person which is not a company or corporation, the power to direct the management and
policies of such a person, whether by operation of law or by contract or otherwise.
In case the RFQ CUM RFP applicant claims the technical and/or financial capacity of its group
companies/associates, the applicant shall necessarily submit documentary evidence in proof of such claims.
Such documentary evidence shall consist of CA certificates to support such capacity and also to establish
requisite Control relationship as defined in 8.1.8 above.
8.1.9 The scores for the technical and financial capacity evaluated as per clause 8.1.7 shall be added to arrive at
combined score of each applicant against maximum total marks of 100. Applicants scoring 50% or more in
the combined scores shall be eligible to be shortlisted for opening of Financial Proposal.
Financial Proposal of the Bidders only who have secured 50 % or more marks (Clause 8.1.7) on the evaluation of
envelope A would be evaluated. The evaluation criteria for assessment of the Financial Proposals are described in
Section 10 of this RFQ cum RFP. In case of ambiguity between the amount in words and figures the former shall
prevail.
Awas Bandhu, UP may also consider a bid submitted by a consortium of companies subject to the following
conditions:
1. The Consortium Members should not exceed four.
2. The foreign construction company / Developer may apply directly for the project or in association
with Indian Partner subject to the prevailing GoI, FDI and Indian Laws.
3. The members of the Consortium must form a Special Purpose Vehicle (SPV) and submit an MoU
to that extent as per Clause 9.1.3 below.
4. The commercial arrangements and roles and responsibilities between the consortium partners
should be specified in Memorandum of Understanding and duly executed copy of MOU should be
submitted along with the proposal. The MOU to be entered into between the Consortium Members
as per Appendix 10 of this RFP Document shall reflect the above.
5. The members of the consortium shall designate among themselves one member as Lead
Consortium Member.
6. Lead Consortium Member shall hold a minimum of 51% equity in the SPV and each of the other
Consortium Member shall hold a minimum of 11% in the SPV.
7. The Members of the Consortium shall execute Power of Attorney as per the format enclosed in
Appendix 1B of RFQ cum RFP Document.
8. A bidder who has applied for a project in its individual capacity or as a part of a consortium cannot
participate as a Member of any other Consortium applying for this Project.
No change in Consortium Members shall be allowed till the completion of the project or a minimum of 3 years
(whichever is later). The Lead Consortium Member shall not be allowed to be changed over the entire Concession
Period and shall continue to hold 51% stake in the Consortium till the start of Commercial Operations. However, the
Lead Consortium Member shall be allowed to dilute the stake after the commercial operations date with the approval
of the Concessioning Authority such that the stake of the Lead Consortium Member in the consortium shall not fall
below 26% at any time till the end of Concession Period.
Each Consortium Member shall have a minimum of 11% stake in the SPV formed. None of the Consortium Member
shall be allowed to dilute its stake till the completion of the project or a minimum of 3 years (whichever is later).
Lead Consortium Member shall invest minimum 51% of the equity towards the project. Lead Consortium Member
shall not be allowed to dilute its stake to a level below 51% till the start of Commercial Operations. The Lead
Consortium Member shall be allowed to dilute the stake after the commercial operations date with the approval of the
Concessioning Authority such that the stake of the Lead Consortium Member in the consortium shall not fall below
26% at any time till the end of Concession Period.
Any change in Consortium members may be allowed only if equal or better replacement is there. However, any
change in consortium shall be at the discretion of the Concessioning Authority.
This part of the Request for Qualification cum Request for Proposal provides information on the
methodology that will be used to evaluate the Financial Proposals received.
The Project will be awarded to such Eligible Bidder, which submits a responsive Bid and offers to enter into
a Draft Concession Agreement on the best financial terms with KDA.
These RFQ cum RFP Documents stipulate the minimum qualification for the Project. These RFQ cum RFP
Documents may be amended or technical and financial parameters of the Project may be changed by Awas
Bandhu, UP by issue of an Addendum. Such an Addendum will form part of these RFQ cum RFP
Documents and would be common for all the Bidders. Bid Evaluation Committee reserves the right to reject
the Proposals, which do not conform to the provisions stipulated in the RFQ cum RFP Documents.
Financial Proposal of only the Bidders who have achieved on 50% or more marks after evaluation of
Envelope A, would be opened and evaluated. The Financial Proposals of the non-responsive Bidders would
be returned to the respective Bidders unopened.
Bid Evaluation Committee shall evaluate and submit its recommendations to the competent authority.
BEC through Awas Bandhu, UP will open Envelope B of only who have achieved on 50% or more marks
after evaluation of Envelope A as per Section 8.1.7 of this document. Any bid containing caveats/ deviations
from RFQ cum RFP Documents is liable to be rejected by BEC/ Awas Bandhu, UP.
Bidders shall be ranked as per the percentage revenue quoted that will be shared with the Concessioning
Authority beginning from the eleventh year of signing of the agreement. The proposal of the bidder quoting
the highest percentage revenue sharing shall be considered as the proposal having highest financial score.
The proposal with highest financial score would be ranked first.
Awas Bandhu, UP shall issue a Letter of Intent to the Successful Bidder after obtaining approval from the
Competent Authority which needs to be accepted within 7 days of issuance of Letter of Intent.
KDA shall issue a Letter of Award (LOA) after getting the approval of the Board to the successful bidder
within 7 days of issuance of LOI by Awas Bandhu, UP.
The Successful Bidder shall enter into Concession Agreement with KDA for the implementation of the
project within 30 days of issuance of LOA.
The successful Bidder shall be required to give performance security before signing of the Concession
Agreement within 30 days of issue of Letter of Award. If the Successful Bidder fails in entering into contract
(Concession Agreement) as required without giving the required clarifications to the satisfaction of Awas
Bandhu UP, Awas Bandhu UP reserves the right to begin negotiations with the next highest ranked Bidder
and so on.
Awas Bandhu, UP also reserves the right to reject any Proposal if:
- At any time, a material misrepresentation is made or uncovered, or
- The Bidder does not respond promptly and thoroughly to the requests for supplementary
information required for evaluation of the Proposal.
- The Proposal deviates from the commercial parameters of these RFP Documents.
APPENDICES
POWER OF ATTORNEY
Know all men by these presents, we ____________ (name and address of the registered office) do hereby
constitute, appoint and authorize Mr./Ms. _____________________ (name and address of residence) who is
presently employed with us and holding the position of __________________ as our attorney, to do in our name and
on our behalf, all such acts, deeds and things necessary in connection with or incidental to our proposal for Super
Specialty Hospital in Kanpur on Design, Build, Finance, Own and Operate (DBFOO) basis in the state of Uttar
Pradesh, including signing and submission of all documents and providing information/ responses to Awas Bandhu,
Uttar Pradesh, Housing & Urban Planning Department, Government Of Uttar Pradesh, (ABUP), representing us in all
matters before GOUP, and generally dealing with ABUP in all matters in connection with our proposal for the said
Project.
We hereby agree to ratify all such acts, deeds and things lawfully done by our said attorney pursuant to this Power of
Attorney and that all such acts, deeds and things lawfully done by our aforesaid attorney shall and shall always be
deemed to have been done by us.
For ------------------------
(Signature)
(Name, Title and Address)
Accepted
________________ (Signature)
(Name, Title and Address of the Attorney)
Notes:
1. To be executed by the sole Bidder or the Lead Member in case of a Consortium duly supported .by a Board Resolution
2. 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.
3. Also, where required, the executants(s) should submit for verification the extract of the charter documents and documents such as a
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.
POWER OF ATTORNEY
Whereas Awas Bandhu, Uttar Pradesh, Housing & Urban Planning Department, Government Of Uttar Pradesh.,
(ABUP) has invited Proposals from interested parties for the Super Specialty Hospital in Kanpur on Design, Build,
Finance, Own and Operate (DBFOO) basis ("the Project").
Whereas, the members of the Consortium are interested in bidding for the Project and implementing the Project in
accordance with the terms and conditions of the Bid Document and other connected documents in respect of the
Project, and
Whereas, it is necessary under the Bid Document for the members of the Consortium to nominate one of them as the
Lead Member with all necessary power and authority to do for and on behalf of the Consortium, all such acts, deeds
and things as may be necessary in connection with or incidental to the Consortiums proposal for the Project.
NOW THIS POWER OF ATTORNEY WITNESSETH THAT:
We, M/s. _________________, and M/s. ________________ (the respective names and addresses of the registered
office) do hereby constitute, appoint and authorize M/s. __________________________ as the Lead Member of the
Consortium and as our attorney, to do on behalf of the Consortium, all or any of such acts, deeds or things as may be
necessary in connection with or incidental to the Consortiums proposal for the Project, including submission of
application/ proposal, participating in conferences, responding to queries, submission of information/ documents and
generally to represent the Consortium in all its dealings with Awas Bandhu, Uttar Pradesh, Housing & Urban
Planning Department, Government Of Uttar Pradesh., (ABUP), or any other Government Agency or any person, in
connection with the Project until culmination of the process of bidding and thereafter till the Concession Agreement is
entered into with Awas Bandhu, Uttar Pradesh, Housing & Urban Planning Department, Government Of Uttar
Pradesh., (ABUP).
We hereby agree to ratify all such acts, deeds and things lawfully done by Lead Member as our said attorney
pursuant to this Power of Attorney and that all acts deeds and things lawfully done by our aforesaid attorney shall
and shall always be deemed to have been done by us/Consortium.
Dated this _______ Day of ________ 200_.
(Executants)
(To be executed by all the members of the Consortium)
Company seal & stamp
Note:
1. 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.
2. The executant(s) should submit for verification the extract of the charter documents and documents such as Board Resolution and
Power of Attorney in favour of the person executing this Power of Attorney in favour of the Lead Member.
2 Brief description of the Company including details of its main lines of business and proposed roles
and responsibilities in this Project.
3 Name, Designation, Address and Phone Nos. of Authorized Signatory of the Bidder
(a) Name:
(b) Designation:
(c) Company:
(d) Address:
(e) Telephone No:
(f) E-mail Address:
(g) Fax No:
4 Details of individual (s) who will serve as the point of contact / communication for ABUP, within the
Company
(a) Name:
(b) Designation:
(c) Address:
(d) Telephone No.
(e) E-mail address:
(f) Fax No.
5 In case of Consortium:
(a) The information above (1-4) should be provided for all the Members of the Consortium
(b) Information regarding role of each Member should be provided as per table below:
Date: ------------
Super Specialty Hospital in Kanpur on Design, Build, Finance, Own and Operate (DBFOO) basis
Sir,
Being duly authorized to represent and act on behalf of _________________ (hereinafter referred to as "the Bidder"),
and having reviewed and fully understood all of the qualification requirements and information provided, the
undersigned hereby expresses its interest and apply for qualification for the Super Specialty Hospital in Kanpur.
We are enclosing our Proposal, in one Original and two Copies, with the details as per the requirements of the Bid
Document, for your evaluation.
The undersigned hereby also declares that the statements made and the information provided in the Proposal are
complete, true and correct in every detail.
We confirm that the application is valid for a period of 180 days from the due date of submission of application and
unconditional.
1. The Proposal is being submitted by (name of the biding Company/Lead Consortium member) who is the
Bidding Company/the Lead Consortium Member of the Bidding Consortium Comprising (mention the names
of the entities who are the Consortium Members), in accordance with the conditions stipulated in the RFP.
2. As the Bidding Company/Lead Consortium Member (in case of a Bidding Consortium), we hereby confirm to
abide by the roles and responsibilities assigned to us as per the MoU between the Consortium Members
and as outlined in this RFP.
3. We have examined in detail and have understood the terms and conditions stipulated in the RFP Document
issued by Awas Bandhu, UP and in any subsequent communication sent by Awas Bandhu, UP. We agree
and undertake to abide by all these terms and conditions. Our Proposal is consistent with all the
requirements of submission as stated in the RFP or in any of the subsequent communications from Awas
Bandhu, UP.
4. We confirm that there are no conditions in Envelope B: Financial Proposal.
5. The information submitted in our Proposal is complete, is strictly as per the requirements stipulated in the
RFP, and is correct to the best of our knowledge and understanding. We would be solely responsible for any
errors or omissions in our Proposal.
6. We confirm that we have studied the provisions of the relevant Indian laws and regulations required to
enable us to prepare this Financial Proposal and as required to Design, Build, Finance, Own and Operate
Super Specialty Hospital in Kanpur, in the event that we are finally selected.
7. We confirm that all the terms and conditions of the Proposal are firm and valid for acceptance for a period of
180 days from the Proposal due date.
Thanking You,
Yours Sincerely,
For and on behalf of : (name of the Bidding Company / Lead Consortium Member and the Company Seal)
Designation :
GUIDELINES
1. Member Code : NA= Not Applicable in case of a single entity Bidder, LM =Lead member, AM= Associate
Member
2. The Chartered Accountant issuing the certification for Experience of the Bidder must hold a valid Certificate
of Practice.
3. Any Bidder consisting of a Single Entity should fill in details as per the row titled Single Entity Bidder and
ignore the other rows mentioned below. In case of a Consortium, the details need to be provided as per the
lower rows and the row titled Single Entity Bidder may be ignored.
Project Date of
time of execution/
Name of the Project
Estimated Marks
Cost Rs. crores
infrastructure
Commence-
construction
Completion
carried out
Location
Award
S.No
ment
Tota
l
Note:
1. Only the eligible projects that satisfy technical criteria shall be included.
2. All the Financial numbers are to be given in INR
3. The format shall be filled up for each member of the consortium and as a cumulative experience for the consortium
Member Code:
Name of Bidder:
Category:
1. Name of Contract
Country
2. Name of Employer
3. Employers address, telephone and fax no.)
4. Role (strike out whichever is not applicable)
Developer/Prime contractor/ Subcontractor
Instructions
1. Information provided in this section is intended to serve as a back up for information provided in accordance
with Appendix 4, Bid Response Sheet 1.
2. The Projects cited must comply with the eligibility criteria specified in Clause 8.1.
Net
Turnover Worth Operating Profit
( Rs Crores) (Rs. (Rs. crores)
Equity Crores)
Bidder Type
share (%) Year Year year As on Year Year Year Total
31st CA
March
2008
Consortium
Member 1
Consortium
Member 2
Consortium
Member .
Total
1. The Bidder should provide the Financial Capability based on its own audited financial statements. Financial
capability of the Bidder's parent company or its subsidiary or any associate company (who are not Members of
the Consortium) will not be considered for computation of the Financial Capability of the Bidder.
(b) Net Worth = Subscribed and Paid-up Equity (including Share Premium, if any) + Reserves - Revaluation
Reserves - Miscellaneous expenditure not written off-Deferred Revenue Expenditure-Deficit in Profit & Loss
Account
(c) The financial year would be the same as followed by the Bidder for its annual report. Year 1 will be the last
Financial Year. Year 2 shall be the year immediately preceding Year 1.
(d) The Bidder shall provide audited Annual Reports as required under this Bid Document. For a Consortium,
audited Annual Reports of all Members shall be provided.
(e) In case of a Consortium comprising of members with holdings in each other, the cross holdings between the
group companies comprising part of the Consortium will be deducted for the purpose of Net Worth
calculations.
4. Financial details of the Bidder. If the Bidder is a consortium the Financial Details of all the members. The
Financial Details should be provided in the following manner.
Date: ------------
The Executive Director,
Awas Bandhu, Uttar Pradesh,
Housing & Urban Planning Department,
Government Of Uttar Pradesh
Ist Floor, Janpath Market, Lucknow-226001 India
Sub: Super Specialty Hospital in Kanpur on Design, Build, Finance, Own and Operate (DBFOO) basis
Sir,
We hereby certify and confirm that in the preparation and submission of this Bid, we have not acted in concert or
in collusion with any other Bidder or other person(s) and also not done any act, deed or thing which is or could
be regarded as anti-competitive, restrictive or monopolistic trade practice.
We further confirm that we have not offered nor will offer any illegal gratification in cash or kind to any person or
agency in connection with the instant Bid.
Note:
To be submitted by each Member in case of Consortium.
Super Specialty Hospital in Kanpur on Design,Build, Finance, Own and Operate (DBFOO) basis
Sir,
We have read and understood the Bid Document in respect of the captioned project provided to us by the Executive
Director, Awas Bandhu, Uttar Pradesh, Housing & Urban Planning Department, Government Of Uttar Pradesh
(a) Notwithstanding any qualifications or conditions, whether implied or otherwise, contained in our Bid we
hereby represent and confirm that our Bid is unqualified and unconditional in all respects.
(b) We are not barred by the Government of India or the Government of Uttar Pradesh or their Departments or
Agencies from participating in any projects (DBFOO or otherwise).
Super Specialty Hospital in Kanpur on Design, Build, Finance, Own and Operate (DBFOO) basis
Sir,
We have read and understood the Bid Document in respect of the captioned project provided to us by the Executive
Director, Awas Bandhu, Uttar Pradesh, Housing & Urban Planning Department, Government Of Uttar Pradesh
We hereby agree and undertake to be an exclusive member of the consortium and not a member of any other
consortium nor an independent Bidder, bidding for this project and has submitted only one (1) Application in
response to this RFQ CUM RFP
This Memorandum of Understanding (MOU) entered into this _____day of _______ 2008 at ______ Between
_______________(hereinafter referred as________) and having office at _______, India Party of the First Part
And
________(hereinafter referred as__________) and having office at ____________, India Party of the Second
Part
WHEREAS Awas Bandhu, Uttar Pradesh, Housing & Urban Planning Department, Government of Uttar Pradesh,
(ABUP) has invited RFQ cum RFP from entities interested in Super Specialty Hospital in Kanpur Project
AND WHEREAS the Parties have had discussions for formation of a Consortium for bidding for the said Project and
have reached an understanding on the following points with respect to the Parties rights and obligations towards
each other and their working relationship.
1. That the Parties will form a Special Purpose Vehicle (SPV) with the shareholding commitments expressly
stated. The said SPV shall not undertake any other business during the Concession Period, to domicile the
Project prior to the start of implementation of the Project.
2. That the equity share holding of the Parties in the issued and paid up capital of the SPV shall not be less
than as Specified Under Evaluation Criteria Mentioned in RFQ CUM RFP Document during the Concession
Period.
3. That M/s____________, and M/s____________, who are Members of the Consortium commit to hold the
following equity stake in the SPV which are in line with the requirements of Clause 3 of Evaluation criteria of
the RFQ Document at all times during the Lease Period
Name of Member Type of Member % of shareholding
1. M/s.
2. M/s.
4. That any dilution in the equity holding by the Parties in the SPV shall be as per the provisions of the
Concession Agreement that will be executed on award of the Project to us.
5. However the parties undertake that there shall be no change in respect of the lead member in case of a
consortium till the execution of the concession agreement.
6. That the Parties shall carry out all responsibilities as Concessionaire in terms of the Concession Agreement.
7. That the roles and the responsibilities of each Party at each stage of the Bidding shall be as follows:
8. That the Parties shall be jointly and severally liable for the execution of the Project in accordance with the
terms of the Concession agreement to be executed on award of the Project.
9. That the Parties affirm that they shall implement the Project in good faith and shall take all necessary steps to
see the Project through expeditiously. They shall not negotiate with any other party for this Project.
10. That this MOU shall be governed in accordance with the laws of India and courts in Lucknow shall have
exclusive jurisdiction to adjudicate disputes arising from the terms herein.
In witness whereof the Parties affirm that the information provided is accurate and true and have caused this MOU to
be duly executed on the date and year above mentioned.
Witness:
1. First Party
2. Second Party
Sub: Commitment to pay the Success Fee and Consultancy Fee to Darashaw & Company Private
Limited
Sir,
We ___________( the Member), /[ our consortium consisting of the following members ( the Member)]
1 [Lead party]
2 [ ]
3 [ ]
Have /[Has] submitted our/ [its] Bid for the development of Super Specialty Hospital in Kanpur on Design Build
Finance Own and Operate basis in Kanpur.
We hereby write to inform you that if the Single Entity / Consortium is selected as the successful bidder for
implementing the project, the Concessionaire shall pay Darashaw & Company Private Limited a Success fee
at the rate of 1% of the cost of the project (clause 5.4). The Demand Draft in favour of Darashaw & Company
Private Limited for the said fee shall be handed over to Awas Bandhu UP before the signing of the Concession
Agreement.
The Consultancy Fee of Rs. 1,00,000/- (Rupees One Lakh only) paid by Awas Bandhu to the Consultants will be
reimbursed to Awas Bandhu, UP within 2 weeks of receipt of invoice from Awas Bandhu, UP.
SIGNATURE _____________
NAME _____________
DESIGNATION _____________
DATE _______________
(The Letter of Acceptance is to be submitted by EACH Consortium Member of the Bidding Consortium)
Date:
Place:
Sub: Proposal for selection of Successful Bidder to Design, Build, Finance, Own and Operate Super Specialty
Hospital in Kanpur
Dear Sir,
This has reference to the Proposal being submitted by (name of the Lead Consortium Member of the Bidding
Consortium), as Lead Consortium Member of the Bidding Consortium comprising (mention name(s) of the
Consortium Members) in respect of selection of Successful Bidder to Design, Build, Finance, Own and Operate
Super Specialty Hospital in Kanpur in response to the RFQ cum RFP Document issued by Awas Bandhu, UP
dated.
(a) We (name of the Consortium Members furnishing the Letter of Acceptance), have examined in detail
and have understood and satisfied ourselves regarding the contents including in respect of the
following:
a. The RFQ cum RFP Document issued by Awas Bandhu, UP;
b. All subsequent communication between Awas Bandhu, UP and the Bidder, represented by
(Mention name of the Lead Consortium Member)
c. The Proposal being submitted by (name of the Lead Consortium Member)
(b) We agree to abide by the terms and conditions of the RFQ cum RFP Document and the Proposal being
submitted by the Lead Consortium Member in respect of the Project.
(c) We also reaffirm that (name of the Lead Consortium Member) continues to be the Lead Consortium
Member and that (please give name, designation and address of authorized representative and
signatory here) designated as the authorized representative and signatory of the Lead Consortium
Member of the Bidding Consortium is the authorized representative and signatory in respect of all
matters concerning our Proposal for this Project and contractual commitments thereof.
Thanking You,
Yours Sincerely,
For and on behalf of : (name of the Bidding Company / Lead Consortium Member and the Company Seal)
Designation :
(The Letter of Commitment is to be submitted by EACH Promoter(s) and/or Associate(s) and/or Subsidiary (ies)
of the Bidding Company / Consortium Members of the Bidding Consortium whose strength have to be credited
for)
Date:
Place:
Sub: Proposal for selection of Successful Bidder to Design, Build, Finance, Own and Operate Super Specialty
Hospital in Kanpur
Dear Sir,
This has reference to the Proposal being submitted by (name of the Lead Consortium Member of the Bidding
Consortium), as Lead Consortium Member of the Bidding Consortium comprising (mention name(s) of the
Consortium Members) in respect of selection of Successful Bidder to Design, Build, Finance, Own and Operate
Super Specialty Hospital in Kanpur in response to the Request for Qualification cum Request for Proposal
(RFP) Document issued by Awas Bandhu, UP dated.
1. We (name of the Promoter/Affiliate/Subsidiary), have examined in detail and have understood and
satisfied ourselves regarding the contents including in respect of the following:
a. The RFP Document issued by Awas Bandhu, UP;
b. All subsequent communication between Awas Bandhu, UP and the Bidder, represented by (name
of the Bidding Company or of the Lead Consortium Member in case of a Bidding Consortium);
c. The Financial Proposal being submitted by (name of the Bidding Company or of the Lead
Consortium Member in case of a Bidding Consortium)
2. We agree to abide by the terms and conditions of the RFP Document and the Proposal being submitted
by the Bidding Company / Lead Consortium Member in respect of the Project.
3. We also reaffirm that (please give name, designation and address of authorized representative and
signatory here) designated as the authorized representative and signatory of the Bidding Company /
Lead Consortium Member of the Bidding Consortium is the authorized representative and signatory in
respect of all matters concerning our Proposal for this Project and contractual commitments thereof.
Thanking You,
Yours Sincerely,
For and on behalf of : (name of the Bidding Company / Lead Consortium Member and the Company Seal)
Designation :
Date:
Place:
Dear Sir,
Sub: Proposal for selection of Successful Bidder to Design, Build, Finance, Own and Operate Super Specialty
Hospital in Kanpur
1. We the undersigned Bidder, submit the following as our Financial Proposal in response to the RFQ cum
RFP issued by Awas Bandhu, UP.
% ( percentage only) of the annual Revenue of the Hospital to be given to KDA every
year, beginning from 11th year from the date of signing the agreement till the end of concession period.
2. We confirm that the Financial Proposal conforms to all the terms and conditions stipulated in the Request for
Proposal Document.
3. We confirm that our Financial Proposal is FINAL in all respects and contains NO conditions.
4. We confirm that in the event of more than one Responsive Bidders quoting the same annual lease rental,
Awas Bandhu, UP shall break the tie by way of draw between such Bidders.
5. We confirm that, the information submitted in our Financial Proposal is complete and is correct to the best of
our knowledge and understanding. We would be solely responsible for any errors or omissions in our
Proposal.
6. We confirm that we have studied the provisions of relevant Indian laws and regulations required to enable us
to prepare this Financial Proposal and as required to Design, Build, Finance, Own and Operate the Project,
in the event that we are finally selected.
Thanking You,
Yours Sincerely,
For and on behalf of : (name of the Bidding Company / Lead Consortium Member and the Company Seal)
Designation :
[To be issued by SBI or any Nationalised Bank or Indian Scheduled Commercial Bank whose Net Worth
is not less than INR 300 crores as on 31st March 2008]
From:
[Name and Address of Bank/ Financial Institution]
1. In consideration of the Governor of Uttar Pradesh represented by ________________ (hereinafter called the
Government) having agreed to exempt _________________ (hereinafter called the said
Bidder(s)) from the demand, under the terms and condition of an Agreement, dated _________made between
____________________and Kanpur Development Authority for Design, Build, Finance, Own and Operate
Super Specialty Hospital in Kanpur (hereinafter called the said Agreement), of performance security for the
due fulfilment by the said Developer(s)of the terms and conditions contained in the said Agreement , on
production of a bank guarantee for Rs. (Rupees only).
3. We undertake to pay to the Government any money so demanded notwithstanding any dispute or
disputes raised by the Bidder(s) in any suit or proceeding pending before any court or Tribunal relating to our
liability under this present being absolute and unequivocal, unless otherwise directed by such Court or Tribunal.
The payment so made by us under this bond shall be a valid discharge of our liability for payment there
under and the Bidder(s) supplier (s) shall have no claim against us for making such payment.
5. We _____________________ (indicate the name of Bank) further agree with the Government that
the Government shall have the fullest liberty without our consent and without affecting in any manner our
obligations hereunder to vary any of the terms and conditions of the said Agreement or to extend time of
performance by the said Bidder(s)from time to time or to postpone for any time or from time to time any of the
powers exercisable by the Government against the said Bidder(s) and to forbear or enforce any of the terms and
conditions relating in the said agreement and we shall not be relieved from our liability by reason of any such
variation or extension being granted to the said Bidder(s)or for any forbearance act or commission on the part of
the Government or any indulgence by the Government to the said Bidder(s)or by any such matter or thing
whatsoever which under the law relating to sureties would, but for this provision, have effect of so relieving us.
6. This guarantee will not be discharged due to the change in the constitution of the Bank or the
Bidder(s)/ Supplier(s).
7. We, __________________________ lastly undertake not to revoke this guarantee during (indicate
the name of bank) its currency except with the previous consent of the Government in writing.
SIGNATURE ..
NAME ..
TITLE ..
DATE ..
In case of a Bidding Consortium, the principles according to which the Memorandum of Understanding (MoU)
shall be executed between/among the Consortium Members, are stated below:
1. The MoU should clearly specify the roles and responsibilities of each of the Consortium Members, along
with their proposed equity contribution. It is expected that the individual members have role definitions
not conflicting with those of the other Consortium Members.
2. The MoU should clearly designate one of the Consortium Members as the Lead Consortium Member.
7. The MoU should be valid for a minimum period of twelve months from the Last Date for submission of
the Request for Proposal. The validity period of the MoU should be extendible on the original terms, if
required by KDA.
8. MoU should clearly specify that in case of award of the project each consortium member will invest at
least 11% equity for project.
Bidder(s) are requested to organize their Proposals as per the following checklist:
ENVELOPE A
(a) Original Power of Attorney authorizing Authorised Representative & Signatory to act on behalf of the
Bidding Company / Bidding Consortium on all matters relating to the Project as per the format
specified in Appendix 1A
(b) Original Power of Attorney authorizing Lead Consortium Member to act on behalf of the Bidding
Consortium on all matters relating to the Project as per the format specified in Appendix 1B
(c) Details of the Bidder in Appendix 2
(d) Letter of Application as per format in Appendix 3
(e) Information Related to Experience in Appendix 4 (BRS1& BRS2)
(f) Establishing Financial Capability of the Bidder as per format in Appendix 5 (BRS 3 & BRS 4)
(g) Guidelines for providing information related to Financial Capability in Appendix 7
(h) Anti-collusion certificate in Appendix 8
(i) Project Undertaking as per format in Appendix 9 A and 9B
(j) Memorandum of Understanding executed between the Consortium Members on the principles as
stated in Exhibit 1
(k) MOU as per format as stated in Appendix 10
(l) Consultancy and Success Fee Commitment to Darashaw & Co Pvt Limited as per format stated in
Appendix 12
(m) Letter of Acceptance as per format stated in Appendix 13
(n) Letter of Commitment as per format in Appendix 14
(o) A Bank Guarantee towards Earnest Money Deposit
ENVELOPE B
(a) Financial Proposal as per format specified in Appendix 15
The Concessionaire may also develop additional specialties other than those mentioned above. The hospital
shall also have a round the clock emergency unit.
A. Planning
The Concessionaire shall plan the facilities, manpower and the service as per the Indian Public Health Standard
(IPHS).
The hospital shall be developed with 500 bed capacity within 36 months from the Effective Date.
However, the developer is allowed to construct 250 bed capacity in initial three years and remaining 250
bed capacity in next two years time.
The hospital shall be planned in accordance with the Development Control Regulations applicable to the
region and norms if any prescribed by the Medical Council of India, Ministry of Health and Family
Welfare and the State Health Department.
The developer shall obtain necessary clearances and approval for the plans from the relevant authority
as per the requirements.
Service Apartments can be provided within the hospital complex to cater to the needs of the patients
and their relatives.
Institute offering Laboratory Technician courses, Nursing courses can also be developed within the
hospital complex.
Restaurants, ATMs, Pharmacy for the convenience of the patients can be provided within the hospital
complex.
Research Institutes can also be setup in the hospital complex.
Helipad for picking up patients may be provided.
B. Designing
Modular design to enable addition of new departments, least disturbance to existing facilities, quality,
and added benefits of economy of scale shall be preferred.
Architectural design norms as per NBC (National Building Code 2005)
Structural Design norms as per NBC and BIS (Bureau of Indian Standards)
Services design norms as per CPEEHO (Central Public Health and Environmental Engineering
Organisation), NBC and BIS
In case of contradiction between the IPHS Accreditation standards and the Design Norms specified above, the
former shall prevail.
C. Construction
The construction shall be strictly as per the design norms specified above.
VOLUME II
Between
And
____________________________
Index
Article 1. Definitions and Interpretation 6
1.1. Definitions 6
1.2. Interpretation 9
1.3. Measurements and Arithmetic Conventions 11
1.4. Priority of Agreements and Errors/Discrepancies 11
Article 2. Scope of the Project 13
2.1. Scope of the Project 13
Article 3. Consideration of the Contract 15
3.1. The Consideration 15
Article 4. Conditions Precedent to the Agreement 16
4.1. Conditions Precedent 16
4.2. Compliance Certificate 16
4.3. Non-Fulfillment of the Conditions Precedent 16
Article 5. Obligations of the Concessionaire 18
5.1. Obligations of the Concessionaire 18
5.2. Obligations relating to Other Agreements 19
5.3. Obligations relating to Change in Ownership 19
Article 6. Obligations of the Concessioning Authority 21
6.1. Obligations of the Concessioning Authority 21
Article 7. Representations and Warranties 22
7.1. Representations and Warranties of the Concessionaire 22
7.2. Representations and Warranties of the Concessioning Authority 23
7.3. Disclosure 24
Article 8. Disclaimer 25
8.1. Disclaimer 25
Article 9. Performance Security 26
9.1. Performance Security 26
9.2. Appropriation of Performance Security 26
9.3. Release of Performance Security 26
Article 10. Access on Project Site 27
10.1. Project Site 27
10.2. Others 27
Article 11. Construction on the Project Site 28
11.1. Obligations prior to the commencement of any work 28
11.2. Project Start and Completion date 28
11.3. Completion Certificate 28
Article 12. Force Majeure 29
12.1. Force Majeure 29
12.2. Force Majeure Events 29
12.3. Duty to Report Force Majeure Event 29
12.4. Effect of Force Majeure Event 29
12.5. Allocation of Costs Arising out of Force Majeure 30
12.6. Dispute Resolution 30
Article 13. Termination 31
13.1. Termination for Concessionaire Default 31
13.2. Procedure to issue Termination Notice 32
13.3. Effect of Termination 32
CONCESSION AGREEMENT
This AGREEMENT is entered into on this the [ ] day of [ ] (Month), 2009 at Kanpur
BETWEEN
1. Kanpur Development Authority established under the Uttar Pradesh Urban Planning
and Development Act 1973, having its registered office at Moti Jheel, Kanpur, Uttar
Pradesh (hereinafter referred to as Concessioning Authority which expression shall
unless repugnant to the subject or the context include its successors) of One Part;
AND
2. ______________, a company incorporated under the Companies Act, 1956, and having
its registered office at _________________________ (hereinafter referred to as the
Concessionaire which expression shall unless repugnant to the subject or the context
include its successors) of the Other Part.
WHEREAS:
A. The Government of Uttar Pradesh has established Kanpur Development Authority under
the Uttar Pradesh Urban Planning and Development Act 1973 (hereinafter called the
Act), for the development and planning of Kanpur.
B. In order to develop the tertiary healthcare infrastructure in Kanpur, KDA intends to setup a
500 Bed Super-Specialty Hospital and related facilities and has earmarked 15 acres of
land for the same.
C. Concessioning Authority through Awas Bandhu,UP had invited proposals for the selection
of a Concessionaire through the competitive route on the basis of Design, Build, Finance
Owb and Operate the Project, from bidders, including the Consortium comprising of
_____________ as the Lead Member/Company by issuing the Request for Qualification
(RFQ cum RFP) document dated 22nd January 2009 containing inter-alia the minimum
qualification for a bidder and the technical and commercial parameters of the Project and
the terms and conditions for the implementation of the Project.
D. On evaluation of the submitted proposals, Awas Bandhu, UP accepted the proposal of the
Consortium/Company and issued Letter of Intent (LOI) dated __________ to the
Consortium/Company specifying interalia the obligation of the Parties to create a Special
Purpose Vehicle for implementing the Project [ Applicable in case of Consortium]
Pursuant to the issuance of LOI vide letter no. ___________ dated ________, the
Consortium have incorporated and constituted ______________ as the Special Purpose
Vehicle created for the sole purpose of implementation the Project which is
Concessionaire.
E. The Concessionaire is desirous of developing the Project, in accordance with all approved
plans and has the necessary capability for completion of the project and has offered his
services and has made payment of 1% of the project cost and taxes as applicable to M/s
Darashaw & Company Pvt. Ltd.
Accounting Year means the financial year commencing from the first day of April of
any calendar year and ending on the thirty-first day of March of the next calendar year;
Affected Party shall have the meaning set forth in Clause 12.1;
Agreement or Concession Agreement means this Agreement, the Schedules
hereto and any amendments thereto made in accordance with the provisions contained
in this Agreement;
Agreement Date means the date of execution of this Agreement;
Applicable Laws means all laws, brought into force and effect by GOI or the State
Government including rules, regulations and notifications made there under, and
judgments, decrees, injunctions, writs and orders of any court of record, applicable to this
Agreement and the exercise, performance and discharge of the respective rights and
obligations of the Parties hereunder, as may be in force and effect during the subsistence
of this Agreement;
Applicable Permits means all clearances, licenses, permits, authorisations, no
objection certificates, consents, approvals and exemptions required to be obtained or
maintained by the Concessionaire under Applicable Laws during the subsistence of this
Agreement;
Approvals means all approvals, permissions, authorisations, consents and
notifications from any Governmental Authority, regulatory or departmental authority
including, but not limited to the approvals of the Kanpur Development Authority,
Secretariat for Industrial Assistance, Reserve Bank of India and any other regulatory
authority, as may be applicable.
Arbitration Act means the Arbitration and Conciliation Act, 1996 and shall include
modifications to or any re-enactment thereof, as in force from time to time;
Bank Guarantee means an irrevocable and unconditional bank guarantee payable on
demand issued by a bank in favour of Concessioning Authority and furnished by the
Concessionaire to Concessioning Authority for guaranteeing the due performance of the
obligations of the Concessionaire under this Agreement. Here Bank means any Indian
Nationalized Bank or any Indian Scheduled Commercial Bank whose net worth is not
less than Rs.3000 million as on 31st March 2008.
Bid means the documents in their entirety comprised in the bid submitted by the
Concessionaire in response to the RFQ/RFP in accordance with the provisions thereof;
Business Day means a day on which banks are generally open for business in the city
of Kanpur in India;
Change in Ownership means a transfer of the direct and/or indirect legal or beneficial
ownership of any shares, or securities convertible into shares, that causes the change in
management structure of the bidder company according to the opinion of the
Concessioning Authority;
Conditions Precedent shall have the meaning set forth in Clause 4.1;
Construction Period means maximum period of 24 months from the Effective Date,
after which commercial operations must start;
Consortium means the group of entities that have jointly submitted the proposal for
the Project.
Consortium Member means each entity in the Consortium shall be referred to as a
Consortium Member.
Damages shall have the meaning set forth in Sub-clause (t) of Clause 1.2;
Developmental and Operations Standard(s) means the minimum parameters and
standards to be achieved by the Concessionaire in the construction, development and
operations of the Project in accordance with internationally sound engineering practices,
National Building Code and Applicable Law and / or as determined by the relevant
Governmental Authority;
Dispute shall have the meaning set forth in Clause 15.1.1;
Dispute Resolution Procedure means the procedure for resolution of Disputes set
forth in Article 15;
Effective Date means the date on which all the conditions Precedent are satisfied or
waived as per Article 4 in writing by both the Parties.
Financial Commitment means the legally binding undertaking of the Concessionaire
to mobilize the financial requirements of the project, for ensuring the completion of the
project;
Financial Year shall mean the year commencing from the 1st April of any calendar
year and ending on 31st March of the next calendar year.
Force Majeure or Force Majeure Event shall have the meaning set forth in as per
Clause 12;
GOI means the Government of India;
Good Industry Practice means the practices, methods, techniques, designs,
standards, skills, diligence, efficiency, reliability and prudence which are generally and
reasonably expected from a reasonably skilled and experienced operator engaged in the
same type of undertaking as envisaged under this Agreement and which would be
expected to result in the performance of its obligations by the Concessionaire in
accordance with this Agreement, Applicable Laws and Applicable Permits in reliable,
safe, economical and efficient manner;
Government Instrumentality means any department, division or sub-division of the
Government of India or the State Government and includes any commission, board,
authority, agency or municipal and other local authority or statutory body including
Panchayat under the control of the Government of India or the State Government, as the
case may be, and having jurisdiction over all or any part of Kanpur or the performance of
all or any of the services or obligations of the Concessionaire under or pursuant to this
Agreement;
Indemnified Party means the Party entitled to the benefit of an indemnity pursuant to
Article 14;
Indemnifying Party means the Party obligated to indemnify the other Party pursuant
to Article 14;
Lenders shall mean the banks, financial institutions, international credit agencies that
extend or agree to extend a credit facility to the Concessionaire in relation to the Project;
Parties means the parties to this Agreement collectively and Party shall mean any
of the parties to this Agreement individually;
Performance Security shall have the meaning set forth in Clause 9.1;
Project shall mean Design, Build, Finance, Operate and Transfer of 500 Bed Super
Specialty Hospital with at least four specialties from the selected specialties like Trauma
centre, Plastic surgery unit, Burn Unit, Neurology, Ophthalmology in the hospital as
mentioned in Annexure B of this document, round the clock emergency unit along with
15 acres Site earmarked for the purpose in accordance with the provisions of this
Agreement at the end of the concession period;(more specifically as mentioned in
Article 2 of this agreement).
Project Completion Date shall mean the date on which the Concessioning Authority
has issued the Project Completion Certificate after completion of the Project and shall
have the meaning set forth in Clause 11.2;
Project Completion Certificate shall mean the Project Completion Certificate issued
by the Concessioning Authority certifying completion of Project by the Concessionaire;
Rs. or Rupees refers to the lawful currency of the Republic of India;
Revenue of the Hospital shall mean registration fees, hospital bed revenue, diagnostics
laboratory tests, consultation charges, operation charges and lease rental from the commercial
facilities like bank, restaurant etc. of that Financial Year. Revenue of the Hospital shall not
include revenue from pharmacy, service apartments, training institutes and consumables cost
directly reimbursed by the patients.
Security Interest means any existing or future mortgage, charge (whether fixed or
floating), pledge, lien, hypothecation, assignment, security interest or other
encumbrances of any kind securing or conferring any priority of payment in respect of
any obligation of any Person and includes without limitation any right granted by a
transaction which, in legal terms, is not the granting of security but which has an
economic or financial effect similar to the granting of security in each case under any
Applicable Law.
Site means the Project site measuring 15 acres as given in Schedule 1 of this
Agreement given on lease for a total lease period of 90 years. The lease is renewed
every 30 years till the end of the total lease period of 90 years. The Project shall mean
the same as defined in this Agreement.
Standards of Reasonable and Prudent Concessionaire means the standards,
practices, methods and procedures expected from a person seeking in good faith to
perform its contractual obligations and in so doing and in the general conduct of its
undertaking exercising that degree of skill, diligence, prudence and foresight which would
reasonably and ordinarily be expected from a skilled and experienced Person engaged in
the same type of undertaking under the same or similar circumstances and conditions
including the conditions as contemplated by the Basic Documents.
Taxation or Tax means all forms of taxation whether direct or indirect and whether
levied by reference to income, profits, gains, net wealth, asset values, turnover, added
value or other reference and statutory, governmental, state, provincial, local
governmental or municipal impositions, duties, contributions, rates and levies (including
without limitation social security contributions and any other payroll taxes), whenever and
wherever imposed (whether imposed by way of withholding or deduction for or on
account of tax or otherwise) and in respect of any person and all penalties, charges,
costs and interest relating to it;
Third Party Agreements means all Agreements entered into between the
Concessionaire and third Persons, including, but not limited to other Agreements with
Concessionaire and vendors of any goods or services to the Concessionaire.
Termination means the expiry of the Concession period or termination of this
Agreement;
Termination Notice means the communication issued in accordance with this
Agreement by one Party to the other Party terminating this Agreement;
1.2. Interpretation
(e) the words include and including are to be construed without limitation and shall be
deemed to be followed by without limitation or but not limited to whether or not they
are followed by such phrases;
(f) references to construction include, unless the context otherwise requires,
investigation, design, developing, engineering, procurement, delivery, transportation,
installation, processing, fabrication, testing, commissioning and other activities that
are to be completed on or before Project Completion Date as per the scope of work
as defined under Article 2, and construct shall be construed accordingly;
(g) any reference to any period of time shall mean a reference to that according to Indian
Standard Time;
(h) any reference to day shall mean a reference to a calendar day;
(i) any reference to month shall mean a reference to a calendar month as per the
Gregorian calendar;
(j) references to any date, period or Milestone shall mean and include such date, period
or Milestone as may be extended pursuant to this Agreement;
(k) any reference to any period commencing from a specified day or date and till or
until a specified day or date shall include both such days or dates; provided that if
the last day of any period computed under this Agreement is not a business day, then
the period shall run until the end of the next business day;
(l) the words importing singular shall include plural and vice versa;
(m) references to any gender shall include the other and the neutral gender;
(n) lakh or lac means a hundred thousand (100,000) and crore means ten million
(10,000,000);
(o) references to the winding-up, merger, amalgamation, takeover,
dissolution, insolvency, or reorganization of a company or corporation shall be
construed so as to include any equivalent or analogous proceedings under the law of
the jurisdiction in which such company or corporation is incorporated or any
jurisdiction in which such company or corporation carries on business including the
seeking of liquidation, winding-up, reorganization, dissolution, arrangement,
protection, change in management or relief of debtors;
(p) any reference, at any time, to any Agreement, deed, instrument, license or document
of any description shall be construed as reference to that Agreement, deed,
instrument, license or other document as amended, varied, supplemented, modified
or suspended at the time of such reference; provided that this Sub-clause shall not
operate so as to increase liabilities or obligations of the Concessioning Authority
hereunder or pursuant hereto in any manner whatsoever;
(q) any Agreement, consent, approval, authorization, notice, communication, information
or report required under or pursuant to this Agreement from or by any Party shall be
valid and effective only if it is in writing under the hand of a duly authorized
representative of such Party, as the case may be, in this behalf and not otherwise;
(r) the Schedules and Recitals to this Agreement form an integral part of this Agreement
and will be in full force and effect as though they were expressly set out in the body of
this Agreement;
1.2.2. Unless expressly provided otherwise in this Agreement, any documentation required to be
provided or furnished by the Concessionaire to the Concessioning Authority and/or the agency or
person appointed by the Concessioning Authority shall be provided free of cost and in two copies,
and if the Concessioning Authority and/or the person appointed by the Concessioning Authority is
required to return any such documentation with their comments and/or approval, they shall be
entitled to retain one copy thereof.
1.2.3. the rule of construction, if any, that a contract should be interpreted against the parties responsible
for the drafting and preparation thereof, shall not apply.
1.2.4. any word or expression used in this Agreement shall, unless otherwise defined or construed in this
Agreement, bear its ordinary English meaning.
1.4.1. This Agreement, and all other Agreements and documents forming part of this Agreement are to
be taken as mutually explanatory and, unless otherwise expressly provided elsewhere in this
Agreement, the priority of this Agreement and other documents and agreements forming part
hereof shall, in the event of any conflict between them, be in the following order:
(a) this Agreement;
(b) RFP Document
(c) all other agreements and documents forming part hereof;
i.e. the agreement at (a) above shall prevail over the agreements and documents at
(b) and (c) above and (b) shall prevail over all documents in (c) above.
1.4.2. In case of ambiguities or discrepancies within this Agreement, the following shall apply:
(a) between two or more Clauses of this Agreement, the provisions of a specific
Clause relevant to the issue under consideration shall prevail over those in
other Clauses;
(b) between the Clauses of this agreement and the Schedules, the Clauses shall
prevail and between Schedules and Annexes, the Schedules shall prevail;
(c) between the written description on the Drawings and the Specifications and
Standards, the latter shall prevail;
(d) between the dimension scaled from the Drawing and its specific written
dimension, the latter shall prevail; and
(e) between any value written in numerals and that in words, the latter shall prevail.
To build and operate 500-bedded Super-specialty hospital as per the International standards / Indian Public
Health Standard (IPHS). However, the Concessionaire is allowed to construct 250 bed capacity within 36
months from the Effective Date and remaining 250 bed capacity in next two years.
Atleast four specialties from the following disciplines shall be developed in the Hospital.
Departments / Specialties
Trauma Care
Cardio Thoracic care unit (ICCU- Intensive Cardiac Care Unit)
Intervention specialty and Cerebral Intervention
Kidney Transplant (Hemodialysis)
Neurology unit
Obs & Gynecology
Pediatric unit (with NICU Neonetal Intensive Care unit)
Dental unit for surgery
Ophthalmology and ENT
Cancer unit
The hospital shall also have a round the clock emergency unit.
All the facilities are to be developed as per the minimum quality standards set out for the purpose in the
Technical Schedule appended as Schedule B with this document.
While undertaking development of the Project, the Successful Bidder shall adhere to latest amended
National Building Code of India, other relevant IS Codes and practices, Development Control Rules, FAR
Limits, statutory requirements, guidelines and approvals of the Health Department of the Government of
Uttar Pradesh, laws of land, the principles of good industry practices and any other norms as applicable from
time to time. The developer shall also take into account the guidelines issued by the State Health
Department and obtain the necessary approvals.
The Concessionaire shall be responsible for all the clearances as may be required for the development and
operations of the project. The project shall be ready for operation after taking all the clearance(s) within 36
months from the effective date.
For the purpose of providing subsidized health services to poor, the Concessionaire shall provide 1% of the
revenues of the hospital every year to the Uttar Pradesh Government Health Department. Revenue of the
Hospital shall mean registration fees, hospital bed revenue, diagnostics laboratory tests, consultation
charges, operation charges and lease rental from the commercial facilities like bank, restaurant etc.
Revenue of the Hospital shall not include revenue from pharmacy, service apartments, training institutes and
consumables cost directly reimbursed by the patients.
3.1.1. Subject to and in accordance with the provisions of this Agreement, the Applicable Laws, rules and
regulations and the Applicable Permits, the Concessionaire shall pay to the Concessioning Authority:
_____% of the Hospital Revenue every year from the 11th year of the signing of the Concession Agreement
for the Concession period of 90 years.
The Concessionaire shall also pay to the Concessioning Authority an annual lease rental equivalent to 2% of
the land cost (considered as present circle rate) per acre of land on the 15 acre land earmarked for Super
Specialty Hospital for the entire concession period of 90 years. The lease period is renewed every thirty years
during the concession period.
3.1.2. Subject to and in accordance with the provisions of this Agreement, the Consideration hereby given by
Concessionaire, the Concessionaire shall be entitled to Construct and operate the Project on the land area
given on Concession period of 90 year, subject to :
(a) performing and fulfilling all of the Concessionaires obligations under and in accordance with this
Agreement; and
(b) bear and pay all costs, expenses and charges in connection with or incidental to the performance of the
obligations of the Concessionaire under this Agreement; and
(c) At the end of the concession period, the entire construction made by the Concessionaire till that date on
the Project site as part of the scope of work shall get transferred without any consideration to the
Concessioning Authority.
3.1.3. In consideration of the mutual covenants and other good and valuable consideration expressed herein, the
Concessionaire hereby accepts the Consideration to be given and agrees to construct and operate the
Project on land given for 90 year Concession period as per the scope of work given in Article 2 and minimum
specifications mentioned in the technical schedules and to perform/discharge all of its obligations in
accordance with the provisions hereof.
4.1.1. The respective rights and obligations of the Parties under this Agreement shall be subject to the satisfaction
in full of the conditions precedent specified in this Clause 4.1 (the Conditions Precedent).
4.1.2. The Concessionaire may, upon providing the Performance Security to the Concessioning Authority in
accordance with Article 9, by notice require the Concessioning Authority to satisfy the Conditions Precedent
set forth in this Clause 4.1.2 within a period of 30 (thirty) days of the notice, and the obligations of the
Concessioning Authority hereunder shall be deemed to have been performed when the Concessioning
Authority shall have procured for the Concessionaire the peaceful possession of the Site as demarcated
under Schedule 1;
4.1.3. Concessionaire shall satisfy the Conditions Precedent at any time within 30 (thirty) days from the date the
Concessioning Authority has given the Letter of Intent for the appointment of the Concessionaire and all the
Conditions Precedent shall be deemed to have been fulfilled when the Concessionaire shall have
(a) provided Performance Security to the Concessioning Authority; and
(b) Delivered to the Concessioning Authority a legal opinion from the legal counsel of the
Concessionaire with respect to the authority of the Concessionaire to enter into this
Agreement and the enforceability of the provisions thereof
(c) The members of the Consortium must form a Special Purpose Vehicle (SPV) and submit an
MoU for the purpose of Special Purpose Vehicle.
4.3.1. In the event of failure by any Party to procure compliance with any of the Conditions Precedent as per the
provisions of this Article 4 and the other Party have not waived any of the conditions (partially or absolutely),
the Agreement shall cease to have any effect as of that date.
4.3.2. In the event of the Agreement not coming into effect on account of the Concessionaire not fulfilling the
Conditions Precedent then the Concessionaire shall forfeit the Earnest Money Deposit and the Performance
Security.
4.3.3. In the event of the Agreement not coming into effect on account of the Concessioning Authority not fulfilling
any of the Conditions Precedent then the Earnest Money Deposit and the Performance Security shall be
returned to the Concessionaire.
4.3.4. Notwithstanding anything contained in this clause, the Parties may mutually decide to extend the time period
for the fulfillment of the Conditions Precedent.
5.1.1. Subject to and on the terms and conditions of this Agreement, the Concessionaire shall at its cost and
expense procure finance for and undertake the Project scope of work as mentioned in Article 2 and observe,
fulfill, comply with and perform all its obligations set out in this Agreement or arising hereunder.
5.1.2. The Concessionaire shall comply with all Applicable Laws in the performance of its obligations under this
Agreement.
5.1.3. Without prejudice to Clauses 5.1.1 and 5.1.2 above, the Concessionaire shall discharge its obligations as per
the National Building Code, Development Control Rules, the principles of good industry practice and as a
reasonable and prudent person, statutory requirements, laws of the land and any other norms, which are
applicable from time to time.
5.1.4. The Concessionaire shall get prior approval of the Concessioning Authority in case of there is any change in
the facilities defined under the Project during the Concession Period.
5.1.5. Without prejudice to Clauses 5.1.1 and 5.1.2 above the Concessionaire shall, at its own cost and expense
observe, undertake, comply with and perform, in addition to and not in derogation of, its obligations
elsewhere set out in this Agreement, the following:
(a) make, or cause to be made, necessary applications to the relevant Governmental Agencies
with such particulars and details, as may be required for obtaining all Applicable Permits
and obtain such Applicable Permits in conformity with the Applicable Laws;
(b) procure, as required, the appropriate proprietary rights, licences, agreements and
permissions for materials, methods, processes and systems used or incorporated into
development and operations of the Project;
(c) not to damage any other infrastructure or any other utility developed by the Concessioning
Authority or any other utilities developed and maintained by any other authority or person
and in case of any such damage to undertake the repair and also to pay for any losses that
is incurred by the Concessioning Authority or any authority or any other person, as the case
may be.
(d) ensure and procure that the Concessionaire shall comply with all Applicable Permits and
Applicable Laws in the performance by them of any of the Concessionaires obligations
under this Agreement;
(e) not to do or omit to do any act, deed or thing which may in any manner be violative of any of
the provisions of this Agreement;
(f) not to create any third party rights, except for the purpose of borrowing from banks, on the
land given on Concession for 90 years. But also to ensure that Government of
UP/Concessioning Authority are not adversely affected in any way;
(g) shall make payment towards the Concessioning Authority as per provisions of this
Agreement;
(h) Procure at its own costs, expenses and risk all services necessary for the construction and
operations of the Project including without limitation electricity, water, materials and labour;
(i) shall ensure reservation in matters of employment as per applicable Government of UP
policies
(j) shall complete construction of the Project and get necessary approvals for commercial
operations within a period of 36 months from the Effective Date; and
(k) transfer the Project site on the date of termination of Concession to the Concessioning
Authority.
5.2.1. It is expressly agreed that the Concessionaire shall, at all times, be responsible and liable for all its
obligations under this Agreement notwithstanding anything contained in any other agreement, and no default
under any agreement shall excuse the Concessionaire from its obligations or liability hereunder.
5.2.2. The Concessionaire may undertake development of Project by itself or through one or more
contractors possessing requisite technical, financial and managerial expertise/capability; but in
either case, the Concessionaire shall remain solely responsible to meet the scope of work as
mentioned under Article 2.1.
The Concessionaire shall not undertake or permit any Change in Ownership, except with the prior written
approval of the Concessioning Authority as per the provisions of this Article 5.3.
5.3.1. No change in Consortium Members shall be allowed till the completion of the project or a minimum of 3 years
(whichever is later). However, the Lead Consortium Member shall not be allowed to be changed over the
entire Concession Period and shall continue to hold 51% stake in the Consortium till the start of Commercial
Operations. The Lead Consortium Member shall be allowed to dilute the stake after the commercial
operations date with the approval of the Concessioning Authority such that the stake of the Lead Consortium
Member in the consortium shall not fall below 26% at any time till the end of Concession Period.
5.3.2. Each Consortium Member shall invest minimum 11% stake in SPV. None of the Consortium Member
shall be allowed to dilute its stake till the completion of the Project or a minimum of 3 years from the
date of signing of the Concession Agreement (whichever is later).
5.3.3. Lead Consortium Member shall invest minimum 51% stake in the SPV. Lead Consortium Member
shall not be allowed to dilute its stake to a level below 51% till the start of commercial operations.
The Lead Consortium Member shall be allowed to dilute the stake after the commercial operations
date with the approval of the Concessioning Authority such that the stake of the Lead Consortium
Member in the consortium shall not fall below 26% at any time till the end of Concession Period.
This holds for the single entity bidder also and hence no bidder who has 100% equity in the Project
can dilute it to a level below 51% till the start of commercial operations. Remaining stake can be
diluted as per the provisions of Clause 5.3.3.
5.4. Novation
The Concessionaire may be allowed to novate the agreement after completion of three consecutive years of
commercial operations. The Concessionaire shall submit the details of the proposed novatee along with its
other qualifications (financial and technical capabilities) to the Concessioning Authority for its due approval.
Such novation shall be subject to execution of proper documents by the proposed novatee. Concessioning
Authority shall reserve the right to reject any novation at any time.
6.1.1. The Concessioning Authority shall, at its own cost and expense, undertake, comply with and perform all its
obligations set out in this Agreement or arising hereunder.
6.1.2. The Concessioning Authority agrees to provide support to the Concessionaire and undertakes to observe,
comply with and perform, subject to and in accordance with the provisions of this Agreement and the
Applicable Laws, the following:
(a) upon written request from the Concessionaire, and subject to the Concessionaire complying
with Applicable Laws, provide all reasonable support and assistance to the Concessionaire
in procuring Applicable Permits required from any Government Instrumentality for
implementation and operation of the Project;
(b) upon written request from the Concessionaire, assist the Concessionaire in obtaining
access to all necessary infrastructure facilities and utilities, including water at rates and on
terms no less favourable to the Concessionaire than those generally available to
commercial customers receiving substantially equivalent services;
(c) extend the assistance of its good offices on a reasonable effort basis to assist the
Concessionaire in the provision of electricity;
(d) procure that no barriers are erected or placed on the Project site or the way towards the
Project site by the Concessioning Authority, by any Government Instrumentality or persons
claiming through or under it, except for reasons of Emergency or national security, law;
(e) assist the Concessionaire in procuring Police assistance for regulation of movement of any
person on the Project site, removal of trespassers and for security of the material, labour
and machinery;
(f) not to do or omit to do any act, deed or thing which may in any manner be violative of any of
the provisions of this Agreement; and
(g) support, cooperate with and facilitate the Concessionaire in the implementation of the
Project.
Concessioning Authority as part of the Bid and that no member of the Consortium shall hold
less than 11% (eleven per cent) of such as per the provisions of Article 5.3;
(l) no order has been made and no resolution has been passed for the winding up of the
Concessionaire or for a provisional liquidator to be appointed in respect of the
Concessionaire and no petition has been presented and no meeting has been convened for
the purpose of winding up the Concessionaire. No receiver has been appointed in respect of
the Concessionaire or all or any of its assets. The Concessionaire is not insolvent or unable
to pay its debts as they fall due.
(m) no representation or warranty by it contained herein or in any other document furnished by it
to the Concessioning Authority or to any Government Instrumentality in relation to
Applicable Permits contains or will contain any untrue statement of material fact or omits or
will omit to state a material fact necessary to make such representation or warranty not
misleading; and
(n) no sums, in cash or kind, have been paid or will be paid, by it or on its behalf, to any person
by way of fees, commission or otherwise for securing the grant of land or entering into this
Agreement or for influencing or attempting to influence any officer or employee of the
Concessioning Authority in connection therewith.
(o) It shall not novate the Concession Agreement and any rights and obligation arising
therefrom to any party without any written approval from the Concessioning Authority
(i) all information provided by it in the Tender Notice and invitation to bid in connection with the
Project is, to the best of its knowledge and belief, true and accurate in all material respects;
(j) it has good and valid right for construction of the Project, and has power and authority to
give land on 90 years Concession to the Concessionaire; and
(k) upon the Concessionaire completing the Project as per this Agreement, and performing the
covenants herein, it shall not at any time during the 90 years Concession, interfere with
peaceful enjoyment of the land by the Concessionaire, except in accordance with the
provisions of this Agreement.
7.3. Disclosure
In the event that any occurrence or circumstance comes to the attention of either Party that renders
any of its aforesaid representations or warranties untrue or incorrect, such Party shall immediately
notify the other Party of the same. Such notification shall not have the effect of remedying any
breach of the representation or warranty that has been found to be untrue or incorrect nor shall it
adversely affect or waive any obligation of either Party under this Agreement.
Article 8. Disclaimer
8.1. Disclaimer
8.1.1. The Concessionaire acknowledges that prior to the execution of this Agreement, the Concessionaire has,
after a complete and careful examination, made an independent evaluation of the Tender Notice, Scope of
the services to be provided, Project site, Specifications and Standards set for providing quality of services,
local conditions, possible demand and all information provided by the Concessioning Authority, and has
determined to its satisfaction the accuracy or otherwise thereof and the nature and extent of difficulties, risks
and hazards as are likely to arise or may be faced by it in the course of performance of its obligations
hereunder. Save as provided in Clause 7.2, the Concessioning Authority makes no representation
whatsoever, express, implicit or otherwise, regarding the accuracy and/or completeness of the information
provided by it and the Concessionaire confirms that it shall have no claim whatsoever against the
Concessioning Authority in this regard.
8.1.2. The Concessionaire acknowledges and hereby accepts the risk of inadequacy, mistake or error in or relating
to any of the matters set forth in Clause 8.1.1 above and hereby acknowledges and agrees that the
Concessioning Authority shall not be liable for the same in any manner whatsoever to the Concessionaire or
any person claiming through or under this Agreement.
25% of the Performance Security in the form of bank guarantee shall be released to the
Concessionaire on the issuance of Construction Completion Certificate by the Concessioning
Authority. The next 25% of the Performance Security in the form of bank guarantee shall be
released to the Concessionaire on the start of Commercial Operation. The balance 50% of the
Performance Security in the form of bank guarantee shall remain in force and effect beyond the
period of six months from the date of the expiry of the Concession Period. It shall be duly
discharged and released to the Concessionaire beyond the period of six months from the date of
expiry of the Concession Period and transfer of the Project along with the land to KDA.
The performance security in the form of bank guarantee shall be renewed every year till the end of
the Concession Period and transfer of the Project along with the land to KDA. If the Agreement is
terminated due to any event other than a Concessionaire Event of Default, the Performance
Security shall, subject to the Concessioning Authoritys right to receive or recover amounts, if any,
due from the Concessionaire under this Agreement, be duly discharged and released to the
Concessionaire.
10.1.1. The Concessioning Authority on providing the performance security and signing this Agreement, shall
within 15 days, give on Concession to the Concessionaire, the Project site for 90 years for the Scope of the
Project as mentioned in Article 2.
10.1.2. It is being expressly agreed and understood that the Concessioning Authority shall have no liability
whatsoever in respect of survey and investigations carried out or work undertaken by the Concessionaire
pursuant hereto in the event of Termination or otherwise.
10.1.3. It is expressly agreed that the rights granted hereunder shall terminate automatically and forthwith, without
the need for any action to be taken by the Concessioning Authority to terminate the rights, upon the
Termination of this Agreement for any reason whatsoever.
10.1.4. It is expressly agreed that mining rights do not form part of the rights granted to the Concessionaire under
this Agreement and the Concessionaire hereby acknowledges that it shall not have any mining rights or
any interest in the underlying minerals on or under the area where cable have been laid. For the avoidance
of doubt, mining rights mean the right to mine any and all minerals or interest therein.
10.2. Others
10.2.1. Access to the Concessioning Authority and any person appointed as the Engineers / consultants appointed
by Concessioning Authority
The right of way granted for construction on the Project site shall always be subject to the right of access of
the person appointed by the Concessioning Authority for inspection, viewing and exercise of their rights
and performance of their obligations under this Agreement.
11.2.1. On or after the Effective Date, the Concessionaire shall undertake construction of Project. The 36th month
from the Effective Date shall be the Scheduled Completion Date for completion of the Project and the
Concessionaire agrees and undertakes that atleast 250 beds of the Hospital shall be completed on or
before the Scheduled Completion Date. The remaining 250 beds shall be completed within 2 years from
the Scheduled Completion Date.
11.2.2. In the event that Project is not completed by the Scheduled Completion Date, unless the delay is on
account of reasons solely attributable to the Concessioning Authority or due to Force Majeure, the
Concessioning Authority shall encash 10% of the Performance Security amount per month, for a maximum
period of six months after which Concessioning Authority shall be entitled to terminate this Agreement. .
The Performance Security shall be replenished by the Concessionaire as soon the Performance Security is
encashed by the Concessioning Authority.
(n) The Concessionaire novates and /or assigns the agreement to any third party without any
prior approval from the Concessioning Authority
13.5. The Concessioning Authority shall have at all times right to reject any third party which has been
proposed in relation to the novation of this agreement
The Concessionaire will indemnify, defend, save and hold harmless the Concessioning Authority
and its officers, employees, agents and consultants against any and all suits, proceedings, actions,
demands and third party claims for any loss, damage, cost and expense of whatever kind and
nature arising out of any breach by the Concessionaire of any of its obligations under this
Agreement or any related Agreement, except to the extent that any such suits, proceedings,
actions, demands and claims have arisen due to any negligent act or omission, or breach of this
Agreement on the part of the Concessioning Authority indemnified persons.
The Concessioning Authority will indemnify, defend, save and hold harmless the Concessionaire
against any and all suits, proceedings, actions, demands and third party claims for any loss,
damage, cost and expense of whatever kind and nature arising out of
(a) defect in title and/or the rights of the Concessioning Authority in the land given on
Concession to the Concessionaire
(b) breach by the Concessioning Authority of any of its obligations under this Agreement or any
related Agreement, which materially and adversely affect the performance by the
Concessionaire of its obligations under this Agreement, save and except that where any
such claim, suit, proceeding, action, and/or demand has arisen due to a negligent act or
omission, or breach of any of its obligations under any provision of this Agreement or any
related Agreement and/or breach of its statutory duty on the part of the Concessionaire, its
subsidiaries, affiliates, contractors, employees or agents and the same shall be the liability
of the Concessionaire.
Without limiting the generality of Clause 14.1, the Concessionaire shall fully indemnify, hold
harmless and defend the Concessioning Authority from and against any and all loss and/or
damages arising out of or with respect to:
(a) failure of the Concessionaire to comply with Applicable Laws and Applicable Permits;
(b) payment of taxes required to be made by the Concessionaire in respect of the income or
other taxes of the Concessionaires contractors, suppliers and representatives; or
(c) non-payment of amounts due as a result of materials or services furnished to the
Concessionaire or any of its contractors which are payable by the Concessionaire or any of
its contractors.
(d) Breach by the Concessionaire of any of the obligations under this Agreement.
Notwithstanding anything to the contrary contained in this Article 14, the indemnities herein provided
shall not include any claim or recovery in respect of any cost, expense, loss or damage of an
indirect, incidental or consequential nature, including loss of profit, except as expressly provided in
this Agreement.
15.1.1. Any dispute, difference or controversy of whatever nature howsoever arising under or out of or in relation to
this Agreement (including its interpretation) between the Parties, and so notified in writing by either Party to
the other Party (the Dispute) shall, in the first instance, be attempted to be resolved amicably in
accordance with the conciliation procedure set forth in Clause 15.2.
15.1.2. The Parties agree to use their best efforts for resolving all Disputes arising under or in respect of this
Agreement promptly, equitably and in good faith, and further agree to provide each other with reasonable
access during normal business hours to all non-privileged records, information and data pertaining to any
Dispute.
15.2. Conciliation
In the event of any Dispute between the Parties, either Party may call upon the Vice Chairman of
the Concessioning Authority to mediate and assist the Parties in arriving at an amicable settlement
thereof. Failing mediation by the Vice Chairman of the Concessioning Authority within 7 (seven)
days from the date of reference to discuss and attempt to amicably resolve the Dispute , either
Party may require such Dispute to be referred to the Principle Secretary, Housing for amicable
settlement. If the Dispute is not resolved as evidenced by the signing of written terms of settlement
within 30 (thirty) days of the notice in writing referred to in Clause 15.1.1 or such longer period as
may be mutually agreed by the Parties, either Party may refer the Dispute to arbitration in
accordance with the provisions of Clause 15.3.
15.3. Arbitration
15.3.1. Any Dispute which is not resolved amicably by conciliation, as provided in Clause 15.2, shall be decided by
reference to Arbitral Tribunal appointed in accordance with Clause 15.3.2. Arbitration shall be held in
accordance with the provisions of Arbitration and Conciliation Act, 1996 .The venue of arbitration shall be
Kanpur, and the language of arbitration proceedings shall be English.
15.3.2. The Arbitral Tribunal shall consist of three arbitrators. Each Party shall appoint one arbitrator, and the third
arbitrator shall be appointed by the two arbitrators so appointed, and in the event of disagreement between
the two arbitrators, the appointment shall be made in accordance with the Arbitration and Conciliation Act,
1996.
15.3.3. The arbitrators shall make a reasoned award (the Award). Any Award made in any arbitration held
pursuant to this Article 15 shall be final and binding on the Parties as from the date it is made, and the
Concessionaire and the Concessioning Authority agree and undertake to carry out such Award without
delay.
15.3.4. The Concessionaire and the Concessioning Authority agree that an Award may be enforced against the
Concessionaire and/or the Concessioning Authority, as the case may be, and their respective assets
wherever situated.
15.3.5. This Agreement and the rights and obligations of the Parties shall remain in full force and effect, pending
the Award in any arbitration proceedings hereunder.
16.4. Waiver
16.4.1. Waiver, including partial or conditional waiver, by either Party of any default by the other Party in the
observance and performance of any provision of or obligations under this Agreement:-
(a) shall not operate or be construed as a waiver of any other or subsequent default hereof or
of other provisions or obligations under this Agreement;
(b) shall not be effective unless it is in writing and executed by a duly authorised representative
of the Party; and
(c) shall not affect the validity or enforceability of this Agreement in any manner.
16.4.2. Neither the failure by either Party to insist on any occasion upon the performance of the terms,
conditions and provisions of this Agreement or any obligation thereunder nor time or other indulgence
granted by a Party to the other Party shall be treated or deemed as waiver of such breach or acceptance of
any variation or the relinquishment of any such right hereunder.
(a) no review, comment or inspection by the Concessioning Authority of any document submitted by the
Concessionaire nor any observation or inspection of any document or operations conducted at the
Project Site hereunder shall relieve or absolve the Concessionaire from its obligations, duties and
liabilities under this Agreement, the Applicable Laws and Applicable Permits; and
(b) the Concessioning Authority shall not be liable to the Concessionaire by reason of any review,
comment, approval, observation or inspection referred to in Sub clause (a) above.
16.7. Survival
16.7.2. All obligations surviving Termination shall only survive for a period of 5 (five) years following the date
of such Termination.
16.9. Severability
If for any reason whatever, any provision of this Agreement is or becomes invalid, illegal or
unenforceable or is declared by any court of competent jurisdiction or any other instrumentality to
be invalid, illegal or unenforceable, the validity, legality or enforceability of the remaining provisions
shall not be affected in any manner, and the Parties will negotiate in good faith with a view to
agreeing to one or more provisions which may be substituted for such invalid, unenforceable or
illegal provisions, as nearly as is practicable to such invalid, illegal or unenforceable provision.
Failure to agree upon any such provisions shall not be subject to the Dispute Resolution Procedure
set forth under this Agreement or otherwise.
16.10. No partnership
This Agreement shall not be interpreted or construed to create an association, joint venture or
partnership between the Parties, or to impose any partnership obligation or liability upon either
Party, and neither Party shall have any right, power or authority to enter into any Agreement or
undertaking for, or act on behalf of, or to act as or be an agent or representative of, or to otherwise
bind, the other Party.
16.13. Notices
Unless otherwise stated, all notices, approvals, instructions and other communications for the
purposes of this Agreement shall be given in writing and may be given by facsimile, by personal
delivery or by sending the same by prepaid registered mail addressed to the Party concerned at its
address stated in the title of this Agreement or the fax numbers set out below and/or any other
address subsequently notified to the other Parties for the purposes of this clause 16.14 and shall
be deemed to be effective (in the case of registered mail) 10 calendar days after posting, (in the
case of facsimile) two Business Days after receipt of a transmission report confirming dispatch or
(in the case of personal delivery) at the time of delivery.
If to Concessioning Authority:
If to the Concessionaire:
Address :
Telephone :
Fax :
Attention :
16.14. Language
All notices required to be given by one Party to the other Party and all other
communications, Documentation and proceedings which are in any way relevant to this
Agreement shall be in writing and in English or Hindi language.
16.15. Counterparts
This Agreement may be executed in two counterparts, each of which, when executed and
delivered, shall constitute an original of this Agreement.
16.16. Validity
This Agreement shall be valid for the entire concession period
(Signature) (Signature)
(Name) (Name)
(Designation) (Designation)
2.
The Concessionaire may also develop additional specialties other than those mentioned above. The hospital
shall also have a round the clock emergency unit.
A. Planning
The Concessionaire shall plan the facilities, manpower and the service as per the Indian Public Health Standard
(IPHS).
The hospital shall be developed with 500 bed capacity within 36 months from the Effective Date.
However, the Concessionaire is allowed to construct 250 bed capacity within 36 months from the
Effective Date and remaining 250 bed capacity within 60 months from the Effective Date.
The hospital shall be planned in accordance with the Development Control Regulations applicable to the
region and norms if any prescribed by the Medical Council of India, Ministry of Health and Family
Welfare and the State Health Department.
The developer shall obtain necessary clearances and approval for the plans from the relevant authority
as per the requirements.
Service Apartments can be provided within the hospital complex to cater to the needs of the patients
and their relatives.
Institute offering Laboratory Technician courses, Nursing courses can also be developed within the
hospital complex.
Restaurants, ATMs, Pharmacy for the convenience of the patients can be provided within the hospital
complex.
Research Institutes can also be setup in the hospital complex.
Helipad for picking up patients may be provided.
B. Designing
Modular design to enable addition of new departments, least disturbance to existing facilities, quality,
and added benefits of economy of scale shall be preferred.
Architectural design norms as per NBC (National Building Code 2005)
Structural Design norms as per NBC and BIS (Bureau of Indian Standards)
Services design norms as per CPEEHO (Central Public Health and Environmental Engineering
Organisation), NBC and BIS
42
In case of contradiction between the IPHS norms and the Design Norms specified above, the former shall prevail.
C. Construction
The construction shall be strictly as per the design norms specified above.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Disclaimer:
Neither Awas Bandhu, UP nor their employees or consultants make any
representation or warranty as to the accuracy, reliability or completeness of
the information in this Pre Feasibility report . Awas Bandhu, UP nor their
employees or consultants take any responsibility for any kind of investment
done on the basis of this report. This report is only for reference of the
bidders.
i
Pre Feasibility Report- Super Specialty Hospital, Kanpur
Table of Content
1 Background ........................................................................................... 4
1.1 Kanpur City Profile 4
6 Conclusion............................................................................................ 65
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Abbreviations
FSI Floor Space Index
GoUP Government of Uttar Pradesh
IURP Integrated Urban Rejuvenation Plan
JCAHO Joint Commission on the Accreditation of Healthcare Organisation
JCI Joint Commission International
KDA Kanpur Development Authority
WHO World Health Organisation
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
1 Background
Kanpur is the
biggest city of the
State of Uttar
Pradesh, sprawling
over an area of 260
sq km. It is also the
main centre of
commercial and
industrial activities
in state. It is known for its cotton and woolen textile and leather industries.
Apart from leather and textile industry, the fertilizer, chemicals, two wheelers,
soaps, Pan Masala, hosiery and engineering industries are also operating
prominently in the city. Kanpur is situated on bank of holy river Ganga and is
about 126 meters above the sea level.
1.1.2 Economy
Kanpur has traditionally been an industrial city and on economic center. At one
point in time it was the second most industrialized city in India being second
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
only to Calcutta. Due to large number of cotton textile units and a vibrant
trade center for cotton it was also called he Manchester of India.
During the British times, it was mainly the industries related to tanneries,
cotton and woolen clothes production, sugar mills, flour mills, refineries which
were established in Kanpur. Kanpur during that time was of strategic
importance for movement of troops from one region of the country to another.
This lead to development of a large cantonment base at Kanpur and
contributed to development of leather industry in the form of various saddle
units catering to the requirement of British troupes.
At present, Kanpur has mostly industries relating to leather shoe making and
cotton textiles. Other factories include manufacture silk, woolen and jute
textiles, food products, fire-bricks, fertilizers, railway wagons, textile
machinery, television sets, metal ware, leather goods, soap, tents, durries,
fountain pens, hosiery, cutlery, television picture tubes, etc. In Kanpur (MC),
the banking services were availed by only 61 percent of the households
(Census 2001). About 8 percent of the households did not possess basic assets
such as vehicles (bicycles, scooter, moped, car, jeep, etc.), televisions and
radios.
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2 Benchmarking Study
2.1 Indian Healthcare Scenario
The global healthcare market has been one of the fastest growing markets in
the world over the last decade. Underlying this growth is a combination of
factors such as a) enhanced living standards, b) increase in aging population,
c) growing healthcare awareness and d) market-oriented industrial reforms in
many countries.
The healthcare industry is the world's largest industry with global revenues of
an estimated $2.8 trillion, or close to 9 per cent of global domestic product
(GDP). U.S. health care expenditures are $1.68 trillion in 2003. (Source : CII-
McKinsey Report).
India's healthcare sector has been growing rapidly and estimated to be worth
US$ 40 billion by 2012, according to Pricewaterhouse Coopers in its report,
'Healthcare in India: Emerging market report 2007'. Revenues from the
healthcare sector account for 5.2 per cent of the GDP, making it the third
largest growth segment in India.
The sector's growth will be driven by the country's growing middle class, which
can afford quality healthcare. Over 150 million Indians have annual incomes of
more than US$ 1,000, and many who work in the business services sector
earn as much as US$ 20,000 a year. Today at least 50 million Indians can
afford to buy Western medicines-a market only 20 per cent smaller than that
of the UK.
The growing purchasing power of Indian patients is revealed in the increased
business of air ambulance services. Around 365 airliftings worth several
millions of rupees happen in Delhi in a year on average.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
If the economy continues to grow faster than the economies of the developed
world, and the literacy rate keeps rising, much of western and southern India
will be middle class by 2020.
To meet this demand, the country needs US$ 50 billion annually for the next
20 years, says a CII study. India needs to add 2 million beds to the existing
1.1 million by 2027, and requires immediate investments of US$ 82 billion.
Funds in the sector have been largely private. In fact, it is believed that the
private sector provides 60 per cent of all outpatient care in India and as much
as 40 per cent of all in-patient care. It is estimated that nearly 70 per cent of
all hospitals and 40 per cent of hospital beds in the country are in the private
sector, says PWC.
Of this, 81% of the outpatient care and 56% of inpatient care is being
provided by the private sector in the country while employers account for 9 %
and insurance cover, 5 per cent of the total healthcare expenses.
As per the study of CII and McKinsey the sector is growing at 13%, consumers
are likely to increase total healthcare spending from Rs 86,000 crore (2001) to
more than Rs 200,000 crore (2012)
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
India has 503,900 Doctors, 737,000 Nurses, 162 Medical Colleges, 143
Pharmacy Colleges and 350,000 Chemists. There are 43,322 hospitals and
dispensaries accounting for 870,161 hospital beds in India. There is an
extensive three-tiered government healthcare infrastructure comprising
23,000 Primary Health Centers and 137,000 sub-centers serving, the semi-
urban and rural areas and more than 3000 Community Health Centers.(Source :
NHP- 2002)
2.2.1 Quality
On the quality front the Indian Healthcare
Sector, lags behind. For instance, India has
1.5 beds per 1,000 people while China,
Brazil and Thailand have an average of 4.3
beds. The density of doctors is also low.
There are only 43 doctors for a population of
10,000.This is a result of the poor
performance of the health system in terms
of coverage, purchasing and delivery. The
country is below international standards on
basic healthcare infrastructure and facilities.
One of the main reasons underlying the poor state of healthcare facilities in
India happens to be the very low levels of public expenditure in health sector,
which happens to be among the lowest in the world. The healthcare spending
Per Capita is low in India as compared to other countries, which is as low as
$71.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
With the rise in lifestyle diseases such as cancer and cardiovascular, the
spending pattern will change dramatically by 2012 with inpatient spending
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
accounting for 47% of the private health care spending, up from the 39% at
present. The outpatient spending which accounts for 61% of the private
spending at present will decrease in terms of share but increase in absolute
terms to Rs 74,000 crores.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
2.3.6 Accreditation
A disturbing trend in this sector is the lack of standards of these
establishments in terms of their operations and services. There are a few
hospitals, diagnostic centres and CROs maintaining high standards but a large
majority of them are operating without any norms and good practices. Most of
the state governments have also been lax in framing rules to control the
activities of healthcare establishments. Hence, there has been no check in the
growth of these establishments and their standards in most parts of the
country.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
A dozen or more CROs are doing extremely well with orders from US and
European companies. Many more are expected to set shops soon. An
accreditation system for CROs, as proposed by NCMH, could check the entry of
ill equipped ones into this sector. The good clinical practices as per the
amended Schedule Y of the Drugs and Cosmetics Act could also help to
upgrade the clinical practices in the country. Syngene International, Lotus
Labs, Rallis India Ltd are the leading players in this industry.)
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Bank of Baroda, ICICI and the State Bank of India (S.B.I) are among the
Banks that have a Medical Equipment Financing Division. L & T Finance Ltd,
also has a Medical Equipment Finance arm. Loans are offered for purchase of
new equipments as well as takeover or existing loans. The features include
a) Competitive Interest Rates
b) Flexible Repayment Structure.
2.3.8 Infrastructure
The current situation in the healthcare sector in India reflects poor
performance of the sector in terms of coverage, purchasing and delivery in
comparison to other developing countries such as Brazil.
For example, India has only 1.5 beds per 1000 people in comparison to the
average of 4.3 beds per 1000 in Brazil. In order to meet the growing demand
of healthcare in the country, huge investments worth Rs 1,00,000 crore to Rs
1,40,000 crore need to be made in infrastructure for providing cost effective
facilities in the next 10 years.
a) United States, the corresponding figure is 6 beds per 1000 people
b) Australia 3.7 beds
c) U.K. 3.7 beds
( Source WHO Report 01)
The bulk of the investments made will need to come from the private sector
for India to increase the distribution of medical facilities amongst its
population.
India with a population of 1.05 billion experiences a vast inequity that exists in
the healthcare industry with Insurance Penetration at 3% in 2003 and 1% in
2001. Compared to Healthcare Insurance Penetration in United States. 85%
(Source : K.P.M.G. Report 03 )
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
In India, presently the health insurance exists in the form of Mediclaim policy
offered to the individual or to any group, association or corporate bodies.
Penetration of Mediclaim is currently carried out by state-owned insurance
companies, covering only about 2.5 million people i.e., less than even 0.50 per
cent of the countrys population. (Source : I.R.D.A.)
2.3.10 Investments
The opportunities presented by the healthcare sector have made it a major
draw for potential investors. The healthcare sector attracted US$ 379 million in
2006 - 6.3 per cent of the total private equity (PE) investment of US$ 5.93
billion. The PE deals that the sector attracted in 2006 were as large as inputs
into the automotive sector.
Medical care services provider Apollo Hospitals group will invest about
US$ 235.69 million in the next 18 months to set up 15 hospitals in tier-
II and tier-III cities in India.
The Indian government plans to invest US$ 177.22 million across the
golden quadrilateral (GQ) project, to develop nearly 140 trauma care
centres on the 6,500 km long north-south and east-west corridors.
Competitor Fortis Healthcare Ltd will add 28 hospitals to its 12-hospital
chain by 2012.
George Soros's fund Quantum and BlueRidge bought 10 per cent in
Fortis Healthcare.
Manipal Health Systems raised over US$ 20 million equity from IDFC
Private Equity Fund.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
However, the Indian healthcare story is not about cost advantage only. It has
a high success rate and a growing credibility.
Indian specialists have performed over 500,000 major surgeries and
over a million other surgical procedures including cardio-thoracic,
neurological and cancer surgeries, with success rates at par with
international standards.
The success rate of cardiac bypass in India is 98.7 per cent against 97.5
per cent in the U.S.
India's success in 110 bone marrow transplants is 80 per cent.
The success rate in 6,000 renal transplants is 95 per cent.
Consequently, easy access to visa facilities coupled with the best emerging
medical infrastructure in large and tertiary towns will lead to an increase in
foreign exchange earning through medical tourism. Annual earnings from
medical tourism is estimated to rise from the current US$ 815.32 million to
US$ 1.87 billion by 2012.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
The findings from the Benchmarking studies can be compared with the primary
research data. This will help in developing pricing strategy for the various
services of the proposed hospital.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Departments
Medical Surgical Other
Internal Medicine General Surgery Anaesthesiology
Cardiology Cardio-Thoracic Surgery Radiology & Imaging
Sciences
Dermatology Dentistry Laboratory Sciences
Endocrinology ENT Physical Medicine &
Rehabilitation
Physiotherapy
Occupational Therapy
Artificial Limb Center
Gastro Enterology Neuro Surgery
Haematology & Haemato Obstetrics &
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Financials
Sr. No. Particulars 2005 2004 2003 2002
1 Sales (Net of Consulting Doctor Fee) Rs. 40.55 35.08 30.92 29.12
Cr.
2 Consulting Doctor Fee Rs. Cr. 5.86 4.3 3.5 2.8
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Education Initiatives
B.Sc (Nursing) Programme at KMCH College of Nursing Started in
1993
B.P.T programme at KMCH College of Physiotherapy Started in 1994
B.O.T course at KMCH College of Occupational Therapy Started in
1995.
B.Pharmacy degree course at KMCH College of Pharmacy Started in
1995
M.Sc (Nursing) started at KMCH College of Nursing in the year 1998 in
four specialities viz.,
a. Medical - Surgical Nursing
b. Child Health Nursing
c. Maternity Nursing
d. Community Health Nursing
M.P.T started at KMCH College of Physiotherapy in the year 1999 in
three specialities viz.,
a. Advanced PT in Orthopaedics
b. Advanced PT in Neurology
c. Advanced PT in Cardio - respiratory diseases
Diploma Courses
a. PGDMLT (Medical Lab Technician) 2 year course
b. DMIT (Medical Imaging Technology) - 2 years
Certificate Courses
a. Cath Lab Technician
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Education Initiatives
Fellowship in Emergency Medicine
Nursing - Offer 3 year diploma course in gen. Nursing & midwifery
(recognized by Indian nursing council & Delhi nursing council)
with an annual intake of 50 students.
2.4.3 Malar Hospitals Ltd.
Located in Chennai
Total No. of Beds - 250
Leading centre for Cardiac Care, Renal Transplants, Neurosurgery,
Oto-laryngocoloy, Limb Reconstruction Surgery and Maxillo Facial
Orthodontology.
The Department of Orthopaedic Surgery of Malar Hospitals is a reputed
centre for trauma care in India.
Attracts International Patients from Bangladesh, Mauritius and Middle
East
Financials
Sr. No. Particulars 2005 2004
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Some of the Corporate Clients with whom MIMS has tie-ups are -
Airport Authority of India, Association of Senior Citizens, BSNL, Canara
Bank, E-Serve International, HPCL, HUDCO, IOC, Malayala Manorama,
Punjab National Bank, Taj Hotels, TATA Motors, Mathrubhumi, UTI, AMP
Sanmar, ICICI Prudential Life Insurance, HDFC Standard Life Insurance,
Metlife India, ING Vysya, Vijaya Bank, Indian Airlines, Air India, Jet
Airways etc.
It also has tie-ups with following Third Party Administrators - Family
Health Plan Medi Assist, Medicare TPA Pvt Ltd., Paramount, TTK
Healthcare Pvt Ltd., Universal Medi-aid Services Ltd.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
o Debt Equity Ratio Negative networth and debt Rs. 124.21 Cr.
Charges for various procedures
Sr. Wockhardt
Procedure / Treatment USA UK
No. Hospitals, India
1 Total Knee Replacement $6,000 $32,000 $11,700
2 Birmingham Hip Resurfacing $7,000 Not Available $19,000
Coronary Artery by-pass
3 $7,600 $35,000 $16,000
surgery
$ 4,500- $ 2,700-
4 Liposuction / Tummy Tuck $1,200-2,000
10,000 8,500
5 Face lift $1,800-3,200 $9,000 $10,200
Obesity Surgery (Gastric
6 $9,000 $35,000 $20,100
Bypass)
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Financials (2003)
o Sales Rs. 10.25 Cr.
o PBDIT- Rs. 1.04 Cr.
o PBDIT to sales 10.15%
o PAT Rs.(- 0.69) Cr. (Loss)
o Gross Fixed Assets Rs. 47.58Cr.
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2.5.1 Financials
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Specialty Hospitals achieve this profit margin even with sales to gross
fixed assets of about 0.45.
Lakeshore Hospital and Research Centre, Kochi, Kerala is a 350 bed
hospital constructed at a cost of Rs. 50 Cr. in 2002. It started
functioning from January 2003. The debt equity ratio was about 1.4. For
the year 2004, it achieved a profit margin of 15%.
Consulting fee to doctors expenditure in most hospitals is about 10-15%
of the total income. However hospitals like Indraprastha Apollo which
has large number of consulting doctors (about 180) the consulting fee to
doctors account for 25% of the hospitals total income. At Indraprastha
Apollo the Consulting fees charged by doctors is about Rs. 500/-.
Depreciation on medical equipment has been increased from 25% to
40% as per the IT Act.
Medical Equipment Financing Banks like ICICI Bank, SBI, Union Bank
of India, Bank of Baroda offer Medical Equipment Loans. ICICI offers
medical equipment loan to the tune of 85% of the invoice amount. L&T
Finance Ltd. offers medical equipment lease financing to select
hospitals. They have tie-ups with medical equipment manufacturers.
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Lakeshore Escorts
Breach Noida
Hospital Hospital
Candy Medicare
Particulars MIOT and and
Hospital Centre
Research Research
Trust Ltd.
Centre Centre
No. of Beds 173 250 350 120 250
Sales Rs.
61.62 31.3 20 10.25 18.94
Cr.
Gross Fixed
Assets Rs. 16.98 46.96 55.05 47.58 68.14
Cr.
Revenue
per bed in 35.62 12.52 5.71 8.54 7.58
Rs. lakhs
Gross Fixed
Assets per
9.82 18.78 15.73 39.65 27.26
bed Rs.
lakhs
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Pre Feasibility Report- Super Specialty Hospital, Kanpur
Peerless
Seahorse Devaki Pulikkal
Jaipur Hospitex
Particulars Hospitals Hospital Medical
Hospital Hospital
(Rs. In cr) Ltd. Ltd. Foundatio
(2005) Ltd.
(2005) (2005) n (2004)
(2003)
Equipments
Medical
Equipments
to Gross 39.75% 41.06% 51.95% 54.63% 33.36%
Fixed
Assets
PBDIT to
-5.95% 3.72% 14.23% 10.49% 22.01%
Sales
Sales to
Gross Fixed 0.14 0.39 0.34 0.37 0.63
Assets
Note:
Sales figures of Peerless and Pulikkal include consulting fees to doctors.
Medical Equipment figures given for Pulikkal and Peerless is that of Plant
and Machinery. Figures of Medical Equipment separately not available.
Im p a c t o f A d d itio n a l B e d s
250
225
200
175
150
125
100
75
50
25
0
0 100 200 300 400 500 600 700 800
No. of Beds
S a le s R s . C r . PB D IT R s . C r . G r o s s F ix e d A s s e ts R s . C r .
36
Pre Feasibility Report- Super Specialty Hospital, Kanpur
Room charges and charges for medical services vary across hospitals.
Many hospitals have tie-ups with corporates for offering their services.
Malabar Institute of Medical Sciences has tie-ups with Third Party
Administrators like Family Health Plan Medi Assist, Medicare TPA Pvt. Ltd
Paramount, TTK Healthcare Pvt. Ltd., Universal Medi-aid Services Ltd.
Hospitals offer preventive health check-ups like Executive health check,
Senior citizen's master health check up, routine health checkup, pre-
employment health checkup, well women checkup etc.
The tariffs for these services in some of the hospitals have been
included in the report. Executive Health Checkup offered in most
hospitals is priced at about Rs.3000/-.
37
3 Healthcare Scenario in Uttar
Pradesh
Uttar Pradesh, with a population of around 166 million (Census 2001), is the
most populous State of the Indian Union and accounts for approximately 16.17
percent of the country's population. Out of the total population of the State,
more than 79 percent (13.15 crores) live in the rural areas, while the
Out of the total population, 52.7 percent (8.75 crores) are males and 47.3
percent are females (7.85 crores). The sex ratio of the population is 898
females per 1000 males for the State, compared to 933 for all India (Census
2001). The population density is very high in the Eastern and Western regions
and very low in Bundelkhand region. The literacy rate among those aged seven
years and above is 70.23 percent among males and 42.98 percent among
females. The life expectancy in the State is 65.48 years for males and 67.10
years for females, as compared to the national average of 65.63 years for
males and 66.38 years for females.
For planning and development purposes, the State is divided into four distinct
regions on the basis of homogeneity, contiguity and economic criteria. These
38
regions are Western, Central, Eastern and Bundelkhand. For administrative
purposes, these regions are further divided into 17 divisions and 70 districts.
These districts are further divided into tehsils (303) and developmental blocks
(813). Each block consists of a number of villages (97,134), which is the
smallest unit in the rural areas. There are approximately 700 urban local
bodies, 8135 Nayay Panchayats, 52028 Gram Sabhas. There are around 631
cities and urban agglomerations in the State.
Health Status
The mortality indicators of the State depict an alarming situation. As per SRS
The latest survey of NFHS-III (2005-06) shows that only 23 percent of children
(12-23 months) were found to be fully immunized against the six vaccine
preventable diseases. Findings of NFHS-III reveal that although the State's
total fertility rate is high (3.8), there is a dismally low prevalence of ante-natal
care and birth related counseling being provided to pregnant women in the
State. As per the survey, only 26 percent of the pregnant women in the State
received 3 or more ANCs. The share of institutional deliveries in the State
stands at only 22 percent. The nutritional status of women is also poor. Almost
50 percent of women in the State suffer from some form of anaemia. In 1997,
there were an estimated 707 maternal deaths per 100,000 live births (SRS
1997), almost 70 percent higher than the national average of 437, as per the
recent SRS (2001-03), the maternal mortality stands at 517 per 100,000 live
births.
Nutritional indicators of the State are also one of the poorest in the country
with large interregional imbalances. High levels of malnutrition particularly
among women and children have been directly and indirectly influencing
39
mortality rates in infants, children and women. Although the incidence of florid
nutritional deficiencies like pellagra, beriberi etc has significantly gone down,
undernutrition among children and micronutrient deficiencies across all
sections of the population continues to be widespread in the State. NFHS-III
data indicates that out of 10 children under 3 years, almost 5 are underweight
and 4 are stunted. High incidence of general undernutrition and micronutrient
deficiency is reflected in the high childhood mortality and infant mortality.
Awareness of AIDS and HIV among women is quite low. As per NFHS-III, only
40 percent of ever married women (15-49 years) reported having heard of
The draft Uttar Pradesh Human Development Report mentions that combined
losses due to premature death and disability from non-fatal illnesses
(measured as Disability Adjusted Life Years DALYs) are very high in Uttar
Pradesh. A World Bank Study of the year 2000 showed that the estimates of
DALYs lost in six States in India suggest that Uttar Pradesh at 273.2 DALYs,
has the highest loss rate among all the Indian States. A further analysis of
ailments by cause shows that the overwhelming cause of premature death and
disability can be attributed to Group 1 diseases, namely communicable
diseases, malnutrition and peri-natal conditions, a disease pattern common
among poor populations.
40
%age of cases to Total No. of Cases Reported
Ailments requiring
Disease Categories Short Ailments
Hospitalization
Rural Urban Total Rural Urban Total
Mental, psycho-neurotic
0.67 0.26 0.60 0.07 0.79 0.08
& personality disorders
Diseases of nervous
2.89 3.31 2.96 0.34 6.06 0.43
system & sense organs
Diseases of circulatory
1.35 6.19 2.16 0.16 9.25 0.30
system
100.0
Total 100.00 100.00 100.00 100.00 100.00
0
Source: NSS 52nd Round
It is evident from the above Table that about 56% of short duration ailments
reported belonged to the category of infectious and parasitic diseases, more so
in rural than in urban areas. Short duration fevers constituted 38.6% of all
ailments reported followed by diarrhoea and gastroenteritis (7.88%). 92
percent of hospitalization cases in rural areas in Uttar Pradesh fell in the
infectious and parasitic diseases category, more specifically within diarrhoea
and gastroenteritis. This indicates the widespread problem of poor water
quality and lack of basic sanitation and hygiene.
41
Health Infrastructure
The present public health infrastructure in the State, both in the urban and
rural areas, is shown below :
No. of
Urban Areas No. of Facilities Rural Areas
Facilities
Super Specialty Institute 5* CHCs 315
7 - Govt.
2 Central
Medical Colleges BPHCs 823
Govt.
Although Uttar Pradesh has a fairly large public sector health infrastructure
comprising one Super Specialty Institution (SGPGI) - 4 more in the process of
establishment, 7 government medical colleges & hospitals, 53 District
Hospitals, 13 Combined Hospitals, 388 Community Health Centres, 823 block
PHCs, 2817 Additional PHCs apart from 20521 Sub Centres, yet only 9 percent
of the States population actually make use of this facility for treatment of
ordinary ailments and people mostly have to depend on private healthcare. In
the private sector, there are 3 medical colleges & hospitals and 4913
Male/Female hospitals/nursing homes at District level in the State. However,
there are a large number of registered and non-registered medical
practitioners in the State and they play an important role in providing medical
service to the rural population.
However, the physical health infrastructure in the State is still much below the
country average. For instance, the population covered by a Sub-centre in the
42
State is 7080 and the average distance is 3.4 km. while the country average is
5109 and 1.3 km. It is estimated that 11% of people in Uttar Pradesh are not
able to access medical care due to locational reasons. Further, even when
accessed, there is no guarantee of sustained care. Several other deterrents
such as bad roads, the unreliability of finding the health provider, costs for
transport and wages foregone, etc. make it cheaper for a villager to get some
treatment from the local quack.
Human Resources
The ratio of doctors per thousand population for U.P. is much below the
national figure of 1 and although the ratio of beds is almost the same as the all
India figure of 0.7, their geographical distribution is highly skewed in favour of
the urban areas, depriving the rural masses.
The current position of doctors and paramedical staff in the State is as under:
Human Resource Sanctioned* Filled*
Medical Officers
Male (General) 6468 4940
Male (Specialist) 4128 3694
Female (General + Specialist) 1740 1319
Paramedical Staff
Pharmacist 5078 4695
Staff Nurse 4528 3678
ANM 23656 21944
Optometrist 923 833
Lab. Technician 1915 1442
X-Ray Technician 514 452
Dark Room Assistant 163 102
Physiotherapist 19 16
43
It is evident that the situation is grave in terms of requirement of medical
personnel, specially doctors and specialists. Although the State also has a
large presence of private health providers, it is mostly concentrated in the
urban areas and is largely focusing on curative aspects, rather than maternal &
child health services.
Total number of doctors and hospital beds, both public and private sector
combined, are estimated as under
Ratio
Government Private
Description Total (Per 1000
Sector Sector
Popn)
Allopathic
9950 29000 38950 0.2
Doctors
54193
Total Beds (Urban-31646, 46269 100462 0.6
Rural-22547)
1
UPHSDP Project Implementation Plan, Vol. 1, 2000
44
3.1 Healthcare Facilities in Kanpur
There is a lack of world class hospital facility in the region. KDA intends to
develop a 500 Bed Super Specialty Hospital at this site with latest technology
and facilities so that it is one of its kinds in the region and has earmarked 10
acres for the same. Other developments which would be in close vicinity of the
proposed super specialty hospital would be Eldeco County and Green City by
KDA. The proposed development would not only provide medical facilities to
the people of Kanpur but also to the people from other adjoining towns like
Allahabad, Kannauj, Jhansi, Kalpi, Etah, etc.
The city has a number of hospitals and diagnostic clinics but lacks world class
tertiary hospitals. Presented below is a list of some of the hospitals and
diagnostic clinics in Kanpur.
45
Sr. No. Partial List of Hospitals Discipline
Chandani Hospital,
General purpose treatment & Specialized
9 9/60, Arya Nagar,
treatment in Dialysis & ICU.
Kanpur.
R.K.Devi Memorial Hospital,
General purpose treatment in
10 113/157, Swaroop Nagar,
Ophthalmology
Kanpur.
Shree Ram Nursing Home Pvt.Ltd.,
General purpose treatment & diagnostic
11 128/817-A, K-Block,
procedures.
Kidwai Nagar, Kanpur.
Kulwanti Hospital & Research
46
Sr. No. Partial List of Hospitals Discipline
Priya Hospital,
23 D/25, HIG, World Bank Colony, General-purpose treatment.
Barra, Kanpur.
Gopinath Hospital Pvt. Ltd.,
24 Unit-1, Sector-8, Chetak Marg, General-purpose treatment.
Pratap Nagar, Jaipur.
Mohammadia Hospital,
25 Nala Road, Railway Crossing, General-purpose treatment.
Becon Ganj, Kanpur.
Raja Ram Hospital,
47
Partial List of Diagnostic
Sr. No. Discipline
Centres
Universal Pathology Lab &
Blood Bank. Blood Bank & Pathological
7
Opp. L.L.R.Hospital, Investigations.
Kanpur.
Dr.Thawanis Chest Clinic &
Diagnostic Center, Pulmonary Function Test, ECG &
8
MIG 2, Barra 6, Ultrasound
Kanpur.
X-Ray, Ultrasound & General
Usha Pathology, X-Ray &
Pathological
Ultrasound Center,
9 Investigations & Specialized Diagnostic
Opp. L.L.R.Hospital,
procedures in Cytopathology &
48
4 Project costing and Phasing
The Site is strategically located just opposite to IIT Kanpur. The site is by the
proposed Mandhana-Bhounti Bye Pass so as to allow access to people coming
not only from within the city of Kanpur but also from other adjoining cities.
49
4.2 Departments proposed in the Hospital
The following are the departments that can be established in the proposed
500 bed hospital:
Sr.
No. Departments / Specialities
1 Trauma Care
a. Ortho unit
b. Maxillofacial surgery unit
c. Cosmetic surgery (plastic surgery)
d. Blood Bank
e. Burn Care Unit
f. Physiotherapy
g. MRI, CT scan
Cardio Thoracic care unit (ICCU- Intensive Cardiac
2
Care Unit)
3 Intervention specialty and Cerebral Intervention
4 Nephro unit
5 Neurology unit
Obs & Gynecology (IVF center may be kept as
6
optional)
Pediatric unit (with NICU Neonetal Intensive Care
7
unit)
8 Dental unit for surgery etc
9 Ophthalmology and ENT
10 Cancer unit (for Lucknow only)
Fitness center (that can include diet counseling etc.
11
for additional source of revenue)
12 OPD
General Surgery - will include laproscopy, hernia,
13 biopsy, cyst excison, thyroidrectomy, haemorrhoids
etc.
50
Hospital Configuration Nos. Unit
4 bedded wards 100 beds
Other facilities
OPD (Consulting rooms) 15 Rooms
Emergency rooms 3 Rooms
Surgical suite (OT) 15 OTs
Cardiac catheterisation labs 1 labs
Labour room 4 Rooms
Imaging rooms 5
Pathology department 5 Labs
The FSI applicable is 1.5. Hence in 15 acres of land, the following are the
facilities constructed:
Facilities Sq. Mt
Hospital Facilities 44420
Staff Quarters 19500
Guest House and Training Institute
25000
for Diploma Courses
Other Commercial 6000
The commercial includes the following:
Banks and ATM
Pharmacy
Restaurant and Service Apartment
52
4.5.3 Cost of Medical Equipment
Medical equipment accounts for 35%-40% of a hospital project cost. The
details of cost of medical equipment is presented below:
Medical Equipment Rs. Lakhs
53
Atleast 3 ambulances are envisaged for the 500 bed hospital.
Services
Services Rs. Lakhs
HVAC 635
Electrical 1073
Plumbing / Sanitation /
399
Boiler/ Firefighting
54
5 Feasibility Study
Dental Unit 3%
Cardiac,Thoracic & Vascular 30%
E.N.T 4%
G.I Surgery 2%
Gastroenterology 3%
General Surgery 5%
Medicine 3%
Nephrology 5%
Neuro Surgery 3%
Neurology 5%
Obst & Gynaecology 4%
Oncology 5%
Opthalmology 6%
Orthopaedics 6%
Paediatric Surgery 3%
Paediatrics 3%
Plastic Surgery 5%
Urology 5%
Total 100%
55
OPD Revenue Assumptions
Year 1
Year 2
56
Year 3
Year 4
57
5.2 Operating Expenses
5.2.1 Employee Costs
Employee cost is one of the major operatign expense in a hospital. Planning
and efficient utilisation of manpower is key to successful operation of a
hospital. For a 500 bed hospital the total no. of doctors is estimated to be 110-
125. The total no. of patients after commissioning of 500 beds is expected to
be about 475 per day. For the 500 bed hospital the doctor patient ratio will be
about 1:4. The nurse to bed ratio is 1:5 and for ICU and Emergency Unit it is
1:1. Further provision needs to be provided for nurses working in shifts.
Accordingly the Nurses required for 500 bed hospital is 248.
The employee costs for the first 4 years have been taken at 40%, 60%, 80%
and 100% of the total employee costs for a 500 bed hospital.
Presented below is the manpower and salary levels of staff for a 500 bed
hospital.
Doctors
HOD Level-1 Level-2 Level-3 Residents
Salary Levels (Rs. Lacs) 75 24 20 15 6
Cardiac 1 2 2 3 3
E.N.T 1 1 3
G.I Surgery 2 2 3
58
Gastroenterology 2 2 3
General Surgery 1 1 2 3
Medicine 1 1 3
Nephrology 1 1 1 2 3
Neuro Surgery 1 1 2 3
Neurology 1 1 2 3
Obst & Gynae. 1 1 3 3
Oncology 1 2 1 2 3
Opthalmology 1 1 3
Orthopaedics 1 1 3
Paediatric Surgery 1 1 3
Paediatrics 1 2 3
Cosmetic surgery 1 2 2 2
Plastic Surgery 1 1 1 1 3
Urology 1 1 3
Medical Suprintendent 1
Sub Total 5 15 17 32 53
NURSES
Norms for nurses Nurses Beds
Surgical Wards 1 3
Other Wards 1 3
ICU 1 1
CCU 1 1
OT 1 1
ICU 100 100
Other 133 133
OTs 15 15
Total number of Nurses
required 248
DIAGNOSTICS STAFFING
Imaging
Salary/ Salary
Type of staff Number person (pm)
Head - Radiology 1 100000 100000
Senior resident 1 50000 50000
Supervisors 1 12500 12500
Technicians 1 20833 20833
Radiographer 5 10000 50000
Steno 2 6000 12000
Dark room asst. 2 6000 12000
Assistant 2 6000 12000
Attendant 1 4500 4500
273833
Radiotherapy
59
DIAGNOSTICS STAFFING
Salary/ Salary
Type of staff No. person (pm)
Senior Resident 1 50000 50000
Technicians 3 20833 62500
Receptionist 1 10000 10000
Asst. Technician 2 8000 16000
138500
Nuclear medicine
Salary/ Salary
Type of staff No. person (pm)
Senior Resident 1 50000 50000
Technicians 2 20833 41667
Receptionist 1 10000 10000
Asst. Technician 1 8000 8000
109667
Laboratory
Salary/ Salary
No. person (pm)
Chief - Microbiology 1 100000 100000
Resident Biochemist 1 50000 50000
Resident Pathologist 1 50000 50000
Senior res 2 50000 100000
Suprintendent 1 12500 12500
Sr. Lab tech 1 20833 20833
Lab. Technician 5 8000 40000
Asst. 3 6000 18000
Attendant 2 4500 9000
Lab trainees 5 5000 25000
50 425333
Total salary for diagnostics 114
Salary/ Salary
Deptt. Type of staff Number person (Rs.)
Head - Other
medical deptts 0 100000 0
Anaesthesiology
Consultant 2 125000 250000
Residents 6 50000 300000
Technician 4 20833 83333
Attemdent 2 4500 9000
Steno 1 6000 6000
648333
Physiotherapy
Attendant 1 4500 4500
60
Physiotherapists 5 7500 37500
Tech. Physio. 1 7500 7500
49500
Internal Medicine
Consultant 1 125000 125000
Chief Resident 0 50000 0
Residents 5 50000 250000
Clinical Offr 1 10000 10000
Compounder 1 6500 6500
Steno 1 6000 6000
Attendant 2 4500 9000
33 406500
The Summary of Operating Expenses for the first 4 years have been
estimated. The staff will be 40% of the total in the first year, 60% in 2nd, 80%
in the 3rd and 100% in the fourth year when the hospital has 500 beds.
30% Revenue sharing with doctors have been considered in the revenue
stream itself and net revenues have been considered in the revenues.
61
5.4 Debt and Interest Repayment
The interest rate assumed for long term debt is 12%. The debt is assumed to
be repaid in 8 years period.
Though the operating margins of hospitals vary widely between 10% and 25%
depending on the specialty services offered, due to the high capital cost and
periodic capital investment in medical equipments reduces the viability of a
hospital.
For the 90 year concession period the project yields and Internal Rate of
Return of 20% and the Cash Equity IRR is 24%.
The construction period is 2 years and the operations of the hospital will
commence from the third year. The Projected P&L statement for 10 year
period is presented below:
62
5.7 Projected Balance Sheet
Projected Balance Sheet (Rs. Lakhs)
63
5.8 Projected Cash Flow Statement
Projected Cash Flow Statement (Rs. Lakhs)
64
6 Conclusion
Hospital projects have a long gestation period owing to the huge initial capital
expenditure and recurring capital expenditure on medical equipments. Hence
to make the project viable commercial exploitation within the hospital complex
area shall be allowed. However, the commercial activity shall be related to
Hospital services catering to the needs of the patients. The Project IRR for 90
year concession period is 20% and the Cash Equity IRR is 24%.
Conclusion
65