UNDER THE GUIDENCE

OF
PROF.DR. V.R.K MURTHY

SK.VIKESH (AH15117)
S.SUDHEER (AH15124)
S.PRAKASH (AH15125)
 DBFOT MODEL
PROJECT CONTRACT DETAILS
PROJECT BRIEF
PROJECT METHODOLOGY
ANALYSIS
CONCLUSION
 DBFOT STANDS FOR DESIGN BUILD FINANCE
OPERATE TRANSFER.
THE CONTACTOR OR A GROUP OF
CONTRACTORS WHO HAVE GOOD FUNDING
CAPABILITIES AND ALSO EXPERTISE(SPV) ARE
APPOINTED TO UNDERTAKE THE PROJECT.
CONCESSIONAIRE WILL UNDERTAKE THE WORK
AND OPERATES FOR AN AGREED PERIOD.
 THE MAXIMUM PERIOD MAY BE 30 YEARS.
INDEPENDENT ENGINEER WILL BE APPOINTED
TO MONITOR THE WORKS AND TO SUBMIT
REPORTS TO THE CLIENT PERIODICALLY.
INDEPENDENT ENGINEER WILL BE PAID
EQUALLY BY CONCESSIONAIRE AND CLIENT
UNLESS SPECIFIED IN CONTRACT AGREEMENT.
 NAME OF THE PROJECT : SIX LANING OF
CHILAKALURIPET-NELLORE NH 16 SECTION
TOTAL LENGTH : 183.620 KMS
CONCESSIONAIRE : SIMHAPURI
EXPRESSWAYS LTD
INDEPENDENT ENGINEER: INTERCONTINENTAL
CONSULTANTS AND TECHNOCRATS PVT.LTD
 EPC CONTRACTOR : BSPCL INFRASTRUCTURES
LTD,KMC CONSTRUCTIONS LTD
DESIGN CONSULTANT : L&T RAMBOLL
CONSULTANT ENGINEERS LTD
DATE OF SIGNING OF CONCESSION
AGREEMENT : 15 JULY 2010
APPOINTED DATE : 21 NOVEMBER 2011
CONCESSION PERIOD : 30 YEARS
PERFORMANCE GUARENTEE : 130.31 CR
 THIS PROJECT IS INITIALLY AWARDED TO A
CONSORTIUM.
LATER THE COMPANIES MADE SEL LTD..AS THE
CONCESSIONAIRE.
THE TOTAL WORK IS SCHEDULED INTO 3
MILESTONES.
THE TARGETS AND TIME PERIOD OF
MILESTONES WERE MENTIONED IN
AGREEMENT.
 MILESTONE 1 : 35% OF WORK SHOULD BE
COMPLETED(365 DAYS FROM APPOINTED
DATE)
MILESTONE 2 : 70% OF WORK SHOULD BE
COMPLETED(730 DAYS FROM APPOINTED
DATE)
MILESTONE 3 : 100% WORK SHOULD BE
COMPLETED(930 DAYS FROM APPOINTED
DATE)
A brief idea about DBFOT projects.
Selection of a DBFOT project.
Data collected on that specified DBFOT project.
Detailed study on project.
Understanding financial aspects of the of project.
Analysis about the project.
 Thecost of construction of the project was
increased due to two main reasons.
1)Change in law,
2)Change in scope,
3)Delay aspects.
 On 11th October 2014,NHAI have proposed to
construct a new ROB for the three lane ROB
LHS@1341095km on NH-16.
On 9th October 2014,IE proposed the
increase in the height of PUP from 3.5m to
5m at 1365.30km.
On8places,(1187.23,1195.61,1213.111257.12,
1288.00,1311.21,1347.34,1365.36) VUPs are
proposed as per demand of the people.
 11nosof new PUPs are proposed at the
places required to satisfy the six laning
manual .the continuity of service road may
be broken if done as per schedule b.
 The Concessionaire claims that there have
been some changes in the rules of taxes.
The aggregate increase in rate of taxes for
the financial years 2014-15 & 2015-16 are
Rs.19.66 cr and Rs 14.04 cr respectively.
This is more than the limit of Rs.1 cr laid
down in article 41.1 of the concession
agreement.
 By using data and several assumptions,we
have done analysis to know whether the
project is financially viable.
The initial estimated cost of construction
was 1513.00 cr.
Later it was 1763.23 cr.
Grant as per article 21 : Rs.126.99 cr.
The concession period was taken as 30 years.
No of toll plazas : 3
 Assumed daily traffic as per NHAI data is
35242 PCU per day.
5% increase in annual revenue was assumed
due to increase in toll prices and traffic
volume.
The operation and maintainence cost was
assumed at 1.5% of total revenue generated.
The average revenue generated at bollapalli
toll plaza was 5.69 Cr.
 The average revenue generated at tangutur
plaza was Rs.8.45 cr.
The average revenue generated at musunur
plaza was Rs.5.10 Cr.
The total revenue generated was 19.15 Cr
per month.
The rate of interest for the project capital is
assumed at 15%.
Present value factor is taken at 10%.
 By studying the project in brief,we conclude
that increase in cost was mainly due to
change in law and change in scope.
By calculating the profits generated,it is
evident that the concessionaire can reach
the break even in 21 years.
For the period of 30 years,the project can
generate the profit of Rs.367.76 cr.
Hence we conclude that this project is
financially viable.