1. Introduction to TN Vision 2023 and TNIDB...Contents Sl. No Section Slide No. 1 TN Vision 2023 3 3 TNID Act, 2012 14 3 TNIDB Structure 18 2 Strengthened Procurement Ecosystem 12

Introduction to TN Vision 2023 and Tamil Nadu Infrastructure

Development BoardDevelopment Board

Contents

Sl. No Section Slide No.

1 TN Vision 2023 3

3 TNID Act, 2012 14

3 TNIDB Structure 18

2 Strengthened Procurement Ecosystem 12

4 TNIDB Approvals 20

6 Project Monitoring under TNIDB 28

7 Post Award Governance of Projects 30

8 Implementation So Far 33

5 Key Considerations 23

TN Vision 2023TN Vision 2023

The Vision for Tamil Nadu for 2023 is to become

India’s most prosperous and progressive state free

from poverty, and where its people enjoy all the

TN Vision 2023

from poverty, and where its people enjoy all the

basic services of a modern society and live in

harmonious engagement with the environment

and with the rest of the world.

4

Key Outcomes of TN Vision 2023

The per capita income of TN’s residents will reach $ 10,000 per

annum (at 2010 prices) by 2023 - in line with that of Upper Middle

Income Countries

TN will attain a high standard of social development, with theTN will attain a high standard of social development, with the

Human Development Index of the state matching those of

developed countries by 2023

TN would provide to its residents, high quality infrastructure all over

the state comparable with the best in the world

5

0

100,000

200,000

300,000

400,000

500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

2006-07 2011-12 2016-17 2022-23

in R

s.

in R

s. c

rore

Expected Growth of GSDP and Infrastructure Spending

• Vision 2023 envisages

infrastructure investment of Rs.

15 lakh crore

• Infrastructure spending as a

percentage of GSDP is expected

to rise from the current level of

5% to 11.5% by 2023

Vision 2023 sets aspirational targets

PCI

5% to 11.5% by 2023

• 42% of financing for

infrastructure is expected from

the private sector

• Attracting private sector

investment requires bankable

project pipeline and effective

project development

framework

6

Ten outcomes and corresponding strategic themes

1. Economic

Prosperity

2. Inclusive

Growth

3. Health for All4. World Class

Infrastructure

5. Healthy 6. Knowledge

Increasing the share of manufacturing

Making SMEs vibrant

TN: The Knowledge Capital and Innovation Hub

Specialisation in service offerings

Thrust on skill development

OUTCOME STRATEGY

5. Healthy

Investment

Climate

6. Knowledge

Hub and

Innovation

Capital

8. Nurturing

Heritage and

Preserving

Ecology

7. Peace Security

and Prosperity

9. Protection

against

Vulnerability

10. Improving

quality of

institutions and

governance

Infrastructure development in the State is vital to achieve this Vision

Improving agricultural productivity

Transforming 10 cities into world class cities

Thrust on social welfare projects for inclusive growth

Promote PPP in infrastructure project creation and

service provision

Develop signature infrastructure projects

7

Energy Transport Urban

�Cost overruns;

�Difficulties in traffic

forecasting;

� Delay in obtaining right

of way

�High procurement cost;

�Difficulties in creating

revenue streams;

�Low willingness to pay;

�Delays in environmental

clearances;

�Multiplicity of

� High upfront costs;

� Seasonal variations in

power demand;

� Fuel unavailability;

� Delay in obtaining

clearances;

� Irregularity of

Rs 389,335 Cr Rs 368,123 Cr Rs 263,350 Cr

Co

nsi

de

rati

on

s

The Vision targets span across multiple sectors

Industrial Agriculture Human Development

of way �Multiplicity of

legislations

�Responding to

demographic changes;

�High transaction costs;

�Complexities in charging

a user fee

�Frequent technological

changes;

�Difficulties in ensuring

uptake of services;

�Land acquisition

�Lack of community

participation;

� Difficulties in

generating revenue

streams;

�Lack of viable PPP

models

� Irregularity of

subsidies

Rs 171,285 Cr Rs 121,400 Cr Rs 59,140 Cr

Co

nsi

de

rati

on

s

8

The Vision will be implemented in three phases

Phase I: Preparatory Phase III: Scaling upPhase II: Demonstration

Signal policy commitmentBuild capacity for infrastructure project

management

These phases are being realised through the following policy and institutional actions:

Strengthen institutions

Improve investment climate

Facilitate efficient land-use planning and

judicious allocation

Create an enabling environment for PPPs

Effectively address potential social and

environmental impacts

Effectively engage GoI and other states

Foster stakeholder engagement and

communication

Develop a sharp focus on financial

sustainability9

Vision 2023 Phase II: Procurement modes and timelines for

proposed projects

Energy

Roads

Railways

Ports

Airports and Aircraft maintenance

Industry

Tourism

Urban Infrastructure

Agriculture and Irrigation

Healthcare

Education and Skill Development

PPP 93

State 38

Center 2

Private 11

Multi-modal 71

19

12

5316

28

11• 217 projects proposed across

11 broad sectors

• Total investments expected at

Rs. 15,00,000 crore, inclusive of

proposed projects, investment

in general and social

infrastructure projects, and

MODE OF PROCUREMENT

33

16

10

116

0 10 20 30 40 50 60

Energy

Note: 215 projects have been covered. Information regarding procurement currently not available for 2 projects

Note: 209 projects have been covered. Information regarding timelines currently unavailable for 6 projects

28%

10%

14%1%2%

12%

1%

19%

9%1%3%

Investments Phase-II Energy 28%

Highways, Bridges and By-pass 10%

Railways 14%

Ports 1%

Airports and Aircraft maintenance 2%

Industry 12%

Tourism 1%

Urban Infrastructure 19%

Agriculture and Irrigation 9%

Healthcare 1%

Education and Skill Development 3%

infrastructure projects, and

capital improvements

PROPOSED TIMELINES

0 20 40 60 80 100

Ongoing

2013-2017

2018-2021

2022-2023

Energy

Roads

Railways

Ports

Airports and Aircraft

maintenanceIndustry

Tourism

Urban Infrastructure

Agriculture and Irrigation

Healthcare

Education and Skill Development

30

82

87

10

33

10

De

ve

lop

a h

ea

lth

y p

ipe

lin

e

of

pro

ject

s

In order to

217 projects proposed thus far

Rs. 15,00, 000 crore in investments

3 Phases

11 Sectors

One Vision

Challenging task ahead demands need for a CatalystTNIDB - A Game Changer for achieving the Vision

Achieving

Vision

2023O

ve

rco

me

ex

isti

ng

cha

lle

ng

es

In order to

realize the

Vision, the

state must

One Vision

Achieve Value for Money

Avoid duplication of effort due through

standardisation

Focus on disclosure requirements

Improve coordination

Focus on user welfare

TNIDB

Need for

a catalyst

11

Strengthened Procurement Ecosystem

12

Strengthened Procurement Ecosystem

Enactment of the TNID Act 2012 and framing of TNID Rules, TNIDB

Regulations and the TNTIT (PPP Procurement) Rules to provide for an

enabling ecosystem for infrastructure projectsK

ey

Ob

ject

ive

s

To improve the quality of project preparation, project development and

project structuring

To streamline and fast track project approvals

To standardise the procurement processes

13

Ke

y O

bje

ctiv

es

To ensure proper procurement

To address project implementation issues and enhance overall coordination

among project stakeholders

To address issues arising post COD during the entire project lifecycle

To standardise the procurement processes

TNID Act 2012 and TNIDBTNID Act 2012 and TNIDB

TNID Act, 2012

Enacted to provide:

an enabling and facilitative environment for

financing, design, construction, maintenance and operation

of infrastructure projects also through private sector

participation, andparticipation, and

an institutional framework for identification, prioritization

and implementation of such projects and related matters

15

Develop pipeline of infrastructure projects

Improve quality of project preparation

Ensure proper assessment of Value for Money for PPP projects

Basic objectives

Ensure stakeholder consultationEnsure stakeholder consultation

Ensure proper bidding

Provide state support where required

Enable project implementation and co-ordination

Manage post implementation monitoring

16

Applicability of TNID Act, Rules and Regulations

• 21 sectors in Schedule I of the Act

• Apply to all projects of a value exceeding Rs. 500 croreimplemented by Public Sector

• All Public Private Partnership (PPP) projects with a project value in excess of Rs. 10 crorevalue in excess of Rs. 10 crore

• Does not apply to projects by Central Government or a CPSU, either independently or as a JV with State

government

• Government may exempt a project from applicability of Act under Section 34

17

TNIDB StructureTNIDB Structure

TNID Board and bodies

• TNID Board chaired by Honourable Chief Minister

• Executive Committee chaired by Chief Secretary: Can include up

to 5 non-official experts

• Other Committees can be

The Board

Chairperson - CM

The Executive Committee

Chairperson – Chief Secretary

• Other Committees can be appointed

• Sub-Committee: Finance Secretary, CEO and one more

member

• Chief Executive Officer: ex-officio Secretary in Finance Department

Chief Executive Officer

TNIDB

Infrastructure CellFull time

consulting support

19

TNIDB ApprovalsTNIDB Approvals

TNIDB approvals (1/2)

� Scrutiny, evaluation and recommendation of

projects

� Identification of projects

� Prioritisation of projects

� Designation of public agency for project

implementation

Stage I: Project

Concept

Stage II: Project

Structuring

Stage IV: Tender

Documents

Stage III: Project

Funding

implementation

� Determination the appropriate mode of

implementation

� Determination of PPP type, if through PPP mode

� Finalisation of project scope and structure

―Determination of the required public

financial support and appropriate form of

such support

―Tender criteria

― Appropriate concession agreement

� Recommendation to the Government21

TNIDB approvals (2/2)

Stage I: Project

Concept

Stage II: Project

Structuring

� Approval of the extent and support from

TNIDF

� Recommendation to the Government on

other form of State support

� Recommendation to the Government for

release of funds including advance release, if release of funds including advance release, if

any

� Prescribe standard tender documents

� Approval of draft tender documents including

draft concession agreements

22

Stage IV: Tender

Documents

Stage III: Project

Funding

Key ConsiderationsKey Considerations

Need for robust project preparation

Enhances the

amenability of project

plan to appraisal

Determines the

effectiveness of

implementation

Determines the

acceptability in terms

of cost after due

consideration to

social, economic and

environmental aspects

Established support for project preparation

through Project Preparation Fund

14 panels for technical / Engineering

experts, feasibility and market study

experts, Transaction advisors, legal and

financial consultants

TNID Act provides

the enabling

framework for

improving

upstream project

preparation –

Feasibility Study is

Mandatory24

Choice of the appropriate mode

Public Procurement Public Private Partnerships

� Cost-benefit analysis including social cost-benefit

� Cost effectiveness of PPP implementation determined through VfM

assessment

Fact

ors

to

be

� Clarity in specifying and measuring performance parameters and project

outcomes

� Risk sharing possibilities with private sector participant

� Technological and managerial advantages due to private participation

� Realistic market and revenue assessment

� Levying affordable user charges

� Direct and contingent financial liabilities of Government are acceptable

Fact

ors

to

be

con

sid

ere

d

VfM is mandatory for any Feasibility Study of project proposed for PPP

implementation 25

Procurement of PPP projects (1/2)

Procurement of the services of the Private Partner under the TNID Act has

to be through tender process under TNTIT Act

Until Standard Tender Documents are prescribed by the Board, the

Sponsoring Agency shall submit draft tender documents for prior approval

For PPP projects, the Sponsoring Agency may follow the model documents

prepared by the Union Planning Commission

The Sponsoring Agency may with the prior concurrence of the Board issue

Request for Expression of Interest at any time

The Sponsoring Agency shall issue the Request for Quotations only after the

project structure has been finalized and the financial support from TNIDF is

approved

26

Procurement of PPP projects (2/2)

A two-stage, open competitive tendering

shall be mode of procurement of a PPP

Project (Rule 4, TNTIT PPPP Rules 2012)

A single stage two cover and competitive

A Request for

Expression of Interest

(REOI) or Request for

Technical Proposal

(RTP) or both could be

issued under certain

circumstances in

addition to two stages

Default

Mode

For Project

Value < Rs. A single stage two cover and competitive

tendering may be adoptedaddition to two stages

prior to issue of RFP

The final offer shall be in the form of a SINGLE

OBJECTIVE CRITERION (Financial) which shall

be specified in the Request for Proposal (RFP)

document

Value < Rs.

10 crore

27

Project MonitoringProject Monitoring

Project monitoring under TNIDB

Section 8 and Rule 8 empower the Board to monitor the implementation of

projects

The Board may direct the sponsoring agency to appoint a Project Manager

responsible for monitoring implementation of the project for its life cycle

GoTN, on recommendation of the Board may constitute an agency called

the Project Management Facility for management and supervision of thethe Project Management Facility for management and supervision of the

project, in lieu of a Project Manager

Regulations provide for a detailed Project Management Plan

The Board is required to monitor the implementation, enforce CA, require

submission of periodic reports and recommend corrective actions

If the Board finds bottlenecks due to impediments requiring policy

changes, it may make recommendations to GoTN for appropriate corrective

actions29

Post Award Project GovernancePost Award Project Governance

Post award governance of projects (1/2)

Infrastructure projects esp. PPP projects usually complex and

long term in nature.

� Changes in project assumptions compared to Feasibility Study/Detailed

Project Study

� Gaps in Concession Agreement in addressing specific areas or provide

detailing

� Assumptions on non mandatory, but “best effort” clauses

Common

Issues

Interface

between Public

Agency and

Concessionaire

Interface

between

Concessionaire

And Public

� Delays in approvals and land acquisition

� Cost escalations compared to schedule

� Revenue or revisions in demand estimates

� Delays in payments

� Inability of concessioning authority to drive revenue collection

� Lack of neutral reviewer leading to disputes on performance on KPIs

for both parties

� Scope of the concession

� Community opposition to the project during construction

� Community dissatisfaction with level of services, leading to active

opposition, or poor revenue recovery

31

Post award governance of projects (2/2)

TNID Act provides for inbuilt monitoring mechanisms for pre-

empting and addressing issues faced by projects in the post-

award phase.

Project Management Facility for large Project Managers for relatively smaller Project Management Facility for large

and complex facilities

Project Managers for relatively smaller

projects

� Fulfillment of conditions precedent

� Monitoring during construction and O&M stage

� Performance Management in monitoring of KPIs

� Risk Management

� Contingency Management

� Managing Relationships and Communication

� Project Administration including Financial Administration

� Information and Knowledge Management32

Implementation so far...Implementation so far...

Project related developmentsF

un

din

g A

pp

rov

ed

Fish processing park at Cuddalore

Fish processing park at Nagapattinam

SWM for Corporation of Chennai

Tamil Nadu

Infrastructure

Development

Fund (TNIDF)

Fu

nd

ing

Ap

pro

ve

d

Tamil Nadu Road Sector Project- II (TNRSP II)

Development of Minor Port at Cuddalore

Project

Preparation Fund

(PPF)

34

Energy Efficiency Project for Street Lighting in Town

Panchayats of Erode, Tiruppur, Coimbatore and The

Nilgiris

Projects cleared: High priority fast track

No. Key Projects Rs. in Crore

1. High Priority State Roads Upgradation Project 10,000

2. Madurai - Thoothukudi Industrial Corridor 40,000

3. Restoration of Chennai Water Ways 10,000

4. Ultra Mega Power Project – Uppur 10,000

5. Solid Waste Processing Facility for Chennai 1,500

6. Integrated Financial Services Centre (Financial City) 1,5006. Integrated Financial Services Centre (Financial City) 1,500

7. Large Scale Skill Development Initiative 6,000

8. Development of One Green / Brown Field Port, Cuddalore 2,000

9. Greenfield Airport at Sriperumbudur 15,000

10. Health City at Perundurai 2,000

11. Chennai Desalination Plant 3,000

12. New Water Reservoir in Thiruvallur District 500

13. Development of Agriculture/Horticulture in Wastelands Cost to be ascertained

Total 1,01,500

35

Project implementation progress

No. Project Implementation Progress

1.Development of Fishing Harbour at Manakudi in

Kanniyakumari District

• In-Principle Approval awarded for a Project Cost of

Rs. 72.44 crore

• Project Structuring Approval awarded

• Project currently at RFQ stage

2.

Development of Fish Processing Park at Cuddalore, Tamil

Nadu on DBFOT Basis under Public Private Partnership

(PPP)


• In-Principle sanction of Capital Grant from TNIDF


Development of Fish Processing Park at Nagapattinam, • Project Structuring Approval awarded

3.

Development of Fish Processing Park at Nagapattinam,

Tamil Nadu on DBFOT Basis under Public Private

Partnership (PPP)




4.Solid Waste Management Project in Chennai (at

Kuthambakkam)


• Capital Grant sanctioned for lesser of Rs. 100 crore

or 20% of the Project Cost

5. Solid Waste Management Project in Chennai (at Minjur)


• Capital Grant sanctioned for lesser of Rs. 80 crore

or 20% of the Project Cost

6.Development of existing Minor Port at Cuddalore in PPP

mode• Rs. 40 lakh sanctioned via TNIDB PPF

7. Tamil Nadu Road Sector Project Phase (TNRSP) II • Rs. 65 crore sanctioned via TNIDB PPF

36

Project agnostic developments

Preparation of Model RFP for Appointment of Consultants for

Preparation of Feasibility Report

Preparation of Model RFP for Selection of TA

Launch of TNIDB Website – www.tnidb.tn.gov.in

Preparation of TNIDB Manual

Automation of TNIDB Workflow (In progress)

Toolkit for Value for Money Assessment

37

Financial Model Template

Thank you

38

Thank you