Amritsar Intercity Bus Terminal Project: Bhoomika U

A M R I T S A R IN T E R C I T Y B U S T E R M I N A L
PROJECT
Bhoomika U
Amritsar Intercity Bus Terminal Project
Project Description
• Located along the Grand Trunk (G.T.) road, Amritsar city.
• Amritsar attracts large number of tourists (as high as 50,000 per day).
• It develop as a trading centre for cross border commercial activities.
• In addition, a significant section of the local population uses public
transport such as buses for movement across the state.
• Spread on an area of 8.5 acres, the existing bus terminal of Amritsar
city, - 1965 on the G.T. Road.
Issued on 28th November 2002

Completed and commissioned in October 2005.
Amritsar Intercity Bus Terminal

Source- https://www.pppinindia.gov.in/toolkit/ports/module3-rocs-aibtp2.php?links=aibtp2
PPP structure of the Project

• With the growing demand pressures, traffic at the terminal far outstripping
the available facilities and the existing terminal building being in a state of disrepair,
the DoT, GoP facilitated by the Punjab Infrastructure Development Board (PIDB) decided
on modernizing and developing the existing Amritsar bus terminal through the
Build, Operate, Transfer (BOT) route.
• The project involved demolishing the existing terminal building and complex
and development of a modern state bus terminal.
• Through a two stage bidding process,
• DoT, GoP awarded the contract to Rohan Rajdeep Infrastructure (a partnership between
Rohan Builders (India) Pvt Ltd., Rajdeep Buildcon Pvt Ltd and Rajdeep Road Developers
Pvt. Ltd.)
• Under the concession agreement, the private operator was responsible for finance,
building, operations and maintenance of the Amritsar Intercity Bus Terminal complex
for a concession period of 11 years and 5 months.
• The private operator was required to pay a project development fee of ` 35 lakhs for the
project site lease and a lease rental of ` 50,000 per month for use of the project site
over the concession period.
Financing Information:
• The project cost for the Amritsar Intercity Bus
Terminal was expected to be approximately Rs 19
crores at the time of project conception.
• But on account of an escalation in input costs during
the construction period, the project cost finally
worked out to Rs 21.34 crores.
• Of this amount, the debt component was Rs 12 crores
of 11 years tenure while the equity component was Rs
9.34 crores.
Procurement:
The RFQ for the project was issued on 28th November 2002 and 16 bids were received of which 14 prequalified to the RFP stage.
The RFP for the project was issued in April 2003 and a proposal security in the form of a bank guarantee for ` 10 lakhs was sought.
To avoid issue of RFP and the bid variable was defined as the concession period.
In February 2004 the concessioning authority - the Secretary, Department of Transport, Government of Punjab - entered into a
concession agreement with Rohan Rajdeep Infrastructure Developer Pvt. Ltd. for a period of 11 years and 5 months which
included the project construction period.
Development:
Conditions Precedent: As per the concession agreement, the private operator and the concessioning authority were required to
fulfil the terms of the Conditions Precedent within 90 days of signing of the concession agreement which could be extended
based on mutual consent. The concessioning authority was required to undertake the following:
• Support the project through issue of necessary notifications authorizing the private operator to collect “adda fees” from buses
using the Intercity Bus Terminal.
Given the impact of the “adda fees” on the financial viability of the project, issue necessary notifications to make it mandatory for
all intercity buses to halt and provide for embarkation and disembarkation of passengers within the Amritsar Intercity Bus
Terminal complex.
The private operator on his part was required to:
• Obtain all necessary clearances and approvals,
• Furnish the performance security and bank guarantees as well as pay the project development fee of ` 35 lakhs to the
concessioning authority.
Construction:
Within 30 days of receiving the notice of commencement, the private operator was required to mobilize resources to
undertake construction activities.
The construction was required to be completed within 18 months of commencement but commissioned the Intercity Bus
Terminal within 17 months itself. Necessary tests were carried out by the concessioning authority prior to issue of
completion certificate.
Delivery:
The Intercity Bus Terminal includes 53 embarkation and 8 disembarkation bays covering long distance and local bus
routes. The Terminal has parking provision for 54 cars, 102 rickshaws/autos and 1838 two-wheelers / cycles and 300
passenger seating berths. For the convenience of passengers as well as drivers, provision for 10 dormitories has been
made.
Exit: At the end of the concession period all immovable and movable property relating to the project will transfer to the
concessioning authority, free of all encumbrances. The concessioning authority will be entitled to appoint a consulting
engineer, six months prior to the termination date, for inspection of the terminal facilities. The concessioning authority
will issue a vesting certificate as proof of transfer of all rights, titles and interests in the Amritsar Intercity Bus Terminal
assets and facilities.
Current Status
Subsequent to the signing of the concession agreement in February 2004, Rohan Rajdeep Infrastructure (India) Pvt. Ltd. was
able to complete project development before the predetermined time frame and the Amritsar Intercity Bus Terminal complex
was commissioned in October 2005.
The project is operational. The bus terminal presently services, on an average, 1,100 normal buses and 600 mini buses a day and
about 80-100 buses are parked within the Terminal complex overnight. While the Bus Terminal was expected to handle 2,000 to
3,000 buses per day, it presently handles approximately 1,700 buses a day.
Post VfM analysis

The key benefits of the project are:
• Assured revenues to the concessioning authority through lease payments. the concessioning authority receives a lease rental
of` 50,000 per month. And fee of ` 35 lakhs paid by the private operator to the concessioning authority.
• Development of a modern Intercity Bus Terminal with O&M being efficiently handled by the private operator. The
development of a modern Intercity Bus Terminal which was better equipped to handle the growing volumes of passenger
traffic.
• No cash outlay for the concessioning authority during the construction as well as O&M period. As a consequence of
undertaking development of the modern Intercity Bus Terminal through the BOT route, the concessioning agency did not have
any cash exposure in the project either during the construction stage or the O&M period. At the end of the concession period,
the Intercity Bus Terminal complex would transfer back to the concessioning authority without any capital expenditure being
undertaken by it.
• Demonstration effect: The Amritsar Bus Terminal was only the second such project to be undertaken in India and has met with
good response with the effect that a number of other bus terminals in Punjab as well other cities in India.
Key Learning and Observations

1. Facilitation provided by Government to ensure efficient execution.
2. Favorable policy environment to ensure revenue stream.
3. Flexible project structuring was undertaken to facilitate funding of the project.
4. Need to develop a monitoring and implementation mechanism.

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A M R I T S A R IN T E R C I T Y B U S T E R M I N A L

Issued on 28th November 2002

Amritsar Intercity Bus Terminal

PPP structure of the Project

Post VfM analysis

Key Learning and Observations

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