casa vitews oft arr war PRR Foe 91-112 cn National Highways Authority of India (Misty of Road Transport and Highways) o-5 Gi 6, Seet-10, rem, we Rree-110075 ansor No.11041/218/2007-Admn, Dated: 19.01.2018 POLICY MATTERS-Technical (195/2016) (Decision taken on File No. NHAI/CMC/Misc(Maint}/2015) Sub: Ratlonalised compensation to concessionaires in case of delay not attributable to Concessionaires for langulshing highway projects on BOT mode. As communicated vide MORTH letter No. NH-37012/06/2015-H Daled 26.11.2015, Cabinei Committee on Economic affairs (CCEA) has approved the proposal of rationalised compensation to Concessionaires in case of delays not atirioutable to the Concessionaires for longuishing National Highway project on BOT (Tolll/Annuity Mode. As per the approval of CCEA, extension of concession period shall be allowed for all current projects on BOT mode, except far projects where tolling is permitted on the Appointed Date , which are languishing during construction period due to the reasons not attributable to the Concessionaire, 2, For all current projects in BOT (Toll] mode that are languishing during the construction period due to reasons not attributable to the Concessionaire, NHAI has been authorised fo allow extension of concession period subject lo the following conditions: Tenure of the Operations Period as envisaged originaly in the concession agreement remaining unchanged. This will result in a corresponding increase in concession period. b. The decision regarding eligibility of projects for the extension of concession period, and the extent of fime extension required wil be taken by NHA| on a case to case basis on the recommencation of the concemed Independent Engineer (IE. The concerned IE, both individual and the firm, shall be accountable for the assessment of the extension recommended in the concession period, ¢. Authority shall follow the guidelines given hereunder in para 4 & 5 While Getermining the period of delay NOT attributable to the concessionaire, d. The projects using the above special dispensation shall have fo achieve physical completion in the next 3 years. Contd...2/-2 3. For all current projects in BOT (Annuity) mode that are languishing during the construction period due to reasons not attributable to the Concessionaire, NHAI has been authorised to restore missed Annuities to the Concessionaire Corresponding to the actual period of such delay without any ceiling on number of days of delay upon successful completion of the project ive. on achieving COD subject fo the following conditions: 9. While the construction period will get enhanced, the tenure of the concession will remain unchanged. b. The total number of annuities payable, including the compensatory annuities, wil be Capped by the number of annuities envisaged in the said Concession Agreement. ©, Compensatory Annuity ies) payable by the Authority to the concessionaire for such delayed period would be the product of Average Daily Annuity ond the actual period of such delay in number of days as recommended by the Independent Engineer (IE) of tne concemed project, and approved by the Authority as per guidelines. d, The decision regarding eligibility of projects for accessing such dispensation for delays NOT attributable fo concessionaires and the duration of such delays will be considered by NHAl on a case to case basis bosed on the recommendation of the concerned independent Engineer (IE). The concemed IE, both individual and the firm, shall be accountable for the above assessment. @. Authority shall follow the guidelines given hereunder in para 4 & § while determining the period of delay NOT attriputable to the concessionaire. The projects using the above special dispensation shall have to achieve Physical completion in the next 3 years, 4. The procedure fo be followed for seeking relief under above policy is as deiciled below: i) This policy is opplicable for all current BOT (Toll)/Annuity projects where PCC {COD hos been delayed due fo reasons NOT alifibutable to the Concessionaire. This policy will not be applicable for projects where PCC has been granted for entire length, however, completion certificate is pending for want of completion of some minor items/punch lists. (i) This policy is applicable for such cases also where NHA) ond the Concessionaire agreed to mutually waive certain Conditions Precedent (CP) for Appointed Date and also for cases where waiver of extension of concession period was given for extension of milestone/project completion date etc. However, the Concessionaire seeking relief of extension of concession period under this policy shall waive his claims for compensation, if any, underclauses10.3.4 and 35.2 of extant MCA Contd...3/- yY3 {ii The Concessionaire seeking such relief shall cpproach IE/NHAI with an application with complete details of delay with evidences in line with the objective guidelines formulated for the purpose. liv) The IE shall determine the delay duration as per objective guidelines and Excel sheet and submit its recommendation to NHAI, The concerned IE, both individual and the firm, shall be accountable for the assessment of the extension recommended in the concession pericd. (v] The assessment of IE shall be vetted by Competent Authority through the mechanism of 3 CGM Committee ond thereafter the proposal shall be Placed before Authority {NHAI Board) for decision on case to case basis. 5. __A copy of the objective guidelines approved by CCEA determining the period of delay NOT cttributable fo the concessionaire, is enclosed at Annexure-1 In order to understand the procedure, an illustration with on example in excel sheet is also enclosed for reference [Annexure-Il]. 6. This issues with the approval of Competent Authority. | ) ye Enel.: As above aa (S.P. Sharma) GM (Coord.) To: All Officers & Employees of HQ/ROs/ PIUs/ CMUs/ Sile OfficesAnnex =I ‘TENTATIVE PROCEDURE FOR DETERMINING DELAY DURATION 1 If the Authority has not granted to the Concessionaire at least 80% encumbrance free tand* ie, vacant access and Right of Way of the site on the Appointed Date, then in that case the delay duration may be determined in the following manner: ()) First of ail, the Scheduled Project Completion Date (SPCD) based on the Appointed Date and Construction Period may be calculated. Further, status of encumbrance free land handed over to the Concessionaire as on Appointed Date shall also be assessed. (ii) The status of encumbrance free land handed over to the Concessionaire may be assessed by the Independent Engineer/Authority periodically, say in every 3 months, starting from the Appointed Date till the date of 100% handing over of encumbrance free land made available to the Concessionaire, The said assessment is to be carried out to assess the dates on which 80% and 100% of encumbrance free land has been handed over to the Concessionalre by the Authority respactively (80% In first phase and 100% in final phase)’, (ili) Based on the aforesaid dates, Completion Period of Construction” of that stretch for which land has been handed over to the Concessionaire is to be realistically ond Judiciously assessed by IE taking into consideration of the quantum and nature of balance work affected by non-handing over of land and original and impacted work programme of the Concessionaire and delay by the Concessionaire due to his inadequate mobilisation and financial constraints, if relevant. For avoidance of doubt, this determination of delay should confine to the corresponding work activities affected due to delayed handing over of land (iv) It is presumed that the Concessionaire will be in 2 position to complete the works at least 75% length of Project Highway and achieve the Provisional COD as ‘per Concession ‘Agreement on handing over of 80% encumbrance free land to the Concessionalre, (v) The delay (in no. of days) due to non-handing aver of encumbrance free land to Concessionaire on Appointed Date shall be the summation of the following: {@) Delay period for not handing over of encumbrance free land (vacant access and Right of Way) for 80% length of Project Highway on Appointed Date: Difference in number of days belween the expected date of completion of construction of stretch calculated, as per para (ili) above, reckoned from the date ‘on which at least 80% encumbrance free land handed over and the Scheduled Project Completion Date (SPCD) oR1 2 Difference in no. of days between actual provisional COD/ COD* and Scheduled Project Completion Date (SPCD); whichever is less; and (0) Delay period for delay in handing over of encumbrance free land (vacant access and Right of Way) of 100% length of Project Highway (period between 80% to 100% land availability): 25% of [Difference in no. of days between expected Date of Construction of sttetch calculated, as per para (ii) above, from the date on which the 100% encumbrance free land made available to the Concessionaire and the Scheduled Project Completion Date (SPCD); OR Difference in no. of days between actual COD* and Scheduled Project Completion Date (SPCD); whichever is less} y aesumptions: Enctemmbranee free land: The encumbrance free land (vacant access and Right of Way of the site) availability should be defined in linear km. available free of all encumbrances for construction of Project Highway (2-lane with paved shoulder/4-lane/é-lane as the case may be) as a percentage of total project length. The land should be deciared as fully acquired only after completion of formalities as per provisions of 3 (H) of NH Act 1956. However in case the Concessionaire is able to construct the Project Highway in any stretch through his own lislson/efforts, even though formalities as per provision of Section-3 (H) of NH Act 1955 are not yet completed, this length shall be treated as encumbrance free land available for the purpose of calculation for determination of delay ‘The procedure is based on the assumption that with 80% availability of unencumbered land (linear frontage length), the Concessionaire will be in a position to complete at, least 75% length of project highway to achieve the Provisional COD. This assumption may be modified as per project specific requirement to be determined by IE with justification, Comuletion Period of Construction: If the corresponding balance work activities due to delayed handing over of land at any stage (80% or 100%) involves major structures {flyover/ VUP/Major Bridges/ROBs etc.), it may be assumed that it will take 01 year time to complete these project works, else 6 months’ time may be considered as a reasonable period for construction of balance activities including minor structures like PUPS, The aforesaid period may be increased by another 3 months in case of @ rainy season falls in the extended delay period. However, these assumptions may be modified as per project specific requirement and conditions, to be determined realistically and judiciously by 1E. This determination of delay should confine to the corresponding work activities on delayed handing over of land and while making this assessment, the IE moy also keep in view the Concessionaire’s construction programme and any delay by the Concessionaire due to his inadequate mobilisation and financial constraints, if relevant.4 The delay duration should be restricted to actual PCOD/COD, as the case may be, in case the same is achieved before the extendable period. Example: if the Appointed Date of Project (having total Project Length is 120 kins) is 61-04- 2009 and Construction Period is 2.8 Years, then the Scheduled Project Completion Date (SPCD) would ‘be 30-09-2022. Encumbrance free land handed over to the Concessionaire by the Authority as on Appointed Date is 60 kms ie. 50% of the total encumbrance free land required for the Project.S Tape yaays induare aE {wu wo 9201 ae vo Base OW | pouag YORU) aw wENLODG aoe ane 7 {oun iP i pi erage nD seo aca TR pa 0 re pra (esas io pun ao Reins pi omnes ae unsio soe sconin T aa » ae 7 {bua won op i i re neenieg ne ‘asioasd Pag wa a Re mem uoe ED wpmNES w0H meri andino =a Tan sas frerans eee are a oa area (ate St ar ‘pare om = a [ai [ar — i = t a ee waver Jano papuey pue| jo nduy‘sajujan aia Hujuwo suoneques.c/usuecap ay; yuu] 95st Py HN HN pt Pr any pug RCE PoneD ag eG DL “pou epunins a2) rae ale an Bq Ae a tN 8-02/COD4 MEDC PALIN 2 PS ONE APED UL nang ous one yre 0 Kemi seq = omnposcid ous 2 ‘en Bue any pul pur jo 1240 spLRY pade}9p LO sapHAN Wom Jujpuodsai4o A ‘ue juawannbas 2y:2ads poled sc se poupout aq Aew suoQSunsse oeO.p uenaMo} pound HE4pakewo oven sane Hom 249 BapUEEHD? OU TION/UONMuINSSY