Download - Delhi Airport Express Metro
Delhi Airport Express
GROUP NO 3JASDEEP SINGH 111018P SWETHA 111030VAIBHAV BAWEJA 111056VINAY DHOK 111059
Delhi Airport Metro Express Line
DMRC’s first PPP project
Civil part was handled by DMRC – 60% of project
January 2009 Reliance Infrastructure get 30 year contract
Project finalised in 2006
Construction started in November 2007
Operation started in February 2011
India’s first high speed metro rail
Covers 23 km & 6 stations in 18 minutes
Runs from New Delhi Railway station to Dwarka through IGI Airport
17 km of journey is through underground tunnel
Stations Distance From New Delhi
Underground/Elevated Type & Facility
New Delhi 0 km Underground Terminal Station with full passenger check-in & Baggage check-in facility
Shivaji Stadium(CP) 2 Km Underground Intermediate Station with only passenger check-in facility & Baggage check-in facility
Dhaula Kuan 8.5 Km Elevated Intermediate Station with only passenger check-in facility
Delhi Aerocity (Mahipalpur)
15.8 Km Underground Intermediate Station with only passenger check-in facility
Airport(Terminal 3) 19.2 Km Underground Intermediate StationDwarka Sector 21 22.7 Km Underground Terminal Station
Delhi Airport Metro Express Line
Need for a Delhi Airport Link
Requirement of a mass transit system to link airport with Delhi
city
More vehicles causing
traffic and pollution
Rapid Population Growth in
Delhi
Lack of Good Public
Transit System
Passenger movement
to/fro airport by
private vehicles
CWG would bring
additional traffic to/fro
airport
Contract with Reliance Infra
Authority : Delhi Metro Rail Corporation Ltd. (DMRC)
Cost of project (in INR): 5800 crores
Concessionaire Special Purpose Vehicle (SPV) – Delhi Airport Metro ExpressPvt. Ltd. (DAMEPL), a Special Purpose Vehicle formed by Reliance Infrastructurein consortium with CAF of Spain
Delivery : Built Operate Transfer (BOT)
O&M Cost for 30 Years(in INR): Rs 946 crores
Land: Provided by Authority
Length : 22.7 Km (17Km Underground and 5.7km on elevated section)
Concession Period : 30 years
Award Date : January 2008
Parties Involved
Sl No. Company Name Role played in project
1 Delhi Metro Rail Corporation Authority
2 Reliance Infrastructure Concessionaire - 95% of equity in project, EPC Contractor
3 CAF, Spain Concessionaire - 5% equity in project, Supply of metro cars
4 Siemens, Faiveley Supply of automatic doors for stations
5 Indra, Spain Supply of ticketing machines
6 Alcatel Communication Systems
Terms of Contract
Obligations of Authority (DMRC) Concessionaire Scope (DAMEPL)Providing right of way and necessary clearances prior to handing over to Delhi Airport Metro Express Pvt Ltd
Design, Procurement of systems and equipment, Developing, Financing, Installing, Operation, Maintenance and eventually Transfer of systems related to the Delhi Airport Express
Acquisition and clearing of land to be handed over to concessionaire
Payment of Concession fee to DMRC during the operation of the service
Tunnelling and Civil Works for Underground segment, which will be handed over to DAMEPL
Ownership for risks:Traffic RiskRevenue collection riskProject completion riskOperation Risk
the concessionaire had to pay a concession fee of Rs51 crore per year
The Revenue Sharing arrangement was as follows:1% of gross revenue to be paid from first year to fifth year2% of gross revenue to be paid from sixth year to tenth year3% of gross revenue to be paid from eleventh year to fifteenth year5% of gross revenue to be paid from fifteenth year to expiry
Demand ForecastS. No. Mode of Transport Time Price Remarks
1 Cabs 1:45 hr Rs. 600 Primary Target segment
2 Bus 2:15 hr Rs. 50 The time taken by Bus is too long
3 Auto-Rickshaw 2:00 hr Rs. 250 Variation in travel time is too much
4 DMRC 1:00 hr Rs. 32+20 (Airport line)
DMRC metro goes up to Dwarka Sector-21.
T3 Terminal and 6 stations
Air India17%
Jet Airways21%
Jet Lite7%Kingfisher
4%
Indigo26%
Go Air7%
Spicejet19%
Market ShareDeparture Schedule of First & Last Train from New Delhi and Dwarka Sector-21
New Delhi Station Dwarka Sector-21
First Train 5:34:40 AM 5:15:00 AM
Last Train 11:33:40 PM 11:14:00 PM
• Airport line express metro cater to the passenger whose flight is in day time.
• More demand for night flights as cabs are difficult/unsafe International flights are scheduled at night. Metro not functional in night
• 59% of traffic flies from Terminal 1-D. These consumers are price sensitive low cost carrier users
• It is difficult to reach Terminal 1-D with the help of airport line metro
WHAT HAPPENED?
Time line for Delhi Metro Airport Express
August 2006 Delhi Metro Rail Corp Ltd. finalise the detailed project
September 2007 DMRC awarded first contract for construction
January 2009 DMRC awards 30 year build operate transfer contract to the Reliance.
March 2009 Reliance Infrastructure Ltd (R-Infra) formed a special purpose vehicle named Delhi Airport Metro Express Pvt. Ltd to build airport line from new Delhi railway station to IGI airport.
November 2009 DMRC completed 95% of civil construction work and was ready to hand over the site to R- Infra for laying tracks.
August 2010 R-Infra misses first deadline to start the operations and one month time was gives as DMRC delayed in handing over the station.
September 2010 The express line failed to get clearance from commissioner Metro Rail Safety (CMRS). DMRC fined R-Infra Rs.37.5 lakh per day for missing the deadline.
January 2011 CMRS gives safety clearance to the airport express, except for the Dhaula Kuan and Delhi Aerocity stations.
February 2011 The airport line started its operation from New Delhi railway station to IGI airport.
August 2011 CMRS grants safety clearance to Dhaula Kuan and Delhi Aerocity stations
December 2011 DMRC managing director meets R-Infra executives to discuss the areas that need improvement.
May 2012 DMRC chief expresses dissatisfaction with the performance of operations.
June 2012 DMRC hire consultants to conduct a detailed inspection of the tracks due to safety concerns.
July 2012 The R-Infra suspends services indefinite duration for safety repairs. The ministry of urban development form a two member committee to probe the defects in the civil construction of the railway line
Why was service called off?DMRC’s Stand R-Infra’s Stand
Consultant Found defect in civil construction
DMRC is blaming R-Infra for negligence in inspection
Civil defects were present from the beginning and R-Infra had already pointed out to DMRC
540 out of 2100 bearing were defective
There are no serious damages so as to call off the operations
DMRC did not work upon the issues
Supporting clips was found damaged
All the issues are under acceptable level
The project was not handed over at scheduled time
Speed slowed down to 80 from 105 over security concern
R-Infra are using civil defects as exit route
Conditions are not suitable for operation
Operation was getting risky They do not want to go further in PPPGurgaon extension is scrapped
DMRC forced procurement from approved vendor
R-Infra was not getting revenue even after higher investment
Was the project viable in the first place?
Ridership projections by DPR for 2011 – 45000 with 7.3% annual growth but past figures show no such growthActual ridership in 2011 – 15000
DAMEPL relied on DMRC provided study
Inconvenient location of stations, impact of economical and political factors
Only T3 terminal is connected
Estimated non-fare revenue to 75% (38% for MTR Hongkong)
Issues in Contract
• All risks passed on to concessionaire• DMRC assumed the role of regulator• Penalty on Reliance Infra by DMRC for delay• Concession fee and revenue percentage from handover stage
• Civil construction done by DMRC• DMRC forced procurement from approved vendor only• Seepage and mud was issue in tunnel• 90% of supporting clips has been changed • Speed slowed down to 80 from 105• DMRC estimated Rs.20 Crore budget for repair
Quality
Exit Route
• If R-Infra defaults, it will pay 20% of loan with equity
• If DMRC defaults, it will pay 130% of debt and equity
Closing Note
E Sreedharan suggested the Govt. that PPP model wouldn’t work
Reliance Infra has over estimated market demand for express line
DMRC is not only the authority in the project but also is trying to assume the role of a regulator
Both R-Infra and DMRC are reluctant to work under PPP with each other
Reliance floated a SPV and transferred the losses to the SPV. This puts the doubt on the intension of the Reliance
After the operating the metro for over a year, Reliance closed the operation citing the safety issues
Maintenance estimates by DMRC is Rs20 crore which is comparatively a small fee compared to the capital invested on the project
Reliance is trying to exit PPP contract by blaming DMRC for adopting poor construction measures
Thank you