Delhi Airport Express Metro

GROUP NO 3 JASDEEP SINGH 111018 P SWETHA 111030 VAIBHAV BAWEJA 111056 VINAY DHOK 111059

Delhi Airport Metro Express Line DMRC’s first PPP project

Project finalised in 2006

India’s first high speed metro rail

Civil part was handled by DMRC – 60% of  project

January 2009 Reliance Infrastructure get 30 year contract

Construction started in November 2007

Operation started in February 2011

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

Delhi Airport Metro Express Line Stations

Distance From New

Underground/Elevated

Type & Facility

Underground

Terminal Station with

Delhi New Delhi

0 km

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

15.8 Km

Underground

(Mahipalpur)

Intermediate Station with only passenger check-in facility

Airport(Terminal 3)

19.2 Km

Underground

Intermediate Station

Dwarka Sector 21

22.7 Km

Underground

Terminal Station

Need for a Delhi Airport Link CWG would bring additional traffic to/fro airport

More vehicles causing traffic and pollution

Rapid Population Growth in Delhi

Requirement of a mass transit system to link airport with Delhi city

Lack of  Good Public Transit System Passenger movement to/fro airport by private vehicles

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 Express Pvt. Ltd. (DAMEPL), a Special Purpose Vehicle formed by Reliance Infrastructure in 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 D elhi 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 Risk Revenue collection risk Project completion risk Operation 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 year 2% of gross revenue to be paid from sixth year to tenth year 3% of gross revenue to be paid from eleventh year to fifteenth year 5% of gross revenue to be paid from fifteenth year to expiry

Demand Forecast S. 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 DMRC metro goes line)

up to Dwarka Sector-21.

T3 Terminal and 6 stations Market Share Departure Schedule of First & Last Train from New Delhi and Dwarka Sector-21 New Delhi Station

First Train

5:34:40 AM

5:15:00 AM

Last Train

11:33:40 PM

11:14:00 PM

•

•

•

•

Spicejet 18%

Dwarka Sector-21

Go Air 7%

Air India 17% Jet Airways 21%

Indigo 26%

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

Jet Lite Kingfisher 7% 4%

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 buil d 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 t hat 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 PPP Gurgaon 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 growth Actual 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

Quality •

•

•

•

•

•

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

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