Four Firms complete for PPP Transaction Advisory Contract of Pune Metro Line 4 and 5

Pune, India (Metro Rail Today): In a significant move for the Pune Metro project's expansion, four prominent firms have submitted bids for providing Transaction Advisory Services for the upcoming Line 4 (Civil Court – Loni Kalbhor) and Line 5 (Khadakwasla – Kharadi). Pune Metropolitan Region Development Authority (PMRDA) initiated the technical bid evaluation process on Monday, marking a crucial step toward advancing these vital metro corridors.

Role of the Transaction Advisor

The selected Transaction Advisor will play a pivotal role in the Pune Metro project, tasked with reviewing financial parameters and assessing the viability of both Line 4 and Line 5. Their responsibilities extend to the preparation of the Concession Agreement, bid documents (RFQ and RFP), and overseeing the entire bidding process for selecting the Concessionaire.

Overview of Pune Metro Lines 4 & 5

Line-4: Spanning approximately 18 km, Line-4 is proposed by PMRDA, with the Detailed Project Report (DPR) prepared by the Delhi Metro Rail Corporation (DMRC). The line includes a spur to Swargate, adding strategic connectivity to the metro network.

Line-5: Covering a distance of around 25 km, Line-5 is proposed by Maharashtra Metro Rail Corporation (MahaMetro). The DPR for Line-5 was prepared by UMTC, and it shares a common alignment with Line-4 for a stretch of approximately 4.6 km between Pul Gate and Hadapsar (Magarpatta) on Solapur Road.

Bidding Details

PMRDA invited bids for the Transaction Advisory Services contract in November-end 2023, setting a contractual period of 2 years with an undisclosed estimate. The competitive landscape includes bids from the following firms:

• Almondz Global Securities Ltd.
• aXYKno Capital Services Ltd.
• Credible Management Consultants Pvt. Ltd.
• Spine Advisory Pvt. Ltd.

Scope of the Contract

PMRDA's defined scope for the contract is to provide Transaction Advisory Services for Pune Metro Line-4 and/or Pune Metro Line-5, both proposed to be implemented on the Public Private Partnership (PPP) Mode. This underscores the strategic approach of involving private sector expertise in the development of these metro lines.

Evaluation Process and Next Steps

At present, the bids are undergoing technical evaluation. Once this phase is completed, the financial bids of the technically qualified bidders will be unveiled, shedding light on the lowest bidder and the probable advisor for this crucial project.

While the bidding firms, Almondz and aXYKno, have their history in similar projects, the final selection will be a key determinant in steering the course of Pune Metro's expansion. Notably, PMRDA had previously appointed Deloitte as the Transaction Advisor for Line-3 in September 2017, providing a reference for the potential timeline of bringing a concessionaire on board.

The competitive bidding scenario for the Transaction Advisory Services contract marks a vital stage in the development of Pune Metro's Line 4 and Line 5, contributing to the city's evolving public transportation infrastructure.