Transaction Advisory Services under PPP Mode for Supply and Operation of Buses for Yellow Line BRTS, Karachi Mobility Project (KMP) – Exponent Engineers (Pvt.) Limited

Assignment Name:

Transaction Advisory Services under PPP Mode for Supply and Operation of Buses for Yellow Line BRTS, Karachi Mobility Project (KMP)

Country:

Pakistan

Location within Country:

Karachi

Name of Client:

World Bank / Sindh Mass Transit Authority (SMTA)

Completion Date:

Ongoing

Name of Associated Consultants, if any:

EY Ford Rhodes on lead with LOGIT Consulting, NHS and Akhund Forbes

Narrative Description of Project:

The Yellow BRT Corridor is approximately 21 km long, starting from Dawood Chowrangi in Korangi to Numaish. and is part of overall planned Karachi Mass Transit System (KMTS). The GoS, SMTA, & World Bank (WB) intends to procure services of experienced transaction advisors to assist it through the phases of the PPP project, experienced in BRT implementation, to provide Transaction Advisory Services under Public Private Partnership mode, to complete preparatory work and structure the project as well as assist SMTA in procuring the qualified bidders. The Project follows the integrated corridor management approach aiming to improve the needs (mobility, accessibility, and safety) of all road users along the corridor. Severely deteriorated road sections along the Yellow BRT Corridor and catchment areas will be improved, traffic management will be upgraded, and parking issues will be addressed. It is estimated that more than 700,000 people will benefit from this project, particularly people living and working along the Korangi industrial area.

Description of Actual Services Provided by Our Staff within the Assignment:

A. Business Model: • Evaluate different applicable business models encompassing components of a World Class BRT system. • Carrying out risk assessment for various options & suggest adequate risk assignment & risk-mitigation mechanism keeping in view various PPP modalities to ensure smooth project implementation. • Analysis of revenue distribution • Recommending most appropriate PPP structure for the project. B. Financial • Carryout risk assessment on demand risk, fare evasion risk, operational risk, implementation, & regulatory risks. • Prepare a financial model addressing aspects a world class BRT System. • Include sensitivity analysis changing parameters in assumptions. • Include impact of introducing electric fleet, partial or full, & compare with conventional options of fleet technology as project’s life cycle. C. Legal • Legal gap analysis for implementation of recommended business model. • Assessing need for obtaining consents, permission, approvals, etc. required for PPP mode. • Assessing & suggesting best PPP model. • Preparation bidding documents & running entire bidding process selecting bus manufacturer & operator. • Formulate a monitoring & reporting mechanism ensuring compliance with private party action as per the agreement. • Advising adequate payment & penalty mechanism. D. Operations • Review & update BRT Yellow Line operational design. • Update travel demand & route alignment. • Analysis of required fleet as per operational design. • Identify services such as Station Management, ITS, Janitorial, Marketing & funds management etc., required for operations. • Integration with other BRT lines in terms of operations, physical, fare etc, • Provide detail of all cost for operations.