Clarification of Queries for DEVELOPMENT OF ENERGY EFFICIENT STREET LIGHTING IN APIIC IALAs, ANDHRA PRADESH ON PPP MODE PRE

APPLICATION MEETING 16- 01-2012 AT PARISHRAMA BHAVAN

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List of Queries Received Under Eligibility Criteria, kindly allow the applicant as per Clause 3.1 to be either an ESCO as in (a) or implement or of atleast one energy efficient street lighting project as in (b) but not both since there are very few companies/ agencies who are both. This ensures that there is a As per EOI healthy competition and APIIC can get the best out of the tender rather than restricting the tender to just 2-3 companies.

Suggested Clarifications

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The criteria of 500 kW (if post energy saving project implementation), then the original loads should have been more than 800kW-1 MW which 500 KW is the connected load. is not realistic for a lighting project. Clarify. The period of O&M may be provided tentatively. What could be the sharing ratio between APIIC & the implement or out of the savings entailed. Kindly clarify if the entire eligibility criteria is satisfied by a consortium as a whole. What will be the credentials required of the lead member of the consortium? We request that the base line energy consumption levels be made available if energy audit has already been carried out. Will be clarified in the RFP stage Will be clarified in the RFP stage Applicant as a whole can satisfy the initial eligibility criteria as per section 3.0 of EOI. Will be provided at RFP stage

We presume that the existing lighting draws power from the grid. Then, if some renewable source like solar is being thought of, how will the savings be determined? Also, clarify if the LED lighting is of standalone Will be clarified in the RFP stage. type or if a group of LED luminaries are supplied through a solar power pack. Will be specified in the RFP Are you envisaging any Dusk to dawn operation through light sensors imbedded in the LED luminaries?

Clarification of Queries for DEVELOPMENT OF ENERGY EFFICIENT STREET LIGHTING IN APIIC IALAs, ANDHRA PRADESH ON PPP MODE PRE APPLICATION MEETING 16- 01-2012 AT PARISHRAMA BHAVAN

If We have come up with best technology for energy savings during the execution with more advanced technology and BEE approvals, can we Will be clarified in the RFP stage go ahead with Latest technology. Kindly suggest us, when will the system specifications for LED Street Light project will be revealed..? Will be clarified in the RFP stage If we tie up JV with the foreign brand company, then what will be the eligibility criteria w.r.t the previous work experience..? Initial Eligibility criteria shall be as per EOI. Will APIIC provides any Letter of Credit for the payment guarantee, that the APIIC will pay the energy bills in time, if not can you tell us the APIIC will clarify at RFP stage alternate mode..? How does the inflation in the electricity tariff affect the operating cost..? Will be clarified at the RFP stage. Does any security mechanism being created for the payment security to Will be considered at the RFP stage. selected bidder..? Will be clarified in the RFP stage What is the basis in which the energy efficiency of the Energy Efficient Luminaries is measured in comparison with existing lamp fixtures..? Will the lumens/watt of the proposed lamp be compared with existing lamp fixtures..? For technical qualification, Kindly clarify whether the bidder needs to be any one of the below mentioned or all of the below. Usually ESCO companies are not Light manufacturers and any of the lighting manufacturers are not BEE approved ESCO partners. So, kindly As per EOI relax the condition and also allow LED Lighting manufacturers to take part

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Clarification of Queries for DEVELOPMENT OF ENERGY EFFICIENT STREET LIGHTING IN APIIC IALAs, ANDHRA PRADESH ON PPP MODE PRE APPLICATION MEETING 16- 01-2012 AT PARISHRAMA BHAVAN

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Be an ESCO approved by Bureau of Energy Efficiency (BEE), India and shall have valid certification from BEE Have implemented at least one Energy Efficient Street Lighting Project of atleast load of 500KW lighting provision with project cost not less than Rupees One Crore (Rs. 1,00,00,000) in ESCO Shared Savings Model in any IALA/ Municipality/Public Sector in only local body during the last five years (FY 2010-11 to 2006-07) executed in any one year ( or ) energy generation with similar capacity using renewable source , preferably solar sourced , during last 5 years (FY 2010-11 to 2006-07) Be a manufacturer or an authorized dealer or Class I (Electrical Contractor) as per [Link]. No. 94, dt.1.7.2003 of I & CA Dept and [Link]. 130, Dt.22.5.2007 of I&CAD (PW: Reforms). Possess Grade A License issued by APELB or engage the services of licensed contractor. What is the payment methodology and what would be the timeline for Will be clarified in the RFP stage which we could claim revenues. This RFP should be limited to Grade -1 to Grade- 3 ESCOs only as BEE has rated grade 4 and grade 5 ESCOs as not capable of implementing projects due to poor performance. Allowing Grade 4 and 5 ESCOs beats Will be clarified at the RFP stage. the purpose of grading by BEE (Clause3.1a in page 8 of EOI). AT the same time the RFP should be limited to BEE accredited ESCOs only as this is an ESCO project. Consortium may be allowed but the lead partner should still be an ESCO and should hold atleast 26% of the joint venture. In case of JV, roles of each consortium member have to be defined along with their share holding pattern. A JV agreement should be submitted at the time of EOI to be eligible to receive the RFP

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Clarification of Queries for DEVELOPMENT OF ENERGY EFFICIENT STREET LIGHTING IN APIIC IALAs, ANDHRA PRADESH ON PPP MODE PRE APPLICATION MEETING 16- 01-2012 AT PARISHRAMA BHAVAN

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This RFP should be limited to ESCOs which have implemented LED lighting of atleast 500kW with or without solar energy. ESCOs that have implemented solar energy on ESCO model only should be considered (Clause 3.1b in page 8 of EOI) This project should be limited to implementing LED street lighting only with or without solar power. LED lights are already proven technology and have been implemented with over 50% energy saving. Other technologies like power savers, electronic ballasts etc. are obsolete. LED lights last for 60000 hours and have all the features of power savers inbuilt. Allowing all technologies for this RFP will create confusion as the cost consequence to ESCOs varies substantially with Each technology. Many recent ESCO tenders have failed due to this reason and we strongly suggest that you adapt only one technology (Clause 3.1b in Page 8 of EOI). Project should be built On Shared Savings ESCO model. Advertisement revenue can be an additional source of revenue to APIIC but cannot be considered for project as it varies substantially during the concession period Proper payment guarantee to the ESCO either through An ESCROW Mechanism or any other mechanism acceptable To ESCOs FI should Be adapted for successful implementation Of the project. Many projects Have failed due to ambiguity in the payment mechanism as most projects dont get financed or run into payment issues during the concession period.

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Clarification of Queries for DEVELOPMENT OF ENERGY EFFICIENT STREET LIGHTING IN APIIC IALAs, ANDHRA PRADESH ON PPP MODE PRE APPLICATION MEETING 16- 01-2012 AT PARISHRAMA BHAVAN

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LED luminaires offered by the ESCO should be guaranteed by the original LED Manufacturer for the life of the LEDs. A certificate or an agreement between The ESCO and the LED manufacturer guaranteeing the LEDs should be produced Before the issue of the RFP. Such an arrangement will discourage ESCOs from offering spurious LED luminaires since only the best LED manufacturers like Nichia, CREE, Philips etc., can offer such guarantees. ESCO contract period Should be fixed between 7-- 10 years if LED lighting is finalized for RFP. All three IALAS should be clubbed together as there may not be any bidders for the smaller IALAS. A baseline study should be done to record present road width, light type, light mounting height, existing Average LUX levels using 9 point method, Electrical load, actual electricity consumption per hour, staff salaries, actual maintenance and repair cost and cost of consumables A minimum of 50% energy saving should be guaranteed by the ESCO. Will be clarified at the RFP stage Bid Should be ranked on the following weightage (See table below): NPV discounted at 10% during the contract period (10 years) 30 marks NPV discounted at 10% during the entire life cycle (15 years) 60 marks Gross savings over the agreement term 10 marks Payment mode and Payment method and guarantees. May consider to be open to the technologies rather than confining to specific technology Will be clarified at the RFP stage

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Clarification of Queries for DEVELOPMENT OF ENERGY EFFICIENT STREET LIGHTING IN APIIC IALAs, ANDHRA PRADESH ON PPP MODE PRE APPLICATION MEETING 16- 01-2012 AT PARISHRAMA BHAVAN

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Audit, baselining and verification should be done by third party ESCO under demand side management scheme of BEE to arrive per capita consumption Products should be certified by BEE / CPRI on environmental friendliness.

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Lead partner of consortium will be Prakash Arts Pvt Ltd and will have one of the reputed LED Manufacturer in the country will be another member of consortium. Since the consortiums being formed for the purpose of above referred subject, can we submit the required documents of Prakash Arts and all Technical related subject documents of consortium partner? Do you require to have MOU copy of consortium being formed? Can we forward the Lead Partners info as per the formats suggested in GENERAL INFORMATION/

As per clause 3.0 of EOI, Applicant is single firm or consortium. At this stage, Applicant as a whole shall meet the eligibility criteria.

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Preferred but not essential at this stage Yes