About Definitions

Achievement and Exception Report:

means the report submitted to the Government or the Board or both by the procuring entity on the status of project implementation, including in terms of time, cost, safety and other factors in the construction phase and the status of achievement of key performance indicators and other contractual, social, economic and financial indicators in the operational phase, in such formats and with such frequency as the Board by general or special instructions direct.

Administrative department:

means the department of the Secretariat which is administratively concerned with a Project as per the Tamil Nadu Government Business Rules, 1978, and more than one department may also be administratively concerned with a Project.

Annuity:

means annual or periodic contract consideration payable by the sponsoring agency to the private sector partner for delivery of services as per the terms and conditions of the Concession Agreement and where the user charges, if any, are levied, collected and retained by the public agency.

Applicant:

means an entity which has submitted or is likely to submit a response to the Request for Expression of Interest (REOI) or Request for Qualification (RFQ), as the case may be.

Application:

means the submission made in response to a Request for Qualification (RFQ).

Appointed Date:

means the date on which the Concession Agreement comes into force and effect in accordance with the terms outlined therein.

Board:

means the Tamil Nadu Infrastructure Development Board.

Build-Lease-and-Transfer (BLT) Model:

means a contractual arrangement whereby the concessionaire undertakes to finance and construct the Project and on its completion hands it over to the Government. The Government then gives the facility to the same operator on a lease arrangement for a fixed period, after which ownership of the facility is automatically transferred to the Government.

Build Operate and Transfer (BOT) Model:

means a contractual arrangement whereby the concessionaire undertakes the construction, including financing, of a given infrastructure facility, and the operation and maintenance thereof. The concessionaire operates the facility over a fixed term during which they are allowed to charge the users appropriate tolls, fees; rentals and charges as incorporated in the contract to enable the recovery of investment in the Project. The concessionaire transfers the facility to the Government at the end of the fixed term that shall be specified in the Concession agreement.

Build-Own-and-Operate (BOO) Model:

means a contractual arrangement whereby the concessionaire is authorized to finance, construct, own, operate and maintain an infrastructure or development facility from which the concessionaire is allowed to recover the total investment by collecting user levies from facility users. The ownership of the land will be vested with the Government. Under this mode, the concessionaire owns the assets of the facility and may choose to assign its operation and maintenance to a facility operator. The transfer of the facility to the Government is not envisaged in this structure; however, the Government may terminate its obligations after the specified time period.

Build-Own-Operate-Transfer (BOOT) Model:

means a contractual arrangement whereby the concessionaire is authorised to finance, construct, maintain and operate a Project and whereby such Project is to vest in the concessionaire for a specified period. During the operation period, the concessionaire will be permitted to charge user levies specified in the Concession agreement, to recover the investment made in the Project. The concessionaire is liable to transfer the Project to the Government after the expiry of the specified period of operation.

Build- Transfer-and-Operate (BTO) Model:

means a contractual arrangement whereby the Government contracts out an infrastructure facility to the concessionaire to construct. the facility on a turn-key basis, assuming cost overruns, delays and specified performance risks. Once the facility is commissioned satisfactorily, the concessionaire is given the right to operate the facility and collect user levies specified in the Concession agreement. The title of the facilities always vests with the Government in this arrangement.

CEO:

means Chief Executive Officer of the Board.

Concessionaire:

means the private sector participant which has entered into a Public-Private Partnership.

Concession Agreement:

means an agreement entered into between a Procuring Entity and a private sector participant for and in respect of a Public-Private Partnership.

Conditions Precedent:

means the obligations which the Procuring Entity or the Concessionaire or both may be required to fulfil prior to the financial closure of the Public Private Partnership (PPP) Project, unless waived in writing by the relevant party in accordance with the terms of the Concession Agreement.

Consortium:

means a tenderer comprising of two or more entities for the purpose of responding to a Tender Document, such that if the consortium includes a public sector entity or entities, such public sector entity or entities do not have a controlling stake in the consortium.

Construction:

means all works associated with the construction, reconstruction, demolition, repair or renovation of a building, structure or any other related works.

Contingent Liability:

means a liability accruing to a Procuring Entity through the Concession Agreement or Public Private Partnership (PPP) Project on the occurrence or non-occurrence of an uncertain future event.

Detailed Project Report:

means a detailed study of the Project made after the preliminary investment decision, in order to ascertain the capital cost, technological parameters, description of the technology to be used, technical specifications, plan schedule to assist the financial investment and the plan for implementation of the Project and such other information as may be prescribed in the regulations.

Design-Build-Finance-Operate- Transfer (DBFOT) Model:

means a contractual arrangement whereby the concessionaire is bestowed with the responsibility of designing, building, financing and operating the facility before transferring the Project to the Government after the expiry of the specified period. The concessionaire operates the facility over a fixed term during which they are allowed to charge the users appropriate tolls, fees, rentals and charges as incorporated in the contract to enable the recovery of investment in the Project.

Domestic Enterprise:

means any micro and small enterprise as defined in the Micro, Small and Medium Enterprises Development Act, 2006 (Central Act 27 of 2006), which manufactures or produces goods, provides or renders services within the State and filed Part II of the Entrepreneurs Memorandum in the District Industries Centres or filed Udyog Aadhaar portal.

Due Date:

means the date on which a tender submission is due in response to a Request for Expression of Interest (REOI) or a Request for Qualifications (RFQ) or a Request for Technical Proposals (RTP) or a Request for Proposals (RFP).

Earnest Money Deposit (EMD):

means the amount required to be remitted by a tenderer along with his tender indicating his willingness to implement the contract.

Executive Committee:

means the Executive Committee of the Board.

Expression of Interest (EOI):

means the submission made in response to a Request for Expression of Interest (REOI).

Feasibility Study:

means a preliminary study made for investment decision-making, to assess the technical, social, economic and financial viability and the social and environmental impact of a Project including the demand for the services, appropriate technology to be adopted, capital cost, time required for implementation, and such other information as prescribed in the regulations.

Financial Model:

means a forecast of the project’s outlays and future cash flows including the capital expenditure, operation and maintenance expenses, debt service costs and tax payments and the revenues to be generated, which is developed based on specifically indicated assumptions to facilitate the estimation of financial parameters and to enable an informed investment decision.

Final Offer:

means the commercial offer made by a tenderer on the basis of the single criterion specified in the Request for Proposal (RFP).

Fixed Rate Contract:

means a contract where a set of rates and terms and conditions are fixed for the supply of unit quantities of goods or certain standardized services.

Goods:

means raw materials, products, equipment and other objects of every kind and description and includes electricity.

Government:

means the State Government.

Government company:

means any company in which not less than fifty one per cent of the paid-up share capital is held by the State Government or Governments and includes a company which is a subsidiary of a Government company as thus defined.

Independent Auditor:

means an auditor appointed under rule 45 of TNTIT (PPP), Rules, 2012.

Independent Engineer:

means an Engineer appointed under rule 46 of TNTIT (PPP), Rules, 2012.

Infrastructure:

means provision of assets or services in any one or more of the sectors specified in Schedule-I of TNID Act, 2012.

Lead Member of Consortium:

means a member of a consortium who has been designated as the lead member by the Consortium and shall possess such qualifications as may be prescribed in the tender documents.

Lease Management Agreement:

means a contractual arrangement whereby the Government leases a Project owned by it to the concessionaire which is permitted to operate and maintain the Project for the period specified in the contract.

The concessionaire is allowed to charge the users appropriate fees, rentals and charges as specified in the agreement to enable the recovery of investment in the Project.

Letter of Award (LOA):

means the Letter of Award issued by the Procuring Entity to the Lowest Tenderer in accordance with rule 56 of TNTIT (PPP), Rules, 2012.

Local authority:

means any municipal corporation or municipal council or panchayat union council or village panchayat constituted under the relevant law for the time being in force.

Lowest Tender:

means the tender which, on evaluation, is found to be the most beneficial to the procuring entity in financially quantifiable terms.

Lump-sum Contract:

means a contract under which a tenderer is engaged to carry out a work or effect supply as specified within a given period and for a fixed total price and the tenderer is paid depending on the completion of work or supply to specification and adherence to the time schedule:
Provided that where appropriate, unit rates or prices for each of the various items comprising such work or supply may also be specified to facilitate interim payments depending on the actual quantities of work executed or supplies effected.

Management Agreement:

means a contractual arrangement whereby the Government entrusts the operation and management of a Project to the concessionaire for the period specified in the agreement on payment of specified consideration. In such agreement, the Government may charge the user levies and collect the same either by itself or entrust the collection for consideration to any concessionaire who shall after collecting the user levies, pay the same to the Government.

Minimum Technical Requirements (MTR):

means the minimum technical requirements as described in rule 37 of TNTIT (PPP) Rules, 2012.

Multi sector project:

means a project that involves stakeholders from more than one sector as mentioned in Schedule-I of the TNID Act, 2012 and where responsibility for implementation may not be conveniently assigned to a single public agency dealing with anyone of the sectors, that the Board may specifically declare to be a Multi sector project.

Multi-Stage Tender:

means a tender in which there are at least two stages including an initial stage of short-listing based on the fulfilment of eligibility criteria based on experience and financial or technical parameters or both and a final stage in which only the qualified, short-listed tenderers are invited to submit their financial bids.

Notice Inviting Tenders:

means for the purposes of these rules, the Notice of Request for Qualification (RFQ) in all cases where rules 4, 5 and 6 apply and to the Notice of Request for Proposal (RFP) in cases where sub-rule (2) of rule 3 is invoked.

Performance Security:

means a financial guarantee in the appropriate form including a security deposit or bank guarantee or both furnished by the Concessionaire to the Procuring Entity for the performance of its obligations under the Concession Agreement.

Piece-Work Contract:

means a contract under which only unit rates or prices for various kinds of work or materials are agreed upon for a given period of time without reference to the total quantity of work to be done or the material to be supplied and the time period within which the work or supply is to be completed.

Pre-qualification:

means the process by which the tenderers are first screened for their capability and resources to implement the contract before they are permitted to offer their tenders.

Private sector participant:

means any person other than a public agency or the Central Government or a public sector undertaking of the Central Government.

Procurement:

means acquisition by any means including electronic mode of purchase of goods or services and also of construction.

Procuring entity:

means the entity specified in the Schedule to the TNTIT Act, 1998.

Project:

means an Infrastructure Project.

Project Concept Note:

means a note containing preliminary information about the proposed Project prepared in accordance with regulation 7 of TNID Regulations, 2013

Project Value:

means, (i) in case of Public Private Partnership (PPP) Projects where the private entity is expected to make capital investments, the value of the asset or facility to be constructed including the cost of land, if the cost of land is to be borne by the private entity; or (ii) in case of Public Private Partnership (PPP) Projects where the private entity is not expected to make substantial capital investments, the current replacement value of the asset or facility, whose operation and maintenance is proposed to be the responsibility of private entity. Public agency means any department of the Government or any public sector undertaking of the Government, a Government Company, Statutory Board formed by the Government, Local authority, Co-operative Institution, State University, any Society or Trust formed, owned or controlled by the Government.

Public agency:

means any department of the Government or any public sector undertaking of the Government, a Government Company, Statutory Board formed by the Government, Local authority, Co-operative Institution, State University, any Society or Trust formed, owned or controlled by the Government.

Public financial support:

means financial support from the Central Government or the State support or both.

Public Private Partnership (PPP):

means an arrangement between a public agency and a private sector participant for the provision of infrastructure through investment made or through design, development, construction, maintenance or operation undertaken by the private sector participant, where risks are allocated between them such that the private sector participant takes on the risk beyond the stage of design and construction and the payment for the services are performance linked, in the form of user charges, annuities or unitary payments.

Public-Private Partnership Project:

means a Project implemented through public-private partnership.

Public Sector Comparator:

means the estimated hypothetical risk-adjusted life cycle cost of a project if it were to be financed, owned and implemented solely by the government or its agency.

Public sector mode:

means implementation of a Project directly by a public agency by its own resources or through the State Budgetary resources.

Qualified Applicant:

means an Applicant that has been qualified in the Request for Qualification (RFQ) stage.

Rehabilitate-Operate-and-Transfer (ROT) Model:

means a contractual arrangement whereby an existing facility is handed over to the concessionaire to invest, refurbish, operate and maintain for a period, at the expiry of which the facility is returned to the Government. The concessionaire operates the facility over a fixed term during which they are allowed to charge the users appropriate fees, rentals and charges as specified in the contract to enable the recovery of investment in the Project.

Rehabilitate-Own-and-Operate (ROO) Model:

means a contractual arrangement whereby an existing facility is handed over to the concessionaire to invest, refurbish, operate and maintain the development facility from which the concessionaire is allowed to recover the total investment by collecting user levies from facility users. The ownership of the land shall be vested with the Government. The transfer of the facility to the Government is not envisaged in this arrangement; however, the Government may terminate its obligations after a- specified time period.

Respondent:

means any entity or consortium that has submitted or is likely to submit a Response to the Tender Documents.

Response:

means any submission required to be made to the Tender Inviting Authority as per the Tender Documents.

Request for Expression of Interest (REOI):

means the Tender Document prepared and issued in accordance with Chapter-III of the TNTIT (PPP) Rules, 2012.

Request for Proposal (RFP):

means the Tender Document prepared and issued in accordance with Chapter-VI of the TNTIT (PPP) Rules, 2012.

Request for Qualification (RFQ):

means the Tender Document prepared and issued in accordance with Chapter-IV of the TNTIT (PPP) Rules, 2012.

Request for Technical Proposal (RTP):

means the Tender Document prepared and issued in accordance with Chapter-V of the TNTIT (PPP) Rules, 2012.

Service:

means any subject matter of procurement but does not include any goods or constructions or hiring of any person to represent the procuring entity or give advice on Legal matters in any judicial or quasi-judicial proceeding.

Sponsoring Agency:

means the public agency designated by the Board to implement a Project through public-private partnership.

Start-up:

means any commercial entity, incorporated as a private limited company under the Companies Act,2013 (Central Act 18 of 2013) or registered as a firm or as a limited liability partnership under the Indian Partnership Act,1932 (Central Act IX of 1932) or the Limited Liability Partnership Act,2008 (Central Act 6 of 2009), respectively, in this State and a period of seven years has not lapsed since the date of its incorporation or registration, as the case may be, and its turnover has not exceeded rupees twenty five crore in any financial year:
Provided that in bio-technology, artificial intelligence or machine learning sectors a period of ten years has not lapsed:

Provided further that no such entity has been formed by splitting up or by reconstruction of an existing commercial entity.

State support:

means the support extended by the Government to a concessionaire, which may include the following:- subsidy or capital grant not exceeding such proportion of the cost of the Project, as may be prescribed in the rules; equity; loans; guarantee by the Government; opening and operation of escrow account; conferment of right to develop any land; incentives in the form of exemption from the payment of, or deferred payment of, any tax or fees levied under any law or such other incentives, as may be prescribed in the rules.

Supply and Installation Contract:

means a contract under which the tenderer is required to supply, erect, test and commission the equipment at the place specified by the Procuring Entity.

Tender:

means the formal offer made by any means including electronic mode in pursuance of an invitation by the procuring entity.

Tender Bulletin:

means the bulletin published for each district or State, containing details of invitation and acceptance of tender.

Tender Bulletin Officer:

means any officer appointed by the Government to publish the district or State Tender Bulletin.

Tender Document:

means a set of papers including electronic document containing schedule of works, rates, requirement of goods or services, technical specifications, procedure and criteria as may be prescribed for evaluation and comparison of tenders and such other particulars as may be prescribed.

Total Project Cost:

means the lowest of the total project cost mentioned in the tender documents or actual capital cost of the project upon completion of the Project as certified by the Independent Engineer; or total project cost as set forth in the financing documents.

Transaction Advisor:

means an independent consultant who advises on the process of structuring of a project, its tendering and assists the public agency or sponsoring agency up to the stage of award of the tender or signing of the concession agreement as the case may be.

Turn-key Contract:

is a contract under which the tenderer is required to undertake within the framework specified by the Procuring Entity the entire responsibility for detailed investigation, planning, design, construction and commissioning of the total project.

Two-cover System:

means a procedure under which the tenderers are required to simultaneously submit two separate sealed covers, one containing the Earnest Money Deposit and the details of their capability to undertake the tender which will be opened first and the second cover containing the 2[financial] quotation which will be opened only if the tenderer is found qualified to execute the tender.

User levy:

means user charge or fee or any other amount, by whatever name called, payable by the user of an infrastructure facility.

Value for Money Assessment:

means the quantitative and qualitative assessment of the costs and benefits associated with a project. Value for Money Assessment is used to establish whether implementing a project in the Public Private Partnership (PPP) mode is an economically optimal proposition for the Government or the public agency and it takes into account direct and indirect project execution costs, financing costs, transaction costs, cost of asset transfer on project completion, project monitoring costs and a cost estimation of the possible risks thereof.

Variation:

means changes which occur during the course of project development and delivery and shall be classified into the following forms: Day-to-day operational variations; Known-variations that are likely to arise and whose nature is known, but time of occurrence and impact are unknown.

Viability Gap Funding:

means a capital grant or subsidy or equity from the Central or State Governments to render a Public Private Partnership (PPP) project financially viable and bankable.