Proposed Medical Cluster

in

Kolhapur City

A Presentation to:

Hon’ble Shri Jayant Patil, Minister of Finance & Planning,

Government of Maharashtra

Presented by:

Shri Vijay Singhal

Commissioner,

Kolhapur Municipal Corporation

14/08/2008

Kolhapur – Locational Overview

: 551 Hyderabad

: 475 Aurangabad

: 47 Sangli

: 435 Nashik

: 264 Solapur

: 237 Goa

: 123 Satara

: 105 Belgam

: 100 Ratnagiri

: 233 Pune

: 520Mumbai

5 LakhPopulation

66.82Area (sq km.)

Arial Distance between

Cities from Kolhapur

Road Distance between

Cities from Kolhapur

Infrastructure Advantage in Kolhapur

Efficient Public transport (KMT)

Adequate Water Supply

Excellent Rail Connectivity

Excellent Social Infrastructure

Well connected NH and SH

Excellent Financial Infrastructure

Important education destinations in Maharashtra due to Shivaji University

District has over 200,000 under graduate student population

EDUCATION

City has over 300 Hospitals and Clinics and over 40 diagnostic Centers

Over 2000 practicing medical professionals

Kolhapur is in close proximity to Miraj (30kms) – A medical hub

HEALTH

City has more than 200 hotels with room capacity of over 5000

Kolhapur is known for its unique cuisines and restaurants

HOSPITALITY

Efficient Air Connectivity

• Demographic densities and transitions

• Rapidly changing life styles

• Deteriorating environmental conditions

• Growing Urban Agglomerations

Common Challenges: Private Medical Sector

• A gap exists between demand for health services and services available

• The peripheral Districts i.e. Satara, Karad, Sangli-Miraj-Kupwad, Ratnagiri, Goa,

Solapur, Belgaum, Bijapur etc. have easy access to Kolhapur via Golden Quadrilateral

& major Road Network.

• Cardiac, Oncology based services can become a special activity

• Need for super sensitive medical check-up facilities

• Presence of a standard Business Community and major Tourist Centers give

additional Advantage

Medical City Concept

A Medical City largely consists of Four Segments:

• Medical Cluster

• Wellness Cluster – Preventive Care

• Academic Cluster

• Healthcare Support - Rehabilitation

Medical Cities in India

Medicity, Gurgaon

Aditya Birla Memorial Hospital, Pune

Apollo Health City, Hyderabad

Fortis Medicity, Gurgaon

Fortis Medicity, Lucknow

Narayan Health City, Bangalore

Indraprastha Apollo Hospitals, Delhi

Wockhardt Hospitals

Medical Cities in India

Medicity, Gurgaon

Aditya Birla Memorial Hospital, Pune

Apollo Health City, Hyderabad

Fortis Medicity, Gurgaon

Fortis Medicity, Lucknow

Narayan Health City, Bangalore

Indraprastha Apollo Hospitals, Delhi

Wockhardt Hospitals

96,048 sq.m. BUP FSIMaximum Built- Area:

0.75 + additional 100% FSI

(50%: KMC + 50%: GoM, subject to GoM approval)FSI:

Isolation Hospital & Staff Quarters (needs to be rehabilitated)

Railway 7 KM, Airport 10 KM, Bus Stand 10 Kms, Mahalaxmi

Temple – 4 KM, 30 M Proposed Ring Road passes through the

Plot

Existing Facilities:

Accessibility:

approximately 19 acres Area:

Isolation Hospital PremisesLocation:

An Overview of the Project Site

Project Area Statement & Scope for Development

68286 sq.m75% for Core Medical

22762 sq.m25% for Medical Accessories

91048 sq.mArea offered to Bidder for Development

5000 sq.mFSI for KMC Hospital

96048 sq.mTotal FSI

1. Master Planning, designing, financing and establishing various facilities involving Utility Services, Medical

and Ancillary Facilities.

2. Develop 100% allocated FSI in 15 years period, and Operate, Maintain, Manage all facilities and pay nominal

Leased Rent during Lease Period.

3. Subleasing Plots to other Business Entities allowed to the extent not more than 75% of permissible FSI.

4. The Project Developer to pay Development Premium to KMC – 25% upfront, balance payment differed over

first 15 years lease period.

5. The Project Developer should share 50% of any future incentives applicable for the said Project.

6. Rehabilitation of existing Isolation Hospital in Project Premises.

7. Comply with all existing & future provisions mentioned in Development Control Regulations, Government

Resolutions, Statutory norms related to Hospitals, Institutes for Paramedics Training and Environment.

Project Scope

Project Components envisaged within Medical Cluster

TREATMENT

Modular Units

Multi-specialty Hospital

Cardiology

Oncology

Organ Transplant Center

Stem Cell / Tissue Research

Clinical Trials

Advanced Diagnostic Center

Alternate Medicine

EDUCATION

Job Oriented Courses:

Nursing College

Physiotherapy

Radiology

Lab Technicians

ANCILARIES

Hospitality:

Institutional Spaces –

Health Insurance, Medical BPO, Banks

Convention Center

Recreation Centers

Dedicated Residential Space – For

Patient Relatives

Medical Staffs

Students

Delegates

CORE MEDICAL COMPONENTS

Google Image of Project Area

Project Component-wise Land Use Planning Envisaged

Ancillaries FacilitiesCore Medical Treatment

Components

0.75 FSI + additional 100% FSI

60% 25% 450

Investment Potential, Cr.

** Involves State Government Permission for Land Use Purpose; Additional 100% FSI Loading & subsequent sharing of Premium

For the purpose of Rehabilitating the Existing Municipal Facilities, a BUP Area admeasuring up

to 50,000 sq.ft. needs to accommodated in the Land Use Plan of Medical Cluster Project

Area for UtilitiesProject Plot Area

75% 10% 10%

Open Area.

Land Use Planning Parameters

Public Amenities Space

5%

Paramedic Training Institute

15%

Conceptual Land Use Plan

Reservation - DP

Development Options

� The Project envisages 75% of the area to be utilized for the Core Medical Facilities like Hospitals,

Institutes for Paramedic Education & Training, etc.

� By sparing 25% of permissible FSI for ancillary support services and utilizing the rest of FSI for Core

Hospital Project, the whole Project becomes attractive to the prospective Developer.

� The burden of very high capital cost generally observed to be associated during the gestation period

for the Hospitals, certain extent of Ancillary Support Facilities is suggested the attractiveness of the

proposed Project.

� The Lease period shall be extending up to 90 years (in parts of 30 years), and the Project could be

undertaken on Build – Own – Operate – Transfer (BOOT), a variant of PPP route of investment.

However the ownership is limited to the Facility developed and not on the Land Ownership.

� The total construction period shall be 15 years. The Developer shall also hand over the Constructed

KMC Hospital by the end of first 3 years.

Development Options …….. Continued

� As Project plot is a lease land, its title cannot be transferred to the Developer. But with operational

right extending to 90 years (in parts of 30 years) is as good as owning the Project.

� For assigning the Development Right, the Developer shall be paying an upfront premium (25% of

total Premium) to KMC and installments through Deferred Payment of Balance Premium while

accommodating for Capital Appreciation of Land Price post Land Development, and Nominal Lease

Rents (Re. 1.0 /- per 100 sq. ft./month) for un-developed FSI within first 15 years, and Rs.1.0 / - per

sq.ft./month on commissioning of each of the individual businesses in the Cluster.

� Hence the selection criteria for the Developer shall be based on the cut-off score on Technical

capability, and the highest Commercial Offer reflected by the Net Present Value NPV at 12% discount

rate of the total payment offered in terms of upfront premium and the installments for the next 15

years.

Determination of Development Premium

� The Premium that the Developer would offer to KMC would depend upon following factors: -

� Extent of Development Right used by the Developer based on risk-return perception.

� % Capacity of Hospital Beds / Medical facilities vis-à-vis Medical Ancillary Activities.

� Image enhancement of KMC region as result of New Medical Infrastructure / Expertise added in the region.

� The point of reference for deciding the cash component of Premium depends upon the market value of the Project Plot.

Milestones Achieved & Present StatusEstimated Value of the Project Plot as per Ready Reckoner Rate: Rs. 7.29 Crores (1950 Rs./sq.m or

181 Rs./sq.ft. – R.S. No. 704 & 1620 Rs./sq.m or 150 Rs./sq.ft – R.S. No. 703) with 5% Discounting for

Lease aspect.

Estimated Value of the Project Plot as per Market Rate: Rs. 29.27 Crores on estimated Market Rate

of Rs. 650/sq.ft. with 5% Discounting for Lease aspect.

Project Tendered on: 21/03/2008

Bid Submitted on: 27/05/2008

Technical Bid Opening Date: 27/05/2008

Commercial Bid Opening Date: 02/07/2008

Proposal, dated 24/07/2008 for obtaining Permission on Change in ‘Land Use Purpose’ sent to Secretary, Ministry of Revenue & Forest Department through Collector, Kolhapur District & Divisional Commissioner, Pune.

Present Status:

�Bid Submitted by Karnataka Lingayat Education Society (KLES) Dr. Prabhakar Kore Hospital & MRC, Belgaum

found eligible for evaluation

�Bid Finalization under Process for the purpose of Issuing LoI, post Negotiation

�Per sq.ft. Value Quoted by KLES (Pre-negotiation): 3175 Rs./sq.m or 341 Rs./sq.ft. for 91048 sq.m FSI,

amounting to Rs. 28.90 Crores + Constructed KMC Hospital Building worth Rs. 6.45 Crores (5000 BUP FSI @ 1200

Rs./sq.ft Unit Construction Cost)

To wish to be well

is a part

of becoming

well.

Thank You

Detailed Design Engineering Activities Required for Medical City

Capacity Assessment

Technology Assessment / Options

Technical Specifications

System Design

Bill of Quantities

Cost Estimates

Civil Work Tenders

Detailed Design Engineering Services

for:

Medical City &

Individual Components

Technical: Site Survey & Assessment

Baseline Data Collection & Field Survey

1. Primary Information about Existing Infrastructure

2. Secondary Data Collection

• Base Maps, Infrastructure Maps, Topographic Maps

• Existing Land Use Provisions

• Proposed Land to be used in Future

• Development Control Regulations

3. Reconnaissance Survey

4. Geo-technical Investigation

5. Review of Land Records & Titles

Development Strategy for Medical Township

Evaluation of Options for Development

Private Investment

Public – Private – Participation (PPP)

SPV Structure

Project Implementation Strategy For Medical Township

Project Planning & Management

Contract Documentation

Bidding Strategy

Preparation of Project Agreements & other Legal Documents

Bid Evaluation Services

Post Bid Project Management Services