GOVERNMENT OF ANDHRA PRADESH

PORT DEPARTMENT

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OFFICE OF THE PORT OFFICER

KAKINADA PORT : KAKINADA.

Tender Notice No. 1/PC/PPL/GVP/2009, Dated. -10-2009.

Sealed tenders are invited for appointment “Operational and Financial auditor of Gangavaram Green Field Port near Visakhpatnam of A.P. State”. The tenders will be received by the Port Officer, Kakinada Port, Kakinada from Reputed Firms of Chartered Accountant practicing in India who are having similar experience.

1. Scope of Work : An agreement has been entered into

with M/s.Gangavaram Port Ltd., for Build, Own, and Operate and Transfer (BOOT) basis for Development of Gangavaram Green Field Port. [The Concessional Agreement contemplates that the Govt. of Andhra Pradesh have the right to conduct or get conducted operational and financial audit. The operational audit will check upon compliance with the approved and agreed plans for development and operational of the Port and maintenance of its facilities and Port Assets]. Further, Govt. of A.P. has the right to appoint an Independent auditor for conducting the financial audit of the books of accounts of the Concessionaire with a view to ensure the accuracy of the gross income, of which Govt. of A.P. gets a share, as also the gross profit or gross loss as the case may be during the financial year the Concessionaire incurs Gross loss, or in any financial year when Govt. of A.P. has reason to believe that the books of accounts of the Concessionaire does not reflect the true financial position.

The audit report has to be furnished quarterly wise Audit report and as well as yearly Audit Report for Report each financial year.

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The Tenderer request offers his quoted rate in detail for year wise.

2. Period of work : 2009-10 to 2014-15 (i.e. for 5 years)

3. For eligibility of Tenderers : The tendering Audit party should

have an experience of 5 years in similar period of audit.

4. Date of receipt of Tender : 30-10-2009 upto 3.00 P.M.

5. Date and time of opening

of Tenders : 30-10-2009 at 3.30 P.M.

NOTE : The details of tenders terms and conditions can be seen at the Office of the under signed during office hours on any working day.

Sd/- P.V.B.Radha Krishna Murthy

PORT OFFICER (FAC)

KAKINADA

GOVERNMENT OF ANDHRA PRADESH

PORT DEPARTMENT

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OFFICE OF THE PORT OFFICER

KAKINADA PORT : KAKINADA.

AMENDMENT No. 1/PC/PPL/GVP/2009, Dated.23-10-2009.

Sub:- A.P. Port Department – Appointment for Operational and Financial

Auditor of Gangavaram Port Green Field Port near Visakhapatnam of A.P. State – Amendment Tender Notice – Publication – Requested - Regarding.

Ref:- Amendment to Tender Notice No.1/PC/PPL/GVP/2009, Dt.03-10-09

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The following amendment is issued to the dates as noted below:-

Note: the remaining conditions are unaltered.

Sd/- P.V.B.Radha Krishna Murthy

PORT OFFICER (FAC)
KAKINADA

SCOPE OF WORK OF INDEPENDENT AUDITOR (FOR FINANCIAL AUDIT)

An agreement has been entered into with M/s. GPL for development of Gangavaram Port on BOOT (Build Operate Own and Transfer) basis. The terms of Agreement contemplates various functions to be discharged by M/s. GPL like Construction of the Port and creation of various new facilities after approval of the Govt. which are to be monitor, review, inspected during the construction period by Govt. and also receiving the percentage share and gross income throughout the operation stage of the Project. To look after such of those functions, the Agreement Clause 13.3 of M/s. GPL contemplates that the Govt. GOAP shall have the right to conduct, or get conducted, operational and financial audit. GOAP has the right to appoint an Independent Auditor for conducting the financial audit of the books of accounts of the Concessionaire with a view to ensure the accuracy of the Gross Income, of which GOAP gets a share, as also the Gross Profit or Gross Loss, as the case may be, during the financial year the Concessionaire incurs Gross Loss, or in any other financial year when GOAP has reason to believe that the books of accounts of the Concessionaire does not reflect the true financial position. All costs and fees of such audit shall be shared equally and borne by the Parties.

The scope of services to be rendered by the Independent Auditor during the concession period include but not limited to the following.

(1) Ownership status in SPV formed by GPL for Gangavaram Port Project.

(2) Traffic handled at terminal and magnitude of various services provided within Port premises.

1. The income to Concessionaire.

2. The share amount and various other amounts payable to Government of A.P. by GPL.

3. Confirmation to requirements of regulatory authorities.

A checklist of documents will be made which will be made available by GPL to the Consultants. These documents will related to :

“Ship traffic handled at deepwater port.

“Cargo traffic handled.

“Bills levied for various services related to ships and cargoes.

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“Provision of services to customer – by GPL or through its sub-contractors. In the event of services by the sub-contractors, details of terms and conditions for sub-contracts.

“Income generated for this project.

“Capital structure certificates clearly monitoring share holding pattern

“Any other document the Consultant will require in the course of his Financial Audit.

The above documents will be critically examined for their correctness and completeness in relation to objectives as stated for this work. Wherever documents do not provide the required information, discussions will be held with GPL together more details. The audits will be carried once in a quarter apart from yearly audit. Audit report will be submitted giving conclusion of audits and detailed reasons for arriving at such conclusions.

The audit team will comprise of financial experts. These experts will camp at GVM Port for about 4 weeks for collection of records and discussions with GPL. The audit reports will be submitted 8 weeks after commencement of audits.

Independent Auditor contract period – 1 Year starting from the financial year 2009-10. Renewal of the annual contract for the subsequent years will be the sole discretion of the Department

Performance will be reviewed after 1 year and further extension will be considered based on performance.

Payment Terms :

The fees for the various services to the Independent Auditor have to be quoted by the Consultants. The quoted amount is for the 1^st year i.e. 2009-10 and there after the fees will be get escalated at a compound escalation rate of 5%.

The terms of payment shall be

i) At the beginning of every financial year 20%

ii) At the end of each quarter on 72% of total fee (payable at

submission of audit report 18% at the end of each quarter)

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iii) At the end of each quarter on 8% of total fee (payable at 2%

Acceptance of audit report. for each quarter)

iv) Service tax as per actuals on documentary evidence from time to time as fixed by GOI.

Sd/- K.V.Reddy

DIRECTOR OF PORTS (FAC)