Government of Himachal Pradesh was interested to develop a comprehensive Emergency Medical Response System for the state. In this regard Government has decided to undertake Design, Procurement, Operations, Maintenance and Transfer (DBOT) basis of Pre – Hospital emergency medical response service through a society for Management of Medical and other Emergencies. A society is formed by the Government for management of Emergency Services in state. Government decided to select a private provider to execute this project for which Government called for a competitive bidding process. The selected bidder shall be responsible for design, procurement, operation and maintenance of the project in accordance with the provisions of concession agreement, which included procurement of Ambulances and setting up of requisite IT Infrastructure, operations and maintenance thereof.
In this regard Government adopted a two state competitive selection process, the first phase – Qualification State involved qualification of interested, the second phase comprised of proposal phase where the price bid was to be submitted towards cost of operations of the Project.
In the bid process conducted in Sep - Oct 2010, five bidders were qualified in Stage I, in Stage II a Bidder in consortium with a German corporate being the lowest bid was shortlisted; the bid amount of the lowest bidder was one third of the next bidder. Concession agreement was signed with the lowest bidder. The selected private provider couldn’t execute the project, hence was rejected, which further went into a dispute in High Court.
Subsequently after blacklisting the private provider the process was repeated and single step two stage bidding process was adopted. In this bid though there was good participation in the pre bid process, there was only one bidder who submitted the bid, who happened to be the second lowest bidder previously. The process of selection was not terminated yet.
In a sudden surprise Government of Himachal Pradesh has signed MoU with EMRI on 9th July 2010 by individual selection (EMRI didn’t bid in the tender process). Aggrieved with the decision bidder who was waiting for communication approached High Court who stayed the decision on MoU and having completed hearing by 23rd July 2010 reserved for Judgment, Judgment is awaited next week.
Objective of the program –
To provide comprehensive Emergency Response Service in the State of Himachal Pradesh with response time (time taken to reach the victim after receipt of call)
Lower Hills Middle Hills
Urban 25 Min 30 Min
Rural 30 Min 45 Min
Need for Contracting
The project being technologically driven and innovative, its difficult to operate in the Government set up. The project being manpower intensive cost involved would be quite high if Government operates on its own.
It could be executed only with synergy achieved in Public Private Partnership, where the Government network and funding is used to execute the project with strategic management and operational efficiency from private provider.
Procurement of the ambulances and setting up of the project facilities as per Project Implementation schedule
Manage, operate and maintain the project facilities and regulate the use of third parties.
Capital expense of
120 Million would be provided by Government.
Fixed Operational expense of 50,000 per ambulance per month would be provided by Government
The variable operational expense per trip would be the bidding parameter. The lowest bid would be shortlisted for operations.
Private Provider –
Set up and attempt to attend every emergency call received at Emergency Response Centre.
Procure ambulances and operate ambulances with 24 x 7 availability 365 days a year located at various segments at ambulance base stations to achieve the response time.
Operation and maintenance of fully equipped ambulances ensuring guidelines laid down by Government.
Recruit train and position the required manpower, including drivers, Emergency Medical Technicians for ambulance.
Recruit train and position qualified and suitable personnel for the project at various levels.
Ensuring round the clock services at the call center, ensuring proper monitoring of services
Provide all reasonable support and assistance to the private provider in procuring applicable permits required from any Government instrumentality for implementation and operations of the project.
Coordinate with the authorities in the Police. Fire, Transport and other department to issue appropriate instructions to the field officers of the departments to provide required assistance.
Attempt, that no local tax, toll or charge is levied or imposed on the use of whole or any part of the Project facilities.
Assist in procuring police assistance for regulation of traffic, removal of obstructions coming in the way of discharge of its obligations as per this agreement.
Liaise with Government of India to facilitate allotment of toll-free-number 108 for the state of Himachal Pradesh.
Provide necessary funds for the project as per the concession agreement.
Designing and Implementing the Program
The model was designed by Transaction Advisors Feedback Ventures who are one among the 12 Transaction advisors shortlisted by Government of India for providing support to Governments in PPP Projects. Feedback ventures have experience in various infrastructure projects in India.
Monitoring Incentives & Penalties –
Though there are no separate incentives, in this better performance is remunerative, more number of trips would lead to more revenue.
Penalty of 0.1% of performance security would be levied and deducted for delay in Full Deployment Date is delayed by more than 60 days of scheduled date. Few minor operational penalties were specified which are not significant.
Monthly report need to be submitted to the EMS Society responsible for implementation of the project.