Expression of Interest For Commercial And Regulatory Consultant For Monetization Of Select Transmission Assets In Tamil Nadu

Expression of Interest for Commercial and Regulatory Consultant for Monetization of Select Transmission Assets in Tamil Nadu Tamil Nadu Transmission Corporation Limited (TANTRANSCO), the state-owned transmission utility of Tamil Nadu, intends to monetize its existing transmission assets to recycle capital and attract private sector participation. IFC will support TANTRANSCO in designing a bankable PPP framework for monetizing selected transmission assets under the Acquire, Operate, Maintain, and Transfer (AOMT) model as per the Ministry of Power, Government of Indias 2022 guidelines on transmission asset monetization, with necessary deviations to address implementation challenges, broaden bidder participation, and optimize pricing outcomes. The assets identified for monetization under this Project include: i. 765 kV Ariyalur Substation (SS) ii. 765 kV transmission line from Ariyalur to Thiruvalam SS, spanning 173.56 kilometers iii. 400 kV transmission line from Ariyalur to Pugalur SS, covering 3.58 kilometers iv. 400 kV transmission line from Ariyalur to Kalivanthapattu SS, covering 3.64 kilometers In this context, IFC is seeking the services of a specialized team of Commercial and Regulatory Consultant that will assist IFC with regulatory and commercial structuring and due diligence. The scope will include feasibility and economic analysis including comparison of estimated upfront proceeds net of taxes for TANTRANSCO in case of monetization, vis-à-vis, the series of periodic transmission charge revenue; scenarios factoring in efficiencies in private sector operation and maintenance as well as potential if any for additional revenues/ value added services; review of transmission tariff structure; tariff structure and revenue optimizations, , assistance in regulatory presentations for asset-specific transmission tariff determination; financial analysis to estimate potential upfront payments from bidders; baseline load analysis and evaluation of future load impacts on assets, transmission capacity optimizations; commercial analysis of technical assessment findings for developing optimization scenarios for costs, opex, etc. and provide related recommendations, undertake financial valuation of assets as per DCF or similar acceptable approach; development of a detailed financial model; review of permits and authorizations required for AOMT contract implementation; advising on commercial arrangements for SPV formation and tax management; detailed assessment of financial and regulatory implications related to capital gains on asset transfers between entities and related tax incidences for TANTRANSCO, PSP, etc., equity treatment under the Income Tax Act, and asset valuation upon termination or conclusion of concession end; support in discussions with TNERC for regulatory approvals; Review of outstanding debt balances and monetization proceeds utilization and assistance in bid process management. Tender Link : https://wbgeprocure-rfxnow.worldbank.org/rfxnow/public/advertisement/5334/view.html

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