Investor Presentaiton
Bid Specifications - Some Key Details
Particulars
Details
Concession Period
Till February 2054 (~32 years)
Obligatory Services
Real Estate Development
adani
Ports and
Logistics
Cargo Handling and storage; Services for Passenger ; Supply of Water, Fuel and Electricity to vessels; Dock Allocation
•
Building construction and facility management with permission to lease to a third party
/ Sea Front Services
Usage Fee Payment
Rates for Port Services
Shareholding lock-in
NIS 1 Bn of the sale
proceeds are given back
to HPC for Investments
Usage of Investment
Amount of NIS 1 bn
HPC is provided with 300 dunams (eq. to 75 acres) of total land parcels for commercial real estate development
No fixed Fee till 2025, 2026 (NIS 2 Mn), 2030 (NIS 3 Mn), 2033 (NIS 5 Mn), 2037 (NIS 6 Mn), 2039 (NIS 7 Mn), 2041
(NIS 8 Mn), 2045 (NIS 10 Mn) and 2048 (NIS 15 Mn)
Variable fee (VF) is based on revenue brackets. For Revenue range of NIS O- 550 Mn, there is a fee of 1.75%; for the
revenue slab of NIS 550-750 Mn the fee rate is 4.25%, for revenue range of NIS 750-1000 Mn, fee rate is 7.3%; and
for revenue > NIS 1000 Mn, fee rate is 10%
Rates to be charged for Port Services (lifting and storing charges) are regulated by IPC as ceiling. For example, Handling
Charge Ceiling for Containers is NIS 600 TEU. Oher than the port services, the rates can be determined by HPC
•
Three years
From the bid sale proceeds, NIS 1 Bn (USD 290 Mn) is given to HPC as an "Investment Amount" for which additional
shares will be allocated to the buyer
Any payment in excess NIS 1 Bn will go the government in lieu of 100% stake sale to the buyer (bidder)
NIS 400 Mn is to be invested for development of fixed assets which include port infrastructure including equipment
Company must either upgrade the Eastern Quay or construct Carmel B (work to commence before January 1, 2033)
Remaining Investment Amount can be used for investments in infrastructure and equipment as per the company's
needs, as well as for other uses, including retirement plans for the company's employees
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