DR. KARUNANIDHI TO INAUGURATE FOUR NHAI PROJECTS IN CHENNAI
April 4, 2008
DR. KARUNANIDHI TO INAUGURATE FOUR NHAI PROJECTS IN CHENNAI. ALSO TO LAY FOUNDATION STONE FOR FOOT OVER BRIDGE AT CHROMEPET
The Chief Minister of Tamil Nadu Dr. Kalaignar M., Karunanidhi will inaugurate four projects completed at a total cost of Rs. 80 crore by the National Highways Authority of India (NHAI) on Wednesday the 9th April 2008. He will also lay the foundation stone for Foot-over Bridge at Chromepet on the same day.
The function for the inaugural ceremony would be presided over by the Union Minister of Shipping, Road Transport and Highways Thiru T. R. Baalu and the Minister for Local Administration, Government of Tamil Nadu Thiru M.K Stalin would be the Chief Guest. The Guests of honour of the function would be Thiru M.P. Swaminathan, Minister for Highways, Government of Tamil Nadu and Thiru T.M. Anbarasan, Minister for Labour, Government of Tamil Nadu.
The Irumbuliyur Underpass has been built at a cost of Rs. four crore, four-laning of Chennai Bypass Phase-I up to Porur has been completed by NHAI at a cost of Rs. 70 crore, the pedestrian subway at Tirisulam has cost Rs. five crore and the Bus Shelter at Chromepet built under the MPLAD Scheme has cost Rs. 82 lakhs. The completion of the Irumbuliyur Underpass will facilitate right turn for the Tambaram Traffic to access Chennai Bypass and thereby quicker connectivity to the Golden Quadrilateral Corridor.
The Chromepet Foot-over Bridge for which the foundation stone will be laid on Wednesday to facilitate the commuters in crossing NH-45 to access the railway station on the other side and vice versa which provides rail connectivity to southern part of Tamil Nadu, would cost Rs. 2.40 crore.
Thiru T.R. Baalu has expressed the hope that with the completion of these four projects, the people living in and around these areas would be greatly benefited.
Source: pib.nic.in
NHAI goes in for a board shake-up
April 3, 2008
The ministry of shipping, road transport and highways has been under severe criticism for NHAI’s inability to meet the deadlines for developing road projects in the country.
New Delhi: Ahead of plans to give out some 10,000km in road projects over the next year, the ruling United Progressive Alliance, or UPA, is replacing at least half of the six-member board of the National Highways Authority of India, or NHAI, the country’s apex road regulator.
The radical revamp of the board, the first of its kind, comes at a time when the ministry of shipping, road transport and highways, which works closely with NHAI, has been under severe criticism for its inability to meet the deadlines for developing road projects in the country.
The revamp comes at a time when the ministry of shipping, road transport and highways has been under criticism for its inability to meet the deadlines for developing road projects in the country
NHAI oversees the National Highway Development Programme (NHDP), under which, almost 33,097km of highways were to be four-laned. Barely 50% of the projects have been awarded so far. As of February this year, work on only 7,942km of highways have been completed; of this, work on around 5,500km was completed during the tenure of the National Democratic Alliance government, which preceded UPA.
NHDP, launched in 1996, was seen as a flagship programme for successive governments, especially since an estimated 60% of freight is still transported by road in the country. There are 66,000km of national highways in India.
Neither the minister, T.R. Baalu, nor the concerned officials, NHAI chairman N. Gokulram and road transport secretary Brahm Dutt, could be immediately reached for comment on Thursday evening. As a result, it is still not clear as to why the government has sought such an overhaul in the NHAI board. The changes have been effected over the past 15 days.
Mint has independently confirmed from various government officials who do not wish to be identified that three out of the six members on NHAI’s board were asked to return to positions at the ministry in the last fortnight. According to officers at NHAI who do not wish to be identified, one of the members C. Kandasamy has already been named a chief engineer at the ministry of shipping and road transport.
A.V. Sinha and Nirmaljeet Singh, too, are being forced to “come back” to their parent ministry. “In one case, the ministry said it would promote a junior officer thereby forcing an NHAI member—on deputation with NHAI—to seek repatriation (back to the ministry),” an officer at the regulator who did not wish to be identified added.
While Sinha could not be reached for comment, Nirmaljeet Singh and Kandasamy declined comment. “I am not with NHAI any more. And for any information pertaining to board members, please contact the chairman,” Kandasamy said.
The shake-up in NHAI’s board comes at a time when the regulator has been accused of not only failing to meet deadlines, but also misgovernance.
“In fact, one of the members was threatened with suspension because some projects in Tamil Nadu got delayed,” said the officer at NHAI.
Highway builders say working with NHAI is difficult primarily because officers refuse to make decisions. “You can say one contractor is bad or may be two contractors are bad, but how can all contractors be bad at the same time? It is the authority (NHAI) that refuses to make decisions for three years sometimes. We are tired of working for them,” said an executive with a highway builder who did not wish to be named. “Why is it, that the same contractors perform on time when it comes to work by the Delhi Metro Corporation?” the executive asked.
Contractors also claim that the authority is unwilling to release money for changes in the scope of work for fear of being investigated by the vigilance department. Mint had earlier reported that almost three in ten NHAI contracts end up in some form of arbitration or the other.
None of the contractors or highway builders contacted by Mint would speak on record, saying it could affect their chances of winning contracts from NHAI in the future.
Meanwhile, the NHAI officials said the board was being revamped because it did not agree with certain proposals made by the Planning Commission on guidelines for drafting tenders for upcoming projects.
“The fact is that the minister has been unhappy with the way the NHAI has functioned in the last year and so these changes are being contemplated,” said a senior government official, who did not wish to be identified.
NHAI has also been named in a court case filed by the National Highway Builders Federation, a trade body representing highway contractors, who claimed that recent pre-qualification criteria used by NHAI favour large bidders. The case is expected to be heard by the Delhi High Court on Friday.
One analyst said it was not fair to accuse only the board, saying that other organizations, such as the Planning Commission, were equally to blame for not ironing out policy issues related to work on NHDP. “The paranoia of the government (over being blamed for non-completion of highways in an election year) could be a factor,” said this analyst who did not wish to be identified.
Source: www.livemint.com
FOUR-LANING OF PATNA-HAJIPUR-MUZAFFARPUR SECTION
March 20, 2008
4 laning of Patna-Muzaffarpur section of NH 19 & 77 has been included under NHDP Phase III in the State of Bihar on BOT (Toll) mode. Bids for 4 laning of Patna-Muzaffarpur Section of NH 19 & 77 were invited in June 2005 under old Model Concession Agreement (MCA) for which no response was received. Bids were again invited for the second time in June 2007 on the basis of new MCA with the last date of submission of bid as 20.08.2007. But, no response was received this time also. As there is no response of bidders on toll based BOT bid for the project stretch, Government has accorded approval for changing the mode of upgradation of Patna-Muzaffarpur Section of NH 19 & 77 from BOT (Toll ) to BOT ( Annuity). This information was given by the Minister of State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Rajya Sabha today. Source: http://pib.nic.in
DELHI-JAIPUR EXPRESSWAY
March 20, 2008
The Government had announced 1,000 km of expressway along the corridors of Vadodara-Mumbai (400 km) and six others from which the balance 600 km were to be selected. Delhi-Jaipur was one such corridor. Further decision for Delhi-Jaipur expressway is yet to be taken. However, Delhi-Jaipur section has been approved for six laning and the Build, Operate and Transfer (BOT) concession for the project has been awarded in February, 2008 under National Highways Development Project (NHDP) Phase-V. This information was given by the Minister of State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Rajya Sabha today. Source: http://pib.nic.in
Annuity model for Bihar, Jharkhand BOT projects
March 18, 2008
NHAI has not been able to award any project on build-operate-transfer basis via tolling in the states in last two years
New Delhi: Desperate to get the roads programme off the ground in Bihar and Jharkhand, where the private sector is declining all offers—including on lucrative stretches—in view of the challenge from Leftist extremist groups, the Centre is offering investors guaranteed payments instead of recovering their investment by collecting toll revenues. A senior official of the National Highways Authority of India (NHAI), the regulator for highways, who did not wish to be identified, said, “The reason for this (investor disinterest) is partly law and order situation in these states, and Naxalism.” As a result, NHAI has not been able to award a single build-operate-transfer (BOT) highway project through tolling in these states in the last two years. In such highway projects, the company awarded the contract for constructing a stretch of highway collects toll from those using the highway.
Law and order, and Naxalism scare away bidders, who recover their investment from highway tolls
To woo investors towards these highway stretches, NHAI is now planning to recast these BOT projects on an annuity basis, wherein contractors who are awarded projects would be paid a guaranteed amount in instalments. The authority had carved out around 11 highway sections in Bihar for awarding under the BOT mode in 2006 under phase III of the National Highway Development Programme. NHAI first put up its most lucrative stretch, Patna–Muzaffarpur, for bidding in early 2006, but it received no response. “We then tried putting up another stretch for bidding as well, but even then the companies did not show any interest,” said the NHAI official. The authority has faced a similar problem in Jharkhand, where it did not receive any bids for a couple of tolled road projects. The lack of interest in tolling projects in Bihar and Jharkhand is happening at a time when NHAI has made it a policy to gravitate towards BOT projects in order to reduce the government’s investment in the highway sector. Another official in NHAI, who also did not wish to be identified, confirmed that the highways regulator now planned to redraft the proposal for these projects under annuity terms. Members of Parliament from the two states said concerns over viability of the projects apart, private players were hesitant to take up contracts in these areas because they feared for the security of their staff. Bhubaneswar Prasad Mehta, a Lok Sabha member of the Communist Party of India from Hazaribagh in Jharkhand, said even as some tenders were floated last year, there was little response from the private agencies. “Infrastructure development cannot happen in a vacuum,” he said. “Why should anyone risk his life in an area where there is no rule of law and little security? We are planning to raise this issue yet again in our party’s three-day state conference in Ranchi, which begins on 15 March.” However, Nikhil Kumar, a former special secretary for internal security in the Union ministry of home affairs, and a Lok Sabha member of the Congress party from Aurangabad in Bihar, said the situation was somewhat better in his constituency. “I can say for my constituency that though the quality of work remains a matter of concern, wherever we have managed to provide sufficient security to the contractors, with the help of the state government, there has been some progress,” said Kumar. “If the political representatives from these two states, and other areas affected by Naxalism keep pursuing the matter with the state governments and the private executing agencies, we can get the work done. In my constituency alone, about 25 link roads will be constructed under the Pradhan Mantri Gram Sadak Yojana (Prime Minister’s Village Road Programme) and work is set to begin. Earlier, between 2004 and 2007, seven other roads were completed in my constituency,” he added. Ram Deo Bhandary, a Rajya Sabha member of the Rashtriya Janata Dal from Bihar, said it was quite clear that even a few high-profile incidents of violent crime could deter developmental activities.
NHAI likely to issue contracts for 10,000km of highways soon
March 16, 2008
These contracts will be a part of phase III and phase V of the government’s highway project New Delhi: The United Progressive Alliance government wants to award, in the next few months, contracts to build up to 10,000km of national highways, equal to almost 70% the 14,500km of national highways on which similar contracts have been issued since 2000.Long Road Ahead (Graphic)The decision to award the contracts, worth at least Rs70,000 crore, comes with the general election likely to be held either late this year or early in 2009, although an official at the agency that regulates the highways sector in India claimed that this was because procedural issues related to the contracts had now been “ironed out”.The official at the National Highways Authority of India, or NHAI, added that since 2000, when the country’s National Highways Development Programme or NHDP was launched, the regulator had awarded contracts for the construction of 14,500km of highways worth around Rs80,000 crore and that work on 8,500km had been completed.The contracts that will be issued are part of phase III and phase V of NHDP and involve upgrading existing national highways into four-lane and six-lane ones. Five of the seven phases of NHDP involve upgrading existing highways.The stretches will first be offered to private companies to be developed under the ‘build-operate-transfer’ model where the companies will build the highways, operate them and collect toll for a certain period of time, and transfer them to the government at the end of a certain period of time called the concession period. In case this fails to draw bids, the projects will be offered on the ‘engineering-procurement-construction’ method, where private companies build the roads for a stipulated fee but will not have any stake in the project.“Detailed project reports are being created for these stretches and they are expected to be awarded in the next few months,” said a senior government official, who did not wish to be identified. “There was a lull in award of projects because the policy was being ironed out. But now that things are falling into place, you will see more and more projects on offer,” the official added.For almost a year, NHAI has gone slow in awarding projects.“Till now we were waiting for ironing out procedural issues such as preparation of the new model concession agreement and setting up a two-stage bidding process. Those matters have been taken care of now. And now the only serious impediment in the way of awarding these contracts is clearing of the toll policy,” said an NHAI official.The toll policy is to be cleared by the law ministry and this could take a couple of months, the official added.Analysts however said that while the agency was capable of awarding 8,000km of construction a year, exactly how much would get done depends on a number of factors including a legal challenge to the government’s bid process.The National Highways Builders Federation, an industry body, filed a suit in January against guidelines issued by the finance ministry and ratified by the Prime Minister’s committee on infrastructure that favour bidders who have executed large projects. The norms, reported by Mint on 28 December, cap the number of bidders at six, with some individual exceptions.“There are three factors that could affect the process (of awarding contracts),” said Kuljit Singh, a partner with the transaction advisory services practice of audit and consulting firm Ernst and Young Pvt. Ltd.“Technical detailed project reports usually take a while to prepare. Also, things generally slow down a little in an election year. Also, depending on what the court finds (in the case where the National Highways Builders Federation has challenged NHAI’s bidding norms), the process could be affected,” he added.Source: http://www.livemint.com
Mega six-lane projects in offing
March 10, 2008
With access-controlled expressways attracting massive investments, the Ministry of Road Transport and Highways has decided to conduct the feasibility study for more such expressways.
Construction companies eyeing the access controlled, six-lane expressway projects of National Highways Authority of India (NHAI) are likely to get investment opportunities for at least four such projects spread over 495 km over the next few months.They are Chandikhol-Jagatpur-Bhubaneswar (70 kilometre length, estimated cost Rs 761 crore), Delhi-Hapur (47 km, Rs 474 crore), the 198-km stretch of Vijayawada-Elluru-Rajamundri (Rs 1,602 crore) and the 180-km stretch on Delhi-Agra highway (Rs 1,918 crore). The feasibility reports for these projects are already completed and the work is likely to be awarded in about six months, said NHAI officials.Toll collection These projects are for widening the current four-lane highways into six lanes and operating them for certain durations.Companies would have to bid competitively for these projects on a revenue-sharing basis. Thus companies would have to bid on the extent of toll revenue that they are ready to share with the Government if they are allowed to operate the roads.Since these highways are already four-lane stretches, the road operators can start toll collection even during the project construction phase from an ‘appointed date’ (within six months of winning the project), mutually decided by NHAI and the road operator. The toll revenues will be routed to an escrow account.Recently, the NHAI awarded four such mega projects of 882 km length, which are likely to cost an estimated Rs 10,912 crore.From the NHAI perspective, these projects have emerged as money-spinners, with companies willing to foot the entire construction cost and part with two per cent to 48.06 per cent of their revenues in the initial leg of the project.At the end of the concession period, which is about 12 to 15 years duration, the winning firms have agreed to part with 12 per cent to 59 per cent share of toll revenues.More studies The feasibility reports for another ten projects of similar nature are under preparation. They are: Kishangarh-Udaipur stretch (315 km, Rs 2,205 crore), Udaipur-Ahmedabad (235 km, Rs 1,645 crore), Varanasi-Aurangabad (190 km, Rs 1,330 crore), Nellore-Chilkaluripet (184 km, Rs 1,288 crore), Krishnagiri-Walajapet (148 km, Rs 1,036 crore), Pune-Satara (145 km, Rs 1,015 crore), Ludhiana-Chandigarh (85 km, Rs 595 crore), Belgaum-Dharwad (80 km, Rs 560 crore), Samakhiali-Gandhidham (56 km, Rs 392 crore), Indore-Dewas (55 km, Rs 385 crore).With access controlled expressways attracting massive investments, the Ministry of Road Transport and Highways has decided to conduct the feasibility study for four such expressways between Delhi-Meerut, Chennai-Bangalore, Vadodara-Mumbai and Dhanbad-Kolkata. This was decided by the Road Ministry officials at a meeting with State Government authorities recently.Source: http://www.thehindubusinessline.com
GPIL announces IPO of 1.65 crore equity shares
March 7, 2008
CHENNAI: With an aim to fund some of its major projects in India, Gammon Infrastructure Projects Limited (GPIL) on Friday announced an initial public offering of 1.65 crore equity shares of par value Rs 10 each for a cash price to be determined through a 100 per cent book-building process (Issue). The price band has been fixed between Rs 167 and Rs 200 pewr equity share. Pervez Umrigar, Managing Director, GPIL, told reporters here today that the Issue’s proceeds would be utilised in the design, construction and maintenance of projects including the four-laning of the 99.5 km of Vadape-Gonde section between Mumbai and Nasik on NH-3, being developed and maintained by the special purpose vehicle (SPV), the Mumbai Nasik Expressway Limted (MNEL). ”We currently have 14 infrastructure projects, including the Vishakaptanam port project in Andhra Pradesh and Mattanchery bridge project in Kerala among others in the operation phase, with respective special purpose vehicles (SPVs) in place to develop and maintain them,” Umrigar said. The Rangit-II hydroelectric power project on River Nimbi in Sikkim, and the MNEL among others were in the development phase, he added. According to a company release, the Issue comprises a net issue of 1.49 crore equity shares to the public (Net Issue) and a reservation of 16.55 lakh equity shares for employees. While at least 60 percent of the Net Issue will be allocated on a proporationate basis to Qualified Institutional Buyers (QIB), at least 10 percent of the same would be available for non-institutional bidders and 30 percent of the Net Issue for retail investors on proportionate basis. The issue opens on March 10 and closes on March 13, 2008. Source: http://economictimes.indiatimes.com
Uttar Pradesh govt plans five more expressways
March 6, 2008
Combined length of 1,400km proposed; roads will be in vicinity of highways being developed by NHAI
The Uttar Pradesh government is planning five more expressways in the state even before it signs the concession agreement for the Rs40,000 crore Ganga Expressway project awarded in January. And yet again, just as in the case of the Ganga Expressway, the proposed highways are coming up in the vicinity of the highways being developed by the National Highways Authority of India, or NHAI, the roads regulator. “We will not approach the Centre for any kind of assistance in funding. As in the case of the Ganga Expressway, we will raise resources for these projects by leveraging land,” said an official, who was involved in the planning of the Ganga Expressway project as well, but did not wish to be identified.
Country roads: The Greater Noida expressway. UP had awarded the tender for the Rs40,000 crore Ganga Expressway project, which will connect Greater Noida with Baflia, to Jaypee Infratech Ltd in January. (Madhu Kapparath / Mint) The tender for the Ganga Expressway project, which will connect Greater Noida with Ballia, was awarded to Jaypee Infratech Ltd in January. The concessionaire is expected to be leased around 7,000ha of land for commercial development in order to construct the expressway.
Jaypee had sought land worth Rs293.55 crore for property development along the expressway in order to construct the expressway. The five proposed expressways will have a combined length of around 1,400km. “We do not have a clear idea as to how much land will be required to be set aside for these projects, but we will be able to work out those details only after a few months,” the same official said. The proposed expressways include the Greater Noida-Saharanpur-Dehradun (in partnership with the Uttarakhand state government) stretch apart from Jhansi-Lucknow, Lucknow-Gorakhpur, Agra-Kanpur-Lucknow and Farrukhabad-Kotdwar expressways. The proposal for these projects is being developed by the state public works department. “First we will seek environmental clearance for these projects and then the proposals will go to the state cabinet for approval,” the official said. Planning Commission member Anwarul Hoda said that the apex planning organization in the country has not yet been informed about the state’s plans to go in for more expressways. “We have not been told about these projects,” he said. Earlier, the Planning Commission had held discussions with the UP administration on the Ganga Expressway project in order to see whether the project linked up with existing highway networks in the state. It gave the go-ahead despite the overlap with the highways being developed by NHAI. “Tolling on these roads will barely pay for operations and management expenses,” said a consultant with a project management company, who did not wish to be quoted. “Remember, these roads are along the same alignment as existing NHAI national highways, which means traffic is going to be shared. So, the capital cost recovery will come from the land component only. If you are in the business of building highways, then why do you need all this land.” Source: http://www.livemint.com
4-LANING OF DELHI-DEHRADUN NATIONAL HIGHWAY
March 5, 2008
Delhi - Dehradun National Highway has been identified for 4 laning under National Highway Development Project (NHDP) Phase III on Build, Operate & Transfer (BOT) basis. Widening to 4 lane work in Meerut-Muzaffarnagar section is in progress and delayed due to initial problem regarding tree cutting & land acquisition and is targeted to be completed by March, 2009. Widening to 4 lane work in Muzaffarnagar-Haridwar section could not be awarded as only single bid was received and the same was cancelled. For re-bidding of this section, updation of Detailed Project Report (DPR) as per new Model Concession Agreement (MCA) as decided by Public Private Partnership Appraisal Committee (PPPAC) is in progress.The Haridwar-Dehradun section is passing through Rajaji National Park and clearance is to be obtained from the Central Empowered Committee constituted by the Hon’ble Supreme Court of India. After clearance from Central Empowered Committee and PPPAC, bidding process is to be taken up for award of 4 laning work. This information was given by the Minister of State for Shipping, Road Transport and Highways, Shri K.H. Muniyappa in a written reply in the Lok Sabha today. Source: http://pib.nic.in