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UPA-2 road plans hit a bump

NEW DELHI: This could be an indicator of how the ambitious highway development programme has been a non-starter in UPA-2. National Highways

Authority of India (NHAI) has awarded only 17 projects for 1,574 km since January against the plan of awarding 135 projects (14,384 km) in the current financial.

A presentation made by the highway regulator at a CII conference on consulting services on Tuesday pointed to the huge gap between the projection and actual pace of award of projects in the past 10 months. As per the presentation, only 17 projects costing Rs 17,757 crore were awarded including one project on BOT (annuity). It further showed that nine more projects on BOT (toll) and two on annuity modes were under the process of award. However, information was not available on how many highway projects were awarded since the change of guard in the ministry.

NHAI officials blamed the slow pace on certain “controversial clauses” and provisions in the request for quotation (RFQ) and request for proposal (RFP) and the model concession agreement. “We had prepared a plan to award 60 projects last year but the economic downturn hit us hard and only 12-13 projects could be awarded. Many projects could not achieve financial closure even after awarding. This time it’s equally worse due to certain contractual provisions and clauses of the bid documents including the conflict of interest clause,” said a senior official.

Road, transport and highways minister Kamal Nath has already identified the interpretation of ‘conflict of interest’ as the biggest roadblock in the fast tracking of highway projects.

Transport secretary Brahm Dutt admitted on Tuesday that the award of projects was taking time while the ministry had set a target of achieving construction of 20 km highway per day.

Source: timesofindia.indiatimes.com

Government moves towards open toll system for highways

Highway users, there is good news round the corner. Soon, you will not have to stop for payment at every toll plaza.

The government is on the verge of introducing an open road tolling (ORT) system in the country, by which toll payment would become a one-time transaction per trip.

The toll fees will be deducted either from the users’ bank account, or it collected at the beginning of the journey, in the manner of pre-paid or post-paid phone connections.

The ministry of road, transport and highways (MoRTH)  will on October 31 start a six-month pilot project to test the efficacy of ORT on three stretches on the national highways.

Three systems of ORT — Active, Passive and Calm tolling systems — would be tested for suitability.

The active tolling system (a microwave tag-based system that sends or receives signals) will be tested on the Gurgaon-
Jaipur stretch. The passive system (also microwave-based, but only send signals) on the Panipat-Jalandhar stretch. The calm ORT system, an infrared-based system that sends and receives signals and works on an optical fibre network, will be tried on the Surat-Dasihar stretch.

“We will finalise a system that is best suited for India. The tests have to be very elaborate and that is why they will carry on for six months,” a senior official at the ministry, who did not wish to be named as he is not authorised to speak to the media, told Hindustan Times.

A third party will independently evaluate the three systems for suitability for use in India.

The new toll system will significantly reduce the time spent by commercial vehicles at tollbooths. For instance, a commercial vehicle plying between Delhi and Mumbai has to stop at 20 toll plazas.

On an average, there is a toll plaza every 60 km in India.

“It will be a very good thing. Separate lanes for the new toll system will result in significant saving of travel time,” said Anil K.G., resident consultant of Bangalore-based logistics company Transworld International, which runs a fleet of 150 trucks.

Source: hindustantimes.com

PROPOSAL FOR SETTING UP NATIONAL ROAD SAFETY AND TRAFFIC MANAGEMENT BOARD IS IN FINAL STAGES OF APPROVAL

THIRU BAALU ADDRESSES CONSULTATIVE COMMITTEE MEETING

The Union Minister of Shipping, Road Transport and Highways Thiru T.R. Baalu has said that the proposal for setting up of the National Road Safety and Traffic Management Board, as recommended by the Committee on Road Safety and Traffic Management, is in the final stages of approval. Similar Boards would be set up in the States also. Thiru Baalu was addressing the Seventeenth Meeting of the Consultative Committee of Members of Parliament attached to his Ministry here today.

Thiru Baalu also informed the Members that the Department of Road Transport and Highways is also contemplating constitution of a Committee of Experts to suggest a comprehensive scheme to improve the public transport system. The proposed scheme would stipulate certain reform measures to be undertaken by the States to be eligible for seeking financial assistance from the Central Government.

The Minister further informed that a ‘Working Group’ has been constituted by the Government to determine the technology for Advanced Traffic Management System, Advanced Travel or Information System and Electronic Toll collection. He said that a System is proposed to be installed for automatic traffic counting and classification to have better assessment of traffic moving on National highways. He said that these steps are being taken as part of Government’s efforts to give more emphasis on the modernisation of the toll collection system for which introduction of Intelligent Transport System (ITS) is proposed to be gradually introduced.

Thiru Baalu said that a proposal has recently been approved for creation of State and National Registers of driving licenses and registration certificates envisaging inter-linking of all Regional Transport Offices. This would enable creation of authentic database for road transport sector, ensuring transparency in the process of registration of motor vehicles and issuance of driving licenses at a total cost of Rs. 148 crore. The project period is two years. It would check issuance of fake driving licenses / registration certificates and lead to better enforcement of the provisions of the Motor Vehicles Act / Rules, he added.

The Minister also informed that to formulate a scheme for trauma care facilities across the country in general and along the National Highways in particular, his Ministry has been working closely with the Ministry of Health & Family Welfare to work out a -2- combined plan of action. For this purpose, Thiru Baalu informed that the Ministry of Health and Family Welfare has introduced a scheme for setting up of an integrated network of Trauma Centres along the GQ, North-South and East-West Corridors of the National Highways by upgrading the trauma care facilities in 140 identified State Government Hospitals at a total cost of Rs.732.75 crore during the Eleventh Five Year Plan period. Our Ministry has to supply 140 ambulances and NHAI has to provide 50 Ambulances with advanced life support equipment to identified hospitals.

Giving an account of the progress made on the National Highway Development Programme (NHDP), Thiru Baalu observed that upto February 2008, out of the 5,846 kms under the Golden Quadrilateral (GQ) Project, 4/6 laning of about 5,650 kms has been completed and works are in progress in the remaining 196 kms length. Out of about 7,300 kms length under the North-South and East-West Corridors, 4/6 laning was completed in 1,962 kms and works were under implementation in about 4,359 kms. Under NHDP Phase-III, out of 12,109 kms length, 4-laning has been completed in 330 kms and works are in progress in about 1,745 kms and under NHDP Phase-V, out of 6,500 kms length, 6-laning was in progress in about 1,030 kms.

So far 86 projects valued at Rs.29,576.94 crore have been awarded on BOT (Toll) basis. Out of these, 34 projects have been completed and 52 projects are in progress. Also, so far 25 projects valued at Rs. 9,411.88 crore have been awarded on BOT (Annuity) basis; out of which, 8 projects have been completed and 17 projects are in progress, the Minister informed.

The Members of Parliament who participated in the meeting are: S/Shri M.R. Reddy, S. Ajaya Kumar, L.R. Patil, Hari Kewal Prasad, M.L. Mandal, Tiruchi Siva and Ms. Mabel Rebello.

Source: pib.nic.in

Gayatri Projects SPVs achieve financial closure

Gayatri Projects Ltd has announced that the Company has achieved the financial closure for the Company’s following Hyderabad Outer Ring Road Projects (SPV’s) at an interest rate of 11% p.a., ahead of the stipulated time given by the Employer namely Hyderabad Urban Development Authority (HUDA).

Financial Closure of Hyderabad Expressways Pvt Ltd (HEPL) – Total cost of the Project Rs 430.96 crores: M/s. Hyderabad Expressways Pvt Ltd promoted in Consortium, by the Company as lead technical member, with 50% share holding, bid and won road project (AP-IV) for design, construction, development, finance, operate and maintain eight lane access controlled expressway under Phase II programme of outer ring road (ORR) of Hyderabad Urban Development Authority. The concession Agreement was signed on August 17, 2007. The total debt syndicated for this Project is Rs 290.90 crores.

IL&FS (IL&FS Financial Services Ltd) has syndicated entire debt and United Bank of India is the Leader of the Consortium of Lenders for the SPV.

Details of the package awarded are as follows: AP IV – from Bongulur to Tukkuguda from km. 108 to km. 121 on BOT – Annuity basis. Estimated Project Cost incl. IDC is around Rs 430.96 cr. and the project has a positive Grant of Rs 71.86 crores. HUDA will pay a semi-annual annuity of Rs 30.49 crore to HEPL during the Annuity period. The concession period door-to-door is 15 years, with. a construction period of 2 years 6 months and Annuity period of 12 years 6 Months.

Financial Closure of Cyberabad Expressways Pvt Ltd (CEPL) – Total cost of the Project Rs 501.75 crores: M/s. Cyberabad Expressways Pvt Ltd promoted in Consortium by the Company as lead technical member with 50% share holding, bid and won road project (APII) for design, construction, development, finance, operate and maintain eight lane access controlled expressway under Phase II programme of outer ring road (ORR) of Hyderabad Urban Development Authority.

IL&FS (IL&FS Financial Services Ltd) has syndicated entire debt and United Bank of India is the Leader of the Consortium of Lenders for the SPV.

Details of the package awarded are as follows: AP II – from Kollur to Patancheru from km. 12 to km. 23.70 on BOT – Annuity basis. Estimated Project Cost incl. IDC is Rs 501.75 crores and the project has a positive Grant of Rs 81 crores. Annuity – Rs 79 cr. p.a. HUDA will pay a semi-annual annuity of Rs 39.50 crore to CEPL during the Annuity period. The concession period door-to-door is 15 years, with a construction period of 2 years 6 months and Annuity period of 12 years 6 Months. The concession Agreement was signed on August 17, 2007. The total debt syndicated for this Project is Rs 376.31 crores

The Company is a pioneer in construction of National Highways, Dams, Canals, Aquaducts, Flyovers, Coal handling plants, Bridges, Railway Projects, Airport Runways, BOT Toll and Annuity Road Projects as develop and Industrial Constructions.

Source:  equitybulls.com

Evaluating toll road credits

It has been recently reported that the government of India has given its approval for six-laning of 6,500 km of national highways, including 5,700 km forming part of the Golden Quadrilateral at a total cost of Rs 41,210 crore. In terms of financing, the expectation is that private sector will commit investments of Rs 35,690 crore. Also the government, in order to accelerate implementation of highway projects of Rs 2,20,000 crore, has set a target of awarding 175 contracts for Rs 76,540 crore, all on BOT basis by March 2008. Since a number of these projects are going to be predominantly debt financed with repayments supported by toll collections, it would be timely and useful to have an analytical framework for assessing the credit quality of various types of toll roads and financing structures.

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NHAI's First ETC(Electronic Toll Collection) PLAZA

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