Rs 1,141 cr to be spent for four-laning of Ambala-Kaithal

March 13, 2014

Press Trust of India  |  Chandigarh

A sum of Rs 1,141 crore would be spent on the four-laning of Ambala-Kaithal section of the National Highway 65 connecting  Haryana with Rajasthan.

This was said by Haryana Transport Minister Aftab Ahmad while replying to a question raised by MLA Ram Pal Majra during the ongoing budget session of the state assembly here today.

He said the four-laning of the Ambala-Kaithal section of NH-65 would be done as a BoT project.

The bids for the project will open on March 27, 2014 with a construction period of 30 months.

The scope of work includes three railway over bridges, three flyovers, six underpasses, five bypasses at Ambala, Matheri, Ismailabad, Pehowa and Kaithal, he added.

Source-http://www.business-standard.com/

Construction work commences on Can Tho highway upgrade

March 13, 2014

Work to upgrade and expand a section of Highway 91, which shapes part of a transport project linking Cambodia with Viet Nam, got underway in the Mekong Delta city of Can Tho yesterday.

The section, running through the provinces of Kien Giang and An Giang, will be 11metres wide and 28 kilometres long with two vehicle lanes when it is completed in 22 months.

The Build-Operate-Transfer (BOT) project worth nearly VND1.6 trillion (roughly US$75.2 million) was expected to shorten travel distance for goods and passengers between Can Tho, An Giang and Kien Giang, Vice Chairman of the municipal People’s Committee Dao Anh Dung said.

Director of the Sonadezi Industrial Zone Development Company Do Thi Thu Hang said as an investor, her company pledged to do its utmost to ensure the progress as well as the quality of the project.

As the largest city in the granary-labelled delta, Can Tho has set a goal of becoming an industrial hub in the region by 2015, with industry accounting for 46.9 percent of its local economy.

The city has trade relationships with over 80 countries and territories from across the world. Besides traditional markets in Japan, the US and the EU, the city has also expanded its export markets to the Middle East, North Africa and Eastern Europe.

Source-http://english.vietnamnet.vn/

NHAI approves compensation package for land acquisition

March 13, 2014

SPECIAL CORRESPONDENT

Development of NH bypass from Kazhakuttom to Karode

 

The National Highways Authority of India (NHAI) has granted approval for a compensation package for acquiring land from Kottukal village for the development of the 43.62-km NH-66 bypass from Kazhakuttom to Karode on the Kerala-Tamil Nadu border.

The NHAI decision comes at a time when the NHAI has invited a Request for Proposal (RFP) for converting a 26-km stretch of the NH-66 bypass from Kazhakuttam to Mukkola into a four-lane road.

The NHAI’s invitation for the RFP was following the delay in handing over land for the 17.62-km stretch of the road up to Karode.

Official sources said the NHAI orders were issued on Thursday on the basis of the report given by the Competent Authority Land Acquisition (CALA).

A sum of Rs.78.60 crore would be given by the NHAI as compensation to the landowners in the Kottukal village.

Official sources said the authority would come out with an approval for the other four villages in the 17.62 km stretch once the CALA submitted the report.

The order issued by the DGM (LA & Coord), NHAI, Prag Ghosh said the compensation rates were indicated by the State on the basis of the sales statistics for similar adjoining land as on the date of publication of the statutory 3A notification on March 22, 2012, and July 13, 2013.

The rates fixed by the NHAI were Rs.8,464/sq m for dry land with PWD road access, Rs.7,618/sq m for dry land with Panchayat road access, Rs.6,671/sq m for dry land without road access, and Rs.5,925/sq m for wet land.

The local project director of the NHAI was also asked to ensure that the land was transferred into the NHAI’s possession and simultaneously mutated in the name of the government after the compensation money was deposited with the CALA.

Tharoor’s intervention

Describing it as an important day for the people, Union Minister of State for Human Resource Development Shashi Tharoor said it would bring relief to the people who were suffering for more than four decades.

With this, Mr. Tharoor said the final step for reaching the actual payments to the beneficiaries had been completed. “After receiving the payments, the land owners could go in appeal for additional compensation under various arbitration processes”, he added.

BOT project

The Public-Private Partnership Appraisal Committee of the Union government has given nod for the first 26 km of the project to be taken up on a public-private partnership mode at a cost of Rs.577.95 crore.

The entire 43.62 km stretch will cost Rs.1,170 crore.

The 43.62-km stretch from Kazhakuttam to Karode is part of the 212-km NH-66 (old NH-47) bypass project of the NHAI from Thuravur that began in 1974. It is part of the National Highway Development Project Phase III.

The 22-km first phase, from Kazhakuttom junction to Kovalam junction, was converted into a two-lane 15 years ago. Land has been acquired for a four-lane stretch and to the extent of 45 metres along the bypass on the Kazhakuttam-Chakka-Eenchakkal-Kovalam stretch.

 

Source- http://www.thehindu.com/

Work on Port-Maduravoyal Elevated Corridor Resumes

March 13, 2014

By C Shivakumar – CHENNAI

Photos

Work going on at Spurtank Road, in the city on Monday | Albin Mathew
Work going on at Spurtank Road, in the city on Monday | Albin Mathew

The much delayed Chennai Port-Maduravoyal elevated corridor project may be completed in another 30 months as the National Highway Authority of India (NHAI) resumed the work on Monday.

The work to clear way for the vehicles to ply in the area along the Cooum river has been started on Spur Tank Road, NHAI Chief General Manager (Technical), Tamil Nadu and Kerala, Chinna Reddy, told Express.

It may be recalled that following a High Court order on February 20, 2014, Reddy has stated that the work would start within three months. “But with the manpower and machinery at our disposal, the work has started with immediate effect after consultations,” Reddy said, adding, he expected to finish the project in the next 30 months.

Initially, NHAI is looking at laying the foundation along the Cooum. “One ground of land was cleared and the work began at around 11 am,” said an official at the site.

The construction of pile caps along the river stretch has been a bone of contention between the State government and the NHAI. The project hit a roadblock on March 2012 after the Water Resources Department issued a ‘stop work’ notice saying the alignment of the corridor along the banks of the Cooum had deviated from the original plan.

The biggest challenge for the NHAI is to get the slums vacated on the stretch. “There are a number of places where the slums have to be evicted by the State and the land has to be handed over to the NHAI,” said Reddy.

Other Projects

Reddy said the State government was yet to constitute land acquisition units for the 262-km Bangalore-Chennai Expressway that will run through Tamil Nadu, Andhra Pradesh and Karnataka. He said other states have already set up the units.

He also said Rs 1,000 crore road improvement project in 300 kilometres across the State would be taken up under Engineering Procurement and Construction scheme after there were no takers for Build Operate Transfer (BOT) process.

The project would be carried out in the stretch linking Madurai, Rameswaram, Karaikudi, Thanjavur and Chidambaram.

Source-http://www.newindianexpress.com/

IRB commences construction on Goa/Karnataka Border to Kundapur BOT Project

March 13, 2014

India Infoline News Service/

The company has also executed concession agreement with NHAI for another BOT project

IRB Infrastructure Developers Ltd (“IRB”), one of the largest BOT road developers in India, announced that it has commenced construction on Goa/Karnataka Border to Kundapur BOT Project. The company has also executed concession agreement with NHAI for another BOT project viz. Four Laning of Solapur to Yedeshi section of NH-211.

Goa/Karnataka Border to Kundapur BOT Project is being implemented by the wholly-owned subsidiary of the company viz. IRB Westcoast Tollway Pvt. Ltd. This SPV has now received an Appointed Date in terms of the Concession Agreement executed with NHAI. The project involves four laning of NH17 from Km 93.700 to Km 283.300 in the State of Karnataka. The project cost of the company is approximately Rs. 2,639 crores and the concession period is 28 years. Construction period for the project is 910 days. IRB has sought Rs. 536 crores as viability gap funding from NHAI. The SPV has already achieved financial closure and tied up project finance of Rs. 1,406 crores from a consortium of public sector banks.

IRB has also informed that it’s another wholly-owned subsidiary viz. Solapur Yedeshi Tollway Pvt. Ltd. has executed concession agreement with NHAI for the project of four laning of Solapur to Yedeshi section of NH-211 in Maharashtra. The estimated project cost is approximately Rs. 1,500 crores. IRB has sought Rs. 189 crores as viability gap funding from NHAI for the project. Concession period is 29 years for the project and construction period is 910 days.

 

Source -http://www.indiainfoline.com

NHAI awards first BOT project in a year, paves way for more

March 13, 2014

Timsy Jaipuria | New Delhi |

 SUMMARY -After a gap of over a year, the government is set to award a highway project in the build

After a gap of over a year, the government is set to award a highway project in the build, operate and transfer (BOT) category in what marks its effort to revive the public-private partnership (PPP) model in the sector. According to sources, the first PPP project of this fiscal in highways will soon be awarded to Mumbai-based IRB Infrastructure Developers for widening a 98.72-km stretch between Solapur and Yedeshi in Maharashtra to four lanes.

However, the project, estimated to cost R972 crore, would be supported by viability gap funding (VGF) of 19% by the National Highways Authority of India (NHAI). Many stranded PPP projects in the sector were awarded on promises of high premium payments to the authority. “Given the poor response to the BOT projects these days, IRB’s proposal appeared to be better than what the NHAI had expected,” said a senior government official, asking not to be named.

Inability to meet toll revenue targets had forced investors like GMR, GVK and Ashoka Buildcon to quit their PPP projects in the highways sector and caused delays in other projects. Termination of projects awarded on the promise of high premiums to NHAI by the most prominent investors has resulted in renegotiation of premiums worth R98,000 crore payable over 20-30 years. Policymakers have since shifted focus to the conventional engineering, procurement and construction (EPC) projects, and not one new PPP project has been awarded in the sector this fiscal.

The details of the premium recast will be as per the Rangarajan panel’s recommendations, which is expected soon.

The number of new PPP projects awarded in the sector peaked in 2011-12 at 6,491 km and has since come down to 1,116 km in 2012-13.

In September this year, the Cabinet Committee on Economic Affairs had given its approval for widening the Solapur-Yedshi section of National Highway 211 in Maharashtra under the National Highways Development Project (NHDP) Phase IV on a design, build, finance, operate and transfer pattern.

While no new PPP project has been awarded this fiscal, one project was re-awarded — six-laning of the 122.88-km Barwa-Adda-Panagarh section of NH2 to IL&FS Transportation Networks in May.

Both the road ministry and NHAI have attributed the sluggish investor interest in PPP projects to not only the economic slowdown and resultant difficulty in meeting toll collection targets but also several loopholes in the model concession agreement. Developers had been vocal about financial stress, non-availability of land and uncertainty over securing environmental clearances as among various reasons behind not showing interest in bidding. Similarly, the government had also decided not to launch any bid without having all statutory clearances in place. This, according to senior officials, was the reason behind the poor awarding scenario in the current fiscal.

After the Solapur-Yedshi stretch, the government is likely to bring out another bid for a four laning project in Rajasthan, which is at a nascent stage. If this project also takes off, it will be the second project awarded on PPP mode in the current fiscal.

NHAI has a modest target to award 125 km on BOT mode this fiscal, while the target for EPC projects is set at 1,875 km. The ministry has revised its target for total awards by all agencies from 9,000 km last year to 5,600 km this year, including the 2,000 km to be awarded by NHAI.

IRB undertakes development of various infrastructure projects in the road sector through several special purpose vehicles. The company, along with its subsidiaries, has constructed, operated and maintained around 8,000 lane km of road length so far. The aggregate size of all its BOT projects (completed and under execution) is around Rs. 17,055 crore.

 

Source- http://www.financialexpress.com/

NHAI awards first BOT project in a year, paves way for more

December 24, 2013

Timsy Jaipuria | New Delhi

 

 

After a gap of over a year, the government is set to award a highway project in the build, operate and transfer (BOT) category in what marks its effort to revive the public-private partnership (PPP) model in the sector. According to sources, the first PPP project of this fiscal in highways will soon be awarded to Mumbai-based IRB Infrastructure Developers for widening a 98.72-km stretch between Solapur and Yedeshi in Maharashtra to four lanes.However, the project, estimated to cost R972 crore, would be supported by viability gap funding (VGF) of 19% by the National Highways Authority of India (NHAI). Many stranded PPP projects in the sector were awarded on promises of high premium payments to the authority. “Given the poor response to the BOT projects these days, IRB’s proposal appeared to be better than what the NHAI had expected,” said a senior government official, asking not to be named.

Inability to meet toll revenue targets had forced investors like GMR, GVK and Ashoka Buildcon to quit their PPP projects in the highways sector and caused delays in other projects. Termination of projects awarded on the promise of high premiums to NHAI by the most prominent investors has resulted in renegotiation of premiums worth R98,000 crore payable over 20-30 years. Policymakers have since shifted focus to the conventional engineering, procurement and construction (EPC) projects, and not one new PPP project has been awarded in the sector this fiscal.

The details of the premium recast will be as per the Rangarajan panel’s recommendations, which is expected soon.

The number of new PPP projects awarded in the sector peaked in 2011-12 at 6,491 km and has since come down to 1,116 km in 2012-13.

In September this year, the Cabinet Committee on Economic Affairs had given its approval for widening the Solapur-Yedshi section of National Highway 211 in Maharashtra under the National Highways Development Project (NHDP) Phase IV on a design, build, finance, operate and transfer pattern.

While no new PPP project has been awarded this fiscal, one project was re-awarded — six-laning of the 122.88-km Barwa-Adda-Panagarh section of NH2 to IL&FS Transportation Networks in May.

Both the road ministry and NHAI have attributed the sluggish investor interest in PPP projects to not only the economic slowdown and resultant difficulty in meeting toll collection targets but also several loopholes in the model concession agreement. Developers had been vocal about financial stress, non-availability of land and uncertainty over securing environmental clearances as among various reasons behind not showing interest in bidding. Similarly, the government had also decided not to launch any bid without having all statutory clearances in place. This, according to senior officials, was the reason behind the poor awarding scenario in the current fiscal.

After the Solapur-Yedshi stretch, the government is likely to bring out another bid for a four laning project in Rajasthan, which is at a nascent stage. If this project also takes off, it will be the second project awarded on PPP mode in the current fiscal.

NHAI has a modest target to award 125 km on BOT mode this fiscal, while the target for EPC projects is set at 1,875 km. The ministry has revised its target for total awards by all agencies from 9,000 km last year to 5,600 km this year, including the 2,000 km to be awarded by NHAI.

IRB undertakes development of various infrastructure projects in the road sector through several special purpose vehicles. The company, along with its subsidiaries, has constructed, operated and maintained around 8,000 lane km of road length so far. The aggregate size of all its BOT projects (completed and under execution) is around Rs. 17,055 crore.

 

Source-http://www.financialexpress.com

Second thoughts on highway rescue

December 13, 2013

Rangarajan panel reviews proposals on premium restructuring & penalties after PlanCom advisor’s objections

 Manu Balachandran  |  New Delhi  
C Rangarajan

Road developers hoping for early relief from the government will have to wait longer.

A committee set up under C Rangarajan, chairman, Prime Minister’s Economic Advisory Council, is reworking its report on providing such relief, after concerns were raised by  Gajendra Haldea, advisor, Planning Commission.

Last Friday, Haldea raised concerns on the proposed recommendations. The issues in question were the structure of premium rescheduling and the penalty norms, following which the committee sought more clarity from the roads ministry.

The key recommendations of the report include rescheduling the premium that companies owe to the National Highways Authority of India (NHAI) and fixing the interest payment on the deferred amount at 10.75 per cent. In addition, it felt no penalty should be charged on the developers.

Premium here is the amount NHAI concessionaires have to pay for a BoT (Build-Operate-Transfer) project, as the returns are expected to be high. It is usually decided on the basis of estimated future traffic flow at the time of bidding. The term for payment of the premium is usually 20 to 25 years and the amount payable ranges from Rs 3 crore to Rs 680 crore a year. The amount goes up yearly by five per cent, according to existing norms. NHAI is due to receive about Rs 151,000 crore over the next 20-25 years from private developers.

“The report was to be ready early this week. But, following a letter written by Haldea, Rangarajan has decided to study the concerns raised and we can expect final recommendations only in the next 10 days,” said a senior official in the roads ministry. Haldea confirmed he’d commented on the report but declined to disclose details.

The Rangarajan committee was set up this October. This was after a number of road developers threatened to walk out of projects due to the economy’s slowing. They’ve complained about inability to generate adequate revenue for repaying the premium. The committee had also proposed that the companies not be allowed to pay dividend to their parent companies until they cleared their dues to NHAI.

There was also a recommendation to allow private road developers to pay only 25 per cent of the premium they owed NHAI in the first three years. Companies were to raise this to half the amount due after three years. The sum carried forward was to attract an interest rate of 10.75 per cent.

“The trigger point for Haldea to raise the concern seems to be the absence of penalty. He does not want the companies to be given a breather and wants to overrule a cabinet decision which wanted projects to continue. If we do not allow this rescheduling, then we have to go in for re-bids. Given the current environment, we will not get any bidders,” the ministry official added.

The government has already cancelled a plan to award projects on public-private partnership during this financial year and is moving towards government-funded projects. The roads ministry plans to now award 5,000 kilometres this year under the engineering-procurement and construction mode this year, after the developers decided to stay away from bidding.

Source-http://www.business-standard.com

Bus terminus to come up at Gandhinagar

October 28, 2013

TNN |

Kolhapur: The Kolhapur Municipal Transport(KMT) will construct a bus terminus and a commercial complex at Gandhinagar on the build-operate-transfer basis (BOT). The revenue generated from selling the space in the complex will be utilized to buy new buses.

The KMT is hoping to generate about Rs 1.25 crore per year from renting the shops in the commercial complex. “We can procure about 20 new buses from the revenue generated. The land at Gandhinagar is owned by the KMT and local traders had demanded to set up a bus terminus in the area. The total estimated cost of the project is Rs 1.77 crore, which has to be invested by the contractor and the work is expected to be completed in two years after the tender is issued,” said KMT additional engineer Sanjay Bhosale. The area of the land on which the bus terminus will be constructed measures 423.50 square metres.

Gandhinagar, situated 5km from the city, is famous for its trading centres for cloth. “Efforts to construct a bus terminus at Gandhinagar were started in 1999. However, the plan was stalled due to unknown reasons. The demand to start a bus terminus in the area increased with a rise in the population and a subsequent rise in the number of passengers. About 15,000 people travel from Gandhinagar to various parts of the city every day. The KMT will arrange for direct buses from Gandhinagar to different points in the city once the terminus becomes operational,” added Bhosale.

PIL seeks inquiry in road development project

October 21, 2013

TNN |

 

KOLHAPUR: City-based social activist Subhash Vani has filed a public interest litigation (PIL) in the Bombay high court seeking a thorough inquiry into the work as part of the Kolhapur Integrated Road Development Project (KIRDP) and the land leased to the IRB Company.The high court will on Monday hear the PIL, which will be clubbed with a writ petition filed by the IRB Company seeking police protection for collection of toll. The PIL seeks an inquiry into the cost escalation of the project, which has gone up to Rs 512 crore from Rs 220 crore at the time of the agreement.Vani said, “There should be an probe into the quality of the roads and the pending work. We have also raised the issue of the policy of the build-operate-transfer (BOT) which we believe has failed across the state. Our demand is that the BOT policy should be suspended by the state government.”

He added that as per the agreement, the IRB Company will be allowed to collect toll for 30 years. The developer company may demand extension of the toll collection for a few years to recover the additional money it claims to have invested, he claimed.

Kolhapur was the first city in the state where the Maharashtra Road Development Corporation ( MSRDC) decided to experiment collection of toll on a public-private-partnership basis for an intra-city road development.

On the other hand, city-based communist leader Govind Pansare alleged that there were many flaws while drafting the project proposal and its implementation by the IRB Company. The KMC has leased out the land of about three lakh sq ft at Temblaiwadi in the city at an annual rent of Re 1 since 2009. The IRB leased out the land to a private hospitality firm, which is now constructing the luxurious hotel at the site, he said.

“The developer company has leased out the land given by Kolhapur Municipal Corporation to a hospitality company without taking the requisite permissions from the civic body. We want all these matters to be discussed in the high court and demand a CBI probe. Strict action should be taken against those found guilty,” Pansare told mediapersons.

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