A e news magazine on BOT Road projects
Edition : April-July 2006 www.metroroadsystems.com Key Sponser: Metro Road Systems P ltd
 
 
 
 
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L&T wins Rs750-crore BOT contract

Larsen & Toubro Ltd has received an Rs750 crore order for the six-laning of NH-8 from Vadodara to Bharuch in Gujarat. The National Highways Authority of India awarded the contract on 'build-operate-transfer' (BOT) basis through international competitive bidding.

The 83.3km stretch of NH-8 between Vadodara and Baruch, forms part of the Golden Quadrilateral and is an important link in the high-density corridor connecting Mumbai and Delhi. This stretch is adjacent to the second Narmada bridge, which is already under operation on BOT basis by L&T. The project involves widening of the existing four-lane highway to six lanes, with amenities and support infrastructure. The 15-year concession period includes a construction period of 30 months.

L&T will design, engineer, finance, construct, operate and maintain the highway section for the period of concession, employing state of the art equipment during construction and operation. The project will be domiciled in a special purpose
company called L&T Vadodara Bharuch Tollways Ltd, formed exclusively for the project.

The highway passes through the districts of Anand, Vadodara, and Bharuch and cuts through various urban centres with a number of road and rail crossings. The proposal envisages construction of 10 major and 36 minor bridges, 11 new flyovers, 2 new ROBs, pedestrian and cattle crossings at specified locations and other junction improvements. The Company would put in place modern toll collection systems and highway traffic management systems.

K V Rangaswami, member board and senior executive vice president (operations), L&T, said, "This project is located on the corridor with the highest traffic density in the country and is one of the most prestigious six-laning project being offered on BOT basis on the Golden Quadrilateral. The project has a strategic fit with company's core competencies in infrastructure development. We will be taking up more of such challenging construction and engineering projects to set high standards in the India's road sector."

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ORR Gates may take their toll on people

HYDERABAD: Every time you travel on the proposed Outer Ring Road (ORR), you may have to shell out a fee for using the roadway. Toll gates will be in place on nearly 45 per cent of the 162 km ORR stretch.

Moreover, the ORR might be stretched to three phases instead of two decided earlier. The Hyderabad Urban Development Authority (Huda) is planning to split the existing phase-II works into two parts and the final portion of the road would be completed on the basis of build-operate-transfer (BoT) model, sources said.

The works relating to the latest proposal of ORR phase-III would be handed over to successful bidders, who will have to set up toll gates on a stretch of ORR whose length would be decided once the Huda gets the nod to the latest proposal.
However, the authorities are proposing that the toll gates be set up on at least 70-km stretch.

The authorities would decide the number of toll gates or toll booths to be permitted on the ORR based on the length of works and estimated cost of the project.

However, there would be no toll gates on the ORR stretch to be completed in phase-I, connecting Gachibowli and Shamshabad. Huda will be constructing the phase-I with its own money.

Of the 162-km ORR, 24 km will be covered during phase-I. Consultants have reportedly suggested to Huda to divide the 132-km length of phase-II into two portions, splitting the ORR works into three phases...

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Madhucon bags Rs 820cr NHAI project

Madhucon Projects has signed a concession agreement with the National Highways Authority of India (NHAI) for laying over 126 km stretch of road between Madurai and Tuticorin on build, operate and transfer (BOT) basis.

The Rs 820-crore toll road project is scheduled to be completed in 36 months with a concession period of 20 years and with a positive grant of Rs 145 crore, which is payable by NHAI.

Following this agreement, Madhucon will be executing four BOT projects for NHAI - three in Tamil Nadu and one in Rajasthan. The combined cost of the four projects is estimated at Rs 1,800 crore, according to an official release issued by thecompany today.

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L&T bags 750 Crore contract from NHAI

Larsen and Toubro Ltd (L&T) has bagged a Rs 750 crore order from the National Highways Authority of India for six laning of the NH-8 in Gujarat.

The Build-Operate-Transfer project entails widening of the existing four-lane highway to six lanes, from Vadodara to Bharuch, with amenities and support infrastructure.

The project would be domiciled in a special purpose company called L&T Vadodara Bharuch Tollways Ltd, formed exclusively for the project, the company informed the Bombay Stock Exchange.

The company would design, finance, construct and operate the highway section for the 15-year concession period, it added.

The proposal includes construction of 10 major and 36 minor bridges, 11 new flyovers, pedestrian and cattle crossings at specified locations and other junction improvements. The company would put in place modern toll collection systems and highway traffic management systems, it said.

"This project is located on the corridor with the highest traffic density in the country and is one of the most prestigious six laning projects being offered on BOT basis on the Golden Quadrilateral," Company board member and senior executive vice president (operations) KV Rangaswami said.

"The project has a strategic fit with company's core competencies in infrastructure development. We will be taking up more of such challenging construction and engineering projects to set high standards in the India's road
sector," he said.

The shares of the engineering and construction major were trading at Rs 1,905.50, up 3.99 per cent at the BSE.

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Elevated expressway to connect Bangalore to electronic hub

Bangalore, June 23 (IANS) A dedicated 10-km elevated expressway is being built from the Silicon hub of Bangalore to the electronics city to ferry thousands of techies to their workplace in top gear, non-stop.

Prime Minister Manmohan Singh is scheduled to kick-start the project by laying the foundation stone Saturday here in the presence of union Urban Development Minister S. Jaipal Reddy, Governor T.N. Chaturvedi, Chief Minister H.D. Kumaraswamy and top officials.

The brainchild of the National Highway Authority of India (NHAI) and the Karnataka government, the four-lane expressway will be raised above the six-lane national highway (NH-7), connecting Bangalore to Hosur across the state border in Tamil Nadu.

The 10-lane mixed corridor with the elevated highway will not only make the present traffic jams on NH-7 a thing of past, but also facilitate knowledge workers to log into their office in quick time. They will have to, of course, pay for the hi-tech facility as toll,' union Minister of State for Surface Transport & Highways K.H. Muniappa told IANS here.

'Currently, the existing four-lane NH-7 is overburdened with about 100,000 vehicles driving in and out of the city towards the electronics city, Hosur and onwards to Chennai and other parts of Tamil Nadu and Kerala daily.

'The mixed corridor has been designed to take a load of 81,000-124,000 without causing traffic snarls. Those driving into the electronics city will be able to cross the 10 km elevated highway at 100 km speed in less than six minutes,'
Muniappa pointed out.

To be built by a consortium of three contractors at an estimated cost of Rs.4.5 billion on BOT (build, operate and transfer) basis, the corridor project is expected to be completed in the next 24 months.

Interestingly, neither NHAI nor the state government will be investing in the project.

'The drive along the elevated corridor and the six-lane highway on the ground will reduce travel time and save fuel costs by over 30 percent. A two-lane service road on both sides of the highway will cater to slow-moving vehicles, including tractors, carts and bicycles, with sidewalks (footpaths) and four underpasses for pedestrians,' Muniappa said.

The consortium will recover the project cost over a 20-year period by charging a fee of Rs.10 for two-wheelers, Rs.25 for cars, Rs.35 for mini-buses and Rs.70 for buses for the elevated expressway.

Two-wheelers will, however, be exempt from toll for using the six-lane highway. Four-wheelers such as cars, mini buses and buses will have to pay Rs.15, Rs.25 and Rs.50, respectively.

Trucks, earth moving equipment and heavy construction machinery will be charged Rs.105 for the highway and Rs.140 for the elevated expressway.

As one of the busiest sections in the country, the 40 km Bangalore-Hosur stretch of NH-7 has been a nightmare for motorists and commuters as the dense vehicular traffic has been causing severe hardships, with delays, pollution and congestion compounding the situation.

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The demand for a dedicated elevated expressway by the IT sector, led by leaders like N. Narayana Murthy of Infosys and Azim H. Premji of Wipro, was considered on top priority as the manufacturing and service industries in the vicinity contribute Rs.500-600 billion to the national economy annually.

'The chaotic vehicular traffic on the Bangalore-Hosur section of NH-7 has turned into a stumbling block, leading to loss of man hours, job attrition, dwindling growth opportunities and competitive edge,' a spokesperson of the Electronics City Industries Association said.

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Jharkhand hoping PPPs will attract investors

Jharkhand is yet to see the concept of public-private partnership (PPP) take off in any form, especially on its 7,000-odd km network of roads and bridges. The state has not itself tried out the concept; it has seen the National Highways Authority of India (NHAI) thrice floating tenders for the Ranchi-Barhi road on a build-operate-transfer (BOT) basis without evoking any response from the private sector. And the Barhi-Ranchi stretch is said to be the state’s highest traffic corridor!

“Let’s see what happens here (at the PWD level), as we are going to launch the concept in the state soon,” said an apprehensive senior road construction department bureaucrat. Says DK Tiwari, secretary of the department: “We are now seeking to get some roads on that (PPP) basis.”

Also, the government now wants NHAI to transform the busy Ranchi-Jamshedpur road into a four-lane stretch, the detailed project report (DPR) for which is under preparation. With recent recent Union surface transport ministry guidelines saying all such projects should first be tried on a BOT basis, it remains to be seen if the private sector views the project any differently.

The state has, since its formation in November 2000, spent around Rs 950 crore on construction, strengthening and widening of its road network. “Our expenditure on roads matches that of any other state on budgetary support,” said Pravin Kumar, deputy secretary with the road construction department. Obviously, officials feel, much more could be done if the private sector were to invest.

Asked why the private sector was shying away, a knowledgeable bureaucrat said, “it could be that they feel they may not be able to recoup the money.”

Jharkhand is, however, going to have its first toll bridge, the Rs 42 crore Adityapur project over the river Kharkai in Jamshedpur, which would link the city with the Adityapur industrial area on the other side.

A joint venture between Tata Steel and the state, with IL&FS also involved, the project is to take off around September-October. “That will be a pilot project and if that succeeds, may be that will act as an eye-opener for other PPPs,” observed Mr Kumar. The department is not facing problems on acquisition of land for road construction.

Of the 7,000 km of roads with it, the state PWD has, from 2001 till now, upgraded around 2,600 km. The road construction department is carrying out a “strengthening and widening” programme from 2004-05. Around 1,300 km is scheduled for attention in this financial year. The main constraint is budgetary.

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IVRCL achieves financial closure for road project

IVRCL Infrastructures & Projects Ltd has announced that it has achieved financial closure for its Jalandhar-Amritsar road project awarded by National Highways Authority of India (NHAI).

The company said the project involves improvement, operation and maintenance including strengthening and widening of the existing two-lane road to four-lane duel carriageway from km 407.100 to km 456.100 of NH-1 (Jalandhar-Amritsar section) in Punjab on build, operate and transfer (BOT) basis.

IVRCL is executing this project through special purpose vehicle (SPV) called Jalandhar Amritsar Tollways Ltd, a wholly owned subsidiary of the company.

The estimated project cost is Rs 237.75 crore, of which the loan component is Rs 157 crore. Canara Bank is financing it to the extent of Rs 60 crore, llahabad Bank Rs 50 crore and State Bank of Bikaner and Jaipur Rs 47 crore with Canara Bank as the lead lender of the consortium.

The company said the balance project cost is being financed by way of equity from IVRCL Road Toll Holdings Ltd, another wholly owned subsidiary of the company to the extent of Rs 41.3 crore and grant from NHAI to the extent of Rs 39.45 crore.

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