NHAI awards projects worth Rs 109.12 bn

February 23, 2008

The National Highways Authority of India (Q, N,C,F)* (NHAI) awarded 5 projects, worth Rs 109.12 billion, of six-laning of highways under the National Highway Development Programme Phase-V (NHDP-V), reports Business Standard.

NHAI awarded projects to infrastructure developers, including Larsen & Toubro, Emirates Trading, IRB, Isolux Corsan, and Soma Enterprises among others. These 882 kilometres of sections for six-laning of highways are under the Golden Quadrilateral (GQ) and North-South Corridor. Under the NHDP-V, 6,500 km of existing four-laned national highways (NHs) have to converted into six-lane highways through a build-operate-transfer (BoT) basis. Of the total length, 5,700 km is on GQ and 800 km on other sections.

The five awarded projects include 43.4 km on the Chennai-Tada stretch on NH-5, 225.6 km on the Gurgaon-Kotputli-Jaipur stretch on NH-8, 239 km on the Surat-Dahisar stretch on NH-8, 291 km on the Panipat-Jalandhar stretch on NH-1.

These are the first batch of projects which have been awarded on a new model concession agreement (MCA) approved by the Committee of Infrastructure recently. The new agreement will work on revenue-sharing model where the private developers will share 17% – 48% of their toll-revenue with the NHAI within 180 days of signing the agreement. Under the old agreement, the NHAI projects were awarded on the bidding parameter of positive or negative grants.

Source: myiris.com

Written by ITW Editor · Filed Under Investment and Finance

Wilbur Smith appointed consultant for 4-laning

February 23, 2008

PANJIM, FEB 23 — The Bangalore-based Wilbur Smith Associates has been appointed consultant to prepare a feasibility report on the much talked about 4-laning of the National Highway-17 from Patradevi to Polem, to be undertaken by the National Highways Authority of India (NHAI).

Wilbur Smith Associates Private Limited (WSAPL) — an affiliate of Wilbur Smith Associates Inc, USA — is a full service professional consulting firm engaged in the planning and designing of public infrastructure and transportation facilities.
According to a source in the Public Works Department once the highway becomes ready it will help reduce the traffic congestion and the number of accidents on this 139-km stretch.

He said NHAI will acquire 60 meters of land one both side of the existing highway.
The project is the part of the project undertaken by NHAI to upgrade NH-17 from Panvel to Kochin into a 4-lane.
However, the source said, the stretch between Mapusa and Margao will be a 6-lane as this area has the maximum traffic flow.

The source further said that the project would see several new bridges at Colvale, Mandovi, Zuari, Talpem and Galgibag while a multiple fly-over at the KTC circle at Panjim, the source said.

The department has already acquired 30-metre width of land on both sides of the highway from Patradevi to Porvorim Bazar and the problem appears to be between Porvorim Bazar and the Mandovi Bridge. Therefore a few flyovers on the road have also been suggested.

When pointed out that the stretch from Porvorim to Mandovi already has a four lane, the source replied, that the entire stretch has to be re-done as it does not have service lane, breakdown lane etc.
“Steps have been taken to expedite the implementation of these projects and the actual work is likely to start in 2010 as the forest clearances consume lot of time,” he said.

If everything goes well, the source said, the entire project should be complete by 2013-14. The project is expected to cost around Rs 1,200 crore, The project will be undertaken under built, operate and transfer basis and the PWD National Highways division will take all the government department concerned into confidence and a plan will be developed before going ahead with the project, the source said.

Source: oheraldo.in

Written by ITW Editor · Filed Under Investment and Finance

L&T, IRB among 5 to bag Rs 11k cr road projects

February 23, 2008

NEW DELHI: L &T-ECC, Emirates Trading Agency-KMC Construction, IRB Infrastructure Developers-Deutsche Bank, IJM Corporation-IDFC Ltd and Isolux Corsan Concessions-Soma Enterprise have bagged five national highway projects worth Rs 10,912 crore.

The projects, part of the fifth phase of National Highway Development Project (NHDP), are the first one to be under the new model concession agreement.

Secretary (road transport and highways) Brahm Dutt said this at a media briefing on Friday.

Under NHDP V, a total of 6,500 km of existing four-laned national highway have to be widened to six lane through build operate and transfer basis.

Two projects aggregating to 148 km had earlier been awarded based on the old concession agreement.

In the earlier awarded two projects, grants used to be the bidding criteria and NHAI got an upfront negative grant of Rs 975 crore.

Under the new MCA, the concept of grant has been changed to revenue share model.
On the Delhi-Jaipur section of national highway eight, the wining consortium of Emirates Trading Agency and KMC Construction has quoted 48.06% as the revenue share for NHAI.

IRB Infrastructure in tie-up with Deutsche Bank quoted 38% for Surat-Dahisar section on national highway 8. For Chennai-Tada on NH 5 and Panipat-Jalandhar on NH 1, L&T-ECC have quoted 17.07% and Isolux Corsan, have quoted 20.14% as revenue share that the government will get out of tolling revenue.

“All the revenue share will start right from the appointed date within 180 days of signing of the agreement.

In only one case, where the traffic is low, the share of revenue will start at 2% after nearly four and half years,” said Dutt. Isolux Corsan-Soma Enterprise quoted the 2% revenue share for the Panipat-Jalandhar section.

As the existing highways are already under tolling by NHAI, toll collection by the private entrepreneurs will be integrated with the existing tolling infrastructure though there will not be any increase the tolling rates.

The five consortia will be required to furnish an additional performance security, the toll will be credited to an escrow sub-account, drawal from which is linked to the achievement of project milestones.

Source: dnaindia.com

Written by ITW Editor · Filed Under Investment and Finance, Larsen & Toubro Ltd. (L&T)

NHAI awards five projects for six-laning

February 23, 2008

NEW DELHI: The National Highways Authority of India (NHAI) awarded five projects of six laning under National Highway Development Programme phase V aggregating to a length of 882 kilometers worth Rs 10,912 crore.

The Chennai-Tada on National Highway 5 and Chilkaluripet-Vijaywada on National Highway 8 are among first batch of projects which have been awarded on new Model Concession Agreement (MCA) approved by Committee of Infrastructure, Brahma Dutt Secretary Union Surface Transport Ministry told reporters here on Friday.

Other projects are Gurgoan-Kotputli-Jaipur and Surat-Dahisar on National Highway 8 and Panipat-Jalandhar on National Highway 1. Stating that these sections of six-laning are under Golden Quadrilateral (GQ) and North-South Corridor Dutt said the response to the six-laning projects under Build-Operate-Terminate model have so far been tremendous.

“The negative grant has been changed to revenue share model in the new MCA under which the five projects have been awarded. None of the successful bidders have asked for any grant from NHAI,” Dutt said.

Instead of demanding grant, they have all quoted for sharing of revenue with NHAI, he added. For instance Larsen & Tubro-ECC who won the Chennai-Tada project have offered to share 17 per cent of the revenue.

Dutt also pointed out that these projects have been able to attract foreign direct investment. Except for Chennai project whose bid was won by Indian infrastructure major all other successful bidders had equity participation from foreign companies.

Centre had approved seven phases of National Highways Development Programme at an estimated cost Rs 2,42000 crore. Of this under phase V, total 6500 kilometers of existing four-laned National Highways have to be widened to six land through BOT basis following Design Build Finance and Operation (DBFO) model.

Written by ITW Editor · Filed Under Uncategorized

Foreign cos take to highways

February 22, 2008

New Delhi, Feb 22 Indian road construction projects seem to have caught the fancy of large foreign players in a big way. Out of five successful bidders for projects to widen four lane highways to six lanes which were announced today, foreign companies have equity stake in four of them.

Four international companies, namely, Dubai-based Emirates Trading Agency, Deutsche Bank, IJM Corporation, Berhad (Malaysia) and Isolux Corsan group of companies from Spain have teamed up with Indian companies and have equity stake ranging from 10 to 51 per cent, the Secretary, Road Transport and Highways, Mr Brahm Dutt, said here today.

These are the first tranche of projects bid under the new model concession agreement (MCA) that works on a revenue-share basis .

Earlier, road development projects were awarded to companies which offered upfront money to the Government to operate the six-lane highways. Now, the Government would receive part of the revenues generated through toll collections during the agreement period.

In the projects announced today, 882 km of four-lane national highways would be converted to six lanes at a total cost of Rs 10,912 crore.

The private firms would not only foot the entire construction cost, but also share a part of total revenue earned with the Government during the 12-15 year period.

Since the traffic on highways is expected to surge over time, the extent of revenue share will go up over the project life.

At the initial end of projects, National Highways Authority of India (NHAI) would mop up revenue share ranging from two per cent to 48.06 per cent. At the end of the concession period, NHAI would take a share of 12 per cent to 59 per cent.

In these projects, since four lane roads already exist, concessionaire can start collecting revenues from road users within 180 days of the signing of the agreement with NHAI. The toll revenues would be routed to an escrow account, said the NHAI Chairman, Mr N. Gokulram.

More such mega-projects are lined up for the next financial year. “We expect to invite bids for widening about 2000-2500 kilometres of four lane highways in the next financial year,” said Mr AV Sinha, Member-NHAI.

In the previous bidding method for two such projects, NHAI received an upfront negative grant of Rs 975 crore from L&T Toubro, and Ideal Road Builders.

Source: thehindubusinessline.com

Written by ITW Editor · Filed Under Default

Madhucon to transfer BOT projects to arm

February 22, 2008

Hyderabad: Madhucon Projects Ltd is planning to transfer its major infrastructure projects to Madhucon Infra Ltd, which shall be a holding company for its build operate and transfer (BOT) toll roads, power projects and coal mines.

The Hyderabad-based company is proposing to transfer its BOT toll road projects and other investments in infrastructure, power and coal mine businesses to Madhucon Infra Ltd and would be seeking the approval of shareholders for the transfer by way of postal ballot, according to a release.

The company to segregate the engineering, procurement had necessitated the transfer process due to a decision and consulting (EPC) business and the investments in BOT projects as the net worth and capital required for these would be substantial. The result of the postal ballot would be announced on March 25, the release added.

Source: sify.com

Written by ITW Editor · Filed Under Uncategorized

L&T wins Rs4.2bn road project in TN

February 22, 2008

This order is part of the five road-widening proposals worth Rs109.1bn cleared by the Government. L&T will convert a 43.4-kilometer four-lane road into a six-lane one

Larsen & Toubro Ltd. (L&T) has bagged an order worth Rs4.2bn for converting a 43.4-kilometer four-lane road into a six-lane one in Tamil Nadu, Brahm Dutt, Secretary for Road Transport & Highways, said in New Delhi today. This order is part of the five road-widening proposals worth Rs109.1bn cleared by the Government.

A consortium of Emirates Trading Agency LLC and KMC Constructions Ltd. won a Rs19bn contract to widen 225.6 kilometers road in Haryana and Rajasthan, Dutt said. IRB Infrastructure Developers Ltd. and Deutsche Bank AG won a Rs17bn contract for a project covering 239 kilometers in Gujarat and Maharashtra.

A group comprising Malaysia’s IJM Corp. and Infrastructure Development Finance Ltd. (IDFC) bagged a Rs6.75bn order for a project in southern India. Spanish construction group Grupo Isolux Corsan SA won a Rs27.5bn contract to widen a 291-kilometers road stretch between Haryana and Punjab, Dutt said.

Source: indiainfoline.com

Written by ITW Editor · Filed Under Larsen & Toubro Ltd. (L&T)

Anil edges out Mukesh in bid

February 21, 2008

Construction of the Mumbai Trans Harbour Link, a 21-km-long inshore bridge spanning Sewree on Mumbai Island and Nhava, the second longest bridge on the earth, will commence in December next and completed in five years from then, according to Maharashtra Public Works Minister Anil Deshmukh.Mr. Deshmukh said that the bid submitted by the Anil Ambani-led consortium of Reliance Energy and Hyundai of Korea won the contract for the prestigious project, defeating the consortium of IL&FS, SKIL Infrastructure and John Laing Construction led by his brother, Mukesh Ambani.

The bids were opened on Wednesday. The project worth Rs.6,000 crore is on a BOT (build, operate and transfer) basis. The Anil Ambani consortium bagged it for they had said they would collect the toll charges from user-vehicles for nine years and 11 months while his brother’s bid had quoted toll charges for 75 years.

The successful bidder will bear the entire cost of the project and transfer it to the state after operating it for the period. Mr. Deshmukh said that the toll charges were fixed, Rs.150 for light vehicles and Rs.250 for heavy vehicles. It is estimated that 50,000 vehicles use the trans-harbour bridge every day.

But the usage would go up because of developments such as new airport, expansion of the Nhava Sheva Port (Jawaharlal Nehru Port) and SEZ. The consortiums led by the Ambani brothers were the only rivals in the final round.

Mr. Deshmukh said that the letter of acceptance of the bid will be issued in March next.

Source: hindu.com

Written by ITW Editor · Filed Under Default

9 infrastructure firms booked for evading import duty

February 20, 2008

Nine infrastructure firms having interests in road building have been booked by the Customs authorities for allegedly evading import duty totalling Rs 20 crore on heavy engineering equipment.

The firms, including Punj Llyod Ltd, Gammon India and Era Constructions, have allegedly imported machinery for purposes other than for which they were allowed to be imported duty free, a Customs official said here.

“Duty exemptions were granted to the firms working on National Highway Authority of Indian projects and other projects funded by international development agencies like those of Asian Development Bank and United Nations,” the officer said.

The companies, however, have been found to have diverted machinery imported under duty exemptions to other private projects and hence were liable to pay necessary duties, he charged.

During initial investigations, the authorities have established alleged duty evasion of Rs 20 crore.

Notices were sent to all the nine firms and Rs 12 crore in duties have already been recovered, he said, claiming the firms have admitted to have diverted the machinery.

“We started investigations into the matter around five months ago. Though many of the firms are based outside the city, the cases have been made in Mumbai as all the machinery had landed at the Mumbai port. It will take some time for us to impose the penalties,” the officer said.

Source: timesofindia.indiatimes.com

Written by ITW Editor · Filed Under Investment and Finance

Reliance Energy is top bidder for Mumbai trans-harbour link project

February 20, 2008

A consortium led by Anil Ambani group company Reliance Energy Ltd (REL) has emerged top bidder for the Rs6,000 crore Mumbai trans-harbour link project.Maharashtra State Road Development Corporation (MSRDC) today opened financial bids for the 25-km six-lane project. However, no confirmation could be obtained from either MSRDC or REL.

Mukesh Ambani-led Reliance Industries group was also in the race for the project to build a trans-habour link between Sewri in Mumbai and Nava-Sheva across the creek in Navi Mumbai.

Sources said the REL-Hyundai combine quoted a lower concession period for the build-operate-transfer (BOT) project of nine years and 11 months as against 75 years quoted by the Mukesh Ambani-controlled Sea King Infrastructure.

Phase-I of the project will comprise a six-lane dual carriageway linking Nhava to Sewri and Phase-II, which is expected to be added in 2015 -18, will consist of a double track rail link that will run parallel to the road link on the north side.

The Rs6,000 crore project is slated for completion in five years. The REL-led consortium can charge Rs250 per heavy vehicle and Rs120 for cars and light commercial vehicles as toll charges.

Source: domain-b.com

Written by ITW Editor · Filed Under Uncategorized

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