Car parking made easy

October 10, 2011

The automated multi-level car parking facility set up in the city

More than the traffic police, shoppers visiting congested areas around Meenakshi Sundareswarar Temple in their four-wheelers can heave a sigh of relief now.

For the first time in the southern districts of Tamil Nadu, a textile showroom has provided an automated multi-level car parking facility for its customers near its outlet on East Avani Moola Street. About 40 cars of all sizes can be parked at this facility with ease.

Owing to inadequate space, it is common to see four-wheelers and other vehicles parked on the roadside, causing congestion to road users. It is a daily chore for the traffic police to pursue violators and impose fines or tow the vehicles. Ultimately, vehicles parked on the roadside resulted in shrinking of carriage space and broad roads appearing narrow.

With vehicle population growing at a rapid pace even in tier two cities such as Madurai, finding a permanent solution to the issue of parking of vehicles seemed to be a difficult proposition. In some cities, the officials (town planning and traffic police) admitted that the situation had gone out of control. “We have learnt to live with traffic congestions and moving at a snail’s pace on main thoroughfares has become the norm,” officials say.

RELIEF INDEED

“Customers coming from near and afar expressed difficulties in visiting our showroom owing to lack of parking space for their cars. Now they can heave a sigh of relief,” said R. Muruganand, Managing Director of Rajmahal, a leading textile showroom in the city. With the available space near the showroom, RR Parkon Private Limited, a leading infrastructure provider of automated multi-level car parking systems, have built the facility for the exclusive use of Rajmahal’s customers.

Speaking to reporters here on Friday, RR Parkon Director Balachandran Dharmen said that depending on the space available, the provided the right model for its clients. Giving an example, he said, in a residential apartment, where only three cars could be parked normally, they could provide space for 50 cars. “Vehicles are not only safe and parked in an organised manner, but complaints of thefts can be avoided and mischief mongers can be kept at bay,” he said.

There were various types of models. And in any given type, the vehicle could be taken out in less than 100 seconds. The operation was simple. The main advantage of mechanised car parking system was that in a small area, a large number of cars could be parked, he said.

The company was associated with some of the best names in realty business by providing innovative parking solutions at an optimum cost. The company had completed over 100 projects in many cities across the country. They were keen on taking up projects from government-owned lands on a build-operate-transfer (BOT) basis, Mr. Dharmen said.

By constructing many multi-level parking facilities, congested locations in the Temple City may soon turn to be most preferred destinations for shoppers.

Source: thehindu.com

Written by ITW Editor · Filed Under BOT, Parking

Expressway project costs shoot up to Rs 45-50 cr a km

October 10, 2011

The Union road transport ministry is finding it difficult to adopt a viable economic model for access-controlled expressways. The current cost estimates have shot up to Rs 45-50 crore per km against Rs 10 crore a km needed for six lane highways.

With such a huge investment requirement, the ministry is unsure if the build operate transfer (BOT) model for public private partnership projects (PPP) is viable. If the BOT model is adopted, the toll fees will have to be kept very high to recover the cost over a 30 year period. “State and national highways with lower toll would entice more people to use them,” a senior government official said.

The ministry has drafted a plan to construct 15,600 km of expressways by 2022 and has identified over 40 stretches for the same. The idea is to create an Indian National Expressway Network by the 13th Five Year Plan. The plan is to cover special economic zones (SEZs), industrial corridors, industrial towns and densely populated cities to raise the average distance travelled by a vehicle from 300 km per day to almost 600-800 km a day.

The BOT annuity model, where the government pays annually or bi-annually to compensate the private developers, also appears to be unviable, say officials. The reason is that such high cost of construction will entail huge public expenditure while there are other competing sectors in the economy which are vying for same allocations.

“The third model before us is the engineering procurement construction (EPC). Which is not an option here as that would again imply a huge burden on the government’s exchequer,” the official pointed out.

In developed countries, the first 50-100 km of expressways are built by the government to attract private developer. Once traffic picks up on the route, the developers build the remaining length of the expressway and is allowed to charge toll on the entire length (including the stretch constructed by the government).

The government allows this as an added incentive towards recovering the cost of construction and reaching the targeted internal rate of return.

Source: indianexpress.com

Written by ITW Editor · Filed Under BOT, Expressway, Projects

Reliance Infra’s Delhi-Agra road upgrade still in cul-de-sac

October 10, 2011

Reliance Infrastructure’s Rs1,928 crore national highway upgrade project between Delhi and Agra has been stuck over clearance from the Ministry of Environment and Forests (MoEF) for more than a year now – a development that is likely to lead to cost escalation in the project.

The 180 km project spanning Haryana and Uttar Pradesh is part of the Phase Five of the National Highways Development Programme, which envisages expansion to six-laning of 6,500 km of highway network.

The phase assumes significance as upgrade of the entire golden quadrilateral (5,846 km) to six-lane standards is a part of it.

Reliance Infrastructure bagged the project from the National Highways Authority of India (NHAI) in May 2010. The company, however, has still not been able to start construction on the road.

The project is being developed on a build, operate and transfer (BoT), toll basis. Analysts, on conditions of anonymity, peg the cost escalation at round 10% as of now.

NHAI, meanwhile, has said that the issue will be resolved in the next one month. Explaining the matter, a NHAI official said, “The clearance involves an area where a toll plaza will be coming up. The clearances happen in two stages. In the first stage, the terms of references are approved by the Union environment ministry. In this project, the MoEF has approved the terms of references four months back.”

In the second stage, public hearing takes place. It is here that the matter is stuck for Reliance Infrastructure. “The public hearing has been completed in Uttar Pradesh. In Haryana, the hearing is scheduled for October 13. Once that is done, the report will be submitted to the MoEF,” said the official.

The company has a portfolio of 11 road projects spanning 970 km, worth Rs12,000 crore. Of these, at least seven will become operational by the end of the current financial year.

Source: dnaindia.com

Written by ITW Editor · Filed Under BOT, NHAI, Reliance

Govt mulls opening all PPP options

October 10, 2011

KATHMANDU, Oct 10: The government is preparing to open all Public Private Partnership (PPP) modalities by scrapping the existing Build Operate and Transfer (BOT) modality in a bid to remove legal complications and ensure involvement of Nepali investors in the Kathmandu-Tarai Fast Track Road.

“We are weighing pros and cons of all possible modalities for executing the 76-km expressway because we can´t ensure involvement of Nepali investor under BOT as per the existing Private Financing in Build and Operation of Infrastructure Act 2006,” said a high-level source at the Ministry of Physical Planning and Works (MoPPW).

The Act has specified different options — BOT, Build Operate Own and Transfer (BOOT), Build-Own-Operate (BOO) Lease Operate Transfer (LOT), Lease Build Operate and Transfer (LBOT) and Develop Operate Transfer (DOT) — to implement the project under PPP.

“Participation of more investors, including Nepalis, will be possible once we open new investment modalities, as the Act has different options for the implementation of such mega projects under PPP,” the source added.

The MoPPW had last year called international tender inviting investors having experience of implementing six-lane highway costing at least $900 million to implement the fast track road project under the BOT system. It, however, had canceled the process of selecting bidders on March 15 as per the instruction of the parliamentary Public Accounts Committee (PAC). PAC had directed the ministry to ensure at least 10 percent domestic investment, irrespective of the experience of local investors, in the project.

PAC´s direction had contradicted with the existing Private Financing in Build and Operation of Infrastructure Act 2006 and its regulations that require investors to meet certain work experience requirements to implement projects under the BOT system. It had also directed the ministry to provide at least four months for filing tender to ensure participation of higher number of aspirant firms in the bidding process.

To implement the PAC instruction, the ministry was earlier preparing to amend the Act. It had also sought necessary instruction from the high-level Project Coordination Committee of the National Planning Commission (NPC) on the implementation of the PAC´s direction.

However, the committee did not respond to the ministry´s request.

As per the Asian Development Bank´s revised estimation of 2008, the mega project costs $800 million.

Source: myrepublica.com

Written by ITW Editor · Filed Under BOT, Nepal

C&C Constructions eyes stakes in BOT projects, hydel power sector

October 10, 2011

Mr Gurjeet Singh Johar — Ramesh Sharma

Mr Gurjeet Singh Johar, a Chartered Accountant by profession, did not have any prior experience in construction when he, with his partners, incorporated C&C Constructions in 1996.

Today, as Chairman of the Rs 1,290 crore company, Mr Johar speaks to Business Line as he hunts for acquiring stakes in BOT projects, opportunities in hydel power, and sets Rs 1,800 crore turnover target for the next 2-3 years. Excerpts:

Why did you choose this sector?

I had picked up quite a bit about doing business with my previous employers, and my partners had good construction acumen. We zeroed in on road construction. Today, we are in concessions in roads, parking, checkposts, also doing the largest power transmission job (UP Government tender).

The USP of our group is to identify areas that are difficult to access, less competition. But, we do not just limit ourselves to such jobs — we are also present in ‘mass’ areas.

What is your current debt-equity ratio? Any plans to raise debt?

It is at 1.5. We want to maintain it that level — it should not be more.

Do you get offers to offload equity?

In this market everybody wants to buy. At these prices, we would not want to do any equity transaction. We feel the company’s valuation is quite low.

Has the promoter holding gone up in the company?

There has been a creeping acquisition (In June 2011, promoters held 64.15 per cent — up from 63.43 per cent in March 2011) We are continuing to do it…There is about two per cent (more) that we could buy.

What kind of balance do you want to maintain between contract and BOT projects?

We will be both in contracting and BOT. The balance sheet can only support a certain level of BOT projects and your appetite is much bigger. Over the next few years, if I can get 25-30 per cent of the contract from my own BOT projects. We are moving to buildings, looking at power generation on hydel front.

In the construction space what is a reasonable return level?

The profit before tax (PBT) in construction should be at least 8-10 per cent range. In concession (build-operate-transfer or BOT) side, I would not do anything less than an internal rate of return (IRR) of 15 per cent. There will always be a one-odd transaction just to ensure there is business.

In a competitive backdrop do you see players offloading their stakes in projects?

I see over the next year or so a lot of BOT projects being available at discounts. I am waiting.

There have been offers…it is too early to give their names.

How do you manage risks like interest rate, inflation, etc?

When you are in construction — you could be in BOT or pure contracting. In BOT projects, one has to be very careful about interest rates and inflation. Interest rates are at their peak today. I can only hope they come down. But in construction contracts, we have pass through escalation clauses. So, we are fairly well covered.

Source: thehindubusinessline.com

Written by ITW Editor · Filed Under BOT, C&C Construction, Interviews

KMC plans to expand

October 10, 2011

KOCHI: Hyderabad-based KMC Constructions Ltd, has announced today that the company had finalised plans for a public float to mobilise fund for its expansion-cum-diversification projects in solar power generation and BOT projects in railways.

The company now has 10 BOT road projects in hand. This includes three annuity and seven toll ways with an aggregate order book of Rs. 9,000 crore.

“The Company had investments of Rs. 825 crore from 3i, SNC Lavalin including Rs. 175 crore from IDFC, Blue River Capital and Sequoia Capital. We are looking at IPO to part divest the company stake and offer exit route to some of the investors,” said M Gautham Reddy, managing director of KMC Constructions Ltd.

The company closed last financial year with revenues of Rs. 1,080 crore. As part of the company’s efforts to meet its manpower requirement, KMC has set up a training division which helps groom youth to take up jobs in the construction sector.

Source: ibnlive.in.com

Written by ITW Editor · Filed Under BOT, KMC

Ponnani port development to be taken up thru public-pvt route

October 3, 2011

Fishermen preparing to venture into the sea at Ponnani in Kerala. Ponnani has become the first port in Kerala to be taken up for development through public-private participation (PPP) route. - Photo: K K Mustafah

KOZHIKODE, SEPT. 30:

Though the proposal was firmed up relatively late as compared with similar projects that have been pending for long, Ponnani has become the first port in Kerala to be taken up for development through public-private participation (PPP) route.

BOT BASIS

The State Government has signed a concession agreement with the Chennai-Based Malabar Ports Private Ltd. for the development of the port on build-operate-transfer (BOT) basis.

Malabar Ports won the contract through ‘Swiss Challenge’ method, which was also adopted for the first time in the State to identify the private investor in a PPP project.

The concession agreement is for 30 years and Malabar Ports will give a royalty of 2.75 per cent to the State Government during the first 15 years and 4.5 per cent during the remaining 15 years.

The project, which has yet to get the environment clearance from the Union Government, is envisaged to be completed within fours years after the commencement of work.

PHASE I

In fact, the original proposal is to develop the port in three phases with an anticipated total outlay of Rs. 2,000 crore in current estimates. The agreement with Malabar Ports is for the development of the first phase, which is reckoned to cost Rs. 763 crore, according to Port Department officials.

LOCATION

The port is located in the estuary where the Bharathapuzha joins the Arabian Sea and the all-weather facility now being developed is designed to handle vessels of up to 50,000 DWT.

The port is expected to speed up all-round development of Malappuram, Palakkad and Thrissur districts and also complement the Palakkad-Coimbatore industrial belt.

CONNECTIVITY

According to the master plan of the project, the port will have both rail and road connectivity for the movement of cargo to hinterland destinations. The rail connectivity over a distance of 13 km will require acquisition of around 100 acres of land and it will cost a total of Rs 101 crore.

The development of the port will not affect the functioning of the existing fishing harbour in the area, it is pointed out.

Apart from Ponnani port, two other ports, Beypore and Azhikkal, in the Malabar region have been in the waiting, but for a much longer time of more than one-and-a-half decades, for being initiated into a firm development mode.

Though both ports had been put through the tender process some time back, the department had failed to identify private investors, necessitating re-tendering of the projects.

Source: thehindubusinessline.com

Written by ITW Editor · Filed Under BOT

Gayatri Projects to form 100% arm for Orissa road project

September 12, 2011

The project is to be executed on a BOT (Toll) basis on DBFO Pattern under NHDP Phase III as per the Letter of Award sanctioned by the NHAI, Gayatri Projects said.

Gayatri Projects Ltd. said on Tuesday that its Board of Directors has accorded its consent for incorporation a Wholly Owned Subsidiary called Sai Maatarani Tollways Ltd. for executing the four-laning of Panikoili— Rimull section of NH-215 in Orissa.

The project is to be executed on a BOT (Toll) basis on DBFO Pattern under NHDP Phase III as per the Letter of Award sanctioned by the NHAI, Gayatri Projects said.

Source: http://www.indiainfoline.com

Written by ITW Editor · Filed Under BOT, Gayatri, NHAI

Toll Barriers on National Highways

August 30, 2011

There are 268 toll barriers on National Highways in the country and the revenue collection on these toll barriers during the last three years is Rs.2699.83 crore (2008-2009); Rs. 4151.31 crore (2009-2010) and Rs. 5516.05 crore (2010-2011) respectively.

Traffic flow across toll barriers is regulated by way of clear demarcation of lanes approaching the toll plaza, provision of traffic marshals, provision of tag lanes for rapid clearance of vehicles, reduction of processing time by toll collectors etc.

Complaints of general nature are received from time to time in various offices of NHAI across the country. As and when complaints are received, prompt action is taken to investigate the same and take corrective action, if required.

As per National Highways (Fees for the use of National Highways Section and Permanent Bridge – Public Funded Project) Rules 1997 applicable for Public Funded Projects “ Toll collection shall be done only at one place within a distance of 80 Kms. from a point at the beginning of first National Highways Section or approach of entry of the first permanent bridge to be crossed under the jurisdiction of the same executing agency, regardless of number of projects falling within the length in order to facilitate free and unhindered movement of traffic. Where it is not feasible to do so, the number of collection point shall be kept minimum and shall be decided with the approval of Central Government.

As per National Highways ( collection of fees by any person for the use of section of National Highways / Permanent Bridge/ Temporary Bridge on National Highways) Rules 1997, applicable for BOT projects, there is no such condition regarding distance between two fee plazas .

As per National Highways Fee (Determination of Rates and Collection) Rules 2008 any other toll plaza on the same section of National Highway and in the same direction shall not be established within a distance of sixty Kms.

Provided that where the executing authority deems necessary, it may, for reasons to be recorded in writing, establish or allow the concessionaire to establish another toll plaza within a distance of sixty Kms.

Provided further that a toll plaza may be established within a distance of sixty Kms. from another toll plaza if such toll plaza is for collection of fee for a permanent bridge, bypass or tunnel”.

This information was given by the Minister of State of Road Transport and Highways, Shri Jitin Prasada, in a written reply in Lok Sabha today.

Source: http://pib.nic.in

Written by ITW Editor · Filed Under BOT, Tolling

Parliament Approves $3bn Loan From China

August 29, 2011

After weeks of heated debate both in and outside Parliament, which was characterized with acrimony and name-calling, Parliament Friday approved the $3billion Chinese loan to finance infrastructure development under the Ghana Shared Growth and Development Project (GSGDA).

The House was specifically recalled from recess to give its approval to the report of the Joint Committee on Finance and Poverty Reduction which dealt with the document after it had been referred to it by the Speaker on Thursday, August 25, 2011 before the House went on recess.

By far the facility is the largest single loan that had been contracted by any government since the country attained independence in 1957 and the government had not hidden the fact that the facility would contribute to provide a comprehensive and accelerated infrastructural development across the country.

During the debate, contributors from both the Majority and the Minority sides of the House acknowledge the fact that the country would need between $1.5 to $2 billion annually to fill the gaps in the country’s infrastructural deficit.

And while both sides were of the opinion that the project was a good one, the Minority express reservation about the contents of the Master Facility Agreement (MFA) and the fact that the subsidiary agreements were not made available to the House for consideration alongside the MFA.

With these disagreements and reservations, it was therefore not surprising that when the First Deputy Speaker, Mr Edward Doe Adjaho put the question after a heated, which lasted for nearly four hours, the Minority side sat quietly while the Majority side approved the agreement with a loud “hear, hear”.

The road to the passage was not all rosy as the Minister of Finance and Economic Planning, Dr Kwabena Duffour had to withdraw the original document Thursday and replace with a new one which catered for some of the concerns that were raised by the Minority.

In the new agreement, the concern of the Minority that there was gaps in the agreement such as “to be agreed” or “to be inserted” in certain clauses were filled paving the way for the debate on the motion today.

Contributing to the debate, the Minority Spokesperson on Finance, Dr Anthony Akoto Osei intimated that in principle his side supported the initiative by the government since it was a fact that Ghana needed between $1.5 billion and $2 billion annually to fill its infrastructural gap.

He, therefore calmed the nerves of the chiefs of the Western Region explaining that the Minority was not against the development of the area as MPs from the region had portrayed.

Dr Akoto Osei said notwithstanding that it was important for the country to be vigilant to avert a situation whereby the benefit of the oil revenue “appears to go to our benefactor as far as this loan agreement is concerned”.

He referred to the STX Housing agreement adding that what had charaterised it of late was a clear indication that the House should had listen to the advice of the Minority during the debate to approve the deal.

“Mr Speaker, we should learn a lesson from that experience”, he said and cautioned the Speaker to be mindful of that fact he was presiding over the approval of a loan that would have a far-reaching implication on the country.

He stated that the gap that were filled in the new document were not the concerns of the Minority explaining that the approval of the MFA would mean the payment of $37.5million.

Dr Akoto Osei said it was unfortunate that the committee did not discuss the terms of the agreement and pointed out that the terms in the MFA document were different from what was contained in the report of the committee.

Other contributors from the Minority side included Mr Dominic Nitiwul (Bimbilla), Mr Simon Osei-Mensah (Bosomtwe) and Mr Ignatius Baffuor-Awuah (Sunyani West).

Referring to a Daily Graphic publication, Mr Nitiwul expressed concern that while the Dr Duffuor had told the President that funds had already been sought for the Achimota-Ofankor Road, the same project had been catered for in the MFA.

He pointed out that even though some facilities with the agreement were to be implemented on the Build, Operate and Transfer (BOT) basis, some allocations had been made for them.

For his part, Mr Baffour-Awuah argued that said the agreement would commit the country to use the chunk of the oil revenue to repay the facility, it was important for the country to hasten slowly since the oil revenue could be used to finance the projects gradually.

Contributors from the Majority side included Mr Moses Asaga (Nabdam), Mr Haruna Iddrisu, Minister of Communications and MP for Tamale South, Mr Emmanuel Armah-Kofi Buah, Deputy Minister of Energy and MP for Ellembelle and the Deputy Minister of Finance and Economic Planning, Mr Seth Terkper When he took his turn, Mr Buah told the House that the use of part of the loan for the development of the gas infrastructure was a welcome news.

He explained that since gas was cheaper, it was the commodity that would be the driving force of the country’s industrialization.

“Mr Speaker, we should rather commend the President for the urgency that he is attaching to the development of the gas sector”, he said adding that now was the time and that the country could not wait any longer for the development of the its gas infrastructure.

For Mr Asaga, he urged MPs from the Minority side to support the approval of the agreement arguing that the numerous project that would be embarked on in the region would provide employment for the people.

For his part, the Terkper explained that the MFA was rather favourable now that the country was considered as middle-income earner and urged the MPs to support its approval.

When he took the floor, the Minority Leader, Mr Osei Kyei-Mensah-Bonsu questioned whether the Minority was asking for too much by demanding for a better due diligence to be done before the approval of the agreement.

“Even though the proposal is good some aspect of the agreement stinks. We cannot join hands with the Majority to approve this facility in its present state”, he said and called on the Minister of Finance to take back the document and do a better feasibility before the agreement could be approved.

When he caught the eye of the Speaker, the Majority Leader, Mr Cletus Avoka stated that “we need to congratulate the President for his courage to go for such a facility”.

He stated that “if we look at some of the critical developmental challenges facing the country, we should be bold to bite the bullet”, he said.

Mr Avoka added that it was because of country’s credibility rating that had enabled it to be considered for such a facility and called on Mps from both side of the House support its approval.

Winding up the debate, Dr Duffuor thanked the MPs for their inputs and promised that such suggestions would help to enrich the implementation of the project.

“The facility is the cheapest loan on could get in the world. We have taken into account all the concerns expressed by the Minority and have no doubts that all of you will support the motion on the floor”.

He assured the House that the STX project was not in danger”.

Source: modernghana.com

Written by ITW Editor · Filed Under BOT, china

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