Concession agreement signed for widening of Nechipu to Hoj road

December 26, 2011

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he Nechipu – Hoj Section of NH-229 is a part of Trans Arunachal Highway. The construction of 2 lane Trans Arunachal highway from Tawang in Arunachal Pradesh to approaches to Bogibeel bridge in Assam was announced by the Prime Minister on 31st January, 2008 during his visit to Itanagar.

A Concession Agreement has been signed in the Ministry of Road Transport and Highways for “ Widening of existing road to 2-lane national highway standards from Nechipu to Hoj on hybrid BOT (Annuity) model under the Arunachal Pradesh Package of Roads and Highway. The Nechipu – Hoj Section of NH-229 is a part of Trans Arunachal Highway. The construction of 2 lane Trans Arunachal highway from Tawang in Arunachal Pradesh to approaches to Bogibeel bridge in Assam was announced by the Prime Minister on 31st January, 2008 during his visit to Itanagar.

The Trans Arunachal Highway is a very important Highway which runs across the State of Arunachal Pradesh. The project road will improve the internal connectivity of western districts of Arunachal Pradesh with Itanagar, namely Seppa, Bomdila, and foster socio-economic development of the whole of the State. Apart from this, the road would help in hydro power projects coming up in Arunachal Pradesh. The road would also greatly facilitate the security/ defence agencies to combat anti-national activities and threat on border areas.

Length of the Project: 311 km;
Total Project Cost (TPC): Rs. 1486 cr;
Civil construction cost of the project: Rs. 1255 crore
Construction period: 4 ½ years
Concession period: 17 years
Cash support during Construction period: Rs. 1004.0 crore
Semi Annual Annuity (25 nos.) : Rs. 39.0 crore each; to be paid to Concessionaire during maintenance period.
NPV in 2011-12 of Government Cash flow to the project @ 10% discount rate is Rs. 1077 crore.

This project have been approved by Cabinet/CCI in its meetings held on 9th January, 2009, 30th June, .2009, 4th March, .2010, 6th May,.2010 & 9th June,.2011; Tendering for 2 times were annulled owing to high annuity quotes;

The project is to be implemented on hybrid BOT (Annuity) model. This is a hybrid model under which 80% of the estimated construction cost will be disbursed to the concessionaire during construction phase and remaining construction cost and maintenance cost etc. will be defrayed through annuity payments. The target to complete 2-lane is by June, 2016. The concessionaire will also maintain the road for 12 ½ years after the construction period of 4 ½ years and Ministry will pay 25 semi-annual annuity to concessionaire during maintenance period of 12 ½ years.

Source: indiainfoline.com