Contracts for Bangalore metro to be awarded by year-end

Bangalore: Decisions and awards on most of the tenders for the Bangalore Metro transit project will be completed by this year-end, said Mr N. Sivasailam, Managing Director of Bangalore Metro Rail Corporation Ltd.

The Rs 6,395-crore project is nine months behind schedule and is now targeted for completion by December 2011, said Mr Sivasailam, who recently took charge of the special vehicle to implement the project that is being jointly promoted by the State and the Central Governments.

The first arm would be ready by December 2010 and the corporation hoped to fast-rack the date by 2-3 months.

Some of the major bids are either out or being evaluated. Earlier this year, BMRCL invited global bids for supply of rolling stock (coaches) and signalling and communication.

The rolling stock contract worth around Rs 1,000 crore was the single biggest bid. Technical bids for it were being evaluated and may be awarded by December.

Five consortia have been short-listed for signalling and communication supply. The automatic fare collection (AFC) pre-qualification bid was called in April.

“Most of our (remaining) tenders will be out by October and decisions taken by November,” he said during a presentation to the Federation of Karnataka Chambers of Commerce and Industry here.

Shortly, BMRCL planned to put out tenders for four more contracts – for two stations along one arm or reach; apartments and road widening.

“Industries have a lot of opportunities in works connected with the project,” Mr Sivasailam said, listing out design and consultancy, construction, fare collection systems, ticketing, power supply, AC, food and beverage and other businesses for commuters.

Work on the two corridors – 18.1-km East-West and 14.9-km North-South with a total of 35 stations – is in various stages, Mr Sivasailam said. Nearly 7 km of the 33-km route will be underground and the rest elevated.

The Centre and the State are each investing Rs 959.25 crore or 15 per cent of the project cost as equity; Japan Bank for International Cooperation is providing soft loan of Rs 1,700 crore with a subordinate debt of Rs 1,598.75 crore involved. Financing option for Rs 1,000 crore is yet to be tied up.

The fare has been fixed between Rs 6 and 16 and reduces travel time by 70 per cent to 28-33 minutes end to end on each corridor.

BMRCL estimates the Metro’s internal rate of return at 8.3 per cent and its economical RoR at 22.3 per cent – from reduction of private vehicles, travel time, accidents, pollution among others, all put at Rs 1,155 crore.

FKCCI’s President, Mr D. Muralidhar, suggested that the BMRCL should speed up the project and initiate the next phases with hassle-free acquisition of land in the city.