look for alternative ways of awarding highway contracts, suggests World Bank

The World Bank has asked the National Highways Authority of India (NHAI) to look for alternative ways of awarding highway contracts to private companies. This suggestion provided by world bank due to delay in execution.

So far funding from the World Bank for the National Highway Development Project has been confined to EPC (engineering, procurement and construction) projects costing over Rs 4,000 crore. In an EPC project, the government gives a contract for road construction on an outright payment to whoever quotes least cost.

NHAI currently awaiting a response after it invited expression of interest. As part of transaction assistance. This process making the project execution delayed.

EPC projects have witnessed a lot of delays - some even stretching beyond seven years, when completing a road project normally takes three years. The World Bank customarily withdraws fund for a project that has not been built in seven years, leaving the project funding to NHAI.