With the State government permitting Amaravati Metro Rail Corporation Limited, overseeing the ₹8,330 Visakhapantam Metro Rail project, to raise funds for civil infrastructure, the project is likely to gain momentum.
Five agencies have been issued the Request for Proposals for Visakhapatnam Metro and the last date for the receipt of bid documents is January 21.
After the issue of RFP, a pre-bid meeting was held on November 16 and representative of Shapoorji Pallonji and Company Private Limited, Essel Infra Projects Limited and Adani Enterprises Limited attended it.
The queries and doubts raised by all the bidders were cleared and clarifications issued on November 26, according to N.P. Ramakrishna Reddy, managing director of AMRC.
Tril Urban Transport Private Limited and IL & FS Rail Limited are the other developers that have been issued the RFP.
The State government has given its approval to take up the Metro in ‘innovative Public-Private Partnership mode’ in three corridors with a total length of 42.55 km.
Earlier, the project cost was estimated at ₹8,800 crore but now it is re-validated to ₹8,300 crore. The detailed project report for Vizag Metro has been prepared by Delhi Metro Rail Corporation.
The significant bid parameters relate to the execution of civil infrastructure works for which AMRC will foot an amount not exceeding ₹4,200 crore and operation period support for 10 years, capped at ₹820 crore. The support is to make up for ridership shortfall in the initial period.
“Another key parameter will be which of them promises the maximum revenue after the concession period of 10 years when ridership increases,” Mr. Ramakrishna Reddy has told The Hindu.
The State government has permitted AMRC to raise the amount of ₹4,200 crore from external commercial borrowings or funding from foreign agencies or financial institutions at interest rates lower than that of Indian banks.
The successful developer will have to invest the remaining cost of the project under the PPP agreement.
Once the bids are received they will be evaluated by Urban Mass Transit Company, the transaction adviser to AMRC. It will be further evaluated by the Monitoring and Evaluation Committee of AMRC.
To facilitate the project, the government has agreed to allot 250 acres of government land in the vicinity of Metro for commercial development for loan repayment/debt servicing. Besides, it permitted 83 acres of government land for metro infrastructure and asked the District Collector to acquire another 12 acres of private land required.
The Visakhapatnam Metropolitan Region Development Authority is the nodal agency in the city during the execution.
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