Mumbai-based Zoom Developers has bagged the Karnodai bridge project of the National Highways Authority of India (NHAI) on national highway 5.
Preliminary indications are that the project will cost around Rs 25 crore.
The concession period for the project is two weeks short of 10 years, according to the letter of acceptance issued by NHAI. Industry sources said that the nearest competition had asked for at least six months more.
The concession pact will come into effect from June 26.
NHAI had fixed the toll rates before awarding the contract to the bidder with the shortest concession period.
The funding pattern for the project is yet to be finalised. Funding agencies in the state are said to be looking into the financial credentials of as Zoom Developers.
For technical inputs, Zoom Developers has tied-up with East Coast Construction company _ a contractor the agencies are more familiar with.
The original bridge had been washed away a few years back. A temporary structure, the Bailey bridge, was then erected which allows only single lane traffic.
The two-lane Karnodai bridge will come up next to the Bailey bridge. Plans are to make the Bailey bridge a permanent toll bridge.
The design for the bridge will have to be approved the highways department and will have to factor in growth in both traffic volumes and multi-axle vehicles.
Lenders to the project are looking at corporate or promoter guarantee for 25-40 per cent of the project cost.
These will be clubbed under the head 'tangible guarantees' and will involve bank guarantees. An escrow account will also be created for creditors to cover possible default.
A portion of the toll revenue will be accessible to project lenders after the buil, own, operate (BOT) operator meets routine operation and maintenance costs.
