Enthused by over-subscription of the maiden bundle of 9 highway projects under toll-operate-transfer (TOT), NHAI has invited bids for second tranche of highway projects comprising eight stretches.
The first tranche will bring about Rs 10,000 crore cash to National Highway Authority of India's (NHAI) kitty.
"NHAI has invited bids for second bundle of national highways under the TOT model. The bundle consists of 8 stretches of national highways in the states of Rajasthan, Gujarat, Bihar and West Bengal," the Ministry of Road Transport and Highways said in a statement here.
The total length of project is 586.552 km and there are 12 toll plazas on these 8 road stretches.
"Concessionaires have to quote bid concession fee against NHAI's estimated initial estimated concession value (IECV) of Rs 5,362 crore. TOT bundle-II also involves initial construction cost of Rs 929 crore. Total contract period of TOT is for 30 years, which may increase/ decrease by 10/5 years based on increase/ decrease in traffic," the statement said.
The concessionaire would be required to maintain and operate the stretch during this period, it said adding that the developer, in lieu of this, would get the rights to collect user fee for this period, in accordance with prescribed fee rates under NH Fee Rules.
The bid due date is November 5, 2018.
In the TOT Bundle-I of 648 km, Macquarie had quoted highest as 1.5 times against the NHAI IECV of about USD 1 billion (Rs 6,258 crore).
The highest bid of Macquarie was about USD 1.5 Billion (Rs 9681 crore).
TOT model in India has been developed to encourage private participation in the highways sector.
The TOT model has the concessionaire paying a one-time concession fee upfront (lump sum), which then enables the concessionaire to operate and toll the project stretch for the pre-determined 30 year concession period. This model is applicable to EPC and BOT (Annuity) highway projects, which have completed at least 2 years since date of completion.
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