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NHAI calls fresh bids for Karnataka NH-4 project

Our Bureau

NEW DELHI, July 3

THE National Highways Authority of India (NHAI) has floated fresh tenders for pre-qualification of private operators for the Nelamangala-Tumkur project on NH-4 in Karnataka.

The 32-km-long Nelamangala-Tumkur section is proposed to be four-laned with private sector participation on a build, operate and transfer (BOT) basis under the direct tolling method.

The construction cost of the project was estimated to be around Rs. 125 crores ($ 29 millions at current exchange rates), sources said.

The scope of the project involves widening of the existing 2-lane stretch on the Nelamangala-Tumkur section of NH-4 in Karnataka into a 4-lane divided carriageway and rehabilitation of the existing 2-lane stretch on a BOT basis.

The successful bidder will also have to operate and maintain the facility and be entitled to collect tolls from the users during a specified concession period.

NHAI has decided to pre-qualify bidders afresh since the scope of the project and the bidding parameters have undergone substantial changes after the request for qualification (RFQ) was first invited in March 1998.

The Nelmangala-Tumkur section will be four-laned on the basis of the model concession agreement for highway projects costing over Rs. 100 crores, which has been finalised by the Government.

The model concession document provides for a 100 per cent indexation to Wholesale Price Index (WPI) at the time of annual revision in toll fees. The contract will be awarded to the bidder quoting the lowest capital grant from the Government.