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Forty firms respond to VPT's road work tender

MORE than 40 reputed firms have responded to the pre-qualification tender floated by the Port Road Company, a Special Purpose Vehicle (SPV) jointly formed by the Vizag Port Trust (VPT) and the National Highway Authority of India (NHAI). The Rs 100-crore road work project will connect the port with the National Highway-5.

Authoritative sources told Business Line that the company will now shortlist 20 of the parties that responded and issue them the tender documents. The shortlisted parties will be asked to submit the tender documents by June 15, as the port is keen on iss uing the work order to the successful bidder by July.

The project, which envisages laying a 12-km road with two fly-over bridges, is expected to be completed within two-and-a-half years from the zero date. The port is understandably keen on wrapping up the project at the earliest, as road connectivity is ex pected to significantly facilitate cargo evacuation from the port, apart from enhancing its prospects for container traffic.

Initially, the port wanted to take up the road project on its own, but due to the subsequent `critical financial crisis', it decided to team up with the NHAI in a 50:50 joint venture. While the NHAI plans to raise 50 per cent of its equity of Rs 50 crore by floating bonds, the port is likely to tap the money market to raise its 50 per cent share, the sources said.

The company has contracted the services of Kolkata-based STUP Consultants for preparation of the DPR at a cost of Rs 48.82 lakh. The company now plans to engage another consultant for finalisation of the tenders, the sources said. The company has identif ied about 25 companies in India offering such consultancy, and they will be given the tender documents for submitting their quotations, from which one would be selected, the sources added. -- Our Bureau