The proposed Visakhapatnam Metro Rail Project will be a unique one in the Public Private Partnership (PPP).
The idea is to make the project more sustainable for the developer and affordable for the public, according to Amaravati Metro Rail Corporation (AMRC) MD NP. Ramakrishna Reddy.
Touted to be the first of its kind of model in the country, the Andhra Pradesh Government is planning to ease the burden on the developer by reducing the cost by 40 per cent. The decision has been taken in the backdrop of the unviable nature of metro projects which are becoming burdensome for the developers across the country.
“The State government will be contributing to 20 per cent of the Rs.13,488 crore in the form of government land which is abundantly available in Visakhapatnam. Another 20 per cent of the cost will come from the Central government. The rest of the burden will be borne by the private developer,” Mr. Ramakrishna Reddy told The Hindu .
Share in profit and loss
The government will also share a part of the loss in case there is no critical mass in passenger traffic. The government is also working out a profit-sharing metric to get the benefit in the event of the PPP player making over 110 per cent profit, said Mr. Reddy.
Three corridors, 43 km
Planned in three corridors, the Visakhapatnam Metro project runs through 43 km. Corridor-I, from Kommadi junction to Gajuwaka junction, runs on the national highway for about 30.38 km and consists of 25 stations. The second corridor, from Gurudwara to Old Post Office, is about 5.26 km with seven stations. The third, with nine stations, is planned from Thadichetlapalem to Chinna Waltair and stretches about 6.91 km.
EOI in two months
Along with the Vijayawada Metro, the Vizag Metro too is pacing ahead. The AMRC, which is undertaking the Vizag project, will be calling for Expression of Interest (EOI) in the coming two months.
As per AMRC sources, the Urban Mass Transit Company , which has wide experience with Kochi, Nagpur, Gurgaon, Noida metros, has been appointed as consultants for Transaction Advisory Services for the AMRC to undertake the PPP process. The IL&FS will be the technical and financial adviser.
Schedule
Bidding for EOI: In two months
Selecting developer: 6 to 8 months
Civil works and rolling stock: In 30 months
Completion of project: 3 to 4 years
Published - August 12, 2016 12:00 am IST
