The Rs 200-crore six-laning project of the busy SP Ring Road in Ahmedabad is finally going to see the light of day.
The Ahmedabad Urban Development Authority (Auda) has announced plans to appoint a consultant for the project, two years after the first concessionaire backed out of it.
Auda has invited bids for the appointment of a consultant-advisor to prepare a detailed report on the project including cost estimates and timelines.
In 2019, Ahmedabad Ring Road Infrastructure Ltd (ARRIL), the concessionaire company, had proposed to undertake the project for Rs 200 crore.
However, their demand to extend their concession agreement by 3.5 years was not accepted by Auda. With no agreement reached, ARRIL withdrew from the project in 2021.
Now the new report, when filed by the new consultant, will form the basis for a new tender under a public-private partnership (PPP) model.
It was during Auda’s 274th board meeting on Feb 20, 2019, that the board approved the proposal of the concessionaire company ARRIL.
“ARRIL had sought additional concessions like extension of their agreement by 3.5 years beyond the 2026 expiry date in exchange for an investment of Rs 200 crore. The company also sought flexibility to revise the concession agreement regarding project costs and revenue based on their lenders’ advice and sharing any increase in toll income with Auda,” said a senior Auda official.
Apart from these conditions ARRIL sought rights to name two SP Ring Road roundabouts after the chairman of Sadbhav Engineering Ltd. Since these conditions were not being met and with progress stalled due to the pandemic, ARRIL eventually withdrew in 2021.
“The consultant will prepare a full report on the cost of widening SP Ring Road to six lanes. Based on this report, a new tender will be floated and work will be awarded to a new contractor,” said the official.
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