High bidding likely to escalate cost of Mumbai’s Versova-Bandra sea
VBSL is an important part of the coastal road project, as it proposes to connect south Mumbai to the western suburbs.mumbai Updated: Mar 13, 2018 01:58 IST
In what might result in cost-escalation for the Versova-Bandra sea link (VBSL) project, the Maharashtra State Road Development Corporation (MSRDC) has received bids which are 21% higher than the cost estimated for the plan. On Monday, financial bids from three shortlisted companies were opened by the authorities.
The lowest bid received by MSRDC was from a joint-venture of Reliance and Astaldi, which has quoted Rs 6,993 crores – Rs1,477 crores higher than the authority’s estimated cost of Rs5,516 crores for the civil works of the project.
Senior officials from MSRDC said that the bids will now be evaluated before taking a final call. The work is expected to start this year itself.
VBSL is an important part of the coastal road project, as it proposes to connect south Mumbai to the western suburbs through a series of tunnels, sea links and reclaimed roads. It is expected to be completed by 2020.
While the first part of the project, between princess street flyover to the Bandra-Worli sea link, will be executed by the Brihanmumbai Municipal Corporation (BMC), the second part, in the northern direction from the Bandra-Worli sea link, is being executed by MSRDC.
Cost-escalation is also bad news for the authorities as MSRDC is planning to fund the project by raising loans against a toll concession period up to 2052.
The project had been approved by the Maharashtra state government in December 2017. Two South Korean companies and an Italian venture had submitted financial bids for the project. Two more joint ventures - one Chinese and an Indian - were to submit bids but they stayed out, officials said.
Earlier in January, MSRDC appointed a US company, Louis Berger, as the consultant for the 17.17-km sea link at a cost of Rs109 crores.