Cash-contract model likely for Virar-alibaug corridor
After bitter experiences with infrastructure projects being executed on Public Private Partnership (PPP) model, the Mumbai Metropolitan Region Development Authority (MMRDA) is mulling to develop the ambitious 126-km VirarAlibaug multi-modal corridor project on cash contract model.Updated: Aug 14, 2013 09:54 IST
After bitter experiences with infrastructure projects being executed on Public Private Partnership (PPP) model, the Mumbai Metropolitan Region Development Authority (MMRDA) is mulling to develop the ambitious 126-km Virar Alibaug multi-modal corridor project on cash contract model.
MMRDA had earlier decided to construct the first phase (79 km stretch from Navghar to Chirner) of the project on PPP model.
According to MMRDA sources, the corridor is likely to be developed on cash contract or EPC (engineering procurement construction) model, following economic slowdown, hurdles in land acquisition and unsatisfactory results from infrastructure projects developed on PPP model.
Interestingly, MMRDA’s most-anticipated Mumbai Trans Harbour Link (MTHL) project failed to take off on the PPP model after the investors backed off claiming the project failed to ensure returns on investment.
“We are executing two projects — Metro one and Metro two — on PPP model. Metro one has seen significant delay and cost escalation while Metro two has failed to take off for the last three years. So we are anticipated to develop the Virar-Alibaug multimodal corridor on EPC model to ensure smooth development,” said a source.
The Maharashtra State Road Development Corporation Ltd too has decided to construct the terminals required for water transport project on cash contract following a few failed attempts to construct them using PPP model
MMRDA commissioner UPS Madan said: “The World Bank has shown its interest to invest in the project if executed on EPC contract.
However, the final decision will be taken after finding out which model is best suitable for development of the corridor.”
Recently, MMRDA started carrying out land survey of the land where the corridor will be constructed. Meanwhile, a former state secretary claimed that the state should develop infrastructure projects on cash contract.
First Published: Aug 14, 2013 09:51 IST