Approval for the project relating to widening of existing road to two lane National Highway standards from Potin to Pangin on BOT (Annuity) basis
The Cabinet Committee on Infrastructure today accorded administrative approval for changes made in bid conditions, viz. increase in construction period from three and half years to four and half years, provision of mobilization advance, relaxation in time period for financial close and inclusion of escalation and interest during construction in project cost as per the norms of BOT Project and flexible milestones for the widening of existing road to two lane National Highway standards from Potin to Pangin on BOT (Annuity) basis under the Arunachal Pradesh Package of Roads and Highways. The 407 Km long Potin to Pangin Section of NH-229 is a part of Trans Arunachal Highway.
Approval was also granted to award the project on Design, Build, Finance, Operate and Transfer (DBFOT) basis with increased total concession period from 16 years to 17 years; to make twenty five semi-annual annuity payments on the basis of accepted bid and to incur expenditure on the project out of the budget allocations for SARDP-NE.
The total project cost is estimated at Rs.1855 crore under the BOT (Annuity) basis.
The project road will improve the connectivity of various districts of Arunachal Pradesh with Itanagar and foster socio-economic development of the whole of the State. The road will also greatly facilitate the security/defence agencies to combat anti-national activities and threat on border areas.
BACKGROUND:
The Cabinet had approved widening of the road from Nechipu- Hoj to two-lane standard in July, 2009. This is one of the four projects approved `in principle’ by the Cabinet in January, 2009 as part of the Arunachal Pradesh Package of roads and highways.
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HS/SKS
(Release ID :58934)