MegaProject 1308: Tata-Siemens consortium wins US$1.2 billion Pune Metro PPP
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The Pune Metropolitan Regional Development Authority (PMRDA) has announced that a joint venture of Tata Reality Infra (TRIL) and Siemens Project Ventures has been awarded a contract to design, build, finance and operate a 23.3km metro line in the city, located in the state of Maharashtra, in western India.
The total estimated investment is INR83.13 billion (US$1.2 billion). The elevated metro line will run from the Rajiv Gandhi Infotech Park, a destination for around 200,000 commuters, in Hinjawadi via Balewadi to Shivajinagar. It will have 23 stations.
After approving the line in December 2016, the PMRDA invited Requests for Qualifications (RFQ) from global bidders in March 2017 and received responses from three firms including the Tata-Siemens JV and a joint venture between IRB and IL&FS. Deloitte was appointed to evaluate the bids and prepare a Request for Proposals (RFP) in September.
Tata-Siemens' proposal must now be approved by the PMRDA general body, then reviewed by the Maharashtra state government's finance department. It will then be submitted to an inter-ministerial committee of the national government, called an Empowered Committee, to received a Viability Funding Gap (VGF) grant, which would cover 20% of the total cost. All of this must be completed before the project can reach commercial close.
Construction is scheduled to begin in October, indicating that PMRDA foresees gaining these required approvals and signing the PPP contract relatively quickly.
The metro line to be delivered by Tata and Siemens is the third in development in Pune. Lines 1 and 2 of the planned 54.6km metro system are currently in construction and scheduled to commence operation in 2021. All three lines will interchange at the District Court station in Shivajinagar.