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The National Highways Authority of India (NHAI) has announced it has re-launched the tender process to turn the existing Bengaluru-Mysuru highway (NH-275) in the State of Karnataka into a six lane expressway.
The NHAI is awarding the PPP project under the hybrid annuity model (DBOT annuity). It is the second time the NHAI has tendered the project: the Authority had canceled the previous process in December, without a reason. However it is now clear that the tender was canceled to change the model of contract, as it was originally floated under a DBFOT model, in December.
In the DBFOT model the concessionaire finance the entire project cost (minus land acquisition), while in the hybrid annuity model, NHAI finances 60% of the cost and the partner brings in the balance equity.
The NHAI has divided the project into two packages of Bengaluru - Nidagatta (56.2 km) and Nidagatta - Mysuru (61.1 km). The first stretch entails an overall investment of US$297 million and the second one, US$325 million.
The division into two packages will help the NHAI to complete the project sooner as two developers will be able to start the work simultaneously. The contractors will require about 24 months to complete the project, and the projects are expected to be commissioned in 2020.
The new expressway, when operational, is expected to cut the travel time between Bengaluru and Mysuru to 90 minutes. The expressway, when commissioned, will have 10-lanes including two-lane service roads on either side, and three-lane main carriageway in each direction.
The deadline for submitting proposals is April, 5.