Gurgaon-based APCO Infratech has won the contract for the strategic Z-morh tunnel in Jammu & Kashmir, according to an official, a first step in restarting an under-construction project which was put up for rebidding following uncertainty over its completion date.
The Rs 2,378-crore project, initially awarded to the now-troubled Infrastructure Leasing & Financial Services (IL&FS), had been in stasis for about a year. Amid the uncertainty regarding its progress, state-run National Highways & Infrastructure Development Corporation Limited (NHIDCL) had terminated IL&FS’ contract and invited fresh bids for it in June this year.
The 6.5-km-long Z-morh tunnel will provide all-weather connectivity between Srinagar and Kargil.
The official sited earlier told that APCO Infra emerged as the lowest bidder for financial bids that opened on Thursday. “APCO emerged as the lowest bidder, quoting the annuity amount of Rs 296 crore,” the official said, requesting not to be named.
Another official said NHIDCL will soon issue the complete list of bidders.
ET had reported on August 2 that NHIDCL had received bids for the project from four companies in the techno-commercial bid stage. As per the minutes of the meeting of the empowered technical bid evaluation committee, issued on August 19, NHIDCL said that technical bids were received from APCO Infratech, Ashoka Concessions, Chetak Enterprises and NCC Limited.
The tunnel is being constructed on build-operate-transfer (BOT) model which the government is trying to revive after having received lack-lustre response from investors for almost four years.
n BOT projects, private sector developers build a road with their own funds, operate it and then transfer it to the government after a specified period.
Work on the project had been stuck since July 2018, and NHIDCL is now in the process of resolving it based on the guidelines issued by the road transport and highways ministry in March this year.
The official said that IL&FS has completed about 30% of the work and is likely to be paid Rs 420-450 crore for it.
The letter of award will be given to APCO Infra in the next few months, after the company lists out its mode of funding the project to the government.
The remaining work on the tunnel is expected to be completed in 3.5 years from the date of award of the contract, one of the persons cited earlier said.
The crisis at IL&FS has stalled another strategic project of the government in J&K—the 14.2 km-long Zojila tunnel, which has seen a cost escalation of about Rs 1,600 crore in two years after NHIDCL terminated its contract with IL&FS Transportation Network, the road development arm of IL&FS.
Source: Economic Times