In a significant setback to the Public-Private Partnership (PPP) model of infrastructure development, the proposed construction of 19 roads spanning 23.54 km at an estimated cost of ₹171 crore failed to attract any bidders, leaving Vijayawada Municipal Corporation (VMC) authorities dismayed.
Background of the Project
Under the City Roads Improvement Programme (CRIP), the Municipal Administration and Urban Development (MAUD) department had planned 110 km of priority urban corridors. This included 88.54 km in Visakhapatnam and 23.54 km in Vijayawada, with a total cost of ₹306.95 crore for GVMC and ₹171.14 crore for VMC. The projects were to be executed under the Design, Build, Finance, Operate and Transfer-Hybrid Annuity Model (DBFOT-HAM).
Reasons for Zero Bids
P Satya Kumari, incharge chief engineer of VMC, stated that the civic body will issue a second call for tenders. Before that, a meeting with contractors will be held to discuss and analyze the reasons for their lack of participation. She speculated that contractors might have apprehensions about the PPP model, which the corporation aims to address through consultations.
Satya Kumari further noted that similar tender processes in both Vijayawada and Visakhapatnam municipal corporations also received no bids from contractors. In Vijayawada, the tenders covered 19 roads, including BRP Road, KT Road, Kummaripalem, Sitara Centre to CVR Flyover, BRTS Road, Samba Murthy Road, GS Raju Road, Tikkle Road, Pinnamaneni Polyclinic Road, and other important stretches across the three circles within the municipal corporation limits.
Next Steps
The VMC plans to re-invite tenders after engaging with contractors to understand their concerns and clarify any ambiguities regarding the PPP framework. The failure to attract bids highlights challenges in implementing infrastructure projects under the PPP model, particularly in urban road development.
