Visakhapatnam Launches Rs 310 Crore Road Project Under Hybrid Annuity Model
Vizag's Rs 310 Crore Road Project Under Hybrid Annuity Model

The Greater Visakhapatnam Municipal Corporation has taken a major step forward in urban infrastructure development. The civic body has officially invited tenders for a comprehensive road development project spanning approximately 88 kilometers across the city. This ambitious initiative carries an estimated cost of Rs 310 crore, marking a significant investment in Visakhapatnam's future.

A First for Andhra Pradesh

Visakhapatnam becomes the first city in Andhra Pradesh to adopt the hybrid annuity model for road development. This innovative approach represents a departure from traditional methods and promises more efficient project execution. The state government has specifically selected Visakhapatnam as the pilot city for this groundbreaking initiative.

Project Scope and Implementation

The project will unfold in two distinct phases. First comes a construction period of one year, followed by ten years of operation and maintenance. GVMC has carefully identified road stretches totaling 88.35 kilometers across zones II, III, IV, V, and VI of the city. These selections were based on multiple factors including technical feasibility, traffic density, and strategic importance.

The identified routes cover key arterial roads and VVIP movement corridors, ensuring the project addresses the city's most critical transportation needs. After receiving approval from the GVMC council, the proposal also secured the necessary nod from the state government, clearing the path for implementation.

Breaking from Tradition

Traditionally, GVMC has handled roadworks through a fragmented approach. The corporation typically awarded smaller stretches to multiple contractors on a piecemeal basis. This method often led to coordination challenges and inconsistent quality across different sections of the city's road network.

Under the new hybrid annuity model, the entire project will be entrusted to a single contractor. This consolidation represents a fundamental shift in how Visakhapatnam manages its infrastructure development. GVMC Commissioner Ketan Garg emphasized that assigning the project to one contractor would avoid delays caused by multiple tendering processes while ensuring better quality execution throughout the project lifecycle.

Financial and Operational Advantages

The hybrid annuity model offers substantial financial benefits for the municipal corporation. Currently, GVMC spends approximately Rs 90 crore annually on road maintenance under a need-based system that requires frequent tendering. The new model consolidates all works under one contractor, potentially reducing administrative overhead and improving cost predictability.

Commissioner Garg explained that revenue generated through advertisements and other income streams along these corridors will be adjusted against annuity payments. This innovative financing approach helps optimize municipal resources while ensuring sustainable infrastructure maintenance.

Comprehensive Development Scope

The project scope extends far beyond simple road construction. The selected bidder will be responsible for a wide range of infrastructure improvements including:

  • Maintenance of roads during the development period
  • Improvement and upgradation of existing carriageways through new pavement construction
  • Development of road intersections and interchanges
  • Drainage system improvements
  • Median and kerb construction
  • Street lighting installation and maintenance
  • Greening along medians
  • Comprehensive road beautification works

Additionally, the contractor's responsibilities will include capital expenditure on various urban amenities. These encompass street lighting systems, utility ducts, CCTV cameras for enhanced security, dustbins, public benches, safety equipment, major junction development, bio-toilets, parking facilities, wayfinding systems, and modern bus shelters.

Long-term Maintenance Commitment

Following the one-year construction phase, the contractor will assume operation and maintenance responsibilities for a full decade. This extended commitment includes:

  1. Mechanical sweeping of road surfaces
  2. Regular drainage cleaning
  3. Prompt pothole repairs
  4. Landscaping maintenance
  5. Streetlight upkeep and repairs
  6. Road marking maintenance
  7. Maintenance of street furniture
  8. Civil and electrical works at junctions

This comprehensive maintenance plan ensures that the newly developed infrastructure will remain in optimal condition for years to come, providing lasting benefits to Visakhapatnam's residents and visitors.

Expert Support and Advisory

To ensure successful project implementation, GVMC will receive specialized support from Andhra Pradesh Urban Infrastructure Asset Management Limited. This organization will provide crucial transaction advisory services and independent engineer consultancy throughout the project lifecycle. Their expertise will help navigate the complexities of the hybrid annuity model and ensure technical standards are maintained.

The Visakhapatnam road development project represents a forward-thinking approach to urban infrastructure management. By embracing the hybrid annuity model, the city positions itself at the forefront of municipal innovation in Andhra Pradesh. This initiative promises not only improved roads but also enhanced urban amenities that will elevate the quality of life for all Visakhapatnam residents.