Visakhapatnam (Metro Rail News): The Visakhapatnam Metro Rail Project is further delayed as it is yet to get the new government’s approval. Evaluation committee had shortlisted five bidders for RFP (request for Proposal) in March 2018, who submitted their bids last January.
Tenders were supposed to be finalised even before the general election, as per the earlier schedule. Officials are in no haste to take any decision as it may go against the policies and priorities of the new government as there has already been delay.
The estimated cost of the project is Rs. 8,300 crore and the decision is yet to come. The state government through external commercial borrowing, will have to shoulder about 52% cost of the project, that is more than half the expenditure, towards developing civil infrastructure and the successful bidder will have to contribute the remaining amount towards the development of non-civic infrastructure.
Now, there is no certainty that the new government will continue the talk with Korea EximBank or choose a new borrower. Earlier the government had initiated talks with the export import bank of Korea (Korea Eximbank) for loan.
The metro rail project revealed that officials have to first inform the state government about all the developments of the metro project and tendering process.
The source said that,” The project can be taken forward only after getting a nod from the state government. The global tendering process had taken about 18 months. It is hoped that the question of cancelling the tenders or re-examining the tendering process will not arise given the transparency with which it was conducted.”
The Amaravati Metro Rail Corporation was supposed to commercially develop the land and use the revenue from it to help the government repay the loan. The TDP government had not only sanctioned land for the metro rail project but also sanctioned 250 acres of land to AMRC within the city.