KOCHI: The state government is planning to form a special purpose vehicle (SPV) to implement the second phase development of the Vyttila Mobility Hub. The move comes in the backdrop of the Union Government asking the state to implement the project under the public-private-partnership (PPP) model.According to sources, the separate legal entity will plan the development projects to be implemented at the hub, execute them through potential bidders and also monitor and evaluate the projects.
The SPV, which will have a CEO, will be similar to the Cochin Smart City Mission Ltd — the legal entity formed to implement the Centre’s Smart City project. The Kochi Metro Rail Ltd (KMRL) will be a major stakeholder and is expected to provide necessary services as a knowledge partner.
“The decision to implement the project under the PPP model was taken as per the instructions given by the NITI Aayog when the project was submitted before the Finance Ministry. Earlier, the PPP plan was dropped as there was no bidder when the tender was floated for the project four years ago,” said a source. The initial plan was to implement the project with the support of AFD, the French development agency, the source said.
“Now, the state government is planning to form an SPV to manage the hub. The existing detailed project report (DPR) will be revised with the help of KMRL and the tender will be floated inviting EOI (Expression of Interest) from agencies. An order in this regard is likely to be issued after the local body polls,” the source said.Currently, the Vyttila Mobility Hub Society is managing the affairs of the hub.“That is only a governing body. Only an SPV can avail loans and make external borrowings,” the source added.
Development plan
The first phase of the Vyttila Mobility Hub was completed in 2011 at a total cost of Rs 14 crore. Though the second phase was mooted in 2011 itself, the project remained stuck. Late in 2016, KMRL was brought in to development the hub under which the DPR was prepared. The plan was to implement the second phase at an estimated cost of Rs 571 crore, 80 per cent of which was to be borrowed from AFD.
The development plan includes multi-storeyed parking facility, bays for 70 buses, and a commercial space including shopping complex, hotel and dormitory for the crew of long-distance buses. An area of 7.2 acres will be developed while the remaining land will be maintained as a green space.