VIJAYAWADA: In a massive push to revolutionise freight logistics and integrate inland navigation with port infrastructure, the Andhra Pradesh Inland Waterways Authority (APIWA) has invited tenders for the Rs 1,700-crore Muktyala–Machilipatnam waterway project.
Designed to transform the 162-kilometre Bandar Canal corridor into a high-capacity cargo route connected directly to the upcoming Machilipatnam Port, the ambitious initiative is being rolled out under the Design, Build, Finance, Operate, and Transfer (DBFOT) model on a Public-Private Partnership (PPP) basis.
Under the project, the Bandar Canal stretch from Vijayawada’s Prakasam Barrage to Machilipatnam Port will be upgraded to international standards, ensuring a minimum channel depth of 1.5 meters and a bottom width of 20 meters.
A 15-meter-wide and 70-meter-long navigation lock will be built at the Prakasam Barrage to enable smooth vessel movement. The selected developer will also replace low-level obstruction bridges with new high-level bridges and relocate utility lines along the corridor.
The project will be awarded on a 50-year concession period (30+10+10 years) through a Special Purpose Vehicle (SPV), with a strict 36-month timeline to complete construction. In addition to canal development, the agency will construct cargo and passenger terminals, acquire required land, and install handling equipment such as cranes and conveyors in compliance with the Inland Vessels Act, 2021.
APIWA will assist in securing statutory clearances and land acquisition support. To qualify, prospective bidders or consortiums must demonstrate an average annual turnover and net worth of at least Rs 400 crore each over the last three financial years, along with a decade of infrastructure experience handling eligible projects worth at least Rs 1,500 crore.
The concession will be awarded to bidder offering the highest annual concession fee (H1) above the baseline quote of Rs 1 crore per year, with a five-year fee moratorium starting from the award date.
Online technical and financial bids can be submitted until November 30, 2026, at 2:00 PM, following a pre-bid meeting scheduled for October 26 at Tadepalli. Technical bids will be opened on December 7. All project assets and operational infrastructure will be transferred back to APIW without any encumbrances.