Peripheral Ring Road Tenders to Go 'Swiss' Way

Published: 22nd December 2015 04:20 AM  |   Last Updated: 22nd December 2015 04:20 AM   |  A+A-

BENGALURU:  For the first time in its history, the Bangalore Development Authority (BDA) has proposed going in for a novel tendering system in order to find a private concern to fund a major part of its `11,950-crore Peripheral Ring Road (PRR) project, which aims at decongesting the City.

“The project requires `8,100 crore just to be handed over as compensation to farmers, who have given up their land, of a total area of 1,910 acres, for the sake of the project,” said BDA Commissioner T Sham Bhat. “We have just sent a proposal to the BDA Board to permit us to go in for a different kind of tendering process, the Swiss Challenge Method to fund it.”

The Board meeting is on December 30 and it is likely to okayed, Bhat said.

Under this tendering process, only one private concern will be entrusted with the entire project. “They will be allowed to mobilise resources by collecting toll along the route,” the Commissioner said.

The BDA has planned initially to collect the toll money but that plan appears to have been shelved right now. “Only very big companies will be in a position to bid for it due to the huge amount involved. The Tata Group has made enquires in this connection,” he added.

There is no other way that to decongest the City’s traffic other than this project, Bhat said.

The Need For Funds

It may be recalled that just a month ago, the Centre had given the green signal for the project in New Delhi. The Japan International Cooperation Agency (JAICA) had agreed to execute the project at a cost of `3,850 crore.

During the meet, it was decided that the State and BDA would together cough up the land acquisition cost. “We do not have much funds with us. We need much funds from the State. The Chief Secretary has asked the State to provide us funds.

The State has said it will consider including funding for it in the State Budget,” Bhat added.

The PRR project was conceived 10 years ago but litigation over land had stalled it. It will be a 65-km, eight-lane project around the Outer Ring Road. It will link Tumakuru Road and Hosur Road, intersecting Dodaballapur Road, Ballari Road, Old Madras Road and Sarjapur Road.

As per the present plan, the merger of the Peripheral Ring Road with NICE Road is envisaged to form a circle. The BDA hopes to complete it within three years.

What is the Swiss Challenge

Swiss challenge method is a process of giving contracts in which any person with credentials can submit a development proposal to the government. That proposal is then made online and a second person can give suggestions to outdo that proposal. An expert committee can accept the best proposal and the original proposer gets a chance to accept it if it is an improvement on his/her proposal.

[The private concern that bags the tender will be allowed to mobilise resources by collecting toll along the route

T Sham Bhat,Bangalore Development Authority Commissioner


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