National Highways Authority of India (NHAI) has invited bids for the second bundle of national highways under the TOT (Toll Operate Transfer) model. The bundle consists of 8 stretches of national highways in the states of Rajasthan, Gujarat, Bihar and West Bengal. Total length of the project is 586.552 km and there are 12 toll plazas on these 8 road stretches. The bid due date is November 5, 2018.
Concessionaires have to quote the bid concession fee against NHAI’s estimated Initial Estimated Concession Value (IECV) of Rs 5,362 crore. TOT bundle-II also involves initial construction cost of Rs 929 crore. The total contract period of TOT is for 30 years, which may increase/decrease by 10/5 years based on increase/decrease in traffic. The concessionaire would be required to maintain and operate the stretch during this period. In lieu of this, the concessionaire would get the rights to collect user fee for this period, in accordance with prescribed fee rates under NH Fee Rules.
It may be recalled that for TOT bundle-I of 648 km, Macquarie had quoted highest as 1.5 times against the NHAI IECV of approx. $1 billion (Rs 6,258 crore). The highest bid of Macquarie was approx. $1.5 billion (Rs 9,681 crore).