The GMR Group led consortium has emerged as the lowest bidder in an international competitive bid for the Rs 1,100 crore Chennai outer ring road (ORR) project in Tamil Nadu on a design, build, finance, operate and transfer (annuity) basis. It is anticipated that the ?letter of award? will be issued in the next few days by the Tamil Nadu government. This is the group’s first state highway project. GMR has successfully completed six national highway projects as per schedule and has recently won the 181-km long Hyderabad-Vijayawada stretch.
The Chennai outer ring road project measuring 29.65 kms entails design, construction, development, finance, operation and maintenance of the six lane and two service lanes from the Vandalur to Nemilicheri section in Tamil Nadu. The concession period is for 20 years, which includes a construction time of 30 months.
Commenting on the significance of the project, O Bangaru Raju, managing director of GMR Highways Pvt Ltd and director of GMR Infrastructure Ltd said, “This greenfield project will ensure smooth flow of traffic and will be built to world class standards. Once completed this will give a tremendous boost to real estate development and trade and commerce in the region.”
GMR Group had entered the highways business in 2001 by winning two projects with a benchmark annuity offer. It has even received an early completion bonus from the NHAI for completing the Tambaram-Tindivanam project in Tamil Nadu ahead of schedule. Currently, the Group has a balanced portfolio of three annuity projects and three toll projects (toll operations for two projects have already commenced) totalling 420 kms across the length and breadth of the country. All six projects have been completed as per schedule including the Tindivanam – Ulundurpet project that will commence toll operations shortly.
GMR Group is a Bangalore headquartered global infrastructure major with interests in airports, energy, highways and urban Infrastructure. The company has successfully employed the public-private partnership (PPP) model to build a portfolio of high quality assets. It has ten power projects of which three are operational and seven are under various stages of implementation and the group has seven road projects, of which six are operational, one is under construction. In the airports sector, it has developed and commissioned the greenfield international airport at Hyderabad. The group, besides operating and modernising the existing Delhi International Airport, is also building a brand new integrated terminal T3 which will be commissioned in time for the Commonwealth games in 2010.
The Group has also acquired a 50% stake in global power generation company InterGen NV, marking its foray into the global energy sector. Further, the Group has acquired Intergen’s 100% ownership stake in Island Power – a Singapore based private electric power utility.
There were a total of five bidders for the Chennai Outer Ring Road project, such as Nagarjuna Constructions, BSCPL, Soma Enterprices and IVRC-led consortium, besides GMR Group.
Smooth ride
•?Letter of award? on Chennai outer ring road (ORR) project due shortly
•Chennai ORR Project measures 29.65 kms from the Vandalur to Nemilicheri section in Tamil Nadu
•Awardee will run project on build, finance, operate and transfer model