Hectic bidding season ahead for NHAI road projects

Source:

Projects Monitor (28 Apr 2010): http://bit.ly/bDeExy
Projects Monitor (27 Apr 2010): http://bit.ly/bePZ05

Economic Times (26 Apr 2010): http://bit.ly/arL1St
NHAI Work Order Plan 2009-10: http://bit.ly/cpOMRU
NHAI Work Order Plan 2010-11: http://bit.ly/anme4Q

By the end of 2009-10 NHAI had awarded only 34 projects for 2,988 km as opposed to the original target of 23,472 km of projects distributed through FY10 and FY11. As per the revised work plan, NHAI now plans to award road projects covering 18,581km by the end of FY10. After admitting that India will not be able to meet its target of adding 20 km of highways every day, the Indian Transport Minister Mr. Kamal Nath seems to be stepping on the gas and pushing through as many projects as possible.

RfPs have already been invited for 3000 km of projects, while projects totalling another 6,317 km are lined up for bidding in December 2010. The lion's share of the projects awarded in 2009-10 went to IRB Infrastructure Developers Ltd, followed by IL&FS Transportation Network Ltd. and Reliance Infrastructure Ltd, but the large number of projects coming up should ensure a significant increase in opportunities for other companies as well. 

Adding to the mix are the recently updated bidding norms for NHAI BOT projects (http://bit.ly/9XfXax), which are likely to force companies into reducing the cycle time to financial closure. This might turn out to be a hectic and profitable year ahead for the infrastructure industry and also for service providers supporting the industry viz. environmental & engineering consultants, EPC/O&M contractors, financial consultants etc.