Fresh bids likely for some road projects in Bihar

Project Today reported that the National Highways Authority of India is likely to re invite bids for some road projects valued at INR 9,000 crore in Bihar under risk free model with the Union Government guarantee as the projects did not gather any response from the bidders.

In order to make the projects attractive for the bidders, NHAI is restructuring these projects by converting them from build operate transfer toll pattern to BOT annuity.

The proposed projects to be offered include
1. INR 831 crore Mokama-Munger stretch
2. INR 1,374 crore Khagaria-Purnea stretch
3. INR 1,797 crore Patna-Buxar road
4. INR 1,663 crore Khagaria-Bakhtiarpur project
5. INR 1,013 crore Sonbarsha-Muzaffarpur project

In a BOT annuity model, the government provides a pre-determined cost of return on investments every year to the private player, while in BOT toll model, the private player has to depend on future toll collections.

(Sourced from Project Today)