Hyderabad explores PPP model for Mir Alam Tank and two elevated corridors

The Telangana government is aiming to take up the urban civic infrastructure projects in public-private-partnership mode, as evident from a few recent tender notifications by the Hyderabad Metropolitan Development Authority (HMDA).

The HMDA has invited proposals from the transaction advisory consultants for three of its projects -- construction of iconic bridge across the Mir Alam Tank, and construction of two elevated corridors from Paradise, Secunderabad, all to be taken up in PPP mode.

Hitherto, such projects were being taken up in EPC (Engineering, Procurement & Construction) mode, whereby funding for the project would be the government’s responsibility. The transaction advisor firms would assist the urban development authority in structuring the project in a way that would make the projects “financially viable and attractive to private sector developer,” the tender notification said.

This would involve ensuring that the project is bankable or financially feasible and attractive for investment by private companies, it said.

In case of Mir Alam Tank, the consultant would also formulate an area development plan, apart from facilitating the project implementation.

The Mir Alam project includes construction of an aesthetically designed cable stayed bridge across the tank for a length of 2.65 kilometres, beautification of lakefront, development of supporting infrastructure such as parking, access roads, lighting, and retail outlets and eateries, apart from development of tourism infrastructure, such as view points, information centres and cultural installations highlighting the local heritage.

Private sector will be involved in financing, constructing and possibly managing the facilities, the document said.

Proposals have been invited from the elected panel of transaction advisors as issued by the Department of Economic Affairs, Union Ministry of Finance, empanelled transaction advisory consultant with the National Highway Authority of India (NHAI).

While the revenue model of Mir Alam project is self explanatory, it is not yet clear how the two elevated corridors could be made profitable for the private entrepreneurs, to explore which is one among the briefs given for the transaction advisory consultants.

The two corridors are being planned from Paradise -- one up to ORR junction of Shamirpet on the State Highway 01, and the other up to Dairy Farm Road on the National Highway 44.

Metropolitan Commissioner Sarfaraz Ahmad said financing of the two projects would be more complex than that of the previous projects. Ruling out collection of toll, which is the norm for privately funded road projects, he said the possibility of loans and other means would be explored.