Delhi PWD to adopt annuity scheme for mega road redevelopment project


Express News Service

NEW DELHI:  In a first for Delhi, the state government’s Public Works Department (PWD) is going to adopt a Hybrid Annuity Mode (HAM) for its mega project Streetscaping and redevelopment of city roads in European standards. Under this model, 50 per cent of the cost will be provided by the government as construction support and the remaining 50 per cent as annuity payments along with interest thereon over the operational period to the concessionaire.

At present the central government uses this method for national highway projects. The agency which takes over the project through a tender process will also look after the maintenance of redeveloped roads for 15 years. The executing agency, PWD, will look after the overall project. According to sources, it will be the first-ever PWD project under the ‘annuity system’ and the ‘streetscaping and redevelopment of roads’ is one of the dream of projects and poll promises of Kejriwal.

The estimated cost of the project is Rs 12,000 crore. PWD has also sent a preliminary estimate (PE) for administrative approval and expenditure sanction, said the sources adding, “the project was aimed to start this year and estimated to be completed in the next three years i.e, by 2023. But, it got delayed due to the pandemic. Also, the government is going through financial crunch.

Hence, under this model, the it can implement the project within the available financial resources and revive private sector participation in road development,” said the sources. Last year August, PWD had floated tenders in multiple packages for consultancy work and preparing a detailed project report (DPR).

As per senior government officials, about 10 consultants including Delhi Integrated Multi- Modal Transit System (DIMTS), participated in the bidding process, of which about six to seven different consultants have been appointed for preparing the DPR of more than 500 kilometres of 162 stretches of Delhi roads on the lines of European roads. In the 2019, the PWD began the project on a pilot basis for 10 most congested stretches. Officials said that most roads in the national capital are uneven due to encroachments, haphazard parking and traffic congestion, leaving no space for pedestrians.


European Road development style

500 kms City roads to get facelift

Rs 12,000 cr Estimated cost

Stretches to be redesigned
41 (South and South East)
32 (South West)
47 (East and New Delhi)
42 (West and North West)

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