Golden Quadrilateral Case Study
Golden quadrilateral:
The Government of India’s initiative for connecting the four major metropolitan cities namely Chennai, Kolkata, Delhi and Mumbai by expansion of existing national highways was taken in2001. The expansion project included linking of various major cities in India such as Vishakhapatnam, Pune, Kanpur, Vadodara and a few.
The basic highlights of this project are as follows:
• Funding is done through securitization of annuity payments which the GMR led consortium would obtain after the construction period.
• Evaluation of various modes of PPP projects and ending up at BOT (build operate and transfer) mode.
• Necessary support through state support agreement and NHAI authority
• Experience and strength of the consortium and …show more content…
Risk element: the risk related to finance is explained in the previous factor. The risk related to project is balanced by long term contracting one of the partners of consortium for O&M works, UEM by transferring the substantial risks.
4. Environment clearance and land acquisition works: The responsibility of getting environmental clearances and acquiring the required land is solely dependent on the NHAI reducing the burden on the concessionaire. The state support agreement with the GTAEPL also ensured the necessary clearances for the project to take place. Also one advantage of the project is that this is an expansion project, so the land encroached particularly for the project is not much significant.
Public benefits of this project:
1. Both places are towns which serve the in around villages located nearby. Hence, with the proper highway, local people are able to carry out their commercial activities more healthily.
2. The traveling time is reduced since the availability of proper carriage way and the four lane system resulting in the travelling cost.
3. Fiscal saving for the state since operating cost is borne by private company.
4. Due to the construction of a national highway, various employment opportunities are created in the local …show more content…
Once the highways are created, there increased some investment in industries nearby. Economic activities increased.
Type of the project:
The project was actually thought to be taken by direct or shadow tolling. After feasibility study, it is found that the willingness to pay from customers is less and the project is not feasible through that mode. Hence, the project is taken over by BOT annuity basis. Through this, the NHAI agreed to pay the concessionaire a sum of INR29.48crore semi-annually to compensate for the capital, operating and maintenance costs involved for a period of 15years 6months(9th may 2005 to 9th November 2019).
Value of the project:
The estimated project cost is INR 315crore. But the concessionaire was able to complete the project within the estimated cost of INR
The Government of India’s initiative for connecting the four major metropolitan cities namely Chennai, Kolkata, Delhi and Mumbai by expansion of existing national highways was taken in2001. The expansion project included linking of various major cities in India such as Vishakhapatnam, Pune, Kanpur, Vadodara and a few.
The basic highlights of this project are as follows:
• Funding is done through securitization of annuity payments which the GMR led consortium would obtain after the construction period.
• Evaluation of various modes of PPP projects and ending up at BOT (build operate and transfer) mode.
• Necessary support through state support agreement and NHAI authority
• Experience and strength of the consortium and …show more content…
Risk element: the risk related to finance is explained in the previous factor. The risk related to project is balanced by long term contracting one of the partners of consortium for O&M works, UEM by transferring the substantial risks.
4. Environment clearance and land acquisition works: The responsibility of getting environmental clearances and acquiring the required land is solely dependent on the NHAI reducing the burden on the concessionaire. The state support agreement with the GTAEPL also ensured the necessary clearances for the project to take place. Also one advantage of the project is that this is an expansion project, so the land encroached particularly for the project is not much significant.
Public benefits of this project:
1. Both places are towns which serve the in around villages located nearby. Hence, with the proper highway, local people are able to carry out their commercial activities more healthily.
2. The traveling time is reduced since the availability of proper carriage way and the four lane system resulting in the travelling cost.
3. Fiscal saving for the state since operating cost is borne by private company.
4. Due to the construction of a national highway, various employment opportunities are created in the local …show more content…
Once the highways are created, there increased some investment in industries nearby. Economic activities increased.
Type of the project:
The project was actually thought to be taken by direct or shadow tolling. After feasibility study, it is found that the willingness to pay from customers is less and the project is not feasible through that mode. Hence, the project is taken over by BOT annuity basis. Through this, the NHAI agreed to pay the concessionaire a sum of INR29.48crore semi-annually to compensate for the capital, operating and maintenance costs involved for a period of 15years 6months(9th may 2005 to 9th November 2019).
Value of the project:
The estimated project cost is INR 315crore. But the concessionaire was able to complete the project within the estimated cost of INR