The Hindu 28.11.2013
Chennai to get roads under PPP on Kerala model
The State government is planning to develop urban roads
in the Chennai Metropolitan Area under Public Private Partnership (PPP)
based on the model adopted in Kerala.
Following the
first meeting on PPP for urban roads held by the State government on
Wednesday, the Chennai Corporation has decided to study the feasibility
of using the model to design, construct and maintain urban roads in
newly added areas.
“A number of neighbourhoods in
added areas need new roads. Such areas may benefit from the adoption of
the model,” said an official of Chennai Corporation.
The
civic body has decided to complete 18,000 roads by May 2014. New roads
to tackle traffic congestion may also be developed based on the model.
The Union Ministry of Urban Development this month asked the State
government to explore the possibility of construction, operation and
maintenance of urban roads through a PPP model. The Ministry cited the
model adopted in Thiruvananthapuram where a private entity was
identified for urban road improvement.
“The roads
developed under the model will be toll-free. This is done through a
Special Purpose Vehicle (SPV) with responsibility of design, operation
and maintenance of roads for 15 years in an integrated manner. The
traditional system of repairing the road has impaired the landscape and
storm water drains,” said an official of Chennai Corporation.
The
local bodies in the State, including the Chennai Corporation, have been
trying to get funds from development banks from other countries to cope
with insufficient budgetary allocations from the Union Government. The
Union government is also promoting the PPP model to cope with issues
pertaining to funding. The model adopted in Kerala identified a
consortium to develop, operate and maintain urban roads.
Land
acquisition and financial risks were, however, tackled by the State
government and the concessionaire was responsible for investment. The
recovery for the concessionaire is made by annuity payments from the
central road fund.