The Hindu 16.11.2009
Public-private partnership model for development work
Special Correspondent
| Projects include de-congesting 600 km of roads in the city |
The cost of projects will be shared by the BBMP and the firm that gets the contract
The company involved will be held accountable for quality of work
Bangalore: The Bruhat Bangalore Mahanagara Palike (BBMP) does not foresee any financial crunch for the implementation of infrastructure work worth Rs. 22,000 crore in the city as it will be opting for the public-private partnership (PPP) model for many of the projects.
Though the civic body is expected to receive funds from the State Government and the Union Government under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) and also borrow from financial institutions, BBMP Commissioner Bharat Lal Meena told The Hindu that most of the infrastructure projects will be implemented under the PPP model that envisages investment by the contractor bagging the project.
The infrastructure projects include de-congesting 600-km stretch of road by widening and turning them into four-lanes besides constructing underpasses and overbridges at a cost of Rs. 8,000 crore.
Construction of 40 parking plazas, 200 markets and modernisation of storm-water drains are also on the anvil.
The contractors to be chosen for implementing the infrastructure projects will have to demonstrate their access to liquid assets and other financial means sufficient to meet the cash flow.
BBMP share
“The BBMP will pay about 50 per cent of the project cost. The balance will have to be invested by the contractor and the BBMP will repay it over a period of 10 years by instalments. The contractor will have to factor his profit also in the instalments due to him,” Mr. Meena said while explaining the terms of the PPP.
The model envisaged by the BBMP also ensures that the contractor is held accountable for the quality of work at least for 10 years.
The BBMP has announced the eligibility and the qualification required to file the tender application.
Also, BBMP, which is now mobilising Rs. 800 crore to Rs. 900 crore annually by way of property tax, its main source of revenue, the figure is expected to go up to Rs. 2,000 crore in a year’s time.
“Several properties in Bangalore had escaped the tax net. But, now these properties have been included in the revised database prepared through Geographic Information System (GIS). The number of properties in the city will go up to 17 lakh from the eight lakh listed earlier,” he said.
Almost ready
The exercise of preparing a revised database through GIS is almost complete, and the BBMP will begin realising its fruits from next year, Mr. Meena added.
In addition, Mr. Meena said the BBMP will net around Rs. 5,000 crore through the Akrama Sakrama procedure envisaging regularisation of unauthorised revenue properties in various parts of the city.
“All this will help increase our repayment capacity”, he said.
