East Hyderabad Expressway

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In October 2007, Hyderabad Urban Development Authority (HUDA) signed a 15 year contract(includes a construction period of 30 months) with East Hyderabad Expressway Ltd. (EHEL) for construction of a 13 km stretch on Outer Ring Road (ORR) between Pedda Amberpet and Bongulur, in Andhra Pradesh. It is a part of Greater Hyderabad Growth Corridor Project (Outer Ring Road Project). Under the contract, EHEL was responsible for the design, construction, development, finance, operation and maintenance of the 13 km stretch of the eight lane access controlled expressway. This ring road is expected to decongest the traffic flow on the existing major arterials and relieve congestion on metropolitan area and inner ring road and meet the future demand. EHEL, a joint venture between IL&FS Transportation Networks Limited and KMC Constructions Limited EHEL, was established to implement this project. The consortium won the tender through domestic competitive bidding, conducted by HUDA, by asking for the lowest annuity payment. Under the contract EHEL was allowed to recover the capital costs and operating costs including returns, through a fixed annual payment (annuity) from HUDA during the operation period. Under the annuity scheme, the private operator was not allowed to collect tolls from the users. The project reached financial closure in October 2007. The total capital cost of the project was estimated at US$ 106.95 million. Construction work on the project began in October 2007 and was expected to be completed by March 2010. www.projectstoday.com www.pppinindia.com