Palaspanga Bamebari Road

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In April 2006, the Public Works Department (PWD) of Government of Orissa signed a 10 year concession contract (including 15 month of construction period) to India’s Keonjhar Infrastructure Development Company Limited (KIDCO)to strengthen the 28 km section between Palaspanga and Bamebari in the state of Orissa. Under the contract, KIDCO was responsible for the rehabilitation, finance, operation and maintenance of the existing two-lane highway. The project was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The Government of Orissa awarded the contract on Negotiated (MOU) basis to KIDCO. While the details of MOU were not known at the time of collection of information, it is known that the SPV was to recover the capital costs and operating costs including returns through tolls during the concession period (excluding construction period). The concession agreement for the project was signed in April 2006. The total capital cost of the project was estimated at US$ 9 million. Construction on the project began in April 2006 and was expected to be completed by July 2008.