The National Highways Authority of India (NHAI) has invited bids for the fifth bundle of national highway projects under toll-operate-transfer (TOT) in the State of Gujarat. Separate bids have been invited for the two bundles each consisting of one national highway stretch. The last date of submission of bids is December 23.
The first bundle comprises the Palanpur-Radhanpur-Samkhiyali section of National Highway 27 from 589.6 km to 536 km under TOT-5(A-1). The second comprises the Palanpur-Radhanpur section of NH27 from 536 km to 472.8 km and the Radhanpur-Samkhiyali section of NH27 from 472.8 km to 430.1 km under TOT-5(A-2).
The total contract period of TOT is 20 years in which the concessionaire would be required to maintain and operate the stretch.
In lieu of this, the concessionaire would get the right to collect and retain user fees for these stretches for 20 years in accordance with prescribed fee rates under NH fee rules.
NHAI has regularly issued a request for proposals (RFP) to award contracts for tolling, operation and maintenance of various national highway stretches on a TOT basis. The TOT Bundle-I consisting of nine projects, totalling 681 km of highways in the states of Andhra Pradesh and Gujarat, was awarded in 2018 for Rs 96.81 billion, which was 1.5 times higher than the agency’s estimate.
TOT is an asset recycling programme wherein already operational national highways are being provided to private entities on a long term concession basis. The TOT operator has a right to collect user fees and has an obligation to operate and maintain as per international standards the respective stretches during the concession period.
The TOT model has been developed to encourage private participation in the highways sector and generate more resources for the construction of future highways.