Govt expects to award 4,000km road projects under EPC by 2017

Govt expects to award 4,000km road projects under EPC by 2017 New Delhi: The government expects to award road projects of total length 4,000 km under the engineering, procurement and construction model in the next five years.

"We have entered EPC (engineering, procurement and construction) mode and in that mode we hope to award 4,000 km, and for this budget is available," Road Transport and Highways Minister C P Joshi told reporters on the sidelines of a FICCI event here today.

This ministry hopes to award these contracts during the current 12th Five-Year Plan period (2012-17).

Joshi said that the government hopes to get better premium on these projects as compared to last time.

"In the last round of bidding we received premium to the tune of Rs 3,000 crore," he said adding that this time we are hopeful of doing better.

The Cabinet Committee on Infrastructure, this month, approved the Model EPC Agreement Document for construction of 2-lane National Highways Works.

It will minimise, if not eliminate, the time and cost over-runs characteristic of the extant Item Rate Contracts. Further, this will enable a faster roll-out of projects with least cost and greater efficiency & flexibility encouraging Contractors to participate in such projects.

The EPC document has been structured in a manner that time overrun and cost overrun in implementation of National Highways works shall be minimised to a great extent and there will be optimisation of design and quality construction.

All the National Highways works which are not done on PPP (public-private partnership) mode would be undertaken primarily through the EPC mode.

"We have also recently got the approval of Cabinet Committee on Infrastructure for awarding the already completed projects in the NHAI domain on Operate-Maintain-Transfer or OMT basis," he said.

"I am concerned when I hear bids are not being received or only single bid is being received in well structured projects. We have made earnest efforts to understand the reasons thereof and wish to resolve the issues," Joshi said.

PTI