• Infrastructure
June 2014

Special projects

Not much special left about them

1.Mumbai Trans Harbor Link

MMRDA conceptualized the Trans-Harbour-Link (MTHL) to connect the Island city and main land (Navi Mumbai) through a sea-link about 30 years ago. The link is expected to facilitate decongestion in MMR and provide for development of the Navi Mumbai Region. But as is the case with almost all infrastructure projects in the city, the time from conceptualization to execution to operations usually spills over from one generation to the next.

The recent timeline of the project panned out in the following manner:

•In 2009, Govt of Maharashtra appointed MMRDA as the implementing agency for the project.

•In 2011, MMRDA was authorised to undertake the project on PPP with 20% Viability Gap Funding of Rs 19.26bn (TPC Rs 96.3bn) from the GoI.

•MMRDA invited bids for consultancy services to which seven consortia responded. ARUP-CES-KPMG (JV) was appointed as the consultant for the project.

•In November 2011, proposals were invited globally for pre-qualification for developer for the project – 5 consortia were declared pre-qualified.

•In July-2013, MoEF granted CRZ clearance to the project.

•Bid documents were issued to the pre-qualified consortia in Jan-2013. However, no bids were received until the bid due date of 5th August 2013.

•It is now proposed that the project be implemented on an EPC basis, with the help of loan obtained from JICA (Japan International Cooperation Agency).

One of the primary reasons no developer evinced interest in the project is because of the track record of projects in the city and the state. The Bandra-Worli-sea-link (BWSL) was mired in controversies from the beginning and the project got delayed by over seven years primarily due to the failure of the government in obtaining CRZ and other clearances.

Notwithstanding the apathy of the government and authorities, the project, if and when it is completed, promises to be a landmark one. It will include a 16.5-km-long sea link and 5.5-km-long viaduct on land. This link consisting of a 6-lane (3+3) carriageway will have interchanges at Sewri in Mumbai and near Chirle village at NH-4B. Once complete, the MTHL is expected to reduce the current travel time of 90 minutes to less than 30 minutes.

Coastal Road / Bandra-Versova Sealink

After the completion of the Bandra-Worli Sea Link (BWSL), MSRDC decided to extend the sea-link to Haji-Ali and eventually to Nariman Point. While the BWSL was constructed on EPC basis, MSRDC decided to award the extension to Haji-Ali on PPP basis.

•In June 2010, a Reliance Infrastructure-led consortium was selected as the developer through a competitive bidding process (HCC, which constructed the BWSL, was the only other bidder).

•The total project cost was estimated to be Rs 45.50bn, which included upfront payment of Rs 16.3bn for tolling rights on the existing BWSL and Rs 13.9bn of VGF to be provided by MSRDC.

•Reliance Infra achieved financial closure for the project in July 2011.

•However, the MSRDC was unable to provide state guarantee letter for the Rs 13.9bn VGF, as the state government was unwilling to take on a liability of this magnitude. MSRDC was also unable to provide land for a casting yard.

•Eventually, in September 2012, after months of negotiations and delays, Reliance-Infra terminated the contract. The company also lost Rs 1.5bn that it had spent on the project.

Such apathy from the government and authorities has resulted in developers shying away from state-govt projects in Maharashtra, and particularly Mumbai.

Nonetheless, the government now plans to replace the proposed Worli-Haji-Ali sea link with a coastal road, which will run along the western coast, to connect the two regions. The sea-link is now proposed to be extended backwards to form the Bandra-Versova sea-link. MSRDC and the govt of Maharashtra are chalking out plans for both

The 9-km-long Bandra-Versova sea-link will run approximately 900 metres off the coast, and is expected to be built at a cost of Rs 43.4bn. The Maharashtra Coastal Zone Management Authority (MCZMA) has cleared the project and passed it on to the Ministry of Environment and Forests (MOEF) with a recommendation that it be given a final go ahead. A marine geo-technical investigation, to obtain information on the physical properties of rock and soil on the sea-bed, began in October 2013 and the MSRDC hopes to begin construction before 2014 end. If all goes to plan, it is expected to be thrown open for public use by 2019.

Water transport system

Mumbai authorities have often cited the paucity of land (being surrounded by sea on three sides) as the main difficulty in executing on-the-ground infrastructure projects in the city. However, if the same argument was to be used, we should have had a robust water-transport system in the city, and transformed the city’s weakness into its strength. But it has taken decades for the authorities to realize that and we are finally about to get our first water transport system on the western coast.

In June 2012, MSRDC awarded orders to construct ferry terminals at six stations on the western coast of the city (Borivali, Marve, Versova, Juhu, Bandra and Nariman Point). The terminals are expected to be ready by FY15 end. Once complete, the WTS should absorb large share of the office-commuting public – both from the local trains and the roads. It is expected to ply ~80,000 passengers daily.

However, few key things would have to be kept a keen eye on:

• Whether the terminals will be constructed with significant over-capacity — so they can last at least for a few years without needing further expansion

• Whether the terminals will be integrated with the existing infrastructure (local, metro and buses) to provide for smooth interchange between all modes of transport

• Whether a similar network is approved and developed on the eastern coast, and is suitably connected to that on the western coast

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