The consortium of Reliance Infrastructure Ltd and Hyundai has emerged as a preferred bidder for the construction of the Worli-Haji Ali sea link.
The consortium of Reliance Infrastructure Ltd and Hyundai has emerged as a preferred bidder for the construction of the Worli-Haji Ali sea link — the extended arm of the much delayed Bandra-Worli sea link.
The consortium has quoted a viability gap much lesser than that of the other contender, a consortium of Hindustan Construction Company (HCC), British firm John Laing and Korean giant Samsung.
The financial bids for the 4.7-km-long Worli-Haji Ali sea link were opened on Wednesday at the Maharashtra State Road Development Corporation (MSRDC) office in Bandra. According to the financial model designed by the MSRDC, the winning bidder has to buy the Bandra-Worli bridge by paying Rs1,634 crore upfront. It can then construct the Worli-Haji Ali sea link and collect toll from Bandra-Worli for a period not more than 40 or 50 years.
The cost of the two bridges has been estimated roughly in the range of Rs4,500 to Rs5,000 crore. The bidders were asked to derive the viability gap funding (VGF) figure which would be needed to be paid by the MSRDC. Reliance-Hyundai quoted a figure of Rs1,392 crore whereas HCC-John Laing-Samsung quoted Rs2,466 crore as their viability gap requirement.
"Once our consultants (Arup CES and Ernst & Young) give a final go-ahead for the VGF, the proposal will be sent for approval to the state cabinet. However, neither bidder has specified the concession period in which they expect to earn their dues through toll collection; this decision too needs to be taken. But since Reliance-Hyundai's quote is almost Rs1,000 crore less than the other consortium's, they are likely to bag the contract," said a top MSRDC official requesting anonymity. Officials from HCC -- which has constructed the Bandra-Worli bridge -- were not available for comment.
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