Nhai Golden Quadrilateral Project

NHAI
GOLDEN
QUADRILATERAL
PROJECT
Golden Quadrilateral Project
5,84
6
kms
Total
Lengt
h
32,49
2
crore
Project
Cost
12
Years
Time
taken for
completi
on
Passes
through
Delhi
13
State
s
Started by Vajpayee-led NDA Govt,

1st phase of NHDP and managed by
NHAI
Completed at half estimated cost of
Rs 60000 crores
Included construction of a few new
express highways and extension of
the existing road to four or six lanes
Kolkata
Mumbai
Chennai
Socio-economic benefit
envisaged
Infrastruct
Improved national
ure
transportation network
Environmen
Reduced
congestion on the
t
national highways
Less fuel consumption
Development of new
cities along the corridor
Manufactu
Boost to manufacturing
ring
sector
Lower inventory holding
Reduced transportation
cost(VOC)
Peopl
Closing the gap
between
rural and
e
urban centers
More alternative job
opportunities
Comfortable, smoother
and safer road journeys
Agricultur
e
Opportunities for farmers,

through improved
transportation of produce
from the agricultural
hinterland to major cities
and ports for export,
through lesser wastage and
spoils
Employm
ent
Generate huge employment

opportunity in road construction,
manufacturing sector, cement, steel
industry etc
Econom
y
Impetus to
industrial and job
development in
smaller towns
through access to
markets
It boosts the
economic growth
directly and
indirectly through
construction or
demand for steel,
cement, and other
construction
materials.
3
Government
of India
NHAI
World Bank
ADB
Private banks
IL&FS
Contractor
s
Sponsors
Sponsors and Major Contractors
Larsen &
Toubro
Nagarjuna
Construction
Consortium of
GVK and
BSCPL
Punj Llyod
Unitech
Progress of the project
Project distribution and financing

Mode of projects:
Conventional contract(EPC) Funded by
NHAI, External assistance(ADB,WB etc)
Private
BOT(Toll)
sector route
BOT(Annuity) ..
Type
Description
Development risk
Financi
ng risk
Traffic
risk
Reven
ue
Concessio
n period
Toll
Private Party builds road, undertakes

O&M and collects toll
Private
developer
Private
developer
Private
developer
Toll
20-25 years
Annuit
y
Private Party builds road, undertakes

O&M and collects annuity from granting
authority
Private
developer
Private
developer
Authority
Annual
payment
s
20-25 years
EPC
Private Party builds the road, money is

spent by the government
Private
developer
Authority
Authority
Contract
amount
No
requirement
Project distribution
Project Financing
NHAI
1330KM
World Bank
1050KM
37%
ADB
810KM
Market borrowing
18.5%
PPP(13)
760KM
PPP
7.5%
Others
1896 KM
Cess(CRF
mechanism)
37%
External assistance
Policy initiatives and toll charges

Government will carry out all preparatory
work including land acquisition and utility
removal
NHAI / GOI to provide capital grant up to
40% of project cost to enhance viability on
a case to case basis
100% tax exemption for 5 years and 30%
relief for next 5 years, which may be
availed of in 20 years.
Concession period allowed up to 30 years
In BOT projects entrepreneur are allowed to
collect and retain tolls
Duty free import of specified modern high
capacity equipment for highway
construction.
100% FDI in road sector
Project cost estimate &

evaluation
i)
Cost estimate
Cost
break-up
i)
Civil Works
80%
ii)
Land acquisition/resettlement(ROW)
2-3%
iv) Environmental mitigation
1%
v)
Consulting services
ii) EPC mode- normal bidding and contract process

iii) PPP- mode ( Concession period 20-25 years)
6-7%
iii) Relocation of utilities

3%
vi) Project management
Economic cost benefit analysis

Base year traffic volume
ii)
Traffic forecast - Annual growth rate
iii) Traffic capture ratio

iv) Financing mode
v)
Operation & maintenance cost
Private
developer
basis for
ROI
calculation
vi) Sensitivity analysis to in increase in project cost/

project delay/increase in O&M cost
vii) Vehicle operating cost and time savings( Basis of

toll calculation)
viii) Poverty impact assessment
ix) Environmental impact
BOT(Toll) financially viable projects
BOT(annuity) financially not viable

projects
NHAI to provide VGF upto 40%
Toll charges regulated by NHAII(adjusted for

inflation)
1%
vii) Interest during construction(External assistance)

4-5%
i)
DPR(Surveys,Project
financing,
feasibility study)
implementation
i)
Private developer arrange funds by forming

consortium and from lenders(banks/financial
institutions)
International Bidding
competitive
bidding: Projects
process
financed by international lending agencies & for
larger projects
ii) Local (National) Competitive Bidding

(LCB/NCB): Projects financed by NHAI
iii) Concession period, toll rates, price indexation and
technical parameters are clearly stated upfront
iv) Stage-1: Pre-qualification - on basis of technical
and financial expertise of the firm and its track
records on similar projects.
v) Stage-2: Commercial bids from pre-qualified
bidders
vi) EPC project lowest bid amount
vii) Annuity projects awarded on least annuity
amount quoted
viii) Toll based projects awarded on least grant
(Highest revenue sharing or highest negative
Toll Calculation
The rates provided in the rules for conversion of projects from 2 lane to
4 lane sections of National Highways were decided considering the
following principles:
a) Fee should be as a percentage of savings(50%) in vehicle operating
cost
b) Fee should be related to damage caused by vehicles
c) Fee should be as perceived to be acceptable to the users
Vehicle Category
Rs/km
(2008
rates)
Cars, jeep, van, light motor

vehicle
0.65
Light commercial vehicle
1.05
Bus or truck
2.20
3-axle commercial vehicle
2.40
Heavy construction
machinery, multi axle vehicle
(MAV) 4 to 6 axles
3.45
Oversized vehicles 7 or more
4.20
To be revised every year:

Increase of 3 per cent
without compounding
40 per cent of the
increase in the Wholesale
Price Index (WPI).
Thank you

Nhai Golden Quadrilateral Project

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Nhai Golden Quadrilateral Project

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NHAI

Golden Quadrilateral Project

Started by Vajpayee-led NDA Govt,

Opportunities for farmers,

Generate huge employment

Sponsors and Major Contractors

Progress of the project

Project distribution and financing

Private Party builds road, undertakes

Private Party builds road, undertakes

Private Party builds the road, money is

Policy initiatives and toll charges

Project cost estimate &

iv) Environmental mitigation

ii) EPC mode- normal bidding and contract process

iii) Relocation of utilities

vi) Project management

Economic cost benefit analysis

Traffic forecast - Annual growth rate

iii) Traffic capture ratio

Operation & maintenance cost

vi) Sensitivity analysis to in increase in project cost/

vii) Vehicle operating cost and time savings( Basis of

BOT(Toll) financially viable projects

BOT(annuity) financially not viable

NHAI to provide VGF upto 40%

Toll charges regulated by NHAII(adjusted for

vii) Interest during construction(External assistance)

Private developer arrange funds by forming

ii) Local (National) Competitive Bidding

Cars, jeep, van, light motor

Light commercial vehicle

3-axle commercial vehicle

Oversized vehicles 7 or more

To be revised every year:

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