The Public Private Partnership (PPP) agreement signed by the State, Public Works Department and the Thuvananthapuram Road Development Company Ltd (TRDCL) for development of 43.26 km of roads into corridors of world class standard can be terminated only by following the Dispute Resolution Process envisaged in the pact.
Failing to initiate the Dispute Resolution Process and termination of the tripartite agreement suo motto will lead to the payment of a hefty compensation to the TRDCL by the government. Almost 150 % of the investment money will have to be paid.
“Action taken by the government in the last two years in the case of TCRIP has not given the desired results. This is a clear indication that there is lack of understanding of the PPP project. It is still not late to call the TRDCL to the discussion table with an open mind to take the project forward and to allow the people to enjoy the benefit,” says the former Managing Director Anil Kumar Pandala. The TRDCL is in a fix as the government is yet to release fully the ₹19 crore of the total arbitration amount of ₹124.947 crore despite taking it at the highest level. Over ₹1.5 crore is pending to the TRDCL even now, it has been pointed out.
The roads developed in the first phase 2006-2007 are into mid-way of the 15-year maintenance contract and needs immediate overlay as uneven patches are offering a bumpy ride. In the Phase I of 14.26 km road corridors completed in 2006, the payment of ₹12 crore as annuity began in 2008 and will go on till 2023.
Annual annuity
In the Phase II of 15.7 km, the annual annuity payment is ₹13.8 crore. A sum of ₹6.6 crore is for the 9-km Phase II and ₹3.8 crore, for the 3-km Phase IV. The last tranche will go on till 2031 as the last CRIP corridor was certified only in 2016. TCRIP has been commissioned and the payment of annuity, including cost of construction, interest, and 15-year maintenance cost, will end in 2031.