Rs 6,400 crore mega projects to give a fillip to road connectivity in Andhra Pradesh

VIJAYAWADA: Aimed at facilitating better transportation, road connectivity and to link mandal headquarters with district headquarters, the Roads and Buildings department has proposed to take up two projects —  AP Mandal Connectivity and Rural Connectivity Improvement Project (APMCRCIP) and AP Roads and Bridges Reconstruction Project (APRBRP) — at an estimated cost of Rs 6,400 crore.

The Centre, State government and New Development Bank (NDB) signed loan agreements for $323 million each (NDB share 70 per cent) for the two projects on Wednesday. The agreement was signed by Department of Economic Affairs Joint Secretary Baldeo Purushartha and Principal Secretary (Transport and R&B) MT Krishna Babu and Xian Zhu, vice-president and Chief Operations Officer (CEO) of the NDB. 

This is the biggest Externally Aided Project (EAP) to be taken up in the road sector in Andhra Pradesh, officials said.  Disclosing details at a press conference held at R&B office here on Thursday, Minister for Roads and Buildings M Shankar Narayana said that Rs 3,200 crore each will be spent on the two projects — APMCRCIP and APRBRP — with the financial assistance of the NDB (NDB share-70 per cent & State share-30 per cent) for providing double lane connectivity from district headquarters to mandal headquarters and mandal head quarters to adjoining mandal headquarters. Under the project, 3,104 kms of roads will be widened and construction/reconstruction of 479 bridges will be taken up, he informed. The minister said administrative sanction was accorded for the first phase works worth Rs 2,978 crore for the development of 1,243 km of roads. Tenders were invited after the Judicial Preview. 

The department saved around Rs 85.43 crore by going for reverse tendering for the first phase works. Letters of authorisation (LOAs) were issued for all 13 packages. The first phase of works will be grounded in February and DPRs for the second phase of works are nearing completion. As per the guidelines, the State government has to complete the tendering process for at least 30 per cent of the project cost for entering into the loan agreement with the NDB. Recently, the department has completed the tendering process for the first phase works, coming to 45 per cent of the project cost. 

“The two projects are expected to improve mobility and connectivity to the socioeconomic centres, enhance transport efficiency, improve road safety and riding quality, and provide all-weather accessibility to the road users. The projects will contribute to the development of infrastructure, enhance road connectivity and safety, and provide connectivity between adjoining mandal headquarters and rural areas. The projects will also have a positive impact on employment generation and economic well-being,” Krishna Babu explained.

The Principal Secretary further said that the projects will expand the capacity of roads with high vehicular traffic, improve last-mile connectivity to ports and industrial hubs and enhance connectivity to rural areas, contributing to the enhanced socioeconomic development of the State. NDB funding will help bridge the funding gap for road infrastructure development and support the State government in achieving its goal of enhancing connectivity between socioeconomic centres in the State, the Principal Secretary added.

Later, Shankar Narayana along with Chief Secretary Adityanath Das and Krishna Babu called on Chief Minister YS Jagan Mohan Reddy at his camp office in Tadepalli, and gave a detailed presentation on the two projects. The Chief Minister commended the efforts of R&B officials for ensuring transparency in the tendering process. He also said that the two projects, after coming into operation, will provide job opportunities for the youth and improve connectivity with ports and industrial hubs from rural areas of the State.