The Kerala government has received technical and
financial bids from two entities for the development of the proposed
international container transshipment terminal Vizhinjam in Kerala.
The two finalists are:
- Gammon India Ltd
- A consortium of Mumbai-based Zoom Developers
and two Chinese companies - Kaidi Electric Power Co and China Harbour Engg
Co.
The last date for submitting bids was 17 August
2005, extended at least twice.
RFPs were purchased by 22 companies but only two
came back with bids before the deadline. The Kerala government would need three
months to examine the bids and decide on the private promoter. The BOT agreement
is likely to be signed in December 2005, with work targeted to begin by June
2006.
The project, which will be a joint venture
between the Kerala government (equity stake 24 per cent) and the private
promoter, is proposed to be implemented in three phases at a total cost of
Rs.4,200 crore. Of this, the first phase, for which the tenders have been
received now, will cost Rs.1,850 crore.
At a debt-equity ratio of 1:1.5, the Government's
share in the equity of the joint venture would be around Rs.180 crore in Phase
I.
The Kerala government has already floated a
company called Vizhinjam International Seaport Ltd for developing the basic
infrastructure for the project, such as roads, railway line, water supply, and
electricity. The total outlay for establishing these facilities has been placed
at Rs.80 crore. Even if the selection of the private sector developer is
delayed, Kochi Port Trust would go on its own to work on the basic components of
the project such as breakwaters and reclamation.
Also See:
Vizhinjam
terminal: Submission date extended (10-Jun-05)
ProjectsToday's Special Studies:
Shipping
Infrastructure in Kerala: Recent Trends (June 2005)
Industry
Profile: Container Terminals (August 2005)