NEW BIDDING PROCESS FOR PPP HIGHWAYS IN INDIA

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The government of India has adopted a new bidding system to award works to companies for the conversion of 12,000 km stretch of road to four lanes under phase three of the National Highway Development Programme. Remember that all these highway improvements are awarded under Build Operate Transfer (BOT) contracts.In the new bidding process, all technically qualified companies would be eligible to file bids. There are no restrictions for any qualified company to take part in the bidding as long as they meet the requirements. Earlier, only shortlisted companies were allowed to bid for road laying works on national highways.Noting that works for the conversion of 182 km stretch of road to four lane between Hyderabad and Vijayawada on national highway 9 was delayed as two companies (the indian Soma Enterprise Ltd and the spanish Isolux Corsan) filed petitions in Supreme court for not allowing them in the bidding process. The new bidding system would help in awarding works to the suitable companies without any delay.As the PPP market in India is not so mature as this in other countries, it is good to see legislative changes that allows private corporation to dispute for PPP contracts in equal conditions.

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