The National Highways Development Programme in India

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There is a lot of talk in India lately regarding the National Highways Development Programme. Somehow private entities are deciding not to inmerse themselves in the procurement processes the National Highways Authority of India are carrying on that .Three interesting news can be found in the PPP News Aggregator website that summarize very well these processes.Firstly in this link you can read about the the desert bids:The Government has awarded almost zero projects under the National Highway Development Programme between July and December this year, according to senior government officials. Furthermore, 66 per cent of the projects awarded by the National Highways Authority of India (NHAI) have not achieved financial closure till now. And with the global financial crisis adding to its woes, the NHAI is now wooing bidders as very few have come forward to submit proposal bids for the 23 new projects to be awarded by the close of the calendar year.Secondly, we have an interesting news about the highways concession model in India:The government may switch over from build-operate-transfer (BoT) model to annuity model for the stretches of the National Highways Development Programme (NHDP) that have not received a good investor response.And the last but not least talks about the idea that the World Bank is cuestioning the loans that gave to the National Highway Authority of India for some of the projects.The World Bank's deadline for suspension of a USD 620 million loan to the National Highway Authority of India, or NHAI, for the Lucknow Muzzafarpur national highway expired yesterday.It will be something to look at in detail in the next months. What do you think about the NHDP in India? We are all looking forward to knowing your opinion.

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