Vizhinjam port to get viability grant funding from national government
The Vizhinjam International Deepwater Seaport (VISL) container terminal PPP project in India will get viability gap funding (VGF) from the national government.
The decision needs to get final approval from the Union Finance Minister. The recommendation to grant VGF is expected to boost investor confidence in the project.
The amount of VGF will be equivalent to the lowest bid for capital subsidy, but limited to a maximum of 20% of the total project investment. This will amount to Rs8 billion (US$130 million).
The port will be one of the largest ports in the world. The port is envisaged to provide a total of 2000 m of quay length in three phases and is designed to cater primarily for containers transshipment.
The project will be developed on a design, build, finance, operate and transfer (DBFOT) basis. The total project investment is estimated at Rs40.5 billion (US$660 million).
Five teams have been shortlisted for the project. These are:
- ESSAR Ports;
- A consortium of Srei Infrastructure and OHL;
- Adani Group:
- Gammon Infrastructure Projects Ltd; and
- A consortium of Hyundai and Concast Infratech Ltd.
The tender process is expected to be finished by December this year.
Vizhinjam is a locality of Thiruvananthapuram city in the state of Kerala.
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