Andhra Pradesh Embraces PPP for Highways

02 Dec 2024 CW Team

Andhra Pradesh has decided to develop 10,200 km of state highways using the Public-Private Partnership (PPP) model. Chief Minister N. Chandrababu Naidu approved the proposal during a review meeting with the Roads and Buildings (R&B) Department. This marks the first time the state will adopt the PPP model for state highway development.

Key Highlights Phase 1 Scope: Development of 18 roads spanning 1,307 km. DPR Preparation: Officials directed to prepare Detailed Project Reports (DPRs) and expedite construction work. Toll Policy: Tolls will apply only to heavy commercial vehicles, while two-wheelers, autos, tractors, and agricultural vehicles are exempt. Viability Gap Funding and Focus on Quality The government may provide viability gap funding to ensure projects are financially feasible without burdening the public. Emphasis is placed on:

Delivering high-quality, safe roads. Implementing toll rates that are fair and non-exploitative. Blacklisting contractors who fail to meet quality standards. Pothole-Free Roads Initiative Cost Outlay: ?861 crore for repairing 22,299 km of roads in the R&B network. Progress: Potholes filled on 1,991 km. 1,447 km deemed beyond repair, requiring complete rebuilding at a cost of ?581 crore. Deadline: All works targeted for completion by Sankranti festival. Benefits and Outlook The PPP model, successfully used for national highways, is expected to boost state highway infrastructure by leveraging private sector efficiency and investment. This initiative aims to enhance:

Connectivity and road safety. Economic activity, especially in rural and semi-urban areas. Public convenience, through exemptions for everyday and agricultural vehicles. The initiative reflects the government’s focus on sustainable infrastructure while safeguarding public interests.

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