BBMP Seeks Loan for Twin Tunnel Road Project Funding
ROADS & HIGHWAYS

BBMP Seeks Loan for Twin Tunnel Road Project Funding

The Bruhat Bengaluru Mahanagara Palike (BBMP) is seeking funding from financial institutions to finance the construction of a twin tunnel road that will be located 120 feet below ground level. The first phase of the project involves building a north-south corridor tunnel road, extending from Esteem Mall Junction in Hebbal to KSRP Junction at Silk Board, under a public-private partnership (PPP) model. The costs will be shared in a 60:40 ratio between the private contractor and BBMP.

To raise the necessary funds for its share of the capital costs, BBMP has invited tenders to secure loans with lower interest rates. Several financial institutions, including nationalised banks and private agencies, have shown interest in funding the project. The bids will be opened on January 8, and BBMP is expected to choose the lender offering the most competitive interest rate. The total project cost is estimated at Rs 149.81 billion, with BBMP needing to arrange Rs 80 billion. The remaining amount will be contributed by the private contractor.

The twin tunnel road project will be carried out under the Build, Operate, Transfer (BOT) model. The selected contractor will be allowed to collect toll fees for 20 years before transferring the infrastructure to BBMP. Based on the project estimates, toll charges are expected to range from Rs 18 to Rs 24 per kilometre. The plan also includes Rs 8 billion for land acquisition to build entry and exit ramps at various locations.

The 16.67 km-long twin tunnel will have three lanes in each tunnel, each 10.5 metres wide. Two lanes will be designated for ambulances, BMTC buses, and police vehicles. Originally, the cost per kilometre was estimated at Rs 5 billion, but the Detailed Project Report (DPR) revised the cost to Rs 8.98 billion per kilometre.

Currently, it takes approximately 90 minutes to travel the 16 km distance from Silk Board to Hebbal due to heavy traffic, with an average speed of 10–15 km/h. Once the tunnel road is operational, the same distance will be covered in just 20 minutes. The north-south corridor will include key entry and exit points, such as Esteem Mall in Hebbal, KSRP Junction at Silk Board, Mehkri Circle near Palace Grounds, Race Course Road, and Ashoka Pillar near Lalbagh. The tunnel will be constructed 120 feet underground, beneath the existing Namma Metro tunnels, to minimize disruption to surface infrastructure during construction.

BBMP plans to invite global tenders for the project by the end of the month. Upon completion, the infrastructure is expected to significantly improve Bengaluru's traffic dynamics by providing a faster and more efficient commuting option. BS Prahlad, the Chief Engineer at BBMP, expressed confidence in completing the project within the scheduled timeline, emphasizing that the twin tunnel road would play a crucial role in addressing the city’s traffic congestion.

The Bruhat Bengaluru Mahanagara Palike (BBMP) is seeking funding from financial institutions to finance the construction of a twin tunnel road that will be located 120 feet below ground level. The first phase of the project involves building a north-south corridor tunnel road, extending from Esteem Mall Junction in Hebbal to KSRP Junction at Silk Board, under a public-private partnership (PPP) model. The costs will be shared in a 60:40 ratio between the private contractor and BBMP. To raise the necessary funds for its share of the capital costs, BBMP has invited tenders to secure loans with lower interest rates. Several financial institutions, including nationalised banks and private agencies, have shown interest in funding the project. The bids will be opened on January 8, and BBMP is expected to choose the lender offering the most competitive interest rate. The total project cost is estimated at Rs 149.81 billion, with BBMP needing to arrange Rs 80 billion. The remaining amount will be contributed by the private contractor. The twin tunnel road project will be carried out under the Build, Operate, Transfer (BOT) model. The selected contractor will be allowed to collect toll fees for 20 years before transferring the infrastructure to BBMP. Based on the project estimates, toll charges are expected to range from Rs 18 to Rs 24 per kilometre. The plan also includes Rs 8 billion for land acquisition to build entry and exit ramps at various locations. The 16.67 km-long twin tunnel will have three lanes in each tunnel, each 10.5 metres wide. Two lanes will be designated for ambulances, BMTC buses, and police vehicles. Originally, the cost per kilometre was estimated at Rs 5 billion, but the Detailed Project Report (DPR) revised the cost to Rs 8.98 billion per kilometre. Currently, it takes approximately 90 minutes to travel the 16 km distance from Silk Board to Hebbal due to heavy traffic, with an average speed of 10–15 km/h. Once the tunnel road is operational, the same distance will be covered in just 20 minutes. The north-south corridor will include key entry and exit points, such as Esteem Mall in Hebbal, KSRP Junction at Silk Board, Mehkri Circle near Palace Grounds, Race Course Road, and Ashoka Pillar near Lalbagh. The tunnel will be constructed 120 feet underground, beneath the existing Namma Metro tunnels, to minimize disruption to surface infrastructure during construction. BBMP plans to invite global tenders for the project by the end of the month. Upon completion, the infrastructure is expected to significantly improve Bengaluru's traffic dynamics by providing a faster and more efficient commuting option. BS Prahlad, the Chief Engineer at BBMP, expressed confidence in completing the project within the scheduled timeline, emphasizing that the twin tunnel road would play a crucial role in addressing the city’s traffic congestion.

Next Story
Infrastructure Urban

Reliance, Diehl Advance Pact for Precision-Guided Munitions

Diehl Defence CEO Helmut Rauch and Reliance Group’s Founder Chairman Anil D. Ambani have held discussions to advance their ongoing strategic partnership focused on Guided and Terminally Guided Munitions (TGM), under a cooperation agreement originally signed in 2019.This collaboration underscores Diehl Defence’s long-term commitment to the Indian market and its support for the Indian Government’s Make in India initiative. The partnership’s current emphasis is on the urgent supply of the Vulcano 155mm Precision Guided Munition system to the Indian Armed Forces.Simultaneously, the “Vulc..

Next Story
Infrastructure Urban

Modis Navnirman to Migrate to Main Board, Merge Subsidiary

Modis Navnirman Limited has announced that its Board of Directors has approved a key strategic initiative involving migration from the BSE SME platform to the Main Board of both BSE and NSE, alongside a merger with its wholly owned subsidiary, Shree Modis Navnirman Private Limited.The move to the main boards marks a major milestone in the company’s growth trajectory, reflecting its consistent financial performance, robust corporate governance, and long-term commitment to value creation. This transition will grant the company access to a broader investor base, improve market participation, en..

Next Story
Infrastructure Urban

Global Capital Flows Remain Subdued, EMEA Leads in Q1 2025

The Bharat InvITs Association’s industry update for Q1 2025 shows subdued global capital flows, with investment volumes remaining at the lower end of the five-year range despite a late 2024 recovery. According to data from Colliers and MSCI Real Capital Analytics, activity in North America declined slightly, while EMEA maintained steady levels and emerged as the top region for investment in standing assets.The EMEA region now hosts seven of the top ten cross-border capital destinations for standing assets, pushing the United States’ share of global activity below 15 per cent. Meanwhile, in..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?