In a first for AP, Vizag to embrace annuity model
ROADS & HIGHWAYS

In a first for AP, Vizag to embrace annuity model

The Greater Visakhapatnam Municipal Corporation (GVMC) has decided to adopt the annuity payout model for the development of 253 kilometres of roads in the city. Traditionally, the civic body awards contracts for smaller stretches to multiple contractors on a piecemeal basis.

However, under the annuity model, a single large contractor will be awarded the entire project, ensuring consistent quality, uniformity in road design, and strict adherence to completion timelines. The estimated cost of the road redevelopment project, which will span five years and include maintenance, is around Rs 5 billion.

Priority will be given to roads in the poorest condition during the first phase, followed by those in medium and good condition. These 253 Km of roads will be transformed into modular roads, featuring greenery, medians, and footpaths.

Several cities, including Thiruvananthapuram and Hyderabad, have successfully adopted the annuity model for road development. Meanwhile, GVMC has also decided to convert all metal roads in the city into either CC (cement concrete) or BT (bituminous) roads by 2026, as several newly merged areas in Bheemili and Anakapalli still have metal roads. Explaining the annuity payout model for road development, GVMC Commissioner Dr P. Sampath Kumar said that GVMC currently spends around Rs 90 crore annually on road maintenance.

"The existing road maintenance system operates on a need-based approach, addressing issues as they arise. This requires frequent tendering processes throughout the year, making it less efficient. In contrast, the annuity payout model consolidates work under a single contractor, ensuring seamless execution and avoiding delays caused by multiple tenders and contractors. The volume of work involved can attract reputed contractors, guaranteeing high-quality results," said Dr Kumar.

"Design surveys are currently underway across all parts of the GVMC area. A detailed project report will be prepared next, followed by a tendering process. The works are expected to begin around April 2025. The project will cover main roads with a width of 40 feet or more and will include an end-to-end solution that features road resurfacing, median development, enhanced greenery, and other amenities. Inspired by successful models in Hyderabad and Thiruvananthapuram, the project has received approval from the Chief Minister," added the GVMC commissioner.

"The proposed road project will ensure a uniform carriageway width, footpaths, and pedestrian crossings. Road markings will be clearly defined, and proper drainage systems will be installed. Signage, greenery development, and landscaping will enhance the aesthetic appeal. Junction improvements will be made, and CCTV cameras will be installed at key junctions. Traffic signals will be upgraded to improve traffic management, and bus shelters and street furniture will be added for public convenience," said Sampath Kumar.

The Greater Visakhapatnam Municipal Corporation (GVMC) has decided to adopt the annuity payout model for the development of 253 kilometres of roads in the city. Traditionally, the civic body awards contracts for smaller stretches to multiple contractors on a piecemeal basis. However, under the annuity model, a single large contractor will be awarded the entire project, ensuring consistent quality, uniformity in road design, and strict adherence to completion timelines. The estimated cost of the road redevelopment project, which will span five years and include maintenance, is around Rs 5 billion. Priority will be given to roads in the poorest condition during the first phase, followed by those in medium and good condition. These 253 Km of roads will be transformed into modular roads, featuring greenery, medians, and footpaths. Several cities, including Thiruvananthapuram and Hyderabad, have successfully adopted the annuity model for road development. Meanwhile, GVMC has also decided to convert all metal roads in the city into either CC (cement concrete) or BT (bituminous) roads by 2026, as several newly merged areas in Bheemili and Anakapalli still have metal roads. Explaining the annuity payout model for road development, GVMC Commissioner Dr P. Sampath Kumar said that GVMC currently spends around Rs 90 crore annually on road maintenance. The existing road maintenance system operates on a need-based approach, addressing issues as they arise. This requires frequent tendering processes throughout the year, making it less efficient. In contrast, the annuity payout model consolidates work under a single contractor, ensuring seamless execution and avoiding delays caused by multiple tenders and contractors. The volume of work involved can attract reputed contractors, guaranteeing high-quality results, said Dr Kumar. Design surveys are currently underway across all parts of the GVMC area. A detailed project report will be prepared next, followed by a tendering process. The works are expected to begin around April 2025. The project will cover main roads with a width of 40 feet or more and will include an end-to-end solution that features road resurfacing, median development, enhanced greenery, and other amenities. Inspired by successful models in Hyderabad and Thiruvananthapuram, the project has received approval from the Chief Minister, added the GVMC commissioner. The proposed road project will ensure a uniform carriageway width, footpaths, and pedestrian crossings. Road markings will be clearly defined, and proper drainage systems will be installed. Signage, greenery development, and landscaping will enhance the aesthetic appeal. Junction improvements will be made, and CCTV cameras will be installed at key junctions. Traffic signals will be upgraded to improve traffic management, and bus shelters and street furniture will be added for public convenience, said Sampath Kumar.

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