No Bidders For Bengaluru’s Rs 27,000 Crore Peripheral Ring Road Tender In Third Consecutive Attempt

The Bangalore Development Authority (BDA) has suffered another setback as the third tender for the proposed 73-km Peripheral Ring Road (PRR) did not receive any eligible bids.

The Rs 27,000 crore project, which was the third attempt to secure a bidder after two tenders last year, was launched in January.

A PRR has been built around the city, aimed at easing traffic congestion and enhancing connectivity in the region. It will pass through over 100 small intersections and 10 major junctions, with 16 flyovers strategically placed at important locations such as Hesaraghatta Road, Old Madras Road, Whitefield Road, Channasandra Road, and Hosur Road.

The project, first proposed in 2006, was thought to be implemented on a design, build, finance, operate and transfer (DBFOT) basis.

“In the third tender, a Kenya-based company participated, but they did not qualify in the technical bid,” said the Times of India.

The firm realized the required project cost of Rs 12,000 crore was less than Rs 6,000 crore. Moreover, the cost of land acquisition has risen threefold, leading to huge delays.

The project was initially budgeted at Rs 14,000 crore, of which Rs 8,000 crore was for land acquisition and Rs 6,000 crore for development. The project cost was escalated from Rs 21,000 crore to Rs 27,000 crore due to the requirement of compensation, as per the 2013 Land Acquisition Act.

The BDA said the bidder is expected to arrange the entire funding for the project and collect toll for five decades along with corridor and advertising rights.

The BDA is now looking at alternative financing strategies as none of the proposals have been successful.

Recently, the BDA held a meeting to discuss taking a loan of Rs 15,000 crore and additional government help or handing over the project to the National Highways Authority of India (NHAI). In 2016, the NHAI had proposed to build a 60-metre-wide PRAR, but the BDA did not accept it.

Bengaluru Peripheral Ring Road

This ambitious project will enhance the city’s transport network, which includes 16 flyovers, 10 overpasses, and 12 underpasses. In addition, the plan will build bridges over seven major water bodies (Chikkatogur Lake, Gunjur Lake, and Jarakabande Lake), which will further facilitate seamless connectivity.

The project includes six cloverleaf-type over bridges, which provide efficient crossing solutions without congestion and solve traffic complexities.

The design made public by the BDA depicts a 100-metre-wide greenfield expressway. It includes green spaces, utilities, underground cables, footpaths, cycle tracks and drains.

The eight-lane main carriageway will be flanked by service roads on either side, with a large middle portion reserved for possible integration with the metro project in future.

The project seamlessly connects 65.95 km (3.4 km from Madanayakanahalli and 4.08 km from Hebbagodi) of roads between Hosur Road and Tumakuru Road into the PRR network.

While the BDA considers its next steps, the PRR project is in limbo, as key decisions need to be taken to curb the city’s growing traffic congestion.

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