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A pre-application conference for the dredging, offshore reclamation, and shore protection works at Vadhavan Port, estimated to cost ?20,647 crore, drew significant interest from 48 entities, including major players like Larsen & Toubro, Tata Projects, Royal Boskalis, Van Oord, Jan De Nul, and Adani Ports and Logistics. The conference was held to discuss the public-private partnership (PPP) under the Hybrid Annuity Model (HAM) for the new port.
Among the attendees were Container Corporation of India Ltd, Rail Vikas Nigam Ltd, IRCON International Ltd, Axis Bank, and Tata Consulting Engineers, marking the first time such a PPP-HAM model is being used for port dredging and reclamation in India.
Unmesh Wagh, Chairman of the Jawaharlal Nehru Port Authority (JNPA), which is leading the Vadhavan Port project, highlighted the overwhelming response. "The interest from major construction companies and dredging contractors is encouraging. We are optimistic about the success of this new model," Wagh told ET Infra.
During the conference, Wagh addressed concerns about payment schedules under the HAM model, assuring potential bidders of the port’s financial stability and its ability to cover the costs. He emphasized that JNPA’s strong financial standing, with annual profits of around ?2,500 crore, underpins its commitment to the project.
The HAM model involves an initial 40% payment as a fixed amount during the construction phase, with the remaining 60% paid as a variable annuity after project completion. The scope includes dredging of the approach channel, harbor basin, and reclamation of 1,227 hectares, with long-term maintenance responsibilities.
Potential bidders have raised concerns about maintenance dredging risks, milestone payments, and the need for a general consultant for project interfacing. The successful bidder will handle financing, execution, and maintenance of the facility, with JNPA setting minimum development obligations while allowing flexibility to respond to market demand.
The Vadhavan Port project is part of a larger investment of ?38,976 crore for basic infrastructure, including dredging, reclamation, and connectivity. The Cabinet has approved a hybrid model for the ?17,709 crore dredging and reclamation package, with the remainder of the infrastructure to be developed through EPC mode.
The remaining project costs, totaling ?37,244 crore, will be covered by private operators selected by Vadhavan Port Project Ltd (VPPL), a special purpose vehicle formed by JNPA and the Maharashtra Maritime Board to implement the new port. |
