Karnataka_Road Projects_ProjectsMonitor

The Karnataka government has awarded the WAP-2 package for improvement of State Highway 18 to the consortium of Ashoka Buildcon Ltd and GVR Infra Projects Ltd and selected the Sadbhav Engineering Ltd-GKC Projects Ltd joint venture as the preferred bidder for the WAP-I package for improvement of State Highways 3 & 33. Both these projects are being developed under KSHIP-II (Karnataka State Highways Improvement Project-II).

WAP-II (World Bank Assistance Project) involves design, build, finance, operate, maintain and transfer of the Mudhol-Maharashtra border road spanning approximately spanning 107.937 km on SH-18 in Karnataka. The project is estimated to cost Rs.317.60 crore.

“We are very proud to be the selected bidder for this project. We at Ashoka Buildcon and GVR Infra Projects are confident of completing the job well and within the deadline,” said Satish Parakh, Managing Director, Ashoka Buildcon Ltd, on behalf of the consortium. Ashoka Buildcon and GVR Infra Projects have 51 per cent and 49 per cent stake in the consortium, respectively.

Ashoka Buildcon pioneered the BOT principle 16 years ago and is today the only private sector company to have experience in maximum number of BOT projects, 28 in all. Currently, the company is executing projects in Maharashtra, Madhya Pradesh, Chhattisgarh, West Bengal, Odisha, Tamil Nadu and Karnataka.

While the above project has been awarded to Ashoka Buildcon consortium, KSHIP-II WAP-1 is likely to be awarded to the joint venture of Sadbhav Engineering Ltd and GKC Projects Ltd. The consortium has emerged as the selected bidder for the development of SH-3 & 33 from Malavalli to Pavagada in Karnataka. The project spans a length of 193.344 km and is estimated to cost over Rs.239 crore.

Both the BOT-Annuity projects would be implemented on DBFOMT basis with concession periods of 10 years including construction period of three years. Under annuity concession contracts, it is proposed to avail of World Bank assistance for an upfront payment of 50 per cent of the construction cost and the remaining payments during the maintenance period of seven years on annuity basis to be met out of state funds.

“In the four packages, the Karnataka government has scrapped the bids invited for WAP 3 & 4 under annuity projects as it was not viable. Instead, these projects would now be implemented in another mode of contract,” a KSHIP official told Projectmonitor. The other KSHIP-II (Stage 1) projects under WEP packages are in various stages of execution.

Package Description of Road
Length in Km
 WAP-1 Malavalli-Maddur-Huliyurdurga-Kunigal-Tumkur-Koratagere-Madhugiri-Pavagada.
 WAP-2 Mudhol-Mahalingapura-Kabbur-Chikodi-(NH-4 cross) Nippani.
 WAP-3 Shikaripura-Anandapuram (on NH-206)


 WAP-4 Managuli-Basavana Bagewadi-Talikota-Hunasagi-Devapur
Total Annuity Contract

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