Showing posts with label bitumen 60/70. Show all posts
Showing posts with label bitumen 60/70. Show all posts

March 13, 2018

Politics of Road Buliding- The Portughese Way

Malawi: Presidency’s ‘sweetheart contractor’ Mota-Engil grabs the lion’s share of road contracts

It is widely seen as the Malawi presidency’s sweetheart contractor. And a leaked official report lends weight to this perception, showing that Portuguese-based multinational engineering firm Mota-Engil has almost 10 times the value of government road-building contracts as its nearest rival.

This story was supported by the Centre for Investigative Journalism Malawi, in association with the amaBhungane Centre for Investigative Journalism

A report by the Roads Authority (RA) shows that Portuguese-based multinational engineering firm Mota-Engil currently has road contracts in Malawi with a combined value of 142-billion Malawi kwacha (R2.4-billion).

By contrast, the second most-favoured company, Zhajoung of China, is engaged in government road projects worth just K14.9-million (R250-million).

A high-ranking executive from a rival civil engineering company, who asked to remain anonymous, said the feeling among competitors was that Mota-Engil was the principal beneficiary of Malawi government tenders.

“We cannot protest the conduct of government when it comes to awarding these projects to Mota-Engil because the construction industry in Malawi is guided by politics,” the executive said.

Asked for comment, Mota-Engil’s public relations officer, Thomas Chafunya, said any questions should be directed to the Malawi government and the RA.

“We are the bidding and contracted party, but they are the contracting authority and owners of the projects on behalf of Malawi,” he said.

The RA’s public relations manager, Portia Kajanga, insisted that the authority follows the Public Procurement Act.

Kajanga said all donor-funded projects must follow donor requirements and guidelines, meaning that “the RA follows transparent procurement systems – there is no bias in the award of contracts”.

Kanjanga also said the RA manages numerous projects under the government’s recurrent and development programmes.

“Under the development programme, the authority is managing 10 contracts, five of which are being executed by Mota-Engil and the rest managed by different contractors,” she said.

According to the Roads Authority report, Mota-Engil has been contracted to build the Thyolo-Makwasa-Thekerani-Makhanga road, funded to the tune of K27.3-million (R450-million) by the Malawi government, the Kuwait Fund, the Arab Bank for Economic Development in Africa, the Saudi Fund and Opec.

Construction on the 82km road began in August 2016 and is expected to be completed next year.

The company is also building:

the 95km Lilongwe Old Airport-Kasiya Spur road, costing over K39.6-billion (R670-million), with Malawi government funding. The project, which will take up to 95 months, commenced in January 2015.
The 75km Liwonde-Mangochi road worth K29.9-billion (R450-million), funded by the African Development Bank.
The government-funded 75km Njakwa-Livingstonia Project, which will cost K39-billion (R670-million).
The 4.4km highway from Parliament to the Bingu National Stadium, which will cost MK6.6-billion (R90-million). The funding is from the Malawi government, through the Road Fund.

Mota’s nearest rivals are Zhajoung of China, which the RA report said has work worth MK14.9-billion; China Railway Bridge 5 (MK9.8-million, or R166-million); and Malawian-owned Fargo (MK9.2-billion, or R150-million).

The generous treatment of Mota-Engil follows repeated controversies over its relationship with former president Bingu wa Mutharika, the older brother of Malawi’s current leader, Peter Mutharika.

The brothers were very close. Local media reported that Bingu left Peter K74-million in cash in his will, as well making him co-executor of his estate. He is a key figure in the Bineth Trust, Bingu’s property vehicle.

The Nation newspaper reported that Bingu died in April 2012 “at the height of whispers regarding his relationship with Mota”.

The company reportedly built a villa in Portugal for him called Villa Casablanca, as well the mausoleum of former first lady Ethel Mutharika at his Ndata farm in Thyolo, where he was also buried.

The Nation quoted the company as saying these projects were “donations towards a cause”.

Mota-Engil came under the spotlight in 2012, when The Nation newspaper reported that it had seen three cheques amounting to K13.5-million (about R420 000 at the time) which the company had deposited in Bingu’s personal bank account at the Capital City branch of Standard Bank in Lilongwe. It gave the account number as 0140001886701.

The newspaper reported that the cheques were drawn against Mota-Engil’s Engenhara Eco FMB current account and carried the signature of Mota’s managing director, Antonmarco Zorzi.

Zorzi was quoted as saying that the payments were for copies of The African Dream, Bingu’s book, which he had bought at auction at the book’s launch in February 2011.

The Nation countered that the cheques had been deposited a year earlier than the launch, in March 2010.

Mota’s perceived ties with Bingu were again highlighted in June 2016 by the veteran MP for Mzimba West, Harry Mkandawire, who told the Malawian parliament that Bingu had salted away K61-billion in assets offshore. In 2004, when he became president, Bingu declared K250-million in assets.

In a document tabled in parliament, Mkandawira alleged that the former president received 10% of all payments to Mota on government contracts, and that his offshore assets had been accumulated with the help of “inducements” by the company.

His deceased estate revealed that in addition to Ndata estate, the former president owned six farms in Malawi, four vacant lots and four houses in Blantyre, and vacant land and a house in Harare, Zimbabwe.

Mkandawire said that he had evidence that Bingu had stashed away assets in foreign countries including Australia, the United States, South Africa and Taiwan.

After his sudden death, it was alleged that cash including millions of US dollars was removed from State House. The Malawi Law Society called for a probe of his fortune.

However, President Pete Mutharika angrily challenged Parliament’s public accounts committee to investigate the alleged K61-billion.

He called the allegations “political tactics to torment my family”.

Based on anonymous sources, the Nyasa Times also alleged that Mota is bankrolling a campaign by Agriculture Minister Georg Chaponda to win the presidency next year.

Mutharika has allegedly anointed Chaponda as his successor. The Nyasa Times claimed that the minister refused to grant an interview.

Mota, which has been active in Malawi for more than 20 years, initially entered the country as a road contractor, but its portfolio of contracts has ballooned into new sectors.

In July 2013 the government handed it the management and operation of four ports on Lake Malawi through a concessionary agreement giving it the right to finance, manage and run the ports for a 35-year period.

The Nation reported last year that the contract was awarded without passing through a competitive tender process and violated the Public Procurement Act, as it had not been signed off by the director of public procurement.

The government justified the award by saying no other company was interested. Mota’s chief executive for Africa, Gilberto Rodrigues, was quoted as saying that the approach came from government, adding: “They had a problem and we could be the solution.”

In July 2013 the company built the Nsanje Inland Port, part of the $6-billion Shire-Zambezi waterway project that links Malawi to the Indian Ocean. The port was Bingu Mutharika’s brainchild.

President Mutharika’s press secretary, Mgeme Kalilani, said the responsibility for awarding government road tenders lies squarely with the Roads Authority.

“The presidency, let alone president… Mutharika as an individual has absolutely nothing to do with such processes,” Kalilani said.

“To allege that a company that has been doing business in the country for many years, even before the Mutharika brothers made their names on the local political scene… is a desperate attempt by haters to drag the name of the current president in the mud for malicious reasons.

“Mota-Engil is not winning tenders because it constructed the house of the president’s late brother some years ago.” DM


Saudi Rail Event

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 Speaking at the 12th edition of the Middle East Rail 2018, Khalid Al Sultan, vice president - infrastructure, Saudi Railway Company (SAR), covered the company’s railway development plans in context of the country’s Vision 2030. He explained that railway will play a major role in three aspects of development: a cost efficient means of moving goods & freight, a means of moving people as well as aligning with major ports and entry points to ensure seamless infrastructural connectivity.

He also explained in great detail the length and depth of coverage of the country’s three major railway lines including the Riyadh Dammam Line, North-South Project (connecting major heavy industry hubs for freight projects) and the 453-km long Haramain High Speed Railway (HHR) project linking the holy cities of Makkah and Madinah.

Al Sultan also expressed SAR’s keen interest in working with the private sector to collaborate and partner in achieving success in multiple new projects. Of note were Public-Private Partnership (PPP) opportunities for the 340-kilometer dDouble-track Yanbu to Jeddah connection (via King Abdullah Port) and the 40-kilometer double-track Riyadh to Riyadh connection and new Dry-Port (connecting SAR and SRO networks in Riyadh and New Dry Port to be situated outside of Riyadh).

He also mentioned that SAR will soon be floating tenders for the Riyadh-Dammam and the Land Bridge Project. The project consists of a 449-kilometer passenger Line connecting Dammam and Riyadh passing through Al Ahsa and Abqaiq, a 546-kilometer Freight Line connecting King Abdulaziz Port in Dammam with Riyadh passing through Al Ahsa, Abqaiq, Al Kharj, Haradh and Al Tawdhiyah and a 400-kilometer Sub Line connecting industrial, agricultural and military sites with export ports and residential areas.

The Land Bridge extends from Jeddah to Riyadh with a total length of approximately 1000 km of double-track. It also connects with the GCC Railway Network.

Alstom showcases its complete mobility solutions

Alstom is showcasing its complete mobility solutions for urban signaling and services. 

“Alstom has been a reliable partner for the Middle East region since decades,” said Mrs. Thi Mai Tran, managing director of Alstom Gulf. “Alstom’s dedication to the UAE and the Middle East market and to the development of its transport & mobility network which includes Tramways, metro, high speed as well as signaling is confirmed by the number of projects currently in the region. Alstom is looking forward to further re-enforce its commitment to the development of the Middle East mobility sector and economy through participation in the upcoming railway & mobility projects,” added Tran.

The provider of the Dubai Tram and the leader of the ExpoLink consortium for Route 2020 project of the Red Line extension of Dubai Metro have highlighted eight new technologies with the power to transform mobility in the Middle East now – or in the very near future.

Ranging from connected tech to help passengers plan easier, more comfortable journeys, to autonomous last-mile shuttles, next-generation electric buses, and behind-the-scenes management systems to keep the whole transport system running smoothly, each of the innovations is available now to be deployed. When put together, they offer a revolution in smarter, more sustainable mobility for both passengers and operators, and will help rapidly growing cities move and breathe more easily for a better tomorrow.

Among the solutions Alstom will present on its booth, are Alstom’s Urban Integrated solutions; Citadis Range: More than 2,500 Citadis tramway sold in 53 cities; Mastria, the orchestration of all public transport modes from rail to road; Ecodesign: Sustainability in mobility from manufacturing to recycling; Aptis: the premium passenger experience inspired from the tram.

Indian Railways to talk about expansion

Indian Railways, India's national railway system operated by the Ministry of Railways, will talk about $140 billion worth of current and future rail projects that the government is building to upgrade country’s urban transportation network.

Mahesh Kumar Gupta, member engineering - Indian Railway Board, will lead a high-profile delegation of railway officials and experts to share more details about the region’s largest railway network’s expansion plans and future growth prospects, besides outlining a buddle of opportunities that the industry offers in the segments of metro, tram, monorail, long-distance freight and passenger train, and high speed rail.

Gupta, said: “We will highlight some of our achievements, growth prospects and future projections during this two-day event. This kind of events helps in creating awareness about gigantic organizations like Indian Railways, which deals in mega projects such as high speed trains, dedicated freight corridors, electrification, capacity expansion and tech development.”

Indian Railways will also be represented by two of its overseas arms – RITES and IRCON International Limited. While RITES deals in consultancy of transport and infrastructure and export packages of rolling stock, the IRCON is mainly into construction of railway projects.

“These are exciting times for railway industry. There are serious challenges in the road and air transportation sector, hence, the upgradation of the railway infrastructure is the need of the hour. Indian Railways has realized that accumulated backlog investment is the root cause of its inability to improve the market share or quality of services,” said Gupta.

Indian railways aims to concentrate on major investment projects in the areas of dedicated freight corridor, high speed rail, modernization of signaling system, track and rolling stock maintenance with major emphasis on safety. “Our future plan is to focus on electrification, 100% use of LED lights, ETCS level II of signaling and high speed technologies.”

Source- Saudi Gazzette

February 21, 2018

Security Clearance Sought for Road Project

Coastal road project...

With five international consortia among the 17 bidders, which qualified for the 29.2km coastal road project in the city, including China and Italy, the Brihanmumbai Mumbai Corporation (BMC) has written to the Centre for security clearance.

The proposals of 17 bidders will be analysed by a consultant appointed by the civic body.

After the analysis, the financial bids will be opened and the contract will be given to the lowest bidder.

However, if the Union Home Ministry disqualifies any firm, their financial bids will not be opened and will be automatically rejected.

“We have written to the Centre informing about the international firms’ participation and their security clearances,” said Sanjay Mukherjee, additional municipal commissioner, projects.

Talking about the commencement of work, BMC chief Ajoy Mehta said, “The actual construction of the Coastal Road between Marine Drive to Kandivli will begin in May this year, once the tendering process is completed in the next two months.”

The Hajo Ali section of the road. (HT Photo)

“The first phase of Marine Drive to Bandra Worli Sea Link has to be constructed by the BMC, while the construction of the remaining part will be taken care of by MSRDC,” he added.

Meanwhile, the international firms participating in the bid are from China, Italy, Korea, Dutch and Gulf countries.

Amid Sikkim stand off last year, Union Home Ministry had denied security clearance to Chinese consortium China Railway Major Bridge Engineering Group Limited in joint venture (JV) with Gayatri Projects Limited for the construction of Mumbai Trans Harbour Link.

The BMC is currently awaiting reply from the home ministry for its coastal road project.

In the past, Chinese companies have been disqualified by the Union Cabinet Committee on security grounds because of the growing cross border tensions between the two countries.

Chinese companies were also denied security clearance for the construction of Bandra-Worli Sea Link (BWSL).

Ajoy Mehta had ordered the civic officials to finalise the request for proposal (RFP) tender by March 15, 2018.

The coastal road aims to provide connectivity between western suburb and the island city.

The civic body proposed that the work be divided into two parts.

The south phase of the bridge will run from Princess Street flyover till the south end of the Bandra-Worli sea link and the north phase will cover the stretch from the north-end of the sea link to Kandivli.

The coastal road will have eight lanes with two dedicated bus lanes.

The project will require 186 hectares of land to be reclaimed, of which 91 hectares will be developed as green spaces. Stay updated with all the Mumbai Latest News headlines here. For more exclusive & live news updates from all around India, stay connected with NYOOOZ.

February 8, 2018

2000 Road Projects in Stalemate

As many as 2,000 road projects awarded to contractors on multiyear contracts have hit a stalemate as no budget has been allocated for these projects in the current fiscal year.

The Department of Roads (DoR) had started around 2,000 road projects in different parts of the country on multiyear contract after taking permission from the Ministry of Finance. These road projects fall under different budget headings like Kathmandu Urban Roads, regional, tourism and city roads, among others.

After the country adopted federal set up, infrastructure projects like Kathmandu Urban Roads, regional, tourism and city roads, among others, have come under the jurisdiction of local bodies and provincial governments. But local bodies have not been able to provide budget for these projects as they have not yet received authorization to implement such works.

Contractors have warned that they would stop all construction work until they receive payment for completed works from the Ministry of Finance.

“It has been said the budget for these projects have been sent to local levels and provinces. However, we have not received any written information. This is why these projects have hit a stalemate,” Mukti Gautam, spokesperson for the DoR, said. 

These contracts are worth Rs 17 billion, and around Rs 7 billion of this has already been spent.

Contractors are pressing the DoR to release payments and compensate them for the loss caused by the delay in release of payment. The DoR accordingly forwarded a proposal to the Ministry of Finance for transfer of Rs 2.6 billion allocated for the projects but remained unspent in the last fiscal year. But the proposal is gathering dust at the finance ministry.

Officials of DoR said the that problem can be sorted out for the time being if the finance ministry transfers Rs 2.6 billion as requested and allocates another Rs 3 billion.

“We have been assuring the contractors that the finance ministry will release the budget soon. But frankly saying, we have not received any response from the ministry yet,” added Gautam.

In Fiscal Year 2015/16, the DoR awarded the tender for drainage and graveling work of Butawal-Belbas-Nuwakot-Palpa Tourist Road (10 km) to contracting firm Mahalaxmi-Divyajyoti at Rs 129.3 million. Similarly, the contract to blacktop the road worth Rs 92.7 million was awarded to Parkritik Construction Service. Mahalaxmi-Divyajyoti completed 58 percent of the works in FY 2016/17. But the contractor has slowed work this year as it has not got payment for the completed works.

“We are not even in a situation to pay our workers and buy petroleum products for our equipment,” Hari Rijal of Mahalaxmi Construction - a JV partner of Mahalaxmi-Divyajyoti - said.

The road project has to a pay total of Rs 60 million to the two contractors.

Construction entrepreneurs two weeks ago padlocked division road offices of Kathmandu and Charikot to press the government for early release of payments.

Bishnu Bhai Shrestha, president of Federation of Nepal Construction Entrepreneurs of Nepal, said that construction entrepreneurs are still to receive Rs 42 billion from government agencies for works completed across the country.

Though the construction entrepreneurs have raised the issue before both the Minister for Finance and the Minister for Physical Infrastructure and Transport as well as the foreign secretary, they have only received assurances.

According to the Public Procurement Regulation 2007, contractors should get payment for completed works within 30 days of submission of expenditure bill. If they did not receive their payment on time, they should get compensation as well, according to the regulation.   

Source- My Republica

January 12, 2018

Paving Vision

A paving vision unfolds

The construction and maintenance of roads are among the top priorities for government. IMIESA speaks to Steve Tinarwo, managing director, Instant Tar, about the company’s plans to grow its base in this strategically important sector.

The commissioning of an 80 tonne per hour Apollo Counter Flow 90 continuous mixing plant in February 2017 at its Benoni facility in Gauteng represents a key milestone for Instant Tar. This major plant acquisition spearheads the company’s strategic vision of becoming a top-tier paving contractor and asphalt supplier in the South African and broader Southern African region.

Three mix designs are currently produced by the plant, namely medium asphalt, a bitumen-treated base (BTB), and fine asphalt. The Apollo plant is owned by sister company V&S Plant. Currently, V&S is operating on a temporary licence; however, an application for a full commercial licence is due to be completed during the second quarter of 2018.

“Our goal, from the onset, was to provide a turnkey solution in asphalt pavement construction and the acquisition of our Apollo plant now means that we have complete control over the supply chain,” explains Steve Tinarwo, managing director, Instant Tar. “That’s important from a reputation management perspective, as it means we don’t need to rely on third parties when it comes to project delivery.”

Instant Tar is currently a 5 CE PE contractor in terms of the Construction Industry Development Broad (CIDB) grading system and has gained extensive experience as a subcontractor working on projects across South Africa. “Our plan in 2018 is to apply for an upgrade to a CIDB 7 level, so that we can tender on a broader range of projects,” explains Tinarwo.

The company is 100% black-women-owned. “In fact, we’re the only black contractor in Gauteng that owns an asphalt plant,” he continues. Instant Tar is also a member of the Southern African Bitumen Association, ensuring it keeps up to date with current industry regulations and standards.

From civils to paving
Established in 2007, Instant Tar’s current business model has progressively evolved. Initial activities concentrated on general civils work, like earthworks, stormwater drainage structures and concrete block paving, which it still offers on request as part of a total project  solution.

Having identified a gap, the company refined its strategy in 2008, shifting to a specific focus on asphalt paving – ranging from pothole patching, to residential driveway and light commercial parking area surfacing. This has been supported by a steady acquisition of specialised equipment, starting with a walk-behind pedestrian roller.

Instant Tar’s first paver was acquired in 2010, subsequently followed by pneumatic and compaction rollers that have opened up opportunities into a much broader market for urban and national road resurfacing. Instant Tar’s current paver units include a Vögele 1603 (equipped with a 5 m screed), a Wirtgen Super 800 (3.4 m screed) and a Blaw-Knox unit. Allied equipment includes chip spreaders, pneumatic and double-drum rollers, and tipper trucks.

The company now also owns two low-bed trucks, which enables the rapid deployment of machines nationally for projects in diverse geographic locations, such as the Eastern Cape, KwaZulu-Natal and Limpopo.

Ongoing projects within the Gauteng region include subcontract work for the Johannesburg Roads Agency (JRA), the City of Ekurhuleni, and the Gauteng Department of Roads and Transport. One of Instant Tar’s recent breakthroughs took place in the recycling market, and the company recently completed an R8 million project for the JRA, working as a subcontractor.

“Whether it is for a patching, resurfacing or complete surface construction job, Instant Tar provides expert advice and ensures that the appropriate materials are used,” says Tinarwo. Instant Tar also provides a road marking service. The solutions offered are solvent- and water-based road markings.

SMME support
“There’s a definite opportunity for SMME contractors when it comes to earthworks projects, but the high cost of acquiring specialist paving plants still represents a major barrier to entry for most emerging companies. Plus the saving segment is not generally catered for by the plant hire industry.

So, Instant Tar is well-placed for growth,” says Tinarwo. “However, we can create joint ventures with SMME civils contractors. This enables them to tender on multidisciplinary roads projects where Instant Tar is responsible for the black-top surfacing phase.”

In the longer term, Instant Tar has an ambitious vision of being one of the top five asphalt suppliers within the SADC region. “As we expand, one of our future acquisitions could include a mobile asphalt plant, which would be ideal for supplying the megaprojects we hope to secure in the future as we climb up the CIDB rankings,” he expands.

Outside South Africa, Instant Tar has a registered company in Zimbabwe, trading as Elshadhai Civil Construction. With the outlook in Zimbabwe starting to show marked improvement, Instant Tar plans to establish a full road paving line during 2018 to respond to local project opportunities.

“In the meantime, our intention is to grow our municipal footprint in South Africa, while concurrently strengthening our relationships with key suppliers, since they play a critical role in ensuring that we provide high-quality solutions,” concludes Tinarwo

Source - Infrastructure News

September 28, 2017

Another Tender War

Work on white-topping of roads is set to begin and around 30 roads stretching 93.47 km will be white-topped in two phases. The tender process for the project, which has been divided into two packages, has been completed.

The first package has been handed over to NCC which involves six roads and six circles. The second package involves 24 roads and the contract has been handed over to Madhukan. The companies have been given 11 months to complete the project.

“Roads will be white-topped on the lines of Nrupathunga Road. Work will start by October,” said Bruhat Bengaluru Mahanagara Palike (BBMP) commissioner N Manjunath Prasad.

He also said the stretch along Mysuru Road-Sumanahalli Junction-Goraguntepalya-BEL Circle-Hebbal-KR Puram will be taken up soon since the traffic here is heavy. “We are trying to reduce the inconvenience caused to motorists as much as possible and hence we have instructed the contractors to complete the project within six months,” said Prasad.

“We need to completely bar vehicular movement during the project. We will create alternative routes during this period in consultation with the traffic police,” said K T Nagaraj, BBMP chief engineer, (projects).

He also said work will 
be taken up according to the availability of the paver machines which are used for white-topping.

Around six circles are being white-topped in the project. The circle near Ramakrishna Ashram, Lalbagh West, North and East gates, near Siddapura Teacher’s College and Bhashyam Circle will be white-topped. A total of Rs 21.24 crore is being spent on this. “These works come under Package 1,” said Nagaraj.

White-topping, or concretisation, gives roads a life of up to 25 years and results in fuel savings of 14%. The Centre for Smart Cities (CSC) Research had recommended that white-topping helps in reducing traffic and increasing the lifespan of the road. The state government has allotted Rs 2,000-3,000 crore under the Nagarothana scheme for this project.

Source- Deccan Herald

September 22, 2017

Elevated road to avoid local traffic

The cost of the entire project has been estimated at ₹1,800 crore, a NHAI official said.

GURGAON Updated: Sep 20, 2017 21:57 IST
Dhananjay Jha
The elevated road will start from Gurgaon-Delhi border and end near the Basai railway overbridge in Sector 100.
The elevated road will start from Gurgaon-Delhi border and end near the Basai railway overbridge in Sector 100. (HT File)
In what could spell major relief to city commuters and homebuyers living sectors 80 to 115 along the Dwarka Expressway, the National Highways Authority of India (NHAI) is all set to construct a 10km elevated road. The tenders for the project were floated on Monday.
The elevated road will start from Gurgaon-Delhi border and end near the Basai railway overbridge in Sector 100. The cost of the entire project has been estimated at ₹1,800 crore, a NHAI official said.
Dinesh Yadav, general manager, NHAI, said, “The Dwarka Expressway will be executed in phases. In the first phase, tenders have been floated for the 10km road which will be elevated. The purpose of the elevated road is to separate local traffic from the expressway’s long distance traffic.”
In October 2016, the NHAI took over the Northern Peripheral Road, which is also known as the Dwarka Expressway, from the Haryana government and named it NH 248-B.
The NPR’s custodian authority earlier was the Haryana Urban Development Authority for 18-km portion in Gurgaon between Delhi border and Kherki Daula toll plaza. After NHAI took over it, the length was extended up to near Shiv Murti, Mahipalpur.
Before the NHAI took it over, the Huda had completed the 16.5km portion in Gurgaon and also an RoB on Delhi-Rewari railway track at Basai.
“We have been waiting for the completion of the Dwarka Expressway as the delay has adversely affected other development work in new sectors. We hope the NHAI will complete the expressway and bring us relief. I believe tens of thousands of homebuyers like me are waiting for the completion of their dream homes,” said Prakhar Sahay, a homebuyer.
“This is an important development as it will provide easy access to various sectors and help bridge the connectivity gap along the NPR,” said Pankaj Bansal, Director, M3M Group.
Ravish Kapoor, Director of Elan Group, also hailed the development and called the project “an engine to boost growth in new Gurgaon” by improving better connectivity to the expressway.
The NHAI has been constructing underpasses at Hero Honda Chowk, Rajiv Chowk, Signature Tower and Iffco Chowk. The highways authority constructed a flyover at Hero Honda Chowk and construction is underway for the two elevated U-turns at Iffco Chowk while another U-turn underpass is proposed on the highway near Ambience mall.

July 11, 2017

ONLY 10 percent of the surfaced (tarred) national road network is in good condition, with 30 percent in poor condition while 57 percent is in fair condition, a senior Government official has said.

About 3 percent of the road network has been unclassified, 1 percent of gravel and earth roads were certified to be in good condition, 22 percent was in fair condition, 72 percent was said to be in poor condition while five percent was unclassified at this stage.

In response to this situation, Government has initiated a number of road rehabilitation projects, including building new ones. Some of the road rehabilitation projects initiated through the Ministry of Transport and Infrastructure Development include. . .

Tenders will be awarded on a Build Operate Transfer (BOT) basis for the Beitbridge-Bulawayo-Victoria Falls, Harare-Nyamapanda and Rutenga-Boli-Sango roads before the end of this year.

Currently, feasibility studies and detailed engineering designs are underway for the Beitbridge-Bulawayo road and should be completed by August this year, after which tenders will be floated.

Transport and Infrastructure Development Minister Dr Jorum Gumbo said Government had made significant investment into the road network and more funds would be channelled towards infrastructure. The minister said about $300 million had so far been channelled into infrastructure development, including road rehabilitation.

"Some $13,28 million was spent on rehabilitation and maintenance of road infrastructure in 2015 and $11,44 million in 2016. At the same time, rehabilitation of the Plumtree-Mutare road was done from 2012 to 2016 at a cost of $206 million," said Dr Gumbo.

"In the aviation sector, the major investment has been upgrading of Victoria Falls Airport in the last three years to December 2016, at a cost of about $150 million. There was also some money spent on rehabilitation of the runway at Harare International Airport," he said.

All the road works were funded by the Zimbabwe National Road Authority and the Ministry of Finance and Economic Development.

"There has been no private financing of transport infrastructure development since the New Limpopo Bridge in 1994 and Beitbridge-Bulawayo Railway (BBR) in 1998.

"The Plumtree-Mutare project was financed through a loan obtained by ZINARA from DBSA (of South Africa). Victoria Falls Airport was financed by a loan to Civil Aviation Authority of Zimbabwe from China," said Dr Gumbo.

Minister Gumbo said the National Railways of Zimbabwe also carried out some rehabilitation work on the national railway network.

The condition of the country's road network had deteriorated since the last condition survey in 2010. At that time, 20 percent of the national road network was assessed to be in good condition, 30 percent in fair condition and 50 percent in poor condition. Ongoing road projects include the dualisation of Beitbridge-Harare-Chirundu highway, including the Harare Ring Road.

"The construction team has started arriving from China, and construction is expected to start in September this year," he said.

"We are also going to construct Phase 2 of the Harare International Airport Road. The late commencement has been due to delays in carrying out the required feasibility study. Again this will be done and project implementation will commence before the end of the year." the Minister added.

More funds, especially foreign direct investment, could have been channelled towards road projects, among other infrastructure development projects, but lack of appropriate and adequate legislation governing Public Private Partnerships was a hindrance.

"However, we now have the Joint Venture Act, and we trust that from now on we will be able to attract significant levels of FDI in transport infrastructure development," the Minister added.

Source - Bulawayo

October 10, 2016

TOT or Advance Selling of Human Traffic Loads ?

The National Highways Authority of India (NHAI) is preparing to start the process of monetizing toll-based operational road assets under the toll, operate and transfer (TOT) model, aimed to bring new investments to the highways sector.

“We have not as yet floated tenders to monetize road assets, but are preparing to do so. We expect to begin doing this in 2-3 months’ time under the TOT model,” NHAI chairman Raghav Chandra said in an email response to queries from Mint.

This will be India’s first exercise in auctioning NHAI’s operational projects after a cabinet clearance in August. The proceeds will fund new highway projects under various models.

NHAI is currently working on the guidelines for TOT, under which the investor will collect tolls and be responsible for operation and maintenance of the project. The TOT model will be essential to attract long-term foreign investment, financial investors and investment bankers told Mint.

NHAI can lease up to 75 national highway projects which are fetching tolls for at least two years to various entities on the TOT model. The overall annual toll collected from these projects is about Rs2,700 crore, against which NHAI can expect to raise Rs25,000-30,000 crore by granting 30-year concessions, said Ashish Agarwal, director (infrastructure) at investment bank Equirus Capital.

The TOT model is long overdue, said Gautam Bhandari, partner at I Squared Capital, a US-based investor in road projects. “We are hopeful that NHAI finally does launch its TOT programme so that it can serve as a model for other sectors as well. As a global investor, we believe that NHAI’s TOT model, if executed properly, could be a win-win for everyone. Proceeds from TOT auctions will free up valuable taxpayer capital that can then be recycled for much-needed new infrastructure projects,” he said.

I Squared is looking to invest as much as $1 billion in Indian infrastructure. It has invested more than Rs1,000 crore through its investment platform Cube Highways and Infrastructure Pte. Ltd in three road projects so far.

IDFC Alternatives, which has bought controlling stakes in operational road projects, is waiting to see the fine print. “The good part is that in the TOT model, there are far less variables and concerns to be addressed as compared to projects with embedded construction risks. The differences in the bids here would be more a function of how differently each investor views the traffic growth rates, maintenance costs, synergies with other projects in one’s portfolio, if any,” said Aditya Aggarwal, partner (infrastructure), IDFC Alternatives.

There is significant interest from international infrastructure funds in the Indian road sector, said Rahul Mody, managing director, Ambit Corporate Finance Pvt. Ltd. “The TOT model is an excellent idea. The model takes away two key risks in the road sector—delays or cost overruns and initial traffic discovery—as the assets that will be offered under this (model) will be operational with some tolling history; hence it should attract considerable interest from Indian companies as well as foreign investors,” Mody said.

“The model can be an avenue for NHAI to raise upfront capital to fund the EPC and HAM projects; opportunity to feed the increasing number of pension funds and infrastructure investors having access to low cost capital and further deepen the infrastructure market; and allowing players to choose better the nature of risk-reward play they want to play in the road sector,” Agarwal said.

Source- LiveMint

September 29, 2016

Global Bitumen Market

The global bitumen market is forecast to grow at a Compound Annual Growth Rate (CAGR) of four percent between 2015 to 2020, and the world’s largest energy traders such as the Vitol Group and the Trafigura Group Pte. are in a race to increase their market share.

The bitumen market was valued at around $75 billion in 2014 and is expected to reach $94 billion in 2020, according to a report by Zion Research, titled, “Bitumen (Paving Bitumen, Oxidized Bitumen, Cutback Bitumen, Bitumen Emulsion, Polymer Modified Bitumen and Others) Market for Roadways, Waterproofing, Adhesives, Insulation and Other Applications - Global Industry Perspective, Comprehensive Analysis and Forecast, 2014 – 2020”.

Bitumen is a semi-solid form of petroleum, which is used to make asphalt for roads, waterproofing for roofs, insulation, and adhesives. It is either obtained by distillation of petroleum or is available naturally, such as in Canada’s oil sands.

Bitumen is used mainly in road manufacturing. A surge in road construction activity in Asia will propel growth for the product going forward. 75 percent of the global consumption of bitumen was used for road construction in 2014.

Waterproofing of roofing and building construction was the second major consumer of bitumen in 2014. Increased construction of homes to cater for the growing population is likely to add to the bitumen demand in the future.

Along with roofing, polymer modified bitumen (PMB), which is used as a chemical additive and adhesive, will witness rapid growth compared to other forms of bitumen.

Trucks, trains, and barges have been used traditionally to transport bitumen from refineries to local consumers; however, a drop in supply from the aging refineries in the U.S. and Europe has necessitated the use of oceangoing tankers, to supply the material from its source of production to the end consumer.

Vitol, the largest independent oil-trading house teamed up with U.S.-based Sargeant Marine Inc., which distributes asphalt to customers worldwide to form Valt, which operates the world’s largest dedicated asphalt fleet, handling parcel sizes from 20 metric tons up to 37,000 metric tons through its fleet of fourteen specialist vessels, according to its website.

“It used to be mostly a small distribution business,” Chris Bake, a senior executive at Rotterdam-based Vitol, said in an interview. “Now it is more of a whole arbitrage business requiring a global reach and shipping capacity,” reports Bloomberg.

Trafigura group is also not far behind. Its Singapore-based unit, Puma Energy has added four new bitumen vessels, taking the total number of vessels to 11, which cater to the Asian markets.

“We see a definite upward trend in the number of nautical miles for bitumen,” said Valt Chief Commercial Officer Nick Fay, who estimates an annual increase of about 7 percent. “All the new refineries that are getting built don’t make bitumen,” reports Bloomberg.

The Guvnor Group is planning to invest in the Perth Amboy asphalt refinery and storage facility in New Jersey, which has been shut since 2008, reports Bloomberg.

There is hardly any public information about the bitumen market, which makes it ideal for the large energy traders, who use their energy expertise and global connection to supply to far-off markets.

“There is a perception that the world is going to be more disconnected -- supply and demand-wise -- and we are there to help connect the dots,” Klintholm said.

Nonetheless, increased use of asphalt for roads and environmental concerns with bitumen manufacturing could pose a risk for the growth of the bitumen industry in the future.

By Rakesh Upadhyay for

July 20, 2016

The South African National Roads Agency (Sanral) his issued tenders to six pre-qualified bidders for each of the mega-bridges, over the Mtentu and Msikaba River gorges, that are to be part of the greenfield section of the N2 Wild Coast Road project.

This is in spite of the fact that the project, which has been dogged by controversy since its inception 15 years ago, still faces some unresolved legal issues. There was huge opposition from KwaZulu-Natal road users who expected to fund the project through increased tolling in their province. However, this opposition has fallen away as the KwaZulu-Natal section has been excluded from the project. The revised N2 Wild Coast Road Project runs from East London to the Mtamvuna River Bridge, a distance of approximately 410km.

Bizana residents fear being displaced and the Amadiba Crisis Committee has objected to the project, claiming it is linked to the Xolobeni dune mining proposal, against which they are fighting. Conservation organisations are bitterly opposed to the fact that the greenfields section of the proposed route will pass through the environmentally sensitive Pondoland Centre of Endemism, part of a global floral hot spot.

Sanral spokesman Mbulelo Peterson said that an open pre-qualification process had been followed before the issuing of the tenders. He said that, due to the size and complexity of the two bridges, which are expected to cost around R3,5-billion to construct, the tender periods were 18 weeks and 20 weeks respectively for the Mtentu and Msikaba Bridges. Tenders would close at the end of October for the Mtentu Bridge and early in November for the Msikaba Bridge. Construction of the bridges was likely to start early next year.

THE N2 Wild Coast road project was already well under way as Sanral had started working on it as soon as it had received the go-ahead from the Minister of Environmental Affairs in 2010. Mr Peterson said that, to date, Sanral had done extensive work on upgrading existing roads on the N2 between East London and Mthatha and on the future new N2 alignment along the current R61 route between Mthatha and Port St Johns.

All work already done on the N2 Wild Coast Road had been funded from non-toll funding and only the greenfields section of the route would be funded through a mix of government grant and tollings.

“Sanral, the Department of Transport and National Treasury are in discussion to finalise the funding model for the greenfields section. By law only roads funded through toll funding can be tolled and no cross-subsidisation of tolling is allowed,” he said.

This meant Sanral could not erect new toll booths or adjust tariffs at existing toll plazas within KwaZulu-Natal to fund roads in the Eastern Cape.

“New toll roads must be gazetted and go through an extensive public participation process after gazetting.”

In January this year, government gave the green light for the construction of the greenfields section of the project, between Ndwalane outside Port St Johns and the Mtamvuna River.

Mr Peterson said this part of the project would start with the construction of the massive bridges over the Mtentu and Msikaba Rivers, which border the Mkambati Nature Reserve. Once these were under way, construction of the remaining approximately 110km of road, the seven additional river bridges and four interchanges would start.

Source - Southcoast Herald

July 4, 2016

India to help Build Nepal Road

Tasked to improve road connectivity in remote parts of India's Northeast, the National Highways and Infrastructure Development Corporation Ltd (NHIDCL) is now venturing into Nepal where it has been assigned to guide the construction of over 600 km of postal roads in the Terai region bordering India.

A postal road is a road designated for the transportation of postal mail.

According to an MoU inked between India and Nepal, the decision was taken after a similar attempt by the Nepal Government failed to make progress due to negligence of the contractors in 2010.

"The Postal Road in the Terai region of Nepal will boost the country's much awaited road network. Under this current project the NHIDCL will be tasked to guide the construction of 19 postal roads of an outlay of 600 km," one of the top officials at NHIDCL told IANS declining to be identified.

He said the construction of 19 postal roads are under six packages for different parts of the Terai region.

"Basically we will be playing the role of consultants in the entire project. The biddings and all the tendering work of the road construction will be done by Nepal. Our work will basically be to see that the work does not witness failure like earlier," the official said.

According to the official, the decision for handing over the guidance work was decided during the recent visit of Nepal's Prime Minister K.P. Oli to India.

Abhay Thakur, Joint Secretary at the Ministry of External Affairs (MEA), told IANS: "Yes, It has been proposed to the Nepal Government for appointing NHIDCL as the consultant for the postal road projects. Though the precise MoU between the NHIDCL and Nepal Government is likely to be inked next week... all things are decided."

He said contractors from both Nepal and India can do the bidding for the postal roads projects.

The NHIDCL authority, who did not wished to be named, said the postal road has been prioritised for the development of Terai/Madhes region by expanding the road network. The 600 km work is only for the first phase. Both the countries will decide the agenda for the remaining works also."

Stating that the project was being financed by India, he said that the money will be given to Nepal for the execution of different stages of work, which will be over looked by the NHIDCL.

According to sources, the cost of the first phase of road construction in the Terai is estimated to increase to Rs 9 billion from the earlier Rs 7 billion. The total project cost will also rise from the previous estimate of Rs 29 billion. Around 130 bridges have to built along the 600 km highway.

Asked if NHIDCL has been given any other foreign projects, the authority said: "The creation of NHIDCL was for creation of difficult roads. The Government has full confidence on us and we are ready to undertake any project in any part of the world under any circumstance. However, there are no immediate foreign projects as of now."

NHIDCL, created in 2014, has recently been given the task of constructing over 4,000 km of roads in the Northeast and Jammu and Kashmir. The organisation was established after Border Roads Organisation (BRO) and Public Works Department of the states failed to carry out road construction in many remote parts in hilly terrain.
Source - Indian Express

June 22, 2016

Chile Road Projects Tender

Chile is pushing ahead with infrastructure development. The Ministry of Public Works intends to award five to seven projects during 2016. 

The Ministry of Public Works has also set a target of having 12-13 major infrastructure projects being awarded and worth a total of US$6 billion by the time the current administration comes to the end of its term.

One road project due to be awarded shortly is for the phase two of the Vespucio Oriente link. The tender is expected to open in July 2016. 
The projects for the Ruta de la Fruta, El Loa link and the road from Los Vilos to La Serena will also be put to tender in 2016. Meanwhile the tender process for the $1 billion Costanera Central project will be put out to tender in 2017.

First publishedon

June 16, 2016

Nepal Spends on Road

The prime Minister, other ministers and influential leaders of the opposition parties have managed to get huge funds allocated to their respective constituencies for the development of minor local roads in order to woo local voters.

As many as 98 minor and local roads that were allocated only Rs 1 million or little more in the budget have now been upgraded into multi-year projects, analysis of information provided to Republica by the National Planning Commission (NPC)  shows.

The Ministry of Finance has decided to allocate Rs 40 billion for initiating multi-year tender processes for these projects. However, the roads in question have not been listed as strategic roads, nor has the economic returns been weighed. Line agencies of the Department of Roads have already started the tender process for several of the projects. 
These huge amounts are on top of the budget allocation of Rs 42.02 billion in the current fiscal year. Minor projects that had been allocated between Rs 1 million to Rs 5 million are now receiving Rs 10 million and above. A few of them are receiving over a billion.

Four minor road projects in Jhapa, the home district of Prime Minister KP Sharma Oli, have now been converted into multi-year projects and guaranteed funding of about Rs 1 billion. The projects are Lakhanpur-Mangalbare-Mujarphutta-Jyotinagar road, Satamari-Bhalubari road, Charali Kechana ring road and Damak ring road.

Likewise, Biratnagar-Debanganj road in the constituency of Deputy Prime Minister and Minister for Physical Infrastructure and Transport (MoPIT) Bijaya Gachchhadar has been upgraded into a multi-year project.

Likewise, Finance Minister Bishnu Prasad Paudel has allocated about Rs 3 billion  for similar projects in his  constituency. Belbas-Nuwakot-Dobhan road and Belbash-Bethari road have been turned into multi-year projects. The fiscal year budget had allocated Rs 5 million for the Belbash Bethari road and this sum has now been increased to Rs 1.94 billion.
Swarnim Wagle, senior economist and former member of the NPC, said bringing a road to every voter is not the solution to the lack of efficient road infrastructure in the country. He suggested focusing on good roads over the shortest distances and efficient transportation.

Priority projects in top leaders' constituencies

Three influential leaders from Pyuthan district have used their sway to get minor projects prioritized. Govind Raj Pokharel, former NPC vice chairman, has converted at least two projects into multiyear ones. He was also involved in project selections for the current fiscal year. Track opening and upgrading of Jhimruk ring road and the Hatiyagaun Jabune-Airabati road in Pyuthan have now been prioritized. Likewise, Bamdev Gautam, former home minister and senior leader of the CPN UML, has secured funds for the black-topping of Bhigri-Swargadwari road and the construction of a ring road in Madi Model Municipality.

Rekha Sharma, lawmaker of the CPN (Maoist Center) and minister for general administration, has gotten four roads, also in Pyuthan, converted into multi-year contracts. Cherneta-Salghari-Sari-Dandagau road, Badadanda-Kaskot-Hansapur-Airawati road, and Okharkot-Machchhi-Tanda Pokhari road are among the four.
Balkrishna Khand, influential leader of the Nepali Congress from Rupandehi district, has secured a few multi-year road projects also. Bauddha Paripath-Ramgram-Panditpur-Jyamire road, Harkatawa road and Murgiya- Suryapura-Lumbini road in Rupandehi, and two other minor roads in the Lumbini area were recommended by Khand for such conversion. Similarly, senior UML leaders Janardan Dhakal, Surendra Pandey, Parbat Gurung, Rajendra Pandey, Lal Bahadur Rawal, Yagyaraj Sunuwar, Deepak Karki, and Janardan Sharma of CPN (Maoist Center) have also secured projects in their home districts.

Sumitra Amatya, a member of the NPC, told Republica that "projects are being converted as a new experiment for completing projects listed in the budget within three years and averting the continuous financial burden of such small projects over as much as a decade." She further said that conversion into multiyear does not mean the resources are allocated right away as the funds will only be disbursed after the detailed project report (DPR) and environment impact assessment (EIA) are completed.
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