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GMADA Outsources Major Road Upgrades

Ten-year maintenance to avoids fluctuating costs of annual tenders

by TheReportingTimes

Chandigarh/Mohali, Jan 18: Private-sector involvement in public infrastructure- the Greater Mohali Area Development Authority has invited bids for the comprehensive maintenance of 83 kilometers of city roads. The project, valued at nearly Rs 10 crore per kilometer, tasks private players with keeping the city’s arterial routes in top condition for the next ten years.

The initiative covers essential junctions and roads with widths ranging from 23 to 60 meters. Rather than simply paving the streets, the private partners will be tasked with improving drainage systems and enhancing the aesthetic appeal of the corridors. This move is intended to create “Next Generation Roads” that can withstand heavy use without falling into disrepair.

Despite the promise of better roads, the nearly Rs 800 crore budget has led to questions regarding fiscal responsibility. Activists like Amitoj Mann have voiced concerns over how the government arrived at such a significant valuation for maintaining roads that are already in use.

Responding to these concerns, project officials noted that the financial structure of the deal protects the public interest by shifting all risks of future repairs onto the private firms. They said that by locking in a 10-year maintenance contract, the city avoids the fluctuating costs of annual tenders and ensures the roads remain in a state of high quality.

“Under the concession agreement, any wear and tear or repair required during the 10-year period would entirely be the responsibility of the concessionaire,” a project representative said.

The implementation will be carried out in phases, focusing on the busiest connectors in Mohali. GMADA mentioned that no new land acquisition will be required, as all work will stay within the existing right of way.

The authority is currently accepting online bids until February 2. Following the opening of technical bids, the government will move forward with financial evaluations to finalize the landmark deal.

 

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