JNPA Sets Qualification Norms for Vadhvan Port Project Bids
03 Dec 2024 CW Team
The Jawaharlal Nehru Port Authority (JNPA) has finalised qualification criteria for entities bidding on dredging, offshore reclamation, and shore protection works worth Rs 206.47 billion for the upcoming Vadhvan Port. The move follows the BJP-led alliance’s electoral victory in Maharashtra, accelerating the port's development.
To qualify, bidders must demonstrate technical capability of at least Rs 151.13 billion, based on experience in two categories: Public-Private Partnership (PPP) projects in port and core sectors, and construction projects in these sectors over the last decade. Eligible port projects include terminals, jetties, dredging works, offshore reclamation, breakwaters, and other related infrastructure. Core sector projects span highways, airports, railways, industrial parks, water supply, and real estate, among others.
Bidders must also meet financial requirements, including a minimum net worth of ?2,267.04 crore as of the previous financial year. In consortiums, members contributing at least 26% equity must maintain this share for six months post-commercial operation and meet individual net worth requirements of 7.5% of the project’s Phase-1 cost. Additionally, bidders need a minimum credit rating of A- or a banker’s assurance of credit facilities.
The JNPA board approved the project on November 14, opting for a Hybrid Annuity Model (HAM) to execute the work in two phases. Phase 1 will reclaim 800 hectares over three years, with contractors receiving 60% of the contract value during this period. Phase 2 will reclaim an additional 400 hectares over two years. The remaining 40% of the contract value for both phases will be paid during a ten-year maintenance period, excluding maintenance dredging.
The PPP HAM model, a first for Indian port projects, combines features of Engineering, Procurement, and Construction (EPC) with deferred payments, reducing JNPA’s borrowing requirements for the Rs 762.20 billion project.
Vadhvan Port, developed by Vadhvan Port Project Ltd—a joint venture between JNPA (74%) and Maharashtra Maritime Board (26%)—is set to be India’s largest public port, capable of handling 298 million tonnes of cargo annually. The proposal awaits approval from the Public-Private Partnership Appraisal Committee before bidding begins.
(ET)