Vadhvan Port: JNPA Sets Strict Criteria for Dredging
PORTS & SHIPPING

Vadhvan Port: JNPA Sets Strict Criteria for Dredging

The Jawaharlal Nehru Port Authority (JNPA) has unveiled stringent qualification requirements for entities bidding for dredging, offshore reclamation, and shore protection contracts worth Rs 206.47 billion for the proposed Vadhvan Port. This move follows the BJP-led alliance's recent electoral win in Maharashtra, which is expected to expedite infrastructure projects across the state.

To qualify, bidders must demonstrate technical expertise worth at least Rs 151.13 billion from projects completed in the last decade. Eligible projects should include Public-Private Partnership (PPP) experience or work in core sectors like ports, highways, airports, industrial parks, and real estate.

Additionally, bidders must prove a net worth of Rs 22.67 billion as of the previous financial year. Consortium members are required to contribute a minimum of 26% equity and meet net worth requirements, ensuring the financial and operational stability necessary for the project's duration. Bidders must also hold a credit rating of A- or higher, or provide a banker’s comfort letter guaranteeing project funding, according to The Hindu.

The Vadhvan Port project, approved by JNPA’s board on November 14, will be developed under a Hybrid Annuity Model (HAM), a first in Indian port development. The Rs 762.20 crore project will be implemented in two phases:

The remaining 40% of the contract value will be paid over a ten-year maintenance period following project completion, excluding maintenance dredging. Once completed, Vadhvan Port, a joint venture between JNPA (74%) and the Maharashtra Maritime Board (26%), will handle up to 298 million tonnes of cargo annually, making it India's largest public port.

The HAM model, described as a “deferred EPC” approach, reduces JNPA’s borrowing needs and ensures phased financial disbursements, easing fiscal pressure. The proposal has been forwarded to the Ministry of Ports, Shipping, and Waterways for review by the Public Private Partnership Appraisal Committee, clearing the path for bids from developers.

The Jawaharlal Nehru Port Authority (JNPA) has unveiled stringent qualification requirements for entities bidding for dredging, offshore reclamation, and shore protection contracts worth Rs 206.47 billion for the proposed Vadhvan Port. This move follows the BJP-led alliance's recent electoral win in Maharashtra, which is expected to expedite infrastructure projects across the state. To qualify, bidders must demonstrate technical expertise worth at least Rs 151.13 billion from projects completed in the last decade. Eligible projects should include Public-Private Partnership (PPP) experience or work in core sectors like ports, highways, airports, industrial parks, and real estate. Additionally, bidders must prove a net worth of Rs 22.67 billion as of the previous financial year. Consortium members are required to contribute a minimum of 26% equity and meet net worth requirements, ensuring the financial and operational stability necessary for the project's duration. Bidders must also hold a credit rating of A- or higher, or provide a banker’s comfort letter guaranteeing project funding, according to The Hindu. The Vadhvan Port project, approved by JNPA’s board on November 14, will be developed under a Hybrid Annuity Model (HAM), a first in Indian port development. The Rs 762.20 crore project will be implemented in two phases: The remaining 40% of the contract value will be paid over a ten-year maintenance period following project completion, excluding maintenance dredging. Once completed, Vadhvan Port, a joint venture between JNPA (74%) and the Maharashtra Maritime Board (26%), will handle up to 298 million tonnes of cargo annually, making it India's largest public port. The HAM model, described as a “deferred EPC” approach, reduces JNPA’s borrowing needs and ensures phased financial disbursements, easing fiscal pressure. The proposal has been forwarded to the Ministry of Ports, Shipping, and Waterways for review by the Public Private Partnership Appraisal Committee, clearing the path for bids from developers.

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