China Rail Construction keen to participate in NHAI projects
NEW DELHI: Chinese government-owned China Railway Construction Corporation Limited (CRCC) has evinced keen interest in participating in National Highways Authority of India (NHAI) projects, government said today.
“A high-level delegation from the CRCC, led by its Chief Economist Zhao Jinuha, met Chairman, NHAI, Raghav Chandra and a team of NHAI officers in New Delhi,” Ministry of Road Transport and Highways said in a statement.
Chandra told the visiting team that NHAI has projects lined up for upgradation of two-lane National Highways totalling 50,000 kms, various special expressway projects of around 15,000 kms and a part of the National Highways Development Programme (NHDP), over the next few years.
“CRCC expressed keen interest to participate in the upcoming projects of NHAI under both engineering, procurement and construction (EPC) and hybrid annuity model (HAM),” the statement said.
CRCC is one of the world’s largest integrated engineering contractor and construction groups with over USD 100 billion of revenue and a market capitalisation of around USD 250 billion.
CRCC, apart from being the major contributor to China’s high-speed and normal, alpine and plateau railways, has provided survey and design services for highways, urban rail transit, real estate and other infrastructure projects.
The CRCC team had an in-depth discussion on various aspects of such participation in NHAI projects, the statement said, adding that the visiting delegation enquired about the acceptance of Chinese technical standards.
“NHAI officials clarified that they would be acceptable only if they are higher than the prescribed standards of Indian Road Congress.
“Their queries mostly pertained to finding financial solutions with requisite IRR, addressing the upward price fluctuations during construction of essential materials like bitumen, fuel, steel and cement during the period of construction under the EPC and HAM,” the statement said.
The Chinese delegates were also keen on knowing about any restrictions on sources of procurement from abroad, import certifications requirements, whether US dollars could be the currency of repayment (as annuity) and availability of repayment guarantee, it added.
NHAI officials also sought details of Chinese policy and models of concessions and funding solutions, the statement said.
“NHAI officials presented an overview of policy, procedures and risk and responsibilities distribution between the private and public partners and provided clarifications addressing the queries of the visiting CRCC delegates,” it said.
CRCC officials expressed keenness to bid for projects within the framework of NHAI’s transparent and competitive e-tendering process.