Home India Ministry of Finance Widening & Upgradation of exising highway from Khagaria (Des...
Date: 2025-10-01 Category: Public Private Partnership in India State: Union Government Country: India

Widening & Upgradation of exising highway from Khagaria (Design Ch. 270+000) to Purnea (Design Ch. 413+529) secƟon of NH- 31 & NH- 231 to 4 lane with paved shoulders under NH(O) on BOT (Toll) in the State of Bihar.

Issued by Ministry of Finance · Department of Economic Affairs

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Executive Summary & Key Takeaways

**Executive Summary** This document is the Record of Discussion from the 136th meeting of the PPPAC held on October 1st, 2025. The meeting was to consider three road project proposals from the Ministry of Road, Transport & Highways (MoRTH) on PPP mode. The record is being forwarded for information and necessary action. The document lists recommendations for consideration and approval. **Key Points / Main Content** * **Project 1: Khagaria to Purnea Highway Upgradation (Bihar)** * Widening and upgrading the existing highway from Khagaria to Purnea to a 4-lane road with paved shoulders under NH(O) on BOT (Toll). * Concession period is 25 years, including a 2.5-year construction period and 22.5 years for O&M. * The appraised Total Capital Cost is Rs. 3936.05 crore with a total project cost (incl. GST) of Rs. 3388.40 crore. * The maximum admissible VGF support is Rs. 1355.36 crore, i.e., 40% TPC by MoRTH under NH(O). * **Project 2: Muzaffarpur-Sitamarhi-Sonbarsa Highway Laning (Bihar)** * 4-Laning of the Muzaffarpur-Sitamarhi-Sonbarsa section on Hybrid Annuity Mode (HAM) under NH(O). * Concession period is 17.5 years, including a 2.5-year construction period and 15 years for O&M. * The appraised Total Capital Cost of the project is Rs. 3590.73 crore, with a total project cost (incl. GST) of Rs. 2840.18 crore. * The project will be executed under the HAM model under the NH(O) scheme. * Land acquisition and clearances must be obtained before the bid due date. * **Project 3: Gandak River Bridge Construction (Bihar & Uttar Pradesh)** * Construction of a 2-Lane Major Bridge across River Gandak with approaches connecting Manuapul (Bihar) and Tiwaripatti (Uttar Pradesh). * The project will be on Hybrid Annuity Mode (HAM). * Concession period is 19 years, including 4 years of construction and 15 years of O&M. * The appraised Total Capital Cost of the project is Rs. 1976.77 crore with a total project cost of Rs. 1422.28 crore. * The project will be taken up on HAM mode under the NH(O) scheme. * MoRTH/NHAI will monitor the implementation of the project. * **Common Recommendations** * PPPAC revalidation is not required for changes in project costs/bid documents related to dates, risk allocation, or modifications that aim to improve the project's success. * MoRTH/NHAI can decide if post-recommendation project changes fall within the threshold criteria and, if so, appraise them at the level of Secretary (RTH)/BoD of NHAI. **Impact Analysis** **Secretary, Department of Expenditure** *Impact* * Project proposals related to road development in Bihar and Uttar Pradesh. *Action Required* * Review and consider the presented proposals for financial implications and alignment with departmental objectives. **CEO, NITI Aayog** *Impact* * Project proposals involve infrastructure development impacting regional connectivity. *Action Required* * Assess project alignment with NITI Aayog's infrastructure and regional development goals and provide relevant recommendations. **Secretary, Ministry of Road, Transport & Highways** *Impact* * Three road projects proposed under PPP mode are subject to the PPPAC's recommendations. *Action Required* * Review the PPPAC recommendations, take necessary actions for further appraisal, and proceed with the approval process. **Secretary, Department of Legal Affairs** *Impact* * Legal implications of the proposed infrastructure projects. *Action Required* * Review the projects for legal compliance and provide relevant advice.

Key Entities Referenced

Ministry of Road Transport and Highways (MoRTH): The primary ministry responsible for the road projects discussed in the document, specifically concerning the widening and upgrading of highways. Public Private Partnership Appraisal Committee (PPPAC): A committee that appraises PPP projects, discusses project proposals, and makes recommendations for consideration by higher authorities. National Highways Authority of India (NHAI): The implementing agency for the projects. Responsible for construction, maintenance, and operation of national highways. NH(O): Scheme under which the projects are being implemented. Refers to the National Highway (Original) scheme. Bihar: The state where two of the discussed projects are primarily located and impacted.
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Subject: Record of Discussion of the 136th mee(cid:415)ng of the PPPAC for considering the following project proposals: - (i) Widening & Upgrada(cid:415)on of exis(cid:415)ng highway from Khagaria (Design Ch. 270+000) to Purnea (Design Ch. 413+529) sec(cid:415)on of NH- 31 & NH- 231 to 4 lane with paved shoulders under NH(O) on BOT (Toll) in the State of Bihar. (ii) 4 laning of Muzaffarpur-Sitamarhi-Sonbarsa sec(cid:415)on of NH-22 (Design Ch. Km. 0+000 to Design Ch. Km. 82.578) under NH(O) on HAM in the State of Bihar (iii) Construc(cid:415)on of 2-Lane Major Bridge across River Gandak along with its both side approaches connec(cid:415)ng Manuapul (Be(cid:427)ah on NH-727)) in Bihar at Km 0.00 and Tiwaripa(cid:427) (Sewarhi on NH-730) in U(cid:425)ar Pradesh at Km. 29+248 of Na(cid:415)onal Highway 727AA. 1. The 136th mee(cid:415)ng of the PPPAC was held on 01st October 2025 at 1100 hours to consider the above three proposals of MoRTH. 2. List of a(cid:425)endees is placed at Annexure-I. 3. With the permission of Secretary (EA), Joint Secretary (ISD) welcomed all the a(cid:425)endees to the mee(cid:415)ng. NHAI made a detailed presenta(cid:415)on on the proposed road projects. (i) Widening & Upgrada(cid:415)on of exis(cid:415)ng highway from Khagaria (Design Ch. 270+000) to Purnea (Design Ch. 413+529) sec(cid:415)on of NH- 31 & NH- 231 to 4 lane with paved shoulders under NH(O) on BOT (Toll) in the State of Bihar. 1. The details of the project are given in the table below: Table-1: Details of the project Widening & Upgrada(cid:415)on of exis(cid:415)ng highway from Khagaria (Design Project Descrip(cid:415)on Ch. 270+000) to Purnea (Design Ch. 413+529) sec(cid:415)on of NH- 31 & Page 2 of 35NH- 231 to 4 lane with paved shoulders under NH(O) on DBFOT (Toll) in the State of Bihar. PPP Model BOT (Toll) Sponsoring Ministry of Road Transport and Highways, Government of India Authority Implemen(cid:415)ng Na(cid:415)onal Highways Authority of India (NHAI) Agency State: Bihar Loca(cid:415)on District: Khagaria, Bhalgalpur, Ka(cid:415)har, Purnea Type of Pavement Flexible, except at Toll Plaza Lane configura(cid:415)on 4-lane with Paved Shoulder S. Description Khagaria to Purnea Section No . 1 Alignment Type Brownfield Upgradation to 4-Lane. Existing Road to be retained 2 End Lane Status 4 lanes with Paved Shoulders 3 Concession Period 30 years including 2.5 years Construction Period1 4 Total Alignment 143.529 Length (Km) 5 Bypass (Km) Extended Purnea Bypass Greenfield - 6.729 Km (To provide seamless Details of connectivity with Patna- Purnea Structures Expressway) 6 Realignment (Km) 2.59 Km 7 Upgradation 134.21 Km (Widening) 8 Length of Service Service Road-65.099Km (including both Road/Slip Road sides) (Km) Slip Road-100.908Km (including both sides) 9 Existing Right of 60m throughout except in a length of Way (EROW) 700.0m in Maheshkunt, where EROW is 45.0m 10 Proposed Right of 60 m at Re-alignment & Bypass locations Way (PROW) 1 As per the recommenda(cid:415)on of the PPPAC (Para No.10), the concession period is reduced to 25 years. Page 3 of 3511 Design Speed 100 Km/Hr (Km/H) 12 Type of Pavement Flexible Pavement, except at Toll Plaza. (Flexible/Rigid) 13 Number of 1 No. Interchange (Nos.) 14 Minor Junction Minor At-Grade Intersections- 115 Nos. (Nos.) Intersections below Grade Separator - 49 Nos. 15 Major Bridge 1 No. New- 4-lane bridge (75.0m) (Nos.) 4 Nos. New-2 Lane bridge (1089.779m, 140m,78m,74m) parallel to existing 2-lane bridges of same length which are to be retained. 16 Minor Bridge 2 Nos New- 4-lane bridge (25m,50m)4 (Nos.) Nos New-2 Lane bridge (All 16m) parallel to existing 2-lane bridges of same length which are to be retained. 17 Railway 04 Nos. New-2 Lane (98m,74m,86m,74m) Crossing/ROB parallel to existing 2-lane ROBs which are (Nos.) to be retained. 18 Flyover (Nos.) 9 Nos.- New- 4-lane (15m+30m+15m) 19 Interchange (Nos.) 1 No. including 1 flyover of 15m+30m+15m 20 VUP (Nos.) 9 Nos.- New- 4-lane (20m* 5.5m) 21 LVUP (Nos.) 10 Nos.- New- 4-lane (12m* 4m) 22 SVUP (Nos.) 20 Nos.- New- 4-lane (7m* 4m) 23 Culverts (Nos.) Project Road-276 Nos., Cross Road-157 Nos (box type structure), Interchange-04 Nos. 24 FOB(Nos.) 3 Nos. 25 Bus Bay/Bus Bus Bays-02 Nos. on Both Sides, Shelters (Nos.) Bus Shelters-30Nos. on Both Sides 26 Truck Lay Byes 04 Nos on both sides (Nos) 27 Toll Plaza (Nos.) 2 Nos. (Retain) Existing Lane-2+1 (Both Sides) Widening 01 Additional Lane as per NHAI Policy Circular 2021- 3+1 (Both Sides) Page 4 of 35S. Description of work Rs. in N Crore 1. Civil Cost with escalation up to start of project 2591.15 (Appointed Date) 2. Escalation during Construction Period (As per 148.18 Model) 3. IC/Pre-Operative Expenses (As per Model) 27.39 4. O&M during Construction Period (As per Model) 25.05 Es(cid:415)mated Capital 5. Financing Expenses (As per Model) 11.97 Cost with Break-up 6. Interest During Construction (IDC) 117.06 under major heads 7. Cost incl Centages 2920.80 of expenditure 8. ADD GST @ 18% (excl IDC) 504.67 9. Estimated Total Project Cost/ Cost Put to tender 3425.47 10. Add Contingency 1% 24.68 11. Land Acquisition Cost & Affected Structures Cost 290.16 12. Other Pre-Construction Cost 232.81 13. Total Capital Cost 3973.12 14. Construction Support (Rs in crore) 226.64 S Description Khagaria to Purnea Section N 1. Land Acquisition o Total Land Required-875 Ha. o Available land-764.08 Ha. o Total Govt. Land - 18.44 Ha. o Total Private land-92.48 Ha. o Additional Land Required: 110.92 Ha o 3(A) is under progress Land Acquisi(cid:415)on 2. Environment Not required. and other Clearance clearance 3. Forest Clearance Under process as there is no forest land within the proposed ROW. However, Tree Cutting permission is required. 4. Wildlife Clearance Not required. 5. Approval of GAD ROB Under process from Railways 6. IWAI Clearance Under process. As per IWAI notification, Kosi River falls under NW-58 which is classified in Class- Page 5 of 35III requiring minimum Navigational of 50.0m. The span arrangement of the existing and proposed new bridges has been planned in such a manner that it aligns with the existing piers with more than 50.0m (Variable Span 56.294m to 71.067m) length. Proposal for NOC submitted to IWAI which has been recommended by Regional Office, IWAI- Patna. 7. Utilities Shifting The survey with concerned department is under progress, however the details of utility shifting are already mentioned under Schedule A, costing has been considered into estimates deduced from similar types of works of nearby projects. Particulars Khagaria to Purnea Section Financial Viability PIRR 13.67% EIRR 15% The DCA has been prepared based on the MCA dated 09.12.2020 issued by MoRTH duly incorpora(cid:415)ng the Amendment dated Concession 15.03.2024 issued by MoRTH (changes in the provisions of MCA for Agreement capacity augmenta(cid:415)on on BOT(Toll) and other circular issued by MoRTH/NHAI. Bidding parameter Lowest quoted Grant or Highest quoted premium Bidding process Single Stage Two-part system of bidding 2. The primary purpose of the proposed corridor is to enhance travel efficiency between the Khagaria and Purnea sec(cid:415)ons of NH-31 and NH-231 in Bihar. This proposal involves the construc(cid:415)on and upgrada(cid:415)on of the exis(cid:415)ng 2-lane configura(cid:415)on from Parmanpur, Gogri (Km 270.0) in Khagaria to Gulab Bagh (Km 410.0) in Purnea, Bihar. The present tollable traffic on the corridor is 13143 PCUs per day and has exceeded the design capacity of 2-lane highway i.e. 10,000 PCUs per day (for plain terrain). The instant proposal will also enhance interstate connec(cid:415)vity to West Bengal, U.P. and Jharkhand. Page 6 of 353. The project road traverses through four districts, i.e. Khagaria, Bhagalpur, Ka(cid:415)har, Purnea and will ensure smoother, faster, safer & un-interrupted traffic movement for both passenger and freight vehicles with increase in the average speed from 40 kmph to 80 kmph & decrease in travel (cid:415)me from ~ 4 hrs to ~ 2 hrs between Khagaria to Purnea. Presently, the 2- lane project highway is under BOT (Annuity) Concession agreement up to October 2029. As the traffic on this stretch is reaching to the tune of 15000 PCUs and as per extant policies, the project required augmenta(cid:415)on/upgrada(cid:415)on from present 2-lane to 4-lane. Since there is no provision of capacity augmenta(cid:415)on under Ar(cid:415)cle-29 of the Concession Agreement signed for the subject project on BOT (Annuity), the present Concession Agreement is under process for foreclosure. 4. The project will be executed under the BOT(Toll) with a Total Capital Cost of Rs. 3,973.12 crore, and a total project cost of Rs. 3425.47 crore. Under the BOT (Toll) mode, NHAI es(cid:415)mated a total VGF of Rs. 1145.64 crore (i.e., 33.44% of TPC) for a concession period of 30 years, out of which Rs. 226.64 crore shall be given as Construc(cid:415)on support and Rs. 919 crore shall be given as grant payable by the Authority during the construc(cid:415)on period to the Concessionaire. The project IRR is 13.67% with an equity IRR of 15%. 5. A(cid:332)er the detailed presenta(cid:415)on, the Chair asked the PPPAC members for their observa(cid:415)ons. DoLA supported the proposal and stated that no further comments to offer. 6. Deputy Director, DoE raised the following observa(cid:415)on: - a) What is the concession period proposed for the project? 7. PD, NITI Aayog raised the following observa(cid:415)ons: a) The project IRR has been computed at 13.67% with a proposed VGF of Rs. 919 crore. However, there appears to be scope for op(cid:415)mizing the VGF requirement by reassessing the Project IRR (PIRR) more realis(cid:415)cally. Page 7 of 35b) The proposed project highway includes 75 km of retaining wall. The ra(cid:415)onale for the same to be indicated. 8. JS(ISD) highlighted the following observa(cid:415)ons: a) In order to bring more viability, less VGF requirement and encouraging more projects in BoT (Toll) mode, allowing concession of 30 years is a welcome step from MoRTH. b) The total VGF proposed may be clarified as the proposed VGF of Rs. 1,145.64 crore includes Rs. 226.64 crore as construc(cid:415)on support and Rs. 919 crores labelled as equity support. How is the construc(cid:415)on support of Rs.226.64 crore arrived? In addi(cid:415)on, VGF support cannot be in the form of equity support. It is a financial grant to the project to enhance viability. c) Out of the total project length of 143.529 km, what is the bifurca(cid:415)on between greenfield and brownfield development? Does the land acquisi(cid:415)on cost included in the Total Project Cost (TPC) pertain only to the greenfield por(cid:415)on or does it also cover the brownfield sec(cid:415)on? d) Whether the cost of the project comparable with the cost of other similar projects in the region? e) Out of 143 km stretch, the slip road is for 100.908 km. What is the ra(cid:415)onale behind proposing such substan(cid:415)al length of slip roads? 9. The Chair made the following observa(cid:415)ons: a) What is the approximate distance between the instant proposal and the proposed Patna–Purnea Greenfield corridor? b) Why was the instant proposal considered as a separate package and not integrated with the preceding project packages, especially given that the 4-lane development from Patna to Khagaria has already been completed? Page 8 of 35c) The proposal currently refers to the project structure as BOT (Toll) on a DBFOT pa(cid:425)ern. The term "DBFOT pa(cid:425)ern" is not clear and it creates ambiguity due to overlapping terminology. 10. MoRTH submi(cid:425)ed the following to the queries raised by the PPPAC Members: a) The project is ini(cid:415)ally structured for a concession period of 30 years, however, to avoid uncertain(cid:415)es of a longer concession period, it is suggested to go for a 25 years concession period. (The cost assessment including the grant requirement for a 25-year concession period is given at Annexure-II). b) In road sector projects, extending the concession period can introduce risks such as traffic uncertainty, compe(cid:415)ng corridors, and changing demand pa(cid:425)erns, which may affect project viability and investor interest. Unlike other sectors where longer concession periods may be beneficial, road projects typically prefer a shorter concession period to manage these risks effec(cid:415)vely. Addi(cid:415)onally, the design life of road assets is generally 25 years, making a 25- year concession period both prac(cid:415)cal and sector-appropriate. c) A project IRR of 13.67% is reasonable for a BOT (Toll) project. For a 25 years concession, 43% VGF is required as per financial modelling. However, the requirement of VGF or premium shall be determined by the market and keeping in view the current market trend, the actual VGF is likely to be within 40% of TPC. d) The proposed widening of the project road is planned on both sides, subject to the availability of the ROW and while retaining the exis(cid:415)ng carriageway, a retaining/toe wall of average 2m height has been proposed to accommodate the 4-laning withing the available ROW. e) According to the new amendments in the MCA for BOT (Toll) project, tolling rights will be with the Authority during the construc(cid:415)on period. The construc(cid:415)on support of Rs.226.64 crore is the es(cid:415)mated toll revenue collected by the Authority during the construc(cid:415)on period. This amount shall be due and payable to the Concessionaire in ten equal instalments during the construc(cid:415)on Page 9 of 35period. Further, the term “equity support” has been incorrectly used in the proposal and will be revised to grant which will be given during the construc(cid:415)on period. f) The total length of the instant project is 143.529 km, of which 134.210 km is proposed as brownfield upgrada(cid:415)on, and the remaining 9.319 km is greenfield development. The greenfield por(cid:415)on includes curve improvements at four loca(cid:415)ons totalling 2.59 km, and the Purnea Bypass of 6.729 km. The land acquisi(cid:415)on cost included in the TPC pertains only to the greenfield por(cid:415)on. g) The es(cid:415)mated cost aligns with the recently awarded similar projects in and around the region. Further, the es(cid:415)mated civil construc(cid:415)on cost including u(cid:415)lity shi(cid:332)ing for the project is Rs. 2468 crore with the civil cost per km length per lane of Rs. 4.30 crore which is well within the norma(cid:415)ve cost. h) The proposed 100.908 km of slip roads—comprising 50.454 km on each side of the main carriageway—is necessitated by the presence of 48 grade-separated structures (including flyovers, VUPs, LVUPs, and SVUPs) and le(cid:332)-in/le(cid:332)-out access arrangements at 40 loca(cid:415)ons. These slip roads are essen(cid:415)al for ensuring safe and efficient traffic movement, facilita(cid:415)ng local access, and maintaining uninterrupted flow on the main corridor. i) The proposed Patna–Purnea Greenfield corridor lies approximately 50 to 60 km north of the instant project alignment. j) Based on the traffic assessment in 2010, Patna – Bakh(cid:415)yarpur sec(cid:415)on (50km) and Bakhiyarpur – Khagaria sec(cid:415)on (114km) were planned and awarded as 4- lane project on BOT(Toll). At that (cid:415)me, the traffic in Khagaria – Purnea sec(cid:415)on was less for 4-lane upgrada(cid:415)on. Based on current traffic assessment, Khagaria- Purnea sec(cid:415)on is now proposed for upgrada(cid:415)on to 4-laning. k) The term DBFOT pa(cid:425)ern is incorrectly used and shall be revised with BOT (Toll). Page 10 of 35Recommenda(cid:415)ons 11. A(cid:332)er detailed delibera(cid:415)ons, the PPPAC unanimously recommended the proposal for “Widening & Upgrada(cid:415)on of exis(cid:415)ng highway from Khagaria (Design Ch. 270+000) to Purnea (Design Ch. 413+529) sec(cid:415)on of NH- 31 & NH- 231 to 4- lane with paved shoulders under NH(O) on DBFOT (Toll) in the State of Bihar” subject to following recommenda(cid:415)ons, for considera(cid:415)on of the competent authority for giving administra(cid:415)ve approval. a) The appraised Total Capital Cost of the Khagaria to Purnea sec(cid:415)on is Rs. 3936.05 crore with a total project cost (incl. GST) is Rs. 3388.40 crore. b) The project shall be taken up on BOT (Toll) mode. With a concession period of 25 years including 2.5 years of construc(cid:415)on period and 22.5 of O&M period. c) The maximum admissible VGF support shall be Rs. 1355.36 crore, i.e., 40% TPC which shall be given by MoRTH under NH(O). 12. Revalida(cid:415)on of its recommenda(cid:415)on by the PPPAC is not required for following post recommenda(cid:415)on changes in the project costs/bid documents: - a) Any change in the date/(cid:415)me period for any (cid:415)me-bound ac(cid:415)ons like appointed date, financial close, construc(cid:415)on period etc. b) Non-substan(cid:415)al change in risk-alloca(cid:415)on. c) Any other changes/modifica(cid:415)on in the project proposal with the overall objec(cid:415)ve of making project successful. d) Further, MoRTH/NHAI may decide whether the changes proposed post recommenda(cid:415)ons of the project proposal by the PPPAC fall within the threshold criteria as stated above. All such changes falling within the threshold criteria shall be appraised at the level of Secretary (RTH)/BoD of NHAI as the case may be, without any further need of revalida(cid:415)on by the PPPAC and shall proceed with the approval process accordingly. Page 11 of 35(ii) 4-Laning of Muzaffarpur-Sitamarhi-Sonbarsa sec(cid:415)on of NH-22 (Design Ch. Km. 0+000 to Design Ch. Km. 82.578, Total Length – 82.578 Km) on Hybrid Annuity Mode (HAM) under NH(O) in the state of Bihar. 1. The details of the project are given in the table below: 4-Laning of Muzaffarpur-Sitamarhi-Sonbarsa sec(cid:415)on of NH-22 (Design Project Descrip(cid:415)on Ch. Km. 0+000 to Design Ch. Km. 82.578, Total Length – 82.578 Km) on Hybrid Annuity Mode (HAM) under NH(O) in the state of Bihar. PPP Model Hybrid Annuity Mode Sponsoring Ministry of Road Transport and Highways, Government of India Authority Implemen(cid:415)ng Na(cid:415)onal Highways Authority of India (NHAI) Agency State: Bihar Loca(cid:415)on Districts: Muzaffarpur & Sitamarhi Type of Pavement Flexible, except for toll plaza Lane configura(cid:415)on 4-Lane with Paved Shoulder S. Description Muzaffarpur-Sitamarhi-Sonbarsa section No . 1 Total Alignment 82.578 Length (Km.) 2 Flyovers (Nos.) 02 (1170 m & 270 m) 3 VUP/LVUP/SVUP 06 /15 /14 (Nos.) Details of 4 Major Bridges 07 Structures (Nos.) Reconstruc(cid:415)on - 01 (new 4-lane bridge) & New – 06 (new 2-lane bridge on one side by retaining the exis(cid:415)ng 2-lane bridge) 5 Minor Bridges 29 (Nos.) Reconstruc(cid:415)on/New – 03 Widening – 09 Addi(cid:415)onal 2-lane – 17 6 Railway Crossing/ 03 [(2*25.2m), (1*26m) & (1*11m + ROB (Nos.) 1*27m + 1*11m)] Page 12 of 357 Length of Service 54.279 Km (including both sides) / 44.048 Road / Slip Road Km (including both sides) Length (Km.) 8 FOB (Nos.) 04 9 Culverts (Nos.) 337 10 Toll Plaza (Nos.) Open tolling with 1 no. Exis(cid:415)ng 8-lane Toll Plaza at Km. 26+030 11 Construc(cid:415)on 30 Months Period 12 Maintenance 15 Years Period 13 Total Alignment 82.578 Length (Km.) Concession Period 17.5 years including 2.5 years of construction S. Description of work Rs. in N Crore 1. Civil Cost 2217.28 2. Labour Cess 1% (on civil cost) 22.17 3. U(cid:415)lity Shi(cid:332)ing Cost 45.97 4. Seigniorage 12.20 5. Civil Construc(cid:415)on Cost (including U(cid:415)lity Shi(cid:332)ing 2,297.62 Cost, Seigniorage and 1% Labour cess) 6. Centages (as per Financial Analysis) Es(cid:415)mated Capital 7. IC & Pre -opera(cid:415)on expenses @1% of civil cost 22.98 Cost with Break-up 8. Financing Expenses 8.57 under major heads 9. Interest during construc(cid:415)on (IDC) 111.90 of expenditure 10. Es(cid:415)mated Project Cost as on Bid Date (excluding 2441.07 GST) 11. GST 18% on Base Civil Cost 399.11 12. Es(cid:415)mated Project Cost as on Bid Date (including 2840.18 GST) 13. Escala(cid:415)on during Construc(cid:415)on Period 273.10 14. Es(cid:415)mated O&M cost for 15 Years Maintenance 294.47 Period 15. Con(cid:415)ngencies @1% on Civil Construc(cid:415)on Cost 22.98 16. Cost of Pre-construc(cid:415)on Ac(cid:415)vi(cid:415)es Page 13 of 3517. Cost of Land Acquisi(cid:415)on, Re-se(cid:425)lement and 150.00 Rehabilita(cid:415)on 18. Cost of Diversion of Forest Area and Tree Cu(cid:427)ng, 10.00 U(cid:415)lity supervision Charges & EMP 19. Sub Total (17+18) 160.00 20. Total Capital Cost 3590.73 S Description Muzaffarpur-Sitamarhi-Sonbarsa N section 1. Land Acquisi(cid:415)on o Total Land Required-495 Ha. o Forest Land- NIL o Available land-460 Ha. o Additional Land Required:35 Ha (7%) o 3(A) is under progress 2. Environment Not required Clearance 3. Forest Clearance 1. There is no forest land within the proposed ROW. For the trees cutting and translocations from the ROW, marking and counting work is in progress. 4. Wildlife Clearance NA 5. Approval of GAD ROB Under process. Land Acquisi(cid:415)on from Railways Proposed at Ch. 3+215, Ch. 43+545, and and other Ch. 50+080. The exis(cid:415)ng 2-lane ROBs, which are in good condi(cid:415)on, have been clearance retained. 6. IWAI Clearance NA 7. U(cid:415)li(cid:415)es Shi(cid:332)ing The survey with the concerned department is completed. Es(cid:415)mates of LT/HT electric u(cid:415)lity & PHED amoun(cid:415)ng to Rs.25.82 crore & Rs.2.49 crore respec(cid:415)vely have been received. Es(cid:415)mates from BSPTCL (3 nos. EHT Lines / 132 KV-2 nos. & 220 KV-1 No.) is deduced from similar works of nearby projects. The details of u(cid:415)lity shi(cid:332)ing have been men(cid:415)oned under Schedule-A within scope of the concessionaire. Page 14 of 35Particulars Muzaffarpur-Sitamarhi-Sonbarsa section Financial Viability PIRR 11.23% EIRR 15% Concession The project is proposed to be implemented as per Model Concession Agreement Agreement of MoRTH issued in November-2020. Bidding parameter Lowest Bid Project Cost Bidding process Single Stage Two-part system of bidding 2. The primary objec(cid:415)ve of the proposed corridor is to enhance travel efficiency between Muzaffarpur, Sitamarhi, and Sonbarsa (at the Indo-Nepal border) in the state of Bihar. The project aims to alleviate traffic conges(cid:415)on by diver(cid:415)ng heavy vehicles via flyovers in densely populated areas such as Muzaffarpur, Muksudpur, Runni Saidpur, Thumma, Dumra, Bhutahi, and Sonbarsa. Currently, the Muzaffarpur–Sitamarhi–Sonbarsa sec(cid:415)on carries a traffic volume of 13,299 PCUs per day, surpassing the design capacity of a 2-lane highway in plain terrain, which is 10,000 PCUs per day. Given that this highway serves as a vital corridor connec(cid:415)ng northern Bihar to Nepal, upgrading it to a 4-lane road holds regional and interna(cid:415)onal significance, along with offering substan(cid:415)al economic, social, and logis(cid:415)cal benefits. 3. The proposed project will ensure smoother, faster, safer & un-interrupted traffic movement for both passenger and freight vehicles. The proposed corridor will reduce travel (cid:415)me between Muzaffarpur-Sonbarsa from approximately 2 hours to 1 hour with a design speed of 100 km/hr (Average-80 km/hr), ensuring safer travel for all vehicles. It will also reduce accidents and minimize risks to local traffic and pedestrians. It will also improve connec(cid:415)vity to major religious des(cid:415)na(cid:415)ons such as Baba Garibnath Temple in Muzaffarpur District and Punaura Dham (Mata Janki Temple) in Sitamarhi District. 4. The project will be executed under the HAM model under the NH(O) scheme for the FY 2024-25. The total Capital Cost of the project is Rs. 3590.73 crore with a total project cost (incl. GST) of Rs. 2840.18 crore. The financial assessment indicates the project IRR is 11.23% and the equity IRR is 15%. Page 15 of 355. A(cid:332)er the detailed presenta(cid:415)on, the Chair asked the PPPAC members for their observa(cid:415)ons. DoLA supported the proposal and stated that no further comments to offer. 6. Deputy Director, DoE raised the following observa(cid:415)ons a) The cost of major structures in the proposed project is approximately 25% higher as compared to similar structures in nearby projects. However, the overall project cost s(cid:415)ll lower than the norma(cid:415)ve cost. What is the reason behind this? 7. PD, NITI Aayog raised the following observa(cid:415)ons: a) How many junc(cid:415)ons will directly connect to the main carriageway? Addi(cid:415)onally, how many entry and exit points are currently provided in the proposed project? b) There are 38 loca(cid:415)ons along the proposed highway where the design speed has been restricted to 80 km/h. The ra(cid:415)onale for this speed limita(cid:415)on to be provided. c) What is the current status of statutory clearances for the proposed project, including tree cu(cid:427)ng? 8. JS(ISD) highlighted the following observa(cid:415)ons: a) The exis(cid:415)ng two-lane highway is currently operated under a BOT (Annuity) model, with the concession period valid un(cid:415)l May 2031. The Authority has opted to foreclose the exis(cid:415)ng contract and ini(cid:415)ate a new concession under the HAM model. What is the ra(cid:415)onale behind transi(cid:415)oning from one annuity mode (BOT Annuity) to another annuity mode (BoT HAM)? b) What is the current toll revenue collected under the exis(cid:415)ng BOT (Annuity) contract? Has the traffic projec(cid:415)on for the proposed road accurately accounted for poten(cid:415)al induced traffic? Page 16 of 35c) The civil construc(cid:415)on cost is es(cid:415)mated at Rs. 2,297.62 crore in the HAM model, while the BOT model assumes a higher civil construc(cid:415)on cost of Rs. 2,343.12 crore. The jus(cid:415)fica(cid:415)on for the same to be provided. d) The proposed construc(cid:415)on dura(cid:415)on for upgrading the exis(cid:415)ng two-lane road to a four-lane configura(cid:415)on has been indicated as 2.5 years. However, similar projects have typically adopted a construc(cid:415)on period of 2 years. The jus(cid:415)fica(cid:415)on for the same to be provided. e) Per km project cost of the project is Rs. 34 crore which appears to be substan(cid:415)ally higher. The project cost to be reassessed and ra(cid:415)onale for the increase in the project cost to be provided. 9. The Chair made the following observa(cid:415)ons: a) Does the project involve any land acquisi(cid:415)on? 10. MoRTH submi(cid:425)ed the following to the queries raised by the PPPAC Members: a) The higher cost of major structures is primarily a(cid:425)ributed to the long lead distance for sourcing structural concrete aggregates, which must be procured from Jharkhand, approximately 273 km away, due to the non-availability of suitable quality aggregates within Bihar. This significantly impacts the cost of concrete works. The norma(cid:415)ve cost comparison tool of MoRTH allows for input of actual lead distances, enabling a more accurate and project-specific cost assessment. When these factors are accounted for, the overall project cost remains within the norma(cid:415)ve limits, as the tool adjusts the benchmark accordingly. b) No junc(cid:415)ons or crossroads will directly connect to the main carriageway. All at-grade intersec(cid:415)ons have been designed to interface through dedicated service or slip roads, which in turn connect to the nearest underpass or crossing facility. Addi(cid:415)onally, there are a total of 37 entry and exit points (74 nos. for both side) and the same have been regulated via service/slip roads to maintain uninterrupted traffic flow and minimize conflict zones. Page 17 of 35c) The project highway has been designed for a design speed of 100 km/h, in accordance with Clause 2.2.1 of IRC: SP:84-2019. However, at 38 specific loca(cid:415)ons, the design speed has been restricted to 80 km/h due to geometric constraints arising from terrain/topography, proximity to se(cid:425)lements, junc(cid:415)ons, and exis(cid:415)ng structures. This adjustment ensures compliance with IRC standards related to horizontal curvature, sight distance, and overall safety. All provisions remain fully aligned with IRC guidelines. d) The proposed project does not require Environmental Clearance or Wildlife Clearance. Under Forest Clearance provisions, the only requirement pertains to tree cu(cid:427)ng permissions. The process for obtaining this clearance is already underway and is expected to be completed prior to the bid due date. Tree cu(cid:427)ng, once approved, will be undertaken by the Concessionaire. e) The project corridor currently experiences a daily traffic volume of approximately 13,299 PCUs, which exceeds the threshold for maintaining Level of Service (LOS-B) as per Na(cid:415)onal Highway standards. Given the absence of provisions for capacity enhancement under the exis(cid:415)ng BOT (Annuity) agreement, the Authority has decided to foreclose the contract to enable (cid:415)mely upgrada(cid:415)on. Furthermore, with nearly 50% of the traffic being non-tollable, the project is financially unviable under the BOT (Toll) model. Therefore, the instant project has been proposed to be taken up under HAM. Once traffic volumes reach sustainable levels, the highway can be mone(cid:415)zed to op(cid:415)mize long-term revenue genera(cid:415)on. f) The toll revenue of last FY: 2024-25 was approx. 22.42 crore. At this stage, it is difficult to accurately es(cid:415)mate the volume of inducted traffic, as the adjoining road projects that could influence traffic pa(cid:425)erns are s(cid:415)ll in preliminary planning phases and their (cid:415)melines are yet to be finalized. Therefore, the current traffic projec(cid:415)ons are based on available data and exis(cid:415)ng condi(cid:415)ons. g) In BOT (Toll) analysis, the civil cost has been assumed as Rs. 2297.62 Crore only, however, considering the (cid:415)me gap between the (cid:415)me assessment of the Page 18 of 35civil cost (Appraisal date) and actual Appointed Date, the cost is to be escalated up to the start of construc(cid:415)on at 4% p.a. However, in case of HAM, the escala(cid:415)on is payable to the Concessionaire from the Bid Due Date itself and hence the escala(cid:415)on from Bid Due Date to start date of construc(cid:415)on is not applicable in HAM financial analysis. h) The construc(cid:415)on period of 30 months (2.5 years) has been recommended by the DPR Consultant a(cid:332)er a comprehensive assessment of project-specific parameters. These include the total project length of 82.578 km, the scope of major structures—7 major bridges, 29 minor bridges, a 1170-meter elevated corridor, and 3 ROBs—as well as the limited working window due to the project's loca(cid:415)on in a high-intensity rainfall region. Addi(cid:415)onally, as per the standard provisions outlined in the Model RFP for EPC projects, a construc(cid:415)on period of 30 months is prescribed for 4-laning projects exceeding 50 km in length and involving bridge structures over 200 meters. i) The project cost and features have been thoroughly reviewed and op(cid:415)mized in line with prevailing site condi(cid:415)ons. Any further reduc(cid:415)on would compromise safety and structural integrity. The compara(cid:415)vely higher cost is jus(cid:415)fied due to the requirement of seven major bridges and 29 minor bridges, requirement of service roads, requirement of high embankment etc. However, the base civil construc(cid:415)on cost of Rs. 2,217 crore remains below the norma(cid:415)ve cost of Rs. 2,338 crore, calculated as per the norma(cid:415)ve cost tool/ standard dated 19.01.2022 (The details of the cost reassessment and jus(cid:415)fica(cid:415)on is placed at Annexure-III). j) The project involves minor land acquisi(cid:415)on of approximately 35 hectares, primarily required for geometric improvements of broken-back curves and to meet design standards at specific isolated loca(cid:415)ons. The project is being developed en(cid:415)rely within an exis(cid:415)ng brownfield corridor, u(cid:415)lizing the available Right of Way (RoW). Out of the total land requirement of around 495 hectares, approximately 460 hectares (93%) is already available. The acquisi(cid:415)on process for the remaining land has been ini(cid:415)ated, and it will be ensured that full possession is handed over to the Concessionaire within 150 Page 19 of 35days from the Appointed Date, in accordance with Ar(cid:415)cle 4 and Ar(cid:415)cle 10 of the Dra(cid:332) Concession Agreement (DCA). Recommenda(cid:415)ons 11. A(cid:332)er detailed delibera(cid:415)ons, the PPPAC unanimously recommended the proposal for “4-Laning of Muzaffarpur-Sitamarhi-Sonbarsa sec(cid:415)on of NH-22 (Design Ch. Km. 0+000 to Design Ch. Km. 82.578, Total Length – 82.578 Km) on Hybrid Annuity Mode (HAM) under NH(O) in the state of Bihar” subject to following recommenda(cid:415)ons, for considera(cid:415)on of the competent authority for giving administra(cid:415)ve approval. a) The appraised Total Capital Cost of the project is Rs. 3590.73 crore with a total project cost (incl. GST) of Rs. 2840.18 crore. b) The project should be taken up on HAM under the NH(O) scheme. c) The concession period of the project is 17.5 years including 2.5 years construc(cid:415)on period and 15 years O&M period. d) Land acquisi(cid:415)on and necessary clearances to be obtained in a (cid:415)me bound manner before the bid due date so as to avoid any delays in the project. e) For enhancing safety and reducing the risk of accidents, as suggested by MoRTH, for all future highway projects, the entry and exit points to be designed in such way that the exit point comes first followed by entry point. 12. Revalida(cid:415)on of its recommenda(cid:415)on by the PPPAC is not required for following post recommenda(cid:415)on changes in the project costs/bid documents: - a) Any change in the date/(cid:415)me period for any (cid:415)me-bound ac(cid:415)ons like appointed date, financial close, construc(cid:415)on period etc. b) Non-substan(cid:415)al change in risk-alloca(cid:415)on. Page 20 of 35c) Any other changes/modifica(cid:415)on in the project proposal with the overall objec(cid:415)ve of making project successful. d) Further, MoRTH/NHAI may decide whether the changes proposed post recommenda(cid:415)ons of the project proposal by the PPPAC fall within the threshold criteria as stated above. All such changes falling within the threshold criteria shall be appraised at the level of Secretary (RTH)/BoD of NHAI as the case may be, without any further need of revalida(cid:415)on by the PPPAC and shall proceed with the approval process accordingly. Page 21 of 35(iii) Construc(cid:415)on of 2-Lane Major Bridge across River Gandak along with its both side approaches connec(cid:415)ng Manuapul (Be(cid:427)ah on NH-727) in Bihar at Km 0.00 and Tiwaripa(cid:427) (Sewarhi on NH-730) in U(cid:425)ar Pradesh at Km. 29+248 of NH-727AA 1. The details of the project are given in the table below: Table-1: Details of the project Construc(cid:415)on of 2-Lane Major Bridge across River Gandak along with its both side approaches connec(cid:415)ng Manuapul (Be(cid:427)ah on NH-727) in Project Descrip(cid:415)on Bihar at Km 0.00 and Tiwaripa(cid:427) (Sewarhi on NH-730) in U(cid:425)ar Pradesh at Km. 29+248 of NH-727AA PPP Model Hybrid Annuity Mode Sponsoring Ministry of Road Transport and Highways, Government of India Authority Implemen(cid:415)ng Bihar Rajya Pul Nirman Nigam Limited under RCD, Govt. of Bihar Agency Bihar (West Champaran Dist.) Loca(cid:415)on U(cid:425)ar Pradesh (Kushinagar Dist.) Type of Pavement Flexible Lane configura(cid:415)on 2-Lane with Paved Shoulder S. Description Manuapul (Bettiah on NH-727) to No Tiwaripatti (Sewarhi on NH-730) . 1 Length (km) 29.248 2 Pavement Type Flexible 3 Major Bridge 3 Nos. (6x36 m ; 20x36 m+ 185x60 m+ 15x36 m : 1x20.4 + 4x36 m) Details of 4 Minor bridge 15 Nos. 5 ROB NIL Structures 6 Flyover NIL 7 VUP/LVUP/SVUP 08-VUP (20x5.5), 14-LVUP (12 x 4), 8 Major/ 20 Nos. Minor Junc(cid:415)ons improvement of crossroads 9 Culverts (No.) o 24 Nos. of RCC Box Culvert, Page 22 of 35o 3 Nos. of RCC Box Culvert cum PUP cum Ca(cid:425)le Pass o 5 Nos. of PUP cum Cattle Pass 10 Connec(cid:415)ng/ Slip/ • Slip Roads: 3.55 Kms Service Road (Km) 11 Tolling Open tolling 12 Construc(cid:415)on 48 months Period 13 Minor bridge 15 Nos. 14 ROB NIL Concession Period 19 years (Including 4 years of Construction Period) S. Description of work Rs. in N Crore 1. Base Civil Construc(cid:415)on Cost “A” 1271.17 2. U(cid:415)lity shi(cid:332)ing (Electric Line, Poles and 11.17 Transformers) 3. Labour Cess @ 1% on (A) 12.71 4. Seigniorage Charge for Construc(cid:415)on Materials on 12.08 (A) 5. Base Civil Cost including U(cid:415)lity shi(cid:332)ing, Labour 1307.13 Cess and Seigniorage Charge “B” 6. IC/pre-opera(cid:415)ve expenses @1% of on “B” 13.07 Es(cid:415)mated Capital 7. Financing Cost (1% of debt amount) 5.75 Cost with Break-up 8. Interest during construc(cid:415)on 96.33 under major heads 9. Es(cid:415)mated Project Cost as on Bid Date including 1422.28 of expenditure Escala(cid:415)on (5+6+7+8) 10. O&M cost during concession period (15 yrs) 184.94 11. Con(cid:415)ngency on (A) @1% (As per Ministry’s 12.71 circular dated 09.05.2018) 12. Agency Charge 3% of (A) 38.14 13. Supervision Charge @ 3% of (A) 38.14 14. GST @ 18% on Civil Cost, U(cid:415)lity Shi(cid:332)ing, 271.96 Preopera(cid:415)ve, Financing and O&M Cost 15. Cost Towards Implemen(cid:415)ng the Environment 5.6 Management Plan in Entire Project section 16. Cost of Forest Clearances 3 Page 23 of 3517. Total Capital Cost excluding LA Cost sanc(cid:415)oned 1976.77 earlier2 (in Cr.) 18. Es(cid:415)mated Bid project cost 1759.08 S Description Manuapul (Bettiah on NH-727) to N Tiwaripatti (Sewarhi on NH-730) 1. Land Acquisition o Total Land Required-176.484 Ha. o Private Land)-148.30 Ha o Govt. Land- 28.18 Ha o 3(A) - 176.484 Ha. o 3(D) - 160.94 Ha (Bihar) o 3(G) - 133.35 Ha (Completed in Bihar) (3A, 3D and 3G for Bihar Portion Completed. LA for UP Portion - 15.54 Ha. 3A Completed and “3D” is under Progress in UP. Target Date for “3D” Completion for LA in UP Portion is October 2025) 2. Forest/ Wildlife Diversion of Forest Land Not Involved in Land Acquisi(cid:415)on Project section. Forest clearance in and other terms of NOC for Permission of Cutting of clearance Roadside Trees is required for Junction Improvement at start and at End of the Project. Obtaining NOC with Forest Department of Bettiah (Bihar) and Kushinagar (Utter Pradesh) under final Stage. 3. Environment Environmental Clearance for the Project has been granted in 412th meeting of Expert Appraisal Committee (EAC) of Infra–I(IA–III) through Hybrid Mode held on 14th August 2025 for the projects related to Infrastructure Development. Final Letter from EC is awaited 4. Utility Shifting Joint site visit completed, estimates yet to receive from concern agencies, details of existing utilities are already specified under the scope of concessionaire. 2 LA es(cid:415)mate amoun(cid:415)ng to Rs. 218.20 Cr sanc(cid:415)oned during 2022-23; Combining this cost, TCC: Rs. 2194.97 Crore Page 24 of 35Particular Manuapul (Bettiah on NH-727) to Tiwaripatti (Sewarhi s on NH-730) Financial Viability PIRR 12.59 % EIRR 15% Concession The project is proposed to be implemented as per Model Concession Agreement Agreement dated 09.12.2016 uploaded on MoRTH website. Bidding parameter Lowest Bid Project Cost. Bidding process Single Stage Two-part system of bidding 2. The primary purpose of the proposed project is to provide a direct connec(cid:415)vity of 29.248 km between Manuapul (Be(cid:427)ah) on NH-727 (Bihar) and Tiwaripa(cid:427) (Sewarhi) on NH-730 (U(cid:425)ar Pradesh). By crea(cid:415)ng an all-weather crossing of the Gandak floodplain, it establishes the shortest east–west link between Be(cid:427)ah and Sewarhi, with onward connec(cid:415)vity to eastern U(cid:425)ar Pradesh, Nepal border trade points and major northern corridors. Based on current traffic survey, of around 5000 PCU AADT (annual average daily traffic), instant project is proposed as 2- lane with 1.5 m paved shoulder. The development to 4-lane may be taken up in second phase once the traffic scenario in the areas is stabilized a(cid:332)er construc(cid:415)on of Gorakhpur-Siliguri Expressway which is proposed at 8km southwards from the proposed project. 3. The project is designed with a design speed of 100 km/h and will reduce the overall travel (cid:415)me to approximately 30 min., while offering safer, faster, and uninterrupted connec(cid:415)vity for both passenger and freight vehicles. The project will ensure smooth and safe traffic flow, reduce Vehicle Opera(cid:415)ng Costs and delays, improve logis(cid:415)cs efficiency, enhance access to markets and services, boost tourism poten(cid:415)al, and foster broad-based economic growth across the trans- Gandak region. 4. The project will be executed under the HAM model under the NH(O) scheme for the FY 2025-26. The total capital cost of project is Rs. 1976.77 crore with a total project cost of Rs. 1422.28 crore. The financial assessment indicates the project IRR is 12.59% and the equity IRR is 15%. Page 25 of 355. A(cid:332)er the detailed presenta(cid:415)on, the Chair asked the PPPAC members for their observa(cid:415)ons. DoLA and DoE supported the proposal and stated that no further comments to offer. 6. PD, NITI Aayog raised the following observa(cid:415)ons: a) What is the tolling mechanism proposed for the project? b) How far is the instant proposal from the proposed Gorakhpur-Siliguri Expressway? c) As per the PPPAC memo, the project implementa(cid:415)on agency is Bihar Rajya Pul Nirman Nigam Limited under RCD, Government of Bihar. Why has the State PWD been designated as the implementa(cid:415)on agency instead of NHAI? How will the Ministry ensure effec(cid:415)ve project monitoring and (cid:415)mely comple(cid:415)on if it is executed by the State PWD? 7. JS(ISD) highlighted the following observa(cid:415)ons: a) In the proposed project, a(cid:332)er deduc(cid:415)ng the length of the main Gandak Bridge (including Viaduct Approach) which is from Ch. 9-815 to 22+179 (length 12.364km), the remaining length arrived is 16.884km. In the remaining 16.884km length, the number of structures include 02 major bridge, 15 minor bridge, 32 culverts, 08 VUPs, 14 LVUP's and 08 PUPs. The need for high number of structures to be provided. b) Whether the cost of the proposed project benchmarked against the cost of any similar bridge project in the region? c) The current traffic figures appear significantly underes(cid:415)mated, as they are based on a 2022 survey. These projec(cid:415)ons do not account for the substan(cid:415)al reduc(cid:415)on in travel distance from 81 km to 29.248 km between Manuapul (NH- 727) and Tiwaripa(cid:427) (NH-730), which is expected to induce considerable traffic growth. Has this induced traffic been factored in, while arrived at total traffic to assess the viability of BOT (Toll)? Page 26 of 35d) The proposed project configura(cid:415)on is 2-lane with PS; however, the proposed ROW is 60m. The ra(cid:415)onale for reserving a 60m ROW for a 2-lane+PS to be provide 8. The Chair made the following observa(cid:415)ons: a) What is the status of land acquisi(cid:415)on in the project? b) What is the need of the project when a bridge on Gandak in Gorakhpur-Siliguri Expressway is already proposed: 9. MoRTH submi(cid:425)ed the following to the queries raised by the PPPAC Members: - a) A 6-Lane toll plaza is proposed between Ch. 24+850 to Ch. 25+150 (300 m. length). No preceding and succeeding toll plazas is present. b) The Gorakhpur-Siliguri expressway passes approximately 8 km south of the instant project alignment. c) The project is conceptualized as a 30 km standalone stretch, suitable for execu(cid:415)on by the State PWD. However, NHAI will monitor the project implementa(cid:415)on. d) The proposed structures are based on site-specific requirements. The 16.884 km stretch passes through areas with dense irriga(cid:415)on networks and natural drainage channels, necessita(cid:415)ng 2 major bridges, 15 minor bridges, and 32 culverts to maintain hydraulic con(cid:415)nuity and prevent flooding. Addi(cid:415)onally, the embankment height of 4–4.5 meters make at-grade crossings unsafe and imprac(cid:415)cal. To ensure safe and conflict-free movement for local residents, farm vehicles, and pedestrians, 8 VUPs, 14 LVUPs, and 8 PUPs have been proposed— strictly aligned with exis(cid:415)ng roads—to facilitate cross-movement without compromising safety. Page 27 of 35e) The proposed project comprises 13.62 km of structures, including 3 major river bridges (notably the 11.10 km Gandak Bridge) and 15.63 km of greenfield highway with an average embankment height of 4 meters. On a unit cost basis, the project es(cid:415)mates Rs. 38.93 crore per lane-km for major bridges and Rs. 13.48 crore per lane-km for the 2-lane paved shoulder highway. While no directly comparable project exists in the region recently, the Kosi Bridge project at Phulaut, awarded in January 2021, had a per lane-km cost of Rs. 29.55 crore for the bridge and Rs. 7.43 Cr for the highway. A(cid:332)er applying a standard escala(cid:415)on of ~5% annually, the adjusted costs for 2025–26 are Rs. 36.94 crore (bridge) and Rs. 9.29 crore (highway), which validate the cost reasonability of the current proposal. f) It is expected that the induced traffic would be negligible mainly because of the upcoming expressway, Gorakhpur-Siliguri, within a distance of 8 km from the instant proposal. The project is not viable on BOT (Toll) and requires more than 40% of VGF. g) Earlier, a 4-lane bridge was envisioned on the current alignment in the year 2022. Keeping in view the embankment height of 4m and 4-lane configura(cid:415)on of the highway, a 60 m ROW was considered appropriate. Later on, alignment of Gorakhpur-Siliguri Expressway was finalized, which passes approximately 8 km south of the instant project alignment. Due to this reason, the instant project was modified to 2-Lane with paved shoulder configura(cid:415)on. The Ini(cid:415)ally proposed ROW of 60 m has been retained keeping in view of future augmenta(cid:415)on. h) The total land requirement for the project is 176.484 hectares, comprising 148.30 hectares of private land and 28.18 hectares of government land. In Bihar, land acquisi(cid:415)on is substan(cid:415)ally completed—Sec(cid:415)on 3A (176.484 Ha), Sec(cid:415)on 3D (160.94 Ha), and Sec(cid:415)on 3G (133.35 Ha). In the U(cid:425)ar Pradesh por(cid:415)on, Sec(cid:415)on 3A acquisi(cid:415)on (15.54 Ha) has been completed, while Sec(cid:415)on 3D is currently under progress. i) At present, there is no direct connec(cid:415)vity between Be(cid:427)ah in Bihar and Sewrahi in U(cid:425)ar Pradesh. The commuters have to travel about 81 Km to reach Sewrahi Page 28 of 35in U(cid:425)ar Pradesh using the exis(cid:415)ng Dhanha- Ratwal Bridge on river Gandak. Upon comple(cid:415)on of the proposed project, it will offer a direct connec(cid:415)vity of 29.25 km between Be(cid:427)ah in Bihar and Sewrahi in U(cid:425)ar Pradesh. Earlier, a 4- lane bridge was envisioned on the proposed alignment in the year 2022 and accordingly land acquisi(cid:415)on es(cid:415)mate was approved and LA process was started. Later on, alignment of Gorakhpur-Siliguri Expressway was finalized, which passes approximately 8Km south of the instant project alignment and it will cater the traffic going towards East Champaran and further for eastern part of Bihar leading to West Bengal. However, the proposed bridge will benefit people of West Champaran as well as northern part of east Champaran and further towards Indo Nepal border at Raxaul. Recommenda(cid:415)ons 10. A(cid:332)er detailed delibera(cid:415)ons, the PPPAC unanimously recommended the proposal for “Construc(cid:415)on of 2-Lane Major Bridge across River Gandak along with its both side approaches connec(cid:415)ng Manuapul (Be(cid:427)ah on NH-727) in Bihar at Km 0.00 and Tiwaripa(cid:427) (Sewarhi on NH-730) in U(cid:425)ar Pradesh at Km. 29+248 of NH-727AA” subject to following recommenda(cid:415)ons, for considera(cid:415)on of the competent authority for giving administra(cid:415)ve approval. a) The appraised Total Capital Cost of the Manuapul to Tiwaripa(cid:427) sec(cid:415)on is Rs. 1976.77 crore with a total project cost of Rs. 1422.28 crore. b) The project should be taken up on HAM mode under the NH(O) scheme. c) The concession period of the proposal is 19 years including 4 years construc(cid:415)on period and 15 years O&M period. d) It appears that the primary jus(cid:415)fica(cid:415)on for the proposed project is the comple(cid:415)on of land acquisi(cid:415)on. For future projects, MoRTH should ensure that the land acquisi(cid:415)on is taken up only a(cid:332)er obtaining the approval of the competent authority. Page 29 of 35e) The project shall be implemented by the Bihar Rajya Pul Nirman Nigam Limited under State Government. However, NHAI/MoRTH shall monitor the implementa(cid:415)on of the project very effec(cid:415)vely. 11. Revalida(cid:415)on of its recommenda(cid:415)on by the PPPAC is not required for following post recommenda(cid:415)on changes in the project costs/bid documents: - a) Any change in the date/(cid:415)me period for any (cid:415)me-bound ac(cid:415)ons like appointed date, financial close, construc(cid:415)on period etc. b) Non-substan(cid:415)al change in risk-alloca(cid:415)on. c) Any other changes/modifica(cid:415)on in the project proposal with the overall objec(cid:415)ve of making project successful. d) Further, MoRTH/NHAI may decide whether the changes proposed post recommenda(cid:415)ons of the project proposal by the PPPAC fall within the threshold criteria as stated above. All such changes falling within the threshold criteria shall be appraised at the level of Secretary (RTH)/BoD of NHAI as the case may be, without any further need of revalida(cid:415)on by the PPPAC and shall proceed with the approval process accordingly. Page 30 of 35Annexure-I List of the par(cid:415)cipants of the 136th mee(cid:415)ng of the PPPAC a) Department of Economic Affairs, Ministry of Finance 1. Ms. Anuradha Thakur, Secretary (EA) 2. Shri Baldeo Purushartha, JS (ISD) 3. Ms. Arya Balan Kumari, Joint Director (PIU) 4. Shri Rajender Singh, SO (PIU) 5. Shri Manjeet Yadav, ASO (PIU) 6. Shri Deepak Meena, ASO (PIU) b) Department of Expenditure 1. Shri Ranganath Audam, Deputy Director c) NITI Aayog 1. Shri. Partha Reddy, Programme Director d) Department of Legal Affairs 1. Shri Hemant Kumar, Deputy Legal Adviser e) Ministry of Road Transport and Highways 1. Shri V Umashankar, Secretary (RTH) 2. Shri V.K Rajawat, DG(RD) & SS 3. Shri Atul Kumer, ADG 4. Shri Manoj Kumar, CE 5. Shri Vishnu Mur(cid:415), CE 6. Shri Jagat Narayan, SE 7. Shri Rohan Sinha, AEE f) Na(cid:415)onal Highway Authority of India (NHAI) 1. Shri Santosh Kumar Yadav, Chairman 2. Shri Anil Choudhary, Member (Projects) 3. Shri L. P. Padhy, CGM (Tech.) 4. Shri Bhaskar Mishra, GM (Tech.) 5. Shri Kumar Saurabh, DGM (Tech.) 6. Shri Prashant Dwivedi, Dy. Manager (Tech.) Page 31 of 35Annexure-II Revised Cost es(cid:415)mates of Khagaria – Purnea sec(cid:415)on considering a Concession period of 25 years. Page 32 of 35Page 33 of 35Annexure-III Details of cost reassessment and jus(cid:415)fica(cid:415)on for the Muzaffarpur–Sitamarhi– Sonbarsa Corridor Page 34 of 35*** Page 35 of 35

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