Hybrid Annuity Model: Govt buildings in new Andhra capital to be developed under HAM
Chief Minister N Chandrababu Naidu would be visiting architecture firm Foster and Partners — involved in designing the high court and secretariat buildings — in London on October 24-25. (File) Chief Minister N Chandrababu Naidu would be visiting architecture firm Foster and Partners — involved in designing the high court and secretariat buildings — in London on October 24-25. (File)
The Andhra Pradesh Government has decided to adopt the Hybrid Annuity Model (HAM)— a popular model for most NHAI contracts— for the infrastructure projects in Amaravati. Foundations would be laid for projects worth Rs 10,514 crore over the next two weeks in the state’s new capital. These will be the first infrastructure projects by the Andhra Pradesh government apart from arterial roads which are already under construction. The foundation laying for these infrastructure projects will make way for government buildings to be constructed.
“In the first week of December, foundation stones would be laid for secretariat, government buildings, assembly and high court,’’ said Sreedhar Cherukuri, commissioner, APCRDA. Chief Minister N Chandrababu Naidu would be visiting architecture firm Foster and Partners — involved in designing the high court and secretariat buildings — in London on October 24-25.
Private projects like universities and schools are either under construction or have already started functioning from the new Andhra Pradesh capital. The five major projects for which foundation stones would be laid includes: 1) development of 1,360 acres in Zone 4 in Capital Region Development Authority (CRDA) at an estimated cost of Rs 817 crore 2) 5,174 acres in Zone 5 at an estimated cost of Rs 2,383 crore 3) 6,902 acres in Zone 9 at an estimated cost of Rs 3,714 crore 4) 7,838 acres in Zone 12 at an estimated cost of Rs 2,102 crore, and 5) 3,860 acres in Zone 12A at an estimated cost of Rs 1,498 crore.
The construction across these zones includes housing facilities and apartments for Legislature members and All India Services officers, bridges, underground cabling of power and telecom lines, water supply, Information and Communication Technology, and the trunk infrastructure. The groundbreaking ceremony of a state-of-the-art sports facility by StadiArena Amaravati Limited may also be held in the next few days.
The projects in the zones include development of the layouts that are to be returned to the farmers who gave land under the Land Pooling Scheme (LPS). “The LPS layout development means construction of inner roads, providing drinking water supply, sewerage system, storm water drainage, etc. We have to make the plots ready- to-use by the farmers who pooled the land. Development and registration of the plots in their names will happen simultaneously. Development of both residential and commercial plots would be done,’’ says CRDA Chief Engineer C Anjaneyulu.
The tenders for the LPS infrastructure will be released next week, under the Hybrid Annuity Model (HAM). HAM will undergo 3 major modifications in its implementation in the state’s projects. Based on market research and feedback given by bankers and developers through workshops, the final contours of the HAM model will be made to suit the LPS infrastructure projects.
The concession period will be 13 years instead of 17, with 3 years of construction and 10 years of operation and maintenance (O&M). Secondly, the share of the project cost will be 49 per cent by the state government, and 51 per cent by developers (as opposed to earlier 40 per cent and 60 per cent, respectively). The government will have an increased share, because the projects will not be making as much revenue as NHAI projects do. Lastly, the state government will give guarantees to provide for any shortfall in repayment of annuity.
StadiArena Amaravati Limited has presented their proposal to create a state-of-the-art sports facility, to promote an international standard of sporting and leisure facilities. “Andhra Pradesh will be able to host national and international sporting events, and the youth of our state will be encouraged to undergo training of high standard”, said an official. Officials said that 20 acres of land close to the Krishna river has been identified near the government complexes. The facilities include a multi-use sports pitch, and spaces and amenities for tennis, basketball, volleyball, yoga, table tennis, swimming, badminton and dance. There will also be facilities for medical science and rehabilitation. The project will be executed in 2 phases. Phase 1 (at a cost of 19.89 million pounds) will be the establishment of conference and exhibition centres, with StadiArena sports area, events park, members club and disaster recovery centre. Phase 2 (at a cost of 16 million pounds) will include the construction of hotels, self-catered accommodation, retail and leisure facilities. The sports area will have a capacity of 10,000 people, and a 4,000 capacity multi-use arena.
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