Karnataka to develop state highways using ADB loan

The Karnataka State Highways Improvement Project (KSHIP) intends to improve 1,200 km state highways under the finance from Asian Development Bank (ADB) through a public-private partnership (PPP) model.

The state government received an in-principle approval for a second loan of about $350 million from ADB for the cost of KSHIP-III to develop state road network by adopting innovative financial models. The government is expected to negotiate and conclude agreement in 2015. The project implementation unit (PIU) of KSHIP-III plans to hire an external agency to prepare the detailed project report.

PIU has floated request for expression of interest for appointing consultancy services for preparation of detailed project report cum transaction advisory services for its proposed development of highway network. PIU intends to engage a qualified multi-disciplinary international or national consulting firm to provide the services for preparation of detailed project report that will include undertaking detailed engineering design, estimate, bill of quantities, financial and economic analyses, environmental and social management measures, according to national and local laws and ADB Safeguards Policy.

RFP (request for proposal) for this consultancy services is likely to be issued by April or May 2014 and the contract is expected to commence in July/July and to be delivered within six months.

The public works department, which is executing the project has undertaken pre-feasibility study for about 4,403 km of select corridors of the core road network of the state and based on the outcome of the feasibility study, intends to improve about 1,200 km of state highways under the ADB loan.

Road improvement works include upgrading of existing roads to two, four and six lanes depending on the traffic, and other economic criteria with paved shoulders, greenfield construction of bypasses, strengthening culverts and bridges, constructing new bridges and cross-drainage structures among others.