Swedish Firm Eyes Golden Quadrangle Project

Swedish construction major Skanska eyes an active participation in National Highway Development Project, primarily in golden quadrangle project, slated to be completed by 2003.

At present, the company is undergoing pre-qualification process by the National Highways Authority of India (NHAI) for seven stretches of Delhi-Calcutta Highway (NH-2) in Uttar Pradesh and Bihar, totalling 700 km.

Skanska hopes to get contract for two stretches, totalling 150 km, Skanska regional manager (South Asia) Ragner Udo told Business Standard. NHAI would issue the tender conditions within a month, he added.

Skanska International Civil Engineering president Bengt Johansson told Business Standard that he would meet NHAI chairman Deepak Dasgupta this year to chalk out a detailed participation programme in NHDP project. Skanska International Civil is a wholly-owned subsidiary of Skanska.

 

Udo said that Skanska would introduce better technology in terms of using concrete for road development compared to traditionally used tar. The advantage lies in no maintenance cost for 25 years, though the initial cost would be higher by 25 per cent.

Also, a concrete road does not lose shape in summer or monsoon compared to a tar-made one. Skanska has got the technique to introduce concrete in road development, Udo said.

Skanska has also submitted its bids for Naini bridge in Allahabad. It is also developing Mumbai-Pune highway, a project of Maharashtra State Industrial Development Corporation.

Johansson said Skanska had signed the memorandum of understanding with National Hydro Power Corporation for Uri hydro electric project (stage II). The bid documents would be signed by the end of this year.

While NHPC would provide 15 per cent equity of the $460 million project cost, Skanska would arrange international funding for the rest. The project is expected to be completed within three years.

Skanska is also undergoing the prequalification process for Teesta Stage V, a hydro power project of NHPC. The project cost is pegged at $400-500 million.

Johansson said in undertaking highway project under the build-operate-transfer scheme Skanska could finance up to 60 per cent of the project cost. The government under model concession agreement can give a capital grant of up to 40 per cent of the project cost.

Skanska executed 480 mw Uri hydro electric project phase 1. The project cost was Rs 3,400 crore.