Bitumen

Bitumen Market Size - Vantage Report

noreply@blogger.com (Narayanan Ellango) — Mon, 13 Mar 2023 02:59:00 +0000

WASHINGTON, March 01, 2023 (GLOBE NEWSWIRE) -- According to a report by Vantage Market Research, the global Bitumen Market size was valued at USD 103.1 Billion in 2021 and is expected to reach USD 131.2 Billion by 2028, growing at a CAGR of 4.1% from 2020 to 2028.

Bitumen Market Overview

The global bitumen market is a growing industry that is driven by the increasing demand for road construction, infrastructure development, and waterproofing materials. Bitumen is a sticky, black, and highly viscous liquid that is obtained from the distillation of crude oil. It is widely used as a binder in road construction and maintenance, as well as in the manufacturing of waterproofing materials for roofs, buildings, and other infrastructure.

The global bitumen market is segmented based on type, application, and region. Based on type, the market is segmented into paving grade, oxidized bitumen, cutback bitumen, bitumen emulsion, and polymer modified bitumen. Based on application, the market is segmented into road construction, waterproofing, insulation, and others.

The market is expected to grow in the coming years due to factors such as increasing urbanization, infrastructure development, and government initiatives for infrastructure development. However, the market is facing challenges such as fluctuating crude oil prices and competition from alternative materials such as asphalt, concrete, and other binders.

Global Bitumen Market: Growth Factors

Increasing demand for road construction: Bitumen is a key component in road construction and maintenance. With increasing urbanization and infrastructure development, the demand for roads and highways is also growing. This is expected to drive the demand for bitumen in the construction industry.

Rising demand for waterproofing materials: Bitumen is also used in the manufacturing of waterproofing materials for roofs, buildings, and other infrastructure. As the construction industry continues to grow, the demand for waterproofing materials is also expected to rise, which will boost the bitumen market.

Growing use of polymer modified bitumen: Polymer modified bitumen is increasingly being used in road construction and maintenance due to its superior properties such as high durability, increased strength, and better resistance to weather and temperature changes. This is expected to drive the demand for polymer modified bitumen in the global market.

Government initiatives for infrastructure development: Governments around the world are investing in infrastructure development, particularly in emerging economies. This is expected to drive the demand for bitumen in road construction, which will boost the market.

Advancements in technology: Advancements in technology have led to the development of new and improved formulations of bitumen, such as polymer modified bitumen, which are more durable and have better resistance to weather and temperature changes. This is expected to drive the demand for bitumen in the global market.

Scope of the Report:

Report Attributes	Details
Market Size in 2021	USD 103.1 Billion
Revenue Forecast by 2028	USD 131.2 Billion
CAGR	4.1% from 2022 to 2028
Base Year	2021
Forecast Year	2022 to 2028
Key Players	AMT Techno, Athabasca Oil Corporation, Baker Hughes, Bouygues Groups, BP PLC, CEMEX S.A.B. de C.V., Chevron Corporation, China Petroleum & Chemical Corporation, ENEOS Corporation, ExxonMobil Corporation, Gazprom- Neft, Gulf Petrochem, IKA Group, Imperial Oil Limited, Indian Oil Corporation Ltd, JX Nippon Oil & Energy Corporation, LN Petrochem, Marathon Oil Company, Maruti Group, MBD Industries, Nippon Oil Corporation, NuStar Energy LP, Nynas AB, PetróleosMexicanos, Ratnamani Industries, Roadstar, Royal Dutch Shell PLC, Sasol Ltd., Shell Bitumen, Sinopec Corporation, Suncor Energy Inc., Syncrude Canada Ltd., The Richmond Group, Tiki Tar Industries, Total Energy, United Refining Company, Valero Energy Corporation, Veekay Industries, Villas Austria GmbH
Customization Options	Customized purchase options are available to meet any research needs. Explore customized purchase options

Key Insights from Primary Research:

Growing demand for polymer modified bitumen: Primary research can confirm the growing trend of using polymer modified bitumen in road construction and maintenance due to its superior properties. This trend is expected to continue in the future, which will boost the demand for polymer modified bitumen in the global market.

Increasing focus on sustainability: Primary research can reveal that there is a growing focus on sustainability in the bitumen industry. Companies are investing in research and development to produce more sustainable and eco-friendly bitumen products. This trend is expected to drive the demand for sustainable bitumen in the global market.

Growing competition from alternative materials: Primary research can identify the growing competition from alternative materials such as asphalt, concrete, and other binders. These materials offer some advantages over bitumen and are being increasingly used in the construction industry. This trend is expected to pose a challenge to the growth of the bitumen market.

Impact of fluctuating crude oil prices: Primary research can reveal the impact of fluctuating crude oil prices on the bitumen market. Since bitumen is derived from crude oil, its prices are also affected by fluctuations in crude oil prices. This trend can impact the profitability of companies in the bitumen market.

Emerging markets driving demand: Primary research can confirm the trend of emerging markets such as China, India, and Brazil driving the demand for bitumen. These markets are investing heavily in infrastructure development, which is expected to boost the demand for bitumen in the global market.

Bitumen Market Segmentation

By Products

Oxidized
Paving
Emulsion
Cutback
Polymer Modified
Other Products

By Applications

Waterproofing
Roadways
Insulation
Adhesives
Other Applications

Regional Analysis

North America: The North American bitumen market is driven by the growing demand for bitumen in road construction and maintenance, particularly in the United States and Canada. The region is also witnessing an increase in the use of polymer modified bitumen. However, the market is facing challenges such as fluctuating crude oil prices and competition from alternative materials.

Europe: The European bitumen market is driven by the growing demand for bitumen in road construction and maintenance, particularly in countries such as Germany, France, and the United Kingdom. The region is also witnessing an increase in the use of sustainable and eco-friendly bitumen products. However, the market is facing challenges such as stringent environmental regulations and competition from alternative materials.

Asia Pacific: The Asia Pacific bitumen market is witnessing significant growth due to increasing urbanization, infrastructure development, and investment in road construction and maintenance in countries such as China and India. The region is also witnessing a shift towards the use of polymer modified bitumen. However, the market is facing challenges such as fluctuating crude oil prices and competition from alternative materials.

Latin America: The Latin American bitumen market is driven by the growing demand for bitumen in road construction and maintenance, particularly in countries such as Brazil and Mexico. The region is also witnessing an increase in the use of sustainable and eco-friendly bitumen products. However, the market is facing challenges such as fluctuating crude oil prices and competition from alternative materials.

Middle East & Africa: The Middle East & Africa bitumen market is driven by the growing demand for bitumen in road construction and maintenance, particularly in countries such as Saudi Arabia and the United Arab Emirates. The region is also witnessing an increase in the use of polymer modified bitumen. However, the market is facing challenges such as fluctuating crude oil prices and competition from alternative materials.

Browse Market Data Tables and Figures spread through 145 Pages and in-depth TOC on Bitumen Market Forecast Report (2022-2028).

Chile Launches New Road Tender

noreply@blogger.com (Narayanan Ellango) — Sat, 04 Dec 2021 17:52:00 +0000

The roadworks department of Chile’s public works ministry (MOP) has launched a 12.5bn-peso (US$15mn) tender to improve a 5.8km stretch of route 7, also called the Austral highway, in Aysén region.

The contract involves improvements between the Chucao bridge and Queulat hill, ear the Queulat National Park, accordint to tender documents.

The tender does not include paving the same stretch, which will be covered in a later stage.

Technical bids will be opened on January 14, while economic bids will be unveiled on January 21. D

Documents can be seen here, in Spanish.

Cairo Suez Desert Road

noreply@blogger.com (Narayanan Ellango) — Mon, 05 Apr 2021 03:47:00 +0000

Majid Al Futtaim, Mountain View, MNHD obtain tender booklet for Heliopark project

Heliopolis Housing and Development Company negotiates with three banks to obtain financing amounting to EGP 671m

Alyaa Stohy

Majid Al Futtaim, Mountain View, and Madinet Nasr Housing and Development (MNHD) have have obtained the tender specification booklet for the development of the Heliopark project, according to Tamer Nasser, Managing Director at the Heliopolis Housing and Development Company (HHD).

The Heliopark project, located on the Cairo-Suez Desert Road near the New Administrative Capital (NAC), is set to cover an area of 1,695 feddans.

The tender booklets were recieved within the first hour and a half after they have been offered to investors.

Nasser explained that the completion of the contract with the developer will take place before the end of the third quarter (Q3) of 2021.

This is provided that the partnership revenues from this contract will be used in the development projects of New Heliopolis.

With regard to the Granada project, Nasser said that investment opportunities are being sought to achieve optimal utilisation of the place while preserving its heritage.

He is expecting the project to be revived and operational during Q2 of 2022, as the preparation for the launch of the project is currently underway and is expected to be launched before the middle of the year.

Meanwhile, Nasser said that his company had set a plan to provide the necessary liquidity for development projects through several alternatives, which would be activated within weeks.

He confirmed, during a press conference held by the company on Saturday, that financing had been obtained with a nominal value of EGP 286m from QNB through “right transfers”.

Negotiations are currently underway with three banks to obtain another right transfer with a nominal value of EGP 671m.

He expected to obtain this funding during April, which would enable the company to implement its plan during this year, mainly in ongoing projects in New Heliopolis.

He added that a detailed financial study of the resources required in the following years of the first year has been drawn up in preparation for calling for an increase in the capital during the first year.

The decision will be taken after further study, and it will be in the range of EGP 1bn within a year from now.

Source

Highway Projects in India

noreply@blogger.com (Narayanan Ellango) — Wed, 31 Mar 2021 05:08:00 +0000

Big opportunity for private sector! Highway projects worth Rs 50,000 crore up for grabs

Going forward, National Highways Authority of India (NHAI) will bid out projects worth Rs 30,000 crore on build, operate, and transfer BoT (Toll) model and hybrid annuity model in 2021-22

Ashutosh Kumar | March 30, 2021 | Updated 13:04 IST

On the government plan to bid out projects on BoT (Toll), the erstwhile public private partnership project lying defunct for the past couple of years, Akshay Purkayastha, director, Crisil Infrastructure Advisory said it is a good strategy

MORE FROM THE AUTHOR

Modi government has lined up opportunities worth Rs 50,000 crore for the highway construction sector in FY22. A host of offerings, including build operate and transfer, BoT (toll), toll operate and transfer (ToT) and securitisation, among others are in the pipeline.

4 Lane reduced to 2 Lane

noreply@blogger.com (Narayanan Ellango) — Tue, 30 Mar 2021 06:22:00 +0000

Paphos-Polis Chrysochous road construction to finally start

1 day ago

More than three decades later the much-publicised Paphos-Polis Chrysochous road project is on its implementation path, Philenews reported on Monday citing head of Paphos Chamber of Commerce and Industry George Mai.

The good news came from Minister of Transport Yiannis Karousos himself, Mai also said.

“The Minister told us on the phone on March 25 that after recent developments with the Tender Review Authority the Department of Public Works of the Ministry has proceeded with the award of the Tender for the design and construction of the Paphos- Polis Chrysochous highway, Section 1 – Phase (A) to the successful bidder,” Mai said.

“The time for concerned parties to submit an objection has also expired and this paves the way the for the project’s implementation kick-start,” he added.

Construction for the two-lane road is to cost €70 million.

Initially, it was meant to be a four-lane highway.

Source

LHWP II Senqu Bridge construction

noreply@blogger.com (Narayanan Ellango) — Wed, 24 Mar 2021 03:23:00 +0000

The Senqu Bridge construction contract under Phase II of the Lesotho Highlands Water Project (LHWP) went out to tender on 04 March 2021.

At a length of 825m and almost 100m high, the Senqu Bridge will be the first extradosed bridge in Lesotho, which combines both prestressed box girder and cable-stayed elements in an efficient design. This is the largest of the three bridges that will be constructed under Phase II to span the Polihali reservoir.

The Polihali reservoir in the valleys and tributary catchments of the Senqu and Khubelu rivers, which will be formed by the construction of the Polihali Dam, will have a surface area of approximately 5000 hectares. Besides the three major bridges, the restoration of access across the reservoir also necessitates the construction of new approach road sections to the bridges that tie into the existing A1 road. The A1 is the main road between the Mokhotlong district in the north-east of the country and the capital, Maseru.

“Experience and expertise are crucial in delivering a sophisticated, technically challenging project of this kind, which will be one of the few for the LHWP and Lesotho. Based on our experience with other major works tenders, we are confident that our call for tenders will attract the right mix of expertise and experience,” stated Tente Tente, LHDA’s Chief Executive. “With its unique features, the Senqu Bridge will not only form part of the safe and efficient road infrastructure network constructed under Phase II, but will be a major tourist attraction contributing to long term benefits in stimulating sustainable economic growth.”

Due to the deep valley and the inaccessible nature of the area where the Senqu Bridge will be built, the deck of the bridge will be constructed incrementally from both abutments. An in-situ segment midspan of the centre span will connect the two parts to form a continuous deck. This construction method will minimise disturbance to the surrounding area and increase workers’ safety. It is envisaged that a steel launching nose will not be required. The pier shape is ideal to be constructed with sliding formwork.

Work on the bridge design started in 2018, led by Zutari, formerly Aurecon Lesotho. Zutari also designed the Mabunyaneng and Khubelu bridges. Zutari will also supervise the construction of the three bridges.

Interested construction firms have up to 18 June 2021, to submit tenders. Specific information on the requirements and conditions of the tender is available on the LHDA website at http://www.lhda.org.ls/tenderbulletin/currentProcurement.aspx.

Phase II of the Lesotho Highlands Water Project entails construction of the Polihali Dam, 38km long transfer tunnel, the associated infrastructure and hydropower component. It builds on the successful completion of Phase I in 2003. LHWP delivers water to the Gauteng region of South Africa and utilises the water delivery system to generate hydroelectricity in Lesotho. Phase II will increase the current supply rate of 780 million cubic metres per annum incrementally to more than 1270 million cubic metres per annum. At the same time, it will increase the electrical energy generated in Lesotho. This is a further step in the process of securing an independent energy source to meet Lesotho’s domestic requirements.

Rolling Stock Market

noreply@blogger.com (Narayanan Ellango) — Wed, 17 Mar 2021 05:50:00 +0000

Rolling Stocks Market Business Analysis, New Innovation | Share, Revenue, And Sales Till 2018 to 2027

March 16, 2021

Rolling stocks market witnessed sales of nearly 250 thousand units in 2018 and is expected to grow at a steady CAGR of 2.9% in 2019. Overall growth of the rolling stocks market can be attributed to,

Industry titans acquiring big-ticket projects of rolling stocks
Promotion of railway transport as a sustainable transportation mode
Growing focus on increasing the average life of rolling stocks by predictive maintenance and remote monitoring in the services landscape

For more insights into the Market, Request a Sample of this Report@ https://www.factmr.com/connectus/sample?flag=S&rep_id=2798

Optimistic outlook of autonomous trains and ongoing development of compatible rolling stocks
The ongoing focus of governments to promote the railway as a sustainable mode of transportation has resulted in a growing number of tenders of new rolling stocks being procured by manufacturers. Further, with the construction of new railway roads to increase connectivity and promotion of autonomous railway, new trains are being introduced across the world’s developing economies. Developments in designs of rolling stocks compatible to autonomous train are also underway.

“Rolling stock landscape has witnessed a steady advancement with the introduction of technological advances in manufacturing as well as repair and maintenance space. While predictive maintenance significantly improved service space, ongoing efforts to develop rolling stocks for autonomous trains is likely to maintain a profitable growth trajectory in the coming years and generation of revenues worth over US$ 59 billion in 2019,” says a senior analyst at Fact.MR.

Freight Wagons Held Half the Sales in 2018, Passenger Rolling Stocks Growing Rapidly

Fact.MR study finds that among different types of rolling stocks, freight wagons accounted for nearly half the rolling stocks sold in 2018. Freight wagons form an important connection between railway transportation and different logistics services. As railway freight transport is being embraced by national governments, efforts are underway to improve the efficiency of freight wagons.

The global rail market is witnessing larger tender procurements by manufacturers to supply new and efficient fright wagons. For instance, Russia’s RM Rail signed an agreement with Iran’s MSA Company for construction of 1000 freight wagons in June 2018. Indian Railways also set out a tender for 22,000 freight wagons in June 2018. Ukrainian Railways passed a US$ 260 million tender for purchase of gondola wagons, freight wagons and self-discharging cars in January 2018.

The study reveals that sales of passenger rolling stocks are increasing at a rapid rate and expected to grow at 4.3% in 2019 over 2018. Passenger rolling stock designs have evolved significantly in a bid to accommodate evolving consumer demand for comfort and safety. In addition, introduction of new trains in the wake of promoting railway transport in emerging economies has led to a number of tenders of passenger rolling stocks.

Need More Information About Report Methodology? Click here@ https://www.factmr.com/connectus/sample?flag=RM&rep_id=2798

Over 5 in 10 Rolling Stocks Found Utilization in Freight Application

Based on application, rolling stock utilization in freight application remains higher as compared to passenger application. Fact.MR shows that over 5 in 10 rolling stocks were used in freight application in 2018. As freight application of rolling stocks significantly contributes to the enhancement of economic performance and meet logistic demands, the future status quo of freight application is expected to remain steady in the coming years.

Fact.MR study finds that APEJ continues to spearhead the global rolling stock sales and registered over 36% of the global demand in 2018 and the status-quo is expected to continue in 2018 at the growth rate of 3.3%. Emerging economies in the region are actively engaged in the development of railway infrastructure, thereby presenting lucrative opportunities for manufacturers in the coming years.

Owing to favorable price points of raw materials and lower manufacturing costs, in terms of revenue generation in APEJ follows Europe. Europe is actively engaged in promoting railway decarbonization and projected to sell over 75 thousand units of rolling stocks in 2019.

The Fact.MR report tracks the rolling stocks market for the period 2019-2027. According to the report, the rolling stocks market is projected to grow at 3.3% CAGR through 2027.

Speak To Research Analyst For Detailed Insights@ https://www.factmr.com/connectus/sample?flag=AE&rep_id=2798

noreply@blogger.com (Narayanan Ellango) — Wed, 28 Oct 2020 03:25:00 +0000

October 27, 2020

Vietnam's new Law on Public-Private Partnerships

Peter Rattray, Alan Rosengarten

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Vietnam's new Law on Public-Private Partnership (Law No. 64/2020/QH14) (the "PPP Law") was ratified on 18 June 2020 by the Vietnamese National Assembly and will come into effect on 1 January 2021.

Prior to the introduction of the new PPP Law, which was first mooted back in 2017, the legal framework in Vietnam in relation to PPPs was found in various legislative instruments as illustrated in the diagram below:

Vietnamese laws are generally drafted in relatively broad terms, with the intention being, in common with many other jurisdictions, that the Government and its ministries implement decrees, circulars and directives to give greater specificity and refinement to the broadly-framed laws. However, with ministries and government departments empowered to independently issue these clarifying regulations, it has been the case in the past that overlapping provisions have led to grey areas and conflicting interpretations resulting in a lack of certainty, particularly for foreign investors seeking robust and predictable frameworks within which to make their capital investments.

In the context of PPP projects, with ring-fenced project financing and long concession periods, a transparent and unified legal framework is preferable in order to facilitate predictable behaviour and decision-making and ultimately, the efficient allocation of risk. The PPP Law, which will become effective on 1 January 2021, represents a consolidation of the existing complex legal framework as well as an evolution in the approach to foreign investment.

A unified, well-developed framework for implementing PPP projects will be crucial if Vietnam is to successfully achieve its significant infrastructure goals and overcome its current infrastructure bottleneck. The application of the PPP Law to upcoming road projects will be a true test of whether enough has been done to address the expectations and concerns of foreign investors, particularly as countries grapple with the consequences of a global pandemic.

New regime

PPPs are not a new phenomenon in Vietnam, however, in the past investors, contractors and financiers have had to navigate a complex framework of legislative instruments to understand the legal provisions applicable to their particular infrastructure project. The introduction of the PPP Law will, for the first time, elevate and codify provisions relating to PPP projects at the law level (as passed by the National Assembly of Vietnam), and in doing so, potentially reduce the uncertainty and ambiguity of the legal framework applicable to a particular infrastructure project.

Whilst this article focuses on the key provisions in the PPP Law, we also note that changes have also recently been made to the Law on Investment and the Law on Enterprises. Notable provisions in the PPP Law include:

Applicable projects (Article 4) – The PPP Law specifically stipulates five sectors in which PPP investments are permitted, being (i) transportation; (ii) power grids and power plants (except for hydro-power plants and State monopolies as prescribed by the Electricity Law); (iii) irrigation, clean water supply, water drainage, sewerage and waste treatment; (iv) health care and education; and (v) IT infrastructure. To qualify, a project's value must be at least VND 200 billion (approximately US$8.5 million), except for health care and education projects where the threshold is half that amount. The lower threshold also applies to projects within localities with difficult socioeconomic conditions. The permitted sectors for PPP projects prescribed in the PPP Law is much narrower than those expressly permitted under Decree 63. Under the PPP Law, the equity capital contribution of the private investors must be at least 15% of the total investment capital.
Standard Form Contracts (Article 47) – The Government will provide standard form contracts for use for certain types of project agreements in PPPs (being BOT (build-operate-transfer), BTO (build-transfer-operate), BOO (build-own-operate), O&M (operate-maintain), BTL (build-transfer-lease) and BLT (build-lease-transfer). Importantly, in line with international practice, the PPP Law no longer recognises the BT (build-transfer) model as a form of PPP investment. Although it is unclear as to how detailed these contracts will be and the extent to which commercial negotiation will be permitted by the Government, these documents will hopefully form a useful baseline and streamline procurement processes, noting that it is overly simplistic to seek a ‘one-size-fits-all' approach to PPP risk allocation.
Bid security (Article 33) – The PPP Law requires investors to lodge bid security (at a rate of between 0.5% and 1.5% of the total project investment value). This bid security is in addition to the general security to secure performance under the PPP documentation (at a rate of 1% and 3% of the project value) and will be forfeited if the investor withdraws from the tender process, violates the bid procedures (where such violation leads to bid cancellation) or if appointed the successful proponent fails to sign the contract documentation within 30 days (other than due to force majeure).
Government performance guarantees – Unlike Decree 63, the PPP Law does not expressly provide that the Government will grant guarantees in respect of the contractual obligations of State-owned enterprises. It remains to be seen whether the Government will, nevertheless, continue to provide such guarantees, consistent with market practice or whether financiers and investors will need to get comfortable in the absence of guarantees applying in respect of State-owned enterprises.
Foreign currency guarantee (Article 81) – Consistent with current practice, the Government provides foreign investors with a guarantee in relation to the availability of foreign currency to fulfil the investors' needs in respect of the project, including capital transactions, loan repayments and transfer of profits. However, unlike previous transactions where the Government would typically guarantee 100% of these foreign currency needs, the PPP Law stipulates that such guarantees will be limited to 30% of project revenue after subtracting project expenses, which reflects the more recent Vietnam market position. The exposure to foreign currency risk could be challenging for international financiers, many of whom do not hold significant reserves of the local currency, and a local capital market that is still too small to finance complex, large-scale energy and infrastructure projects.
Risk-sharing mechanism (Article 82) – The PPP Law provides that where actual project revenue is greater than 125% of the revenue forecasted in the financial model, the State will receive 50% of the revenue in excess of the 125% threshold. Conversely, for BOT, BTO and BOO style contracts, where actual project revenue is less than 75% of the revenue forecasted in the financial model as a result of changes in planning, policies or laws and other measures such as concession extensions or tariff adjustments have not addressed the shortfall, the State will share 50% of the downside below the 75% threshold. Whether this is satisfactory to foreign investors remains to be seen and will need to be evaluated on a project-to-project basis, particularly as in other jurisdictions, more comprehensive downside protection is offered where revenue is adversely impacted by government actions.
Governing law (Article 55) – Generally, project documents in previous projects have been governed by the laws of other agreed foreign jurisdictions, particularly English law and Singaporean law, which have an established system of case law and jurisprudence. This is important as PPPs involve complex legal documentation and investors rely on legal systems with substantial case law to provide guidance on the various contractual mechanisms in PPP documentation. The practical effect of the PPP Law is that project documents entered into between a State authority and project parties will be governed by the laws of Vietnam. This is potentially a significant change as concepts, which are well established in other common-law jurisdictions such as liquidated damages and consequential loss exclusion may be more difficult to establish under Vietnamese law. There could also be a mismatch between project documents and financing documents, if a foreign law governs the latter.
Local content (Article 28) – Under the PPP Law, investors committing to use domestic contractors, goods and materials are eligible for preferential treatment during the bid evaluation process. This is a step further than Decree 63, which is silent on the matter, but does not go as far as mandating local content.

Current pipeline

According to some reports, there are approximately 100 major infrastructure projects with an estimated value of approximately US$21 billion in planning that are earmarked for delivery via the PPP model in Vietnam. Over half of these projects are in the roads and bridges sector.

The flagship road project, which the Government is currently procuring, is the 2100km North-South Expressway running the entire length of Vietnam from Hanoi to Ho Chi Minh City.

In May 2020, the Government considered converting a major phase of this project, the 654km Eastern section (costing approximately US$5 billion), which was originally offered as eight PPPs to investors in 2019, into a public investment given difficulties in raising debt from local commercial banks. However, the Government eventually retained five of the roads as PPPs and started calling for bids in July 2020 in respect of the following sub-projects:

A road connecting National Highway 45 with Nghi Son in Nghe An province;
The Dien Chau-Bai Vot expressway;
The Cam Lam-Vinh Hao road, linking Khanh Hoa province with Binh Thuan province;
The Nha Trang-Cam Lam road in Khanh Hoa province; and
The Nghi Son-Dien Chau road, connecting Khanh Hoa province with Nghe An province.

Prequalification was in September 2020. The winning bidders are expected to be announced soon.

Opportunities / Conclusion

With attractive underlying fundamentals, including strong economic growth, political stability and an expanding middle class, the infrastructure sector in Vietnam undoubtedly represents a significant opportunity for foreign investors, contractors and financiers. Indeed, according to some reports, Vietnam requires more than US$600 billion to reach its infrastructure goals by 2040. With its emergence as a low cost manufacturing hub, it is expected that Vietnam will need to continue to invest in infrastructure, particularly in the transportation sector, to facilitate and sustain this continued growth in its economic activity.

PPPs offer an ideal framework for utilising private sector finance whilst also deriving the benefit of domestic and foreign expertise, know-how and innovation, both technically and technologically, and will no doubt be utilised more frequently by the Vietnamese Government going forward so as to free up an already stretched state budget and allow the roll out of many more projects.

What remains to be seen is whether infrastructure procurement under the PPP Law will offer adequate protection and an appropriate risk profile to encourage foreign participation and investment, particularly for projects that involve market risk, which is invariably difficult to predict in emerging economies particularly in respect of major road projects, which are outside of densely populated cities. Part of this will be dictated by the implementing regulations and standardised contracts, which will be released by the Government under the PPP Law in due course. As always, it will be important for infrastructure investors, contractors and financiers to be supported by competent legal advisors who are familiar with this challenging legal landscape and the relevant State authorities in Vietnam.

Source - JDSUPRA

Construction Supervisor Bid for Kenya Roads

noreply@blogger.com (Narayanan Ellango) — Mon, 13 Jul 2020 04:57:00 +0000

Firms submit bids for Nairobi Expressway construction

Tendering process closed on June 24.

In Summary

•President Uhuru Kenyatta officially launched the Project in October, 2019.

•Preliminary site works have already commenced ahead of the appointment of the Construction Supervisor for the project.

Preliminary site works have already commenced ahead of the appointment of the Construction Supervisor for the project.

The Expressway begins at Mlolongo to JKIA, Nairobi’s CBD, and ends at Westlands along Waiyaki Way.

The project is being implemented under a Public-Private-Partnership (PPP) model which CRBC signed with the Kenya National Highways Authority (KeNHA), in full compliance of the Public-Private Partnership Act, 2013.

The successful bidder will bear the revenue risk in the first-of-its-kind model in Kenya, which is a first step in finding new ways to facilitate infrastructural development without overburdening the exchequer.

The investor will undertake a concession period of 30 years after which the facility will be handed over to the Government of Kenya.

The dual carriageway designed to run along the central reserve of the A8 road is expected to cost Sh62 billion.

According to the CRBC tender document for the Nairobi Expressway supervision, the 27.1km project will include 18.2km at grade and 8.9km elevated.

From there, it will be elevated above the A8 all the way to James Gichuru Road, to minimize land use.

The road will also have a total of 10 interchanges. It is designed to minimise land acquisition by placing the toll plaza on the bridge sections, limiting the radius of ramps and the spacing between the ramps and the main lines.

The current land acquisition plan is believed to have minimal impact on the surroundings, with no land-take at Uhuru Park.

The Nairobi Expressway coupled with the recently completed Nairobi Southern bypass is expected to greatly decongest the city's central business district, reduce journeys for motorists and lessen vehicle operating costs for both local and transit vehicles.

Once completed, it’s expected to eventually reduce travel time through Nairobi from two hours to just about 20 minutes in a traffic decongestion outcome that will save hundreds of millions of shilling yearly.

According to Institute of Economic Affairs, Kenya loses over Sh 50 million daily from delays and fuel wastage caused by traffic jams, and accidents especially in urban areas.

This translates to a loss of Sh 18 billion annually.

A Kenha survey predicts that the A8 Corridor will record traffic volume growth of six per cent between the period 2018-2022.

This is expected to drop to approximately 5.2 per cent for the period 2023-2025 once the Expressway commences operations.

Growth will further drop to 3.2 per cent for the years 2026-2030.

The forecasted traffic volume (Vehicle/day) along this road is expected to peak from 22,176 in 2023 to 36,902 by 2028.

During its first year of operation, the Expressway is expected to generate approximately Sh2.1 billion ($20.4 million).

There will also be the option of using Bus Rapid Transport (BRT) which will equally reduce congestion by at least 50 per cent .

BRT will complement the Expressway and further reduce congestion by encouraging private car owners to use buses instead.

BRT will run from the entire stretch from Athi River to James Gichuru Road.

Besides easing traffic, the project is expected to generate tax revenue through income taxes and corporate taxes on expenditures, operational and corporate revenues and incomes of employees.

Projections indicate 3,000 jobs during construction and 500 jobs during operation.

Operational revenues will be generated primarily through toll fees and corporate tax, estimated at Sh 39.3 billion ($371 million).

It is intended to serve as a central part of the national and regional transport system, helping promote trade and development in Kenya and neighbouring countries-Uganda, Rwanda and the Democratic Republic of the Congo, Burundi and South Sudan.

Currently, the existing A8 Road moves more than 50 per cent of all goods traded in the East African Community.

Source - The Star

Polymer Modified Bitumen

noreply@blogger.com (Narayanan Ellango) — Fri, 03 Jul 2020 22:47:00 +0000

Bitumen Demand to Increase in Tamil Nadu

noreply@blogger.com (Narayanan Ellango) — Thu, 02 Jul 2020 10:18:00 +0000

Ensure availability of bitumen for road works

The Builders Association of India (Tamil Nadu) Chapter has urged the State government to ensure availability and supply of bitumen for road-laying projects.

In a representation to Chief Minister Edappadi K. Palaniswami, the association office-bearers said that during the lockdown the movement of bitumen tankers had been hit. It urged the government to settle bills of contractors for works completed so far. “Many projects have even completed 100% but we are unable to get the bills settled as funds are yet to be sanctioned,” said R. Prakash, president.

The association urged the government to call for tenders under NABARD and Rural Roads and Comprehensive Road Improvement and Development Plan for the current year after a few months so that contractors would be able to finish works carried over from last year. The association expressed inability to take up new work immediately because of lack of workers. “Unless steps are taken to bring back migrant workers, projects in Tamil Nadu would remain incomplete,” he said.

Source- The Hindu

Highway Projects - Local Bidders given Preference

noreply@blogger.com (Narayanan Ellango) — Thu, 02 Jul 2020 10:13:00 +0000

There were a few projects undertaken earlier which involved Chinese partners. When asked about this, he said the new decision would be implemented in current and future tenders.

In a move that targets Chinese trade and investments in India, the government Wednesday said it would not allow Chinese companies to participate in highway projects including those through joint ventures and also not allow Chinese investors in micro, small and medium enterprises (MSMEs).

“We will not give permission to joint ventures that have Chinese partners for road construction. We have taken a firm stand that if they (Chinese companies) come via joint venture in our country, we will not allow it,” Union Minister for Road Transport, Highways and MSME Nitin Gadkari told news agency PTI in an interview.

On MSMEs, he said while the effort was to enhance local production capacity, foreign investment was also being promoted.

But here too, Chinese investors would not be allowed. “For upgradation of technology, research, consultancy and other works, we will encourage foreign investment and joint ventures in MSMEs, but in case of Chinese, we will not entertain them,” Gadkari said.

Already, the Central government seems to be moving in the direction. Sources in the Bihar government said a tender for construction of a mega bridge over Ganga at Patna was cancelled. Though technical reasons have been cited for the cancelation, state government sources said “chances of Chinese companies getting the bid” could be the main reason. A fresh tender for the Rs 2,900-crore project, would now open on July 30.

When contacted, Bihar Road Construction Minister Nand Kishore Yadav told The Indian Express, “It is true that five of seven bidders were Chinese companies and five of these companies had been collaborating to get the project. There had been incomplete paperwork and hence the tender was cancelled,” he said.

Separately, the Department of Telecommunications (DoT) on Wednesday formally cancelled the March 23 tender for 4G network installation, planning, testing, and maintenance, floated by state-run Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited’s (MTNL), according to official documents accessed by The Indian Express. The DoT has decided to bar Chinese telecom vendors in the new tender.

These decisions come within two days of the Ministry of Electronics and Information Technology (MeitY) banning 59 apps of Chinese origin including TikTok, UC Browser and ShareIt on national security concerns. It is part of the government’s coercive diplomacy to send a strong signal and message to Beijing that it cannot be business as usual.

Two months ago, in April, the Department for Promotion of Industry and Internal Trade, had made it mandatory for foreign direct investment from neighbouring countries to take prior government approval. The DPIIT move, also targeted at Chinese investments into India, was taken to curb opportunistic takeovers/ acquisitions of Indian companies during times of Covid-19 pandemic, when valuations were at new lows.

According to Gadkari, a policy will be out soon banning Chinese firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects. There were a few projects undertaken earlier which involved Chinese partners. When asked about this, he said the new decision would be implemented in current and future tenders.

With respect to existing tenders and future bids, Gadkari said rebidding would be done if there were any Chinese joint ventures. “We have taken a decision to relax norms for our companies to ensure that they qualify for bidding in large projects. I have directed the Highways Secretary (Giridhar Aramane) and NHAI Chairman (SS Sandhu) to hold a meeting for relaxing technical and financial norms so that our companies can qualify to work,” he said. Elaborating on it, he said if a contractor can qualify for a small project, he can qualify for a large one too. “Construction norms are not good so I have asked to change it. We are changing it so that we can encourage Indian companies,” he said.

According to him, qualification norms for projects are being rationalised to ensure Indian companies do not require to enter into pacts with foreign partners to grab projects. “Even if we have to go for foreign joint venture in the areas of technology, consultancy or design, we will not allow Chinese,” Gadkari said.

In the telecom sector, the DoT decision to bar use of equipment provided by Chinese telecom vendors could lead to higher costs as well as a delay in the roll out of 4G services by the state-run telcos, which are already behind private operators in implementing the technology. Both BSNL and MTNL do not have a 4G network.

“The costs for us could be 25- 30 per cent higher now if new tender bars them (Chinese vendors). We are also anticipating delay of 2-3 years from normal schedule,” an official said.

According to industry estimates, Chinese telecom gear vendors have a 25 per cent share in the total Rs 12,000 crore domestic market. For both BSNL and MTNL, whose 3G networks mainly comprise equipment from Shenzhen-based ZTE, a shift to European vendors is likely to put further stress on its limited resources.

Express News Service | Updated: July 2, 2020

(WITH INPUTS FROM PTI, AASHISH ARYAN IN NEW DELHI, SANTOSH SINGH IN PATNA)

South Africa Spends on Road

noreply@blogger.com (Narayanan Ellango) — Wed, 14 Aug 2019 07:52:00 +0000

Multi-billion rand upgrade programme planned KZN N2 and N3 interchanges

ECONOMY / 13 AUGUST 2019, 7:00PM / DHIVANA RAJGOPAUL

The project which will take eight to ten years to complete is set to increase road safety, ease traffic flows as well as access to and from industrial areas. Photo: Supplied

DURBAN - President Cyril Ramaphosa has announced that tenders to the value of R8.3bn for construction work in KwaZulu-Natal will be issued within the current financial year.

These tenders include seven major tenders on the N3 which will go out in the next three months once regulatory approvals have been received and land acquisition finalised.

The massive project which take eight to ten years to complete is set to increase road safety, ease traffic flows as well as access to and from industrial areas between these two major cities in KwaZulu-Natal.

It is part of a R40 billion two to three-year investment programme by the roads agency announced last week.

Some of the N2 interchanges that will be upgraded include Kingsway, Adams Road, The Higginson, Edwin Swales and Sibaya while the N3 interchanges that will upgraded include EB CLoete, Spine Road, Hammarsdale, Cato Ridge amongst others.

The upgrade programme has been designed with the needs of road users in mind. The upgrades will make use of geometric design to optimise efficiency and safety.

A total of 12 projects is expected for the N3 and N2 upgrades which will create around 23 500 direct job opportunities.

Direct job opportunities are actual individuals per ID number on site based on SANRAL averages over time of 262 jobs per R100m project value. In the case of community projects, of which two (consisting of multiple packages) are planned in the province, 290 jobs on average.

"This excludes SANRAL’s continuous routine road maintenance as part of our robust preventative maintenance strategy aimed at taking care of the road assets we have," said Dumisani Nkabinde, SANRAL’s Eastern Region manager.

Treasury has allocated about R21.5 billion per year for the maintenance and improvement of SANRAL’s 19 262km non-toll network, including the national road network in KwaZulu-Natal.

A growing share of contracts will be allocated to black-owned construction companies and enterprises owned by women, the youth and the disabled.

SANRAL has committed itself to the transformation of the construction and engineering sectors through the allocation of tenders to new entrants in these sectors.

Over the past six months SANRAL has brokered memorandums of understanding between emerging companies and major suppliers of construction equipment and machinery to give black-owned companies greater access to financing, expertise and the sophisticated equipment required to tender for larger contracts.

Dumisani Nkabinde, Regional Manager of SANRAL Eastern region, said: “The upgrades are part of Government’s rollout of Strategic Infrastructure Projects in line with the National Development Plan, specifically the Strategic Integrated Projects, of which the N2 and N3 upgrades are within the SIP2 program.

"The N2 and N3 are not just roads - they are the epitome of empowerment and are essentially South Africa’s lifelines for the transportation of freight from Durban to Gauteng, the economic hub of the country," he added.

According to SANRAL, the upgrade programme will have a traffic management plan that will protect construction workers and road users by safely conducting traffic around or through the areas where the construction will be taking place.

BUSINESS REPORT ONLINE

Tembec Land Road Study

noreply@blogger.com (Narayanan Ellango) — Thu, 20 Jun 2019 04:03:00 +0000

Engineering study tenders awarded for Tembec land

Posted: June 18, 2019

Engineering study tenders awarded for Tembec land

Three contracts have been awarded and work is under way for the engineering of the former Tembec lands development in Cranbrook.

Mayor Lee Pratt

“It is good to see we are moving forward with the plans for the development of this industrial land,” said City of Cranbrook Mayor Lee Pratt. “With the interest we are receiving regarding availability of these lands, it is important that we get moving on it. There have already been 40 new jobs created in the two leases that we have entered with the existing buildings that were on site and sitting dormant for many years. I am looking forward to more great opportunities which will present themselves to this project.”

The first contract is for environmental engineering which was awarded to SNC Lavalin to undertake a Stage 1 Preliminary Site Investigation update, update previous tables and drawings, and then complete a data gap assessment and work plan to move forward to address environmental issues which will need to be completed for the proposed development to occur.

The second contract (civil and transportation engineering) was awarded to Urban Systems Ltd. This contract includes the transportation network study and conceptual design, survey work, civil design and cost estimates, and contract administration and field inspections when construction occurs. The transportation plan will be complete in the fall of 2019 and the final civil design being complete in the fall of 2020. Deep civil utilities (water, sewer and storm) could be installed in the summer of 2020 and road construction and shallow utilities constructed in 2021 at the earliest.

The third contract was awarded to VAST Resource Solutions Inc. for geotechnical engineering to complete a geotechnical and hydrological assessment to evaluate and reduce the area currently under restrictive covenant (no build/no disturb zone) regarding potential geotechnical and drainage hazards to future development and to provide geotechnical/drainage recommendations for subdivision road construction and utility services. The geotechnical study will be complete the summer of 2019.

Staff continues to work on the concept and the strategy for the former Tembec lands specifically around marketing and branding of the property.

The city is planning to launch a new economic development micro- site in the fall of 2019 within the city current corporate website – www.cranbrook.ca, with the Tembec lands as a central point and driver to garner interest from investors and other business interests.

Lead image: Tembec lands proposed layout option 06.11.19. City of Cranbrook

City of Cranbrook

Source - eKnow.ca

Turkey Opens New Highway

noreply@blogger.com (Narayanan Ellango) — Wed, 19 Jun 2019 04:37:00 +0000

north jarmara highway junction opens

M. Cahit Turhan, Minister of Transport and Infrastructure, will open the TEM junction of the North Marmara Motorway at the end of this week, said: "This road will be especially important for industrialists in this region." He said.

Ikitelli Organized Industrial Zone industrialists and business people Turhan Minister met with, here in his speech, Prime Minister Recep Tayyip Erdogan's leadership launched in Turkey last 17 years touched on the important services and projects.

important projects in all areas of Turkey Turhan stated that implemented, "Is it enough? That will not do. We need to continue to invest and we will continue to invest for our country. ”

Turhan, Turkey, noting that in recent years noticed everyone to changes in the transport field, can be reached every corner of Turkey, has become accessible, almost all cities divided highways, and large cities noted that connects with the highway.

Turhan said that they are now connecting the cities with high-speed trains and added: sahip It is very important for our industrialist to bring raw material and deliver the product it produces to the market. If we did not make the roads, our roads would not have the chance to carry the current traffic. Our industrialists' chances of competition would be minimized. With this infrastructure, we have pioneered the growth of our industrialists and the spread of the industry across the country. At the moment, the investments we have made underlie the establishment of organized industrial zones all over our country. ”

“Kanal Istanbul will accelerate the development in the region”

Minister Turhan said that the country's exports exceeded the bar of 170 billion dollars and that the export figures increased every year and that the ratio of exports to imports came to 90 percent.

Stating that the industrialists succeeded, Turhan said:

“What we did at this point was to meet your infrastructure needs and we did it. We will continue to do so. At the end of this week, we will open the TEM junction of the Northern Marmara Motorway. The opening of this road will be especially important for our industrialists in this region. The construction of Channel Istanbul will also accelerate the development in the region. At this point, in order to meet the capacity to be formed in the region, we will implement a project that will connect the Basaksehir junction to the Hasdal junction under Cebeci Neighborhood and then to the North Marmara Motorway. ”

Uz We continue to work for our country ”

Minister of Transport and Infrastructure Turhan said that there has been significant changes in the course of world trade recently and that the axis of global trade has shifted to the east more and more every day.

Stating that there are substantial alternatives to western-based global institutional structures in the east, as in the Belt and Road Initiative project, Turhan said:

Ürün Currently, the product coming from China reaches the European market in 45 days to 2 months. When our high speed and YHT projects are completed, the train from China will reach Europe in 17 day. We have completed more than 2 kilometers of 500 thousand kilometers of this project in our country. The high-speed train project over the Yavuz Sultan Selim Bridge continues. also Halkalı- We also started the Kapıkule railway project. These will enable our industrialists and farmers to reach their international markets in the shortest time and at the lowest cost. As we have seen, we continue to work for our country. Yes, there are those who put obstacles in front of us, there are those who open a trench, but we will continue on our way no matter what. ”

Source- Railly News

Multi Model Transport

noreply@blogger.com (Narayanan Ellango) — Fri, 31 May 2019 05:12:00 +0000

Riga Central station reconstruction contract awarded

30 May 2019

LATVIA: Design and build contracts for the reconstruction of Riga Central station as a multimodal transport hub with provision for 1 435 mm gauge services were signed on May 29 by Latvia’s Rail Baltica implementation agency Eiropas Dzelzceļa Līnijas and the Besix Rere Group.

EDzL selected the joint venture of Belgium’s Besix SA and local construction group Rere Buve SIA following an international tender launched in April 2017; this attracted seven expressions of interest, of which two were shortlisted to submit final bids in December. Besix Rere’s bid of €430·5m was significantly lower than the €545·5m from the ITL Rail Baltica grouping. The winning bidders have experience on similar projects, including the Brussels RER network and the reconstruction of Utrecht station.

Following an outline plan developed by PLH Arkitekter and Cowi, the existing 1 520 mm gauge line through the Latvian capital is to be reconstructed on an elevated alignment, along with the construction of 2·6 route-km of 1 435 mm gauge tracks. This would require six new road bridges and a 1 km bridge over the River Daugava which will include a pedestrian walkway and cycleway.

According to EDzL, the new station will be ‘compliant with modern requirements and aesthetically attractive’. The existing four island platforms will be replaced by five higher platforms to facilitate level boarding of both broad and standard gauge trains. Each platform will have stairs, escalators and lifts to improve accessibility, whilst a new 6 000m² concourse and waiting area will be built above the platforms. The multimodal transport hub will provide a new bus interchange and a multi-storey car park.

The work is to be undertaken in four phases. The completion of detailed design work is expected in 2021, with construction expected to begin in the second half of that year. To minimise disruption, work will start on the southern half of the project, with the northern part of the station area to be reconstructed once the first part of the new facilities are operational.

Construction of the elevated alignment will allow the removal of sections of the current railway embankment near the central bus station and Elizabetes Street, opening up ground-level connections between the old city and the suburb of Maskava.

Between 81% and 85% of the financing is expected to come from the EU’s Connecting Europe Facility, with the remainder to be provided from Latvia’s national budget.

Source- Railway Gazette

Value for Money

noreply@blogger.com (Narayanan Ellango) — Thu, 30 May 2019 03:21:00 +0000

Enhancing value for money in public procurement of Northern Ireland construction projects

29 May 2019

Gary McArdle and Gerard Gunning evaluate public procurement in Northern Ireland - specifically, the achievement of value for money in public construction projects; they also assess other factors detrimental to creating value, such as sub-economic tendering and the potential impact of Brexit

A new road, water main or sewer may need to be constructed to a required specification; there is less impetus for innovation, whereas the construction of a new hospital or school may be considered complex and more open to radical innovation.

Abstract

The purpose of this article was to evaluate public procurement in Northern Ireland (NI) – more specifically, the achievement of value for money (VfM) in public construction projects. Other areas assessed were factors detrimental to creating VfM; sub-economic tendering; and the potential impact of Brexit in NI.

The methodology included primary and secondary data collection. The qualitative research involved six semi-structured interviews to collate the data and use of Decision Explorer to analyse it. Quantitative research was in the form of 81 questionnaire responses, analysed using SPSS.

The findings highlight influences which create VfM in public procurement, along with barriers to achieving VfM. Direct and indirect factors which contribute to public value are also established. Additionally, the potential impact of Brexit on VfM was ascertained.

The article identifies clear implications for practice, with a view of increasing VfM through public procurement procedures. An insight is provided into public procurement in NI from the perspective of both vendor (public bodies) and purchaser (contractors) – an area which appears to be under-represented in current literature.

Introduction

Procurement is the acquisition of resources required for the realisation of a project. These resources include contractors, consultants, subcontractors, suppliers and the client’s own resources.

Public procurement must be based on VfM, which is defined as ‘the best mix of quality and effectiveness for the least outlay over the period of use of the goods or services bought’.

This should be achieved through competition. Public procurement is subject to a legal framework which encourages free and open competition and VfM, in line with international and national agreed obligations and regulations.

There are sufficient strategic plans provided by NI public bodies on the delivery of infrastructure projects in an efficient manner while also providing VfM. There are a number of ways in which the procurement activities of public bodies can achieve VfM.

However, there appears to be a level of uncertainty as to the most suitable procurement approach. Additionally, there are factors inhibiting the creation of VfM such as lack of funding and long-term perspective; sub-economic tendering; and a claims culture.

Research methodology

The study used a mixed methods research approach by collecting primary and secondary data, utilising both qualitative and quantitative methods to collect, collate and analyse data. Figure 1 demonstrates the research process.

Figure 1 Research methodology

The qualitative research involved six face-to-face, semi-structured interviews with senior individuals currently working in the construction industry.

Four of the individuals work for public sector organisations, providing a range of perspectives from different specialisms.

Two of the individuals are senior managers within contracting companies currently involved in public sector projects in NI – one civil engineer and one quantity surveyor.

It should be noted that the interviewees appeared cautious with their responses due to the sensitive nature of the subject. Details of the interviews are illustrated in Table 1.

The analysis of the interviews also identified areas where further research would be required within the topic.

This was used to aid the development of a questionnaire which formed the basis of the quantitative research.

Table 1 Interview details

A total of 81 individuals working across various sectors of the construction industry completed the questionnaire.

Research outcomes

This section identifies the main outcomes of the research and provides reasoning to the main themes established. Contradictions between different aspects of research in addition are also discussed. The main themes identified include:

1. Creating public value
Public sector organisations not only create public value through the services they provide; they also create value by their approach to the provision of services including:
• Creating employment;
• Supporting the local economy;
• Helping socially deprived areas;
• Support of SMEs; and
• Consideration and protection of the environment.

The main areas requiring improvement in NI include:
• Improvements to the road network;
• Greater employment opportunities;
• Improvements to the health facilities; and
• Improvements to the water and sewerage services.

Although it did appear that VfM was being achieved, the concept of measuring public value would provide a more appropriate assessment of the delivery of public procurement policies.

2. Factors which result in less VfM and have a damaging effect on NI’s construction industry
There are various factors and practices which are detrimental to the objective of achieving VfM through public procurement.

The ‘vicious circle’ in figure 2, illustrates the main causes which are damaging the construction industry in NI. It should be noted that this is more relevant for less complex projects.

Water and roads projects are less complex projects, whereas education and health are more concerned with large complex projects. The rationale is that a new road, water main or sewer may need to be constructed to a required specification; there is less impetus for innovation, whereas the construction of a new hospital or school may be considered complex and more open to radical innovation.

Figure 2 The vicious circle damaging the construction industry in NI

The three main causes of sub-economic tendering in NI are:
a.) The client’s aim to gain VfM places increased pressure on contractors to reduce costs;
b.) The attitude of contractors. Some contractors submit low tenders simply to win the work and offset losses by drawing on more profitable sections of the business. Additionally, legal challenges prior to contract award from unsuccessful tenderers are time consuming, costly and lead to delays in the contract start date.
c.) Lack of work in NI.

During the construction phase, contractors seek claims as an approach to increase income. The increase in claims is forcing the client to ‘fight back’ and apply the contract in a more stringent manner regardless of the contractor or tender price.

Therefore, contractors are not making enough profit or possibly losing money leading to a breakdown in relationships. There is no process improvement on defining the key aspects of the tender evaluation by the client, as contractors will continue to submit sub-economic tenders to win work – resulting in the cycle starting again.

This vicious circle is proving to have a damaging impact on the construction industry in NI for both contractors and clients. The competitive industry, lack of construction contracts and unsustainable rates are proving to be a dis-incentive to larger contractors who are focusing on expanding their geographical spread to gain profitable work.

In an attempt to break this cycle, a starting point would be to obligate public-sector clients to reassess their interpretation of VfM. It is apparent that they can confuse VfM with lowest price and their current approach to place more emphasis on cost is resulting in a ‘race to the bottom’ in relation to tendered rates. Clients must realise that the lowest price will not necessarily mean the lowest outturn cost.

Current regulations have a procedure in place to assess sub-economic tenders. However, clients are happy to receive reassurance rather than exclude them to avoid potential legal challenges.

As demonstrated in the case of DRD v BBMC (2016), BBMC were awarded damages because of DRD excluding them from the tender process based on their abnormally low tender (ALT). A potential change in regulations would give clients more authority to deal with ALTs without risking the backlash of a legal challenge.

Additionally, a reduction in funding provided by the government for capital works projects is resulting in greater operational and maintenance cost. Factors such as restrictions on expenditure along with a reluctance to incur higher capital costs are resulting in greater maintenance cost, suggesting a lack of long-term perspective by public bodies. This is providing a major problem to sustainable construction procurement.

3. Factors which create VfM and proposals for improvement
Figure 3 summarises what creates VfM, based on the qualitative and quantitative research.

Figure 3 Elements that create VfM in NI public procurement

There are certain differences within the findings of the research, particularly in relation to contract strategy for large complex projects. Health and education sectors have adopted a traditional approach for the large complex works such as the new critical care unit at Royal Victoria Hospital (RVH) or the relocation of Ulster University, Jordanstown (UUJ). In each case, the design and construction stages are completed and procured separately.

However, one question in the questionnaire focused on this area for large complex projects. Two-thirds of the responses indicated that design and build would provide the best opportunity to create VfM for the client. Possible reasons for this difference in results include:
• The details provided by health and education sector representatives divulge the procurement approaches for both the consultants who complete the design and specification and the contractors. The procurement of the consultants focuses more on quality with less emphasis on price. Design competitions and ‘narrow average approaches to the cost assessments avoid low cost tenders and ensure that the best consultant is awarded the contract.
• In contrast, contractors are ultimately procured on lowest price. Following a most economically advantageous tender (MEAT) process to determine suitable contractors, the client is confident that the contract is so well defined with necessary risk allocation, that they can accept the lowest bid.

There were several suggestions for improving procurement procedures within the public sector in NI including:
• It is apparent that there is greater emphasis towards price in the price/quality (PQ) combination with an almost default position of 60/40 or 80/20 PQ ratio. However, the client is not aligning projects with adequate PQ combinations. An improved balance in the assessment between cost and non-cost criteria at tender stage is required, depending on project complexity, risks, contractor availability and client’s objectives.
• Proposed changes to the current PQQ process. Figure 4 illustrates possible suggestions for improvement in the current process.

Figure 4 Suggested improvements to the PQQ process

• It is recognised that quality responses are generic. However, clients are not willing to put emphasis on quality since it is more subjective in nature compared to cost. Ultimately, this will result in a ‘race to the bottom’ in terms of cost.
• Frameworks are accepted as an approach to gain VfM as well as reducing the adverse nature of construction procurement, but they are not utilised enough. Frameworks lend themselves to greater specialism and better workmanship, further enhancing the VfM initiative. Additionally, they provide an opportunity to save on tendering costs; form long-term trusting relationships; and improved design and delivery. Benefits to the contractor include a greater security of work through long-term programmes. However, it is acknowledged that frameworks may not be beneficial to SMEs.
• Greater leadership and planning are required to ensure procurement approaches are fair and reasonable and to reduce procurement turnaround times.

4. Brexit
Following the June 2016 referendum and triggering of Article 50, Brexit and its potential impacts is a very current topic. One of the most significant concepts is that Brexit will have a detrimental impact on public works in NI.

This includes fewer foreign contractors coming to NI for work following Brexit. Most of those who responded to the questionnaire were concerned about the potential impact of Brexit on their current work.

To support this, the main outcome from the research was ‘great uncertainty’ over future budgets a result of Brexit. NI already receives a low level of funding from the government. This is not likely to improve following Brexit.

Contrary to this, health sector personnel believe that they could potentially receive more funding in the future. However, they could not make this claim with any certainty.

Public bodies receive a certain level of funding for capital works projects and this is likely to continue following Brexit. However, current funding provided for by the EU for projects involving both NI and ROI is not likely to continue.

Another potential project at risk is the proposed York Street interchange project. The £165 million project is part of a Euroroute E01. A substantial EU contribution of up to 40 per cent could now jeopardise the project.

The consensus is that procurement policies will not change apart from how work is advertised. If it does change, the principles of competition and transparency will remain since the WTO principles would apply.

Depending on the new agreement on how the UK will operate within the EU market, a forum to advertise public works may still be required following Brexit. It is noted that the current approach to advertising in OJEU can be time consuming for little benefit.

It is recommended that the threshold levels for public works are reviewed. In several cases, the values are deemed too low. Although certain works are advertised in the EU market, ultimately it will result in local contractors only tendering for the work.

5. Future funding recommendations along with proposals for year-end flexibility
The current process for funding provided by the government is an annual budget. To create better VfM along with greater security to companies, a better foresight of budget is called for. This would allow companies to improve measures such as more permanent staff and improved training.

Year-end flexibility would be a benefit to clients and contractors. The current process of an annual budget is putting the client under pressure to spend money, particularly towards the end of the financial year.

A lack of planning on the client’s behalf is ultimately putting increased pressure on the contractor to complete the work in tighter time frames.

Recommendations

The study undertaken has potential applications to industrial practice. An insight was gained into the area of public procurement in NI.

The outcomes should be considered by the public sector to enhance VfM from the services that they deliver, in a clear and transparent process.

Due to the sensitive nature of the subject and the cautious responses received through the interviews. Further study could include Freedom of Information Requests for more objective data on relevant public bodies and projects.

The impact of Brexit on public procurement in NI and the wider United Kingdom could be further examined as the current process is based on the EU directive on public procurement.

Public bodies must realise that in order to enhance VfM, more rational thinking at an early stage into aspects such as their objectives, project complexities, project briefs, and budget forecasts, will be required.

Greater leadership and planning by the government and public sector organisations would remove pressures which lead to unsustainable tendering and would help maximise VfM for clients.

In addition to this, it would encourage more cost-effective working practices, greater innovation, better supply chain engagement and improved security to contractors.

Authors: Gary McArdle, BSc MSc, MCIWEM, CWEM MIEI, senior design engineer, Atkins Ireland Ltd; Joseph Gerard Gunning BSc, MSc, PhD, FICE, FCIOB, FIEI, FCQI, honorary senior lecturer, Department of Natural and Built Environment, Queen’s University, Belfast

http://www.engineersjournal.ie/2019/05/29/enhancing-value-for-money-in-public-procurement-of-northern-ireland-construction-projects/http://www.engineersjournal.ie/wp-content/uploads/2019/05/a1-34.jpghttp://www.engineersjournal.ie/wp-content/uploads/2019/05/a1-34-300x300.jpg2019-05-29T06:59:01+00:00David O'RiordanCivilAtkins,construction,Queen's University Belfast

Abstract The purpose of this article was to evaluate public procurement in Northern Ireland (NI) - more specifically, the achievement of value for money (VfM) in public construction projects. Other areas assessed were factors detrimental to creating VfM; sub-economic tendering; and the potential impact of Brexit in NI. The methodology included...

DavidO'Riordandoriordan@engineersireland.ieAdministratorEngineers Journal

BOT- Built to Suck the Blood

noreply@blogger.com (Narayanan Ellango) — Mon, 27 May 2019 03:22:00 +0000

NHAI eyes Rs 5,000 crore from roads bidding

To seek bids for roads under TOT plan in Uttar Pradesh, Bihar, Jharkhand and Tamil Nadu next month

by Team CW

27 May 2019

The government will soon offer 550km of roads to private companies to operate and collect tolls, in a move to get cracking on an asset monetisation plan.

The National Highways Authority of India will seek bids for the roads under the toll-operate-transfer (TOT) plan in Tamil Nadu, Uttar Pradesh, Bihar and Jharkhand next month, expecting to fetch about Rs 5,000 crore.

Details of the third round of auctions are expected to be finalised soon and bids will be invited in a month.

The government introduced the TOT model in 2016 to monetise publicly funded highways. Under the programme, investors make a one-time lump sum payment in return for long-term toll collection rights. The current TOT offers a 30-year lease.

The government is pursuing the TOT model to help raise resources in the sector and attract private funding, which has remained subdued. The first round of TOT auctions for 680 km of highways ended in February 2018.

It fetched the government over Rs 9,000 crore. The Macquarie Group won with a bid of Rs 9,681 crore against NHAI’s estimated value of Rs 6,258 crore. Brookfield Asset Management, IRB Infrastructure and Roadis-National Investment and Infrastructure Fund were among the other bidders.

However, the second auction was cancelled in February 2019 after it drew a lukewarm response. Cube Highways, a toll road operator backed by I Squared Capital and International Finance Corporation, bid Rs 4,612 crore against the base price of Rs 5,362 crore. Bids were also received from Adani Infrastructure and IRB Infrastructure in the auction. The expectations of bidders and the government in the second round did not match, the official said.

The NHAI expects the third round to succeed after making changes to the TOT framework to make it lucrative for the private sector.The NHAI expects the third round to succeed after making changes to the TOT framework to make it lucrative for the private sector. It had initially planned to re-bundle the 586 km stretches offered in Rajasthan, Gujarat, West Bengal and Bihar in the second round, but decided to offer fresh assets in the third round.

“We are coming out with new stretches… A decision will be taken later as to how to re-bundle TOT round 2,” an official said.

With the Bharatiya Janata Party government winning a second term, long-term institutional investors sense stability in the Indian market as a result of which better responses can be expected in the fresh round of auctions, said Vinayak Chatterjee, Chairman of Feedback Infra.

“It’s great to see NHAI coming up with fresh auctions in a short time. The roads ministry is setting a precedent in the asset monetisation plan of the government. I hope NHAI has learned from the first two rounds in setting the floor price this time,” Chatterjee said.

“We have taken all precautions that our initial estimated concession value (base price) is realistic and there are no issues, to a large extent, in these projects…. These should attract bidders,” the official said. The stretch to be offered in Tamil Nadu is “quite significant,” the official said. However, the official declined to share details because approvals are still being obtained.

Sourc

REDUCING LUST FOR LOANS

noreply@blogger.com (Narayanan Ellango) — Fri, 24 May 2019 08:21:00 +0000

• The PPP model for the JKIA-Westlands Expressway is only one example of a growing trend for private companies to connect in Kenya.

• The PPP model encourages private companies to compete to build a better road for less money. It encourages competition and professionalism.

The national debt has gained a lot of coverage, especially in light of President Uhuru Kenyatta’s visit to Beijing for the Belt and Road Initiative.

Many commentators expected Uhuru to sign an agreement to borrow Sh360 billion from China to extend the SGR, placing Kenya further in debt.

However, to the surprise of most outside of Uhuru’s inner circle, the paradigm has completely changed

Instead of asking for more money, Uhuru understands that a different approach is necessary.

Returning from China we learned that Uhuru’s great achievement was securing a public–private partnership (PPP) to build an 18km speed road — the JKIA-Westlands Expressway.

The road will be built and owned by the China Road and Bridge Corporation (CRBC) and work is expected to begin in August. The Sh65 billion road starts at JKIA and ends at James Gichuru, along Waiyaki Road, in Westlands.

This deal is not just a game changer because it will be the first road of its type on the African continent with underpasses, overpasses, exits and the Bus Rapid Transit (BRT) system lanes covering the entire stretch.

Nairobi traffic is notorious, among the worst globally, and the current JKIA-Westlands Road is a nightmare for anyone creeping bumper to bumper on it. The World Bank estimates that Nairobi’s traffic jams cost the country about Sh50 million daily in lost man-hours.

The four-lane super expressway will navigate downtown Nairobi, and ease the daily commute for many and ensure travellers to the airport no longer have to risk missing their flights because of traffic.

Most importantly, the PPP model shows a new strategy to build the infrastructure desperately needed without placing the nation further into debt.

Under the PPP framework, private companies will build, maintain, and operate the roads. They then charge motorists to recoup their investment after which they transfer ownership of the roads to the government. It is a win-win situation for all.

Kenyans get their new roads and reduce traffic; private companies will make a profit for their work and the government will be able to remove an expensive necessity from its budget.

The PPP model for the JKIA-Westlands Expressway is only one example of a growing trend for private companies to connect Kenya.

Other roads to be built using the PPP model include the Nairobi-Mombasa expressway and the Nairobi-Mau Summit highway. The American firm Betchel will fund the Sh300 billion Nairobi-Mombasa Expressway, work is to start by June.

The Kenya National Highways Authority announced recently that it would soon declare the winner of Nairobi-Mau Summit highway bid.

The PPP model also encourages private companies to compete to build the better road for less money. It encourages competition and professionalism.

If a company wins a tender and builds a substandard road, it knows it can lose the tender and be barred from bidding in the future.

The reason so many high-level international firms are willing to put so much money into infrastructure is because Kenya is now an attractive investment hub.

Under President Uhuru Kenyatta, Kenya has greatly improved its ranking for ease of doing business. In 2018, Kenya rose to 61 from 80 in 2017, and 92 the year before. Kenya was also ranked seventh on the list of improvers globally.

This is vitally important because research released by the World Bank in 2012 indicated that a one per cent increase in the 'Doing Business' score amounts to $250 million to $500 million of foreign investment.

Uhuru has made Kenya an attractive investment destination and this has enabled him to move from the model of seeking foreign loans to an improved model of PPP.

Temba is an adviser to Devolution Cabinet Secretary Eugene Wamalwa

Source- The Star

Public Tenders negotiations

noreply@blogger.com (Narayanan Ellango) — Wed, 24 Apr 2019 03:37:00 +0000

€40m in public tenders ‘negotiated’ with unsuccessful bidders

Government resorting to ‘negotiated procedure’ when bidders do not meet requirements

Finance Minister Edward Scicluna

Finance Minister Edward Scicluna has given the green light to the Department of Contracts to ‘negotiate’ some €40 million worth of public tenders with private companies despite the latter not meeting the requirements specified in the original offer.

According to information submitted in Parliament recently, under Prof. Scicluna’s direction, the ministry approved some 17 public tenders, mostly of a substantial value, to be awarded through a so-called “negotiated procedure”, allowed by European Union public procurement rules to be used only in extreme instances of urgency.

EU public procurement rules dictate that a ‘negotiated procedure’ is a sort of last resort tool, available only in very specific circumstances with the approval of the Director of Contracts, since it implies that a contract may be awarded without prior publication, such as in cases of extreme urgency.

However, industry sources said that it seemed the government was resorting to this exception more often in order to dish out contracts directly, instead of using the procedure only as a last resort.

“The government is increasingly resorting the ‘negotiated procedure’ instead of issuing a new tender when none of the bidders meet the requested requirements,” the sources pointed out.

According to statistics, since 2013 the Finance Ministry gave an average of two approvals a year for such procedure to be used.

Government resorting to this exception more often to dish out contracts directly

However, in 2018 alone, Prof. Scicluna approved the use of this procedure for seven tenders.

However, eyebrows were raised even sharper last February when the minister gave the green light for the Director of Contracts to negotiate directly with bidders for a €23 million contract to build a new underpass at the Tarxien/Santa Luċija roundabout.

The original tender issued for this mega road project was cancelled by the Department of Contracts after it was found that the evaluation board set up by the government had mistakenly awarded the contract, even though none of the companies’ competing had satisfied all the criteria.

However, the government did not issue a new offer, as is usually done in such a competitive tender and instead is using the negotiated procedure to award the lucrative contract to one of the same bidders who had failed to meet the original requirements.

Government sources said that this latest approval by the Finance Minister was the largest ‘negotiated procedure’ ever approved by the government.

The award of this tender is still being ‘negotiated’ by the Department of Contracts and Infrastructure Malta, the government road building agency responsible for the public contract.

Apart from this procedure, the Finance Ministry is also tasked with approving direct orders given to various companies and individuals without the issue of a competitive tender.

Despite strict rules that direct orders have to be limited in scope and value, the current administration is granting many direct orders every year.

This has been already highlighted in various reports issued by the National Audit Office.

Source - Times of Malta

New Road Tender

noreply@blogger.com (Narayanan Ellango) — Thu, 21 Mar 2019 03:09:00 +0000

Franco gives details on road tenders, new Govt. building

TOOLS

The Government Administration Building.

EUSTATIUS--Government Commissioner of St. Eustatius Marcolino “Mike” Franco said a new tender was launched recently for reconstruction of Jeems Road.

Under the former, ousted Island government, the contract had been awarded to two local contractors. Franco stated that the Public Entity had to open a new tender project, but added that the two local contractors are also able to make their bid.

“The tender is a completely new open tender and the government hopes that a lot of local contractors inscribe to that tender,” Franco added.

Franco stated that the Public Entity is busy reorganizing the civil servants’ corps. “What we had before was a template in which during 10-10-10 a public entity such as St. Eustatius would have measures put in place. Now we are nine years later and we have knowledge of what works and what does not work here,” Franco said.

Therefore, the reorganization is not a template that has been forced from above, but a joint venture in which the unit managers are participating to indicate what would be ideal for their organization.

“With those results, we built up a new template which has to be followed accordingly…At this moment, there are a lot of people at functions in government who are functioning well, but these same persons have not been officially appointed to those positions,” said Franco.

These persons have to reapply for them to be officially appointed to the positions in question, “and that is what is happening at this moment,” Franco said.

On whether the current Government Administration Building, – formerly known as the Governor’s Mansion – would be demolished, Franco stated that the demolition of the building depends on whether engineers verify that a two-story building can be built in that location, as all that land is government-owned. The engineers will also be looking at the area behind telecommunications company Eutel, across from Gwendoline van Putten School (GvP).

It is the idea to build one central government building in which all departments of the Public Entity and of Government Department Caribbean Netherlands RCN are to be located. Residents would then be able to go to one building, instead of having to visit various locations.

“This is not a completely new idea,” said Franco. “This new building would have been at the land next to St. Eustatius Utility Company STUCO, but it was shelved because persons wanted a more central location for the building.”

Building at that location would depend on the reconstruction of GvP School. “If the location is found to be suitable, then yes, we will demolish the government administration building,” Franco said.

The contracts of the government Commissioners are to expire by February 2020, as their contracts, which started in February 2018, are for a period of two years.

Asked whether there would be an extension of the two-year period, Franco said, “It is too soon to say, because my plan is to finish my job within two years. I do understand that a large group of Statians want to see elections, an elected Island government with a newly appointed Governor, and I do respect that. As State Secretary [of Home Affairs and Kingdom Relations – Ed.] Raymond Knops said in the beginning, ’We will stay as long as necessary, but as short as possible,’” Franco said.

Source- Daily Herald

Urban Governance

noreply@blogger.com (Narayanan Ellango) — Mon, 18 Mar 2019 08:55:00 +0000

Bengaluru’s Elevated Corridors: A case study in urban governance

ELEVATED CORRIDOR

March 15, 2019 Prem Chandavarkar

The Government of Karnataka proposes a long network of elevated traffic corridors, totalling close to 90 kilometres in length, to alleviate congestion in Bengaluru, and recently floated a tender for the first phase of the project. This tender, and subsequent ones to follow, are on the basis of a detailed feasibility report commissioned by Karnataka Road Development Corporation and prepared by a trio of private consultants engaged for the purpose.

The report only mentions the construction cost of the project, which is over Rs. 19,000 crores. There have been press reports that claim once land acquisition and other costs are factored in, the total project cost could be close to Rs. 30,000 crores or more. This is an enormous sum of money, and one would assume that whoever proposes spending such a huge sum would exercise due diligence and enormous care to ensure that all aspects that warrant inclusion in the evaluation have been carefully considered. There is legitimate cause for concern when such proposals overlook many basic fundamental aspects.

Systemic concerns over the Elevated Corridor proposal

The focus here is not to comment so much on the proposal for the elevated corridor project, but to reflect on the quality of urban governance and planning if a proposal to spend thousands of crores can be put forward without detailed evaluation of issues such as those listed below.

Vision for the City

Cities cannot be reduced to quantitative or technical problems to be solved. They are sites of creativity that form the cutting edge of an economy: even though less than 35% of India’s population is urban, over 60% of her GDP comes from urban areas. Cities are dynamic cultural entities where the way people come together affects the vibrancy of the culture, economy and politics that take shape within the city.

Jane Jacobs, the eminent thinker on cities, had proposed that cities are truly vibrant when they have a buzz of pedestrians moving about at all times. Such cities are also far safer due to more ‘eyes on the street’. This will not happen by accident: it first requires a vision on the quality of life we want for the city, and then an urban design and planning strategy that works out the spatial form that will catalyse this quality of life. Clearly, a large network of megastructures of elevated corridors, casting huge shadows and spewing noise and pollution which will drive away certain land-uses, is not conducive to a vibrant pedestrian life. While some elevated transit structures may be unavoidable, they must always be evaluated and shaped by an overall urban vision. This proposal makes no such attempt.

The Institutional Framework for Urban Planning

The 74th Amendment to the Constitution of India came into effect in 1992 with the aim of granting recognition and autonomy to urban governance so that each municipality can function as a “vibrant democratic unit of self-government.” It stipulates that planning for a city the size of Bengaluru be undertaken only by a Metropolitan Planning Committee (MPC), which should draw at least two-thirds of its strength from elected members of the municipality – a provision that aims to subject urban planning to democratic oversight within the municipality.

Bengaluru has been poor in conforming to this constitutional requirement. It constituted the MPC over twenty years after the amendment was enacted and bypassed the ‘self-government’ intent by granting chairmanship of the MPC to the Chief Minister of the state. The amendment is silent on how the MPC should develop the institutional capacity to perform urban planning, but it could be assumed that this capacity will be developed through building a qualified secretariat and an empanelled set of professional consultants. Bengaluru has not pushed the MPC in this direction, choosing to delegate all planning to the parastatal organisation that has conducted it so far: the Bangalore Development Authority (BDA). Delegation to a parastatal is another diversion from the intent of empowering municipal self-government that the spirit of the 74th Amendment calls for (and it is significant to note that the project report for the elevated corridor project has been commissioned by another parastatal, and not by the BDA).

There is currently a public interest litigation being heard in the Karnataka High Court challenging this failure in conformance to the Constitution. In the course of this hearing, the court observed that the elevated corridor project has not been undertaken within the legally mandated institutional framework for urban planning and directed the government to cancel the tender floated for the first phase of construction of the project.

The project has also not followed the mandated procedure for public consultations on major development projects stipulated in the Karnataka Town and Country Planning Act.

The Typology of Road Networks

Road networks cannot be evaluated solely with linear logic. Roads belong to a category of what philosophers have called ‘polycentric problems’, which means that any problem cannot be isolated to one spot in the network. The metaphor that best explains this is the spider’s web: one may tweak the tension in one single strand of the web, but this action and its results cannot be confined to the point of intervention. A change in tension in any single strand results in a redistribution of tension in the entire web.

In India, we have tended to view interventions in road networks as ‘monocentric’ problems, where we can isolate the problem and its solution to a single spot. For example, we observe congestion at a specific road junction and come up with the knee-jerk solution of a flyover at that junction to resolve congestion. We may find that after constructing that flyover we no longer see congestion at that junction and therefore believe our intervention to be successful. However, there may be another junction a few kilometres downstream of the traffic flow which, before the flyover was constructed, received a volume of ‘x’vehicles per minute and was able to handle this volume successfully. Once the upstream congestion is resolved, this junction now receives ‘3x’vehicles per minute, and it becomes congested. The flyover did not eliminate congestion: it merely redistributed it.

The elevated corridor cannot be seen as an isolated project and must be viewed in terms of the overall architecture of the road network. The corridors have a series of entry and exit ramps, and the impact these ramps have on the underlying road structure is insufficiently evaluated. Ashish Verma, Associate Professor of Transportation Systems Engineering at the Indian Institute of Science, predicts that these interfaces will cause fifty-three new spots of congestion in the city.

One has to look at the network as a whole, and particularly its typology and how one may alter it. Bengaluru has an overly radial pattern of roads, which overloads the city centre and causes a level of congestion that spreads outwards, with spill over impacts in peripheral areas. The strategy should be to relieve traffic flows from the restrictions of this radial emphasis through new concentric connections. This can be achieved through a mix of new roads (such as the proposed peripheral ring road) and modification and reclassification of existing roads. A case study that achieved this is Washington DC which in the late 1960s constructed a circumferential highway called the Capital Beltway. This was supplemented with area development plans that coordinated land-uses and secondary roads along this highway, resulting in a shift of commuting patterns so that the number of commuters moving concentrically far outnumbered those moving radially.

The elevated corridor project makes insufficient attempt to tackle the overall typology of Bengaluru’s road network, and to view it as a polycentric challenge.

Turbulence

It is falsely assumed that the only cause of traffic congestion is because of an overload of volume. This is not true in India, where a substantial degree of congestion results from turbulence in traffic flows caused by uneven road design standards. Imagine a water pipe whose width changed every few feet. Clearly water would not flow efficiently in such a pipe, and if one found a trickle upon opening the tap at the other end, this would be a result of turbulence in the system and may not be due to the average pipe diameter being too small for the desired flow rate.

We do not have consistent widths or standardised turn curvatures in the roads of Bengaluru (and most Indian cities), and the consequent turbulence is a significant cause of congestion. The relative role that turbulence and volume play in causing congestion is inadequately studied, but it should be noted that the project report justifies the proposal on elevated corridors by looking at congestion solely from the perspective of traffic volumes, making no attempt to comprehend the impact of turbulence in the system. Strategies to resolve turbulence require reclassification and modification of existing roads rather than adding new roads, and if turbulence is effectively dealt with, then the quantum of demand for new road space would come down drastically.

The fact that a reduction in turbulence can have an impact is proven by the TenderSure project implemented in the centre of Bengaluru. When the project was first proposed, doomsayers predicted that it would completely clog the city core, for traffic volumes were high and the proposal called for a reduction of traffic corridor widths in order to grant more space to pedestrians. But this never happened: despite reduced widths traffic continued to flow, for the project reduced turbulence through implementing systematic road standards.

Mixed-Mode Transport Strategies

The Government of India has developed a National Urban Transport Policy (NUTP) that is published on the website of the Ministry of Housing and Urban Affairs. This document is offered as a baseline policy standard that can guide the development of transport strategies in every city. The document is acknowledged as a resource on the website of the Directorate of Urban Land Transport, Urban Development Department, Government of Karnataka.

One of the key objectives of the NUTP is to ensure that transport plans seek to serve the entire population and are not disproportionately oriented toward elite constituencies. A prime means of doing this is to aim at an allocation of road space on the basis of people rather than vehicles. This is not the current situation where buses carry far more daily passenger trips than private motorised vehicles, yet private vehicles occupy over 80% of the road space whereas buses occupy less than 5% (with this proportion falling further during peak hour traffic). Clearly a resolution of the transport problem can only be solved by a shift of prevailing modes from private to public transport. As the old adage goes, “A developed country is not one where everyone owns a car, but one where even the well-to-do use public transport.”

A strategy that seeks to primarily serve private vehicles is an elitist strategy as it serves only the upper economic segments of the population. The project report on elevated corridors continues this elitism by making all assessments of traffic volume using the measure of Passenger Car Units (PCU). All vehicles types are converted into PCU equivalents, and the comparative effectiveness of different transport modes is lost in the analysis.

If the goal of the NUTP of allocating road space on the basis of people rather than vehicles is to be achieved, then all transport proposals should occur within the context of a comprehensive strategy that examines all modes of transport, with an emphasis on public transit. The project report acknowledges that all modes of transport should be coordinated with the elevated corridors, but only recognises this at a general level and goes into the detailed calculations and designs for the elevated corridors without similarly detailed assessment on other modes and the relative weights to be assigned to each mode of transport. If a comprehensive policy analysis of all modes of transport were done in advance, the entire proposal for the elevated corridors would probably need substantial modification.

Given that the detailed designs on elevated corridors were rushed into the tendering stage, it appears that by the time any comprehensive multi-mode policy was evolved, the construction of these elevated corridors would be locked into place as a fait accompli, along with the concomitant distortions in the relative weightage of public versus private transport modes.

Land-Use and Transit

Urban transport cannot be looked at in isolation for it bears a strong connection with land-use. For example, a single-use zoning policy where every parcel of land can only be used for a single designated purpose (whether residential or commercial) will entail greater average distances between work and home when compared to a mixed-use zoning policy where a neighbourhood contains a judicious mix of residential and commercial uses. This is not to recommend that we only follow a mixed-use policy, but to make the point that the land-use strategy adopted can have a significant impact on loads on the transit system.

This is why transport design should always form a part of comprehensive master planning. The current proposal on elevated corridors has been done as a separate exercise disconnected from the preparation of the comprehensive development plan. The government did announce that the proposal will be incorporated into the new master plan for Bengaluru, but this will wind up as mere juxtaposition of the two: a superficial attempt at post-facto validation, which is a very different scenario from designing the proposal in simultaneous consonance with the master plan. The ‘rubber stamp’ intention is reflected in the decision to launch tenders for the first phase while the new master plan is yet to be finalised and released in the public domain.

Capacity Limits

Clearly, a strategy of responding to traffic congestion by increasing road space is bound to hit a point of diminishing returns. Traffic volumes will only increase, and the rate of yearly increase has gone up sharply in recent years. If we add road space for use of private vehicles, we incentivise the use of these vehicles and increase the rate at which traffic load is piled onto the road network. If our only strategic choice is to periodically increase road widths, we will either wind up with a city where roads take up so much space that building is no longer feasible or a dystopia where we are all condemned to live under the bleak shadow of elevated roads.

We have to move to a strategy that attempts a radical shift in the mix of modes of transport to avoid hitting these capacity limits. The elevated corridor project reflects a continuation of the old strategy of only increasing road space and makes no attempt to define where the point of diminishing returns may lie. In the 1960’s the German mathematician Dietrich Braess postulated in a theorem, subsequently named the Braess Paradox, that road systems can behave in funny ways. We tend to assume that increasing road space will lead to improved traffic flow, but it may paradoxically lead to an increase in average journey time. The project report does not name the Braess Paradox, but obliquely recognises it by acknowledging that the elevated corridors may incentivise road usage. While it asserts that many parts of the proposed system will serve traffic volumes beyond 2037, it surprisingly acknowledges that certain segments of the system will touch peak capacity by the base year of 2023. What happens after that, and the impact on the rest of the system, does not receive much attention.

Environment Impact and Approvals

The proposal will have a substantive environmental impact. It will not only change the look and feel of a major portion of the city but could have other significant impacts given that over 3700 trees need to be cut or transplanted, and some segments of the elevated corridors intervene into the area of existing lakes and heritage structures. The project report recognises that given the corridors are structures and not just roads they do have to undergo a stipulated process of statutory environmental approvals. The State Environment Impact Assessment Authority has very recently granted approval to the terms of reference of the project: the first stage in the environmental approval process. The details of how environmental impact is measured and mitigated is not publicly known as yet.

Tolls and Financial Viability

The financial viability of the project rests on collecting tolls for usage of the elevated corridors. But implementing this is not easy. The standard design solution for doing this is to construct toll plazas at the entrance into the toll corridor: in this case at the base of the entry and exit ramps to the elevated corridors. But in this project these highways are being inserted into densely built metropolitan areas, space is not available for toll plazas, and the report acknowledges that constructing toll plazas is not an available option. The alternative strategy is glossed over in a single line that states “toll collection by ERP is recommended.” This strategy is not explained, and its feasibility is not examined in the report. If an unorthodox strategy that avoids toll plazas turns out to be difficult to implement, tolls cannot be collected, and the entire financial viability of the project is thrown into question. There have been some statements made by the government that tolls will not be charged, but this is not yet confirmed, and if true the ultimate financial cost and how it will be managed is yet to be publicly disclosed.

Highway Shoulders and Resilience in Traffic Flow

The design of highways in India follows guidelines established by the Indian Roads Congress (IRC). These standards call for every highway to have a shoulder: a buffer space between the outer edge of the outer traffic lane and the boundary of the highway. Shoulders are not used on a routine basis. They provide the space for vehicles that need to pull over in case they are disabled or are involved in a fender-bender accident and need to stop to sort things out. Once this buffer space is available, such vehicles can stop without significantly affecting smooth traffic flow. Shoulders are also meant to provide a space where emergency vehicles (tow trucks, ambulances, fire tenders) can move to reach where needed. Shoulders build resilience into the continuity of traffic flow.

The project report on elevated corridors seeks to follow IRC standards, but notes one significant exception: due to the constraints on space within a metropolitan area, shoulders have been largely omitted. The impact of this decision on the resilience of the system is not studied.

Conclusion

The points noted above have come from a quick review of the elevated corridor proposal. A detailed study by people with greater expertise in the subject may yield even more. The point to be noted is that substantive lacunae can be observed even in a quick reading, and this is possible for a project that seeks to spend thousands of crores, which will have a substantive impact on the look and feel of the city, where it was sought to release tenders for the first phase in a tremendous hurry.

This is a symbol of the poor institutional capacity we have built in India for urban planning and governance. This is even more important at this point in history, for we are in India’s urban century where for the first time in history we will have a majority urban population (projected to happen around the middle of this century). The future of the country depends on the depth and creativity with which we imagine the Indian city, and Bengaluru’s elevated corridor project is not an encouraging sign.

Prem Chandavarkar is a practicing architect and blogger on architecture, urbanism, politics, philosophy, culture and education.

Road Tender Fight

noreply@blogger.com (Narayanan Ellango) — Fri, 15 Mar 2019 04:28:00 +0000

End tender fight for road project

THURSDAY, MARCH 14, 2019 19:48

We don’t need litigation. We badly need that road. FILE PHOTO | NMG

Two international investors are engaged in what promises to be an explosive battle over the lucrative $1 billion contract for building of the 175 kilometre Nairobi-Nakuru- Mau Summit Highway under the so called Public Private Partnership (PPP) deal.

On one corner of the ring is a consortium led by French group Vinci Meridian and on the other a consortium led by a Portuguese group that also includes French players, dubbed Rift Valley Connect (RVC).

Already, RVC- on being informed that the Kenya National Highways Authority (KeNHA) has decided to give the contract to their competitors - has moved to lodge a complaint with the Public Private Partnership Petition Committee, the entity that listens to grievances lodged by parties who feel cheated.

It is not a good sign at all because this matter may drag in litigation and contestation for months. If I were asked to mention the greatest drawback to implementation of PPP projects in Kenya I would say delays from unending litigation.

The situation has been made worse by inbuilt weaknesses in a procurement regime and system that puts too much emphasis on too many inane rules, procedures, documentation and notices.

With the emphasis on process, rather than bigger issue of public interest such as value for money and the fact that we badly need a new road through the most important transport corridor in East Africa, it is very easy for the contracting authority or even the competing contractors to commit slip ups and lapses in the interpretation of rules.

Instructively, the major cause in the current dispute is a mundane disagreement over the interpretation of income tax laws.

That since both consortia - in preparing their financial bids- contravened the Income Tax Act of Kenya, the two bids should have been rejected. I do not want to discuss the merits or demerits of the matter because the issue is now before a tribunal.

But there are broader policy questions that this dispute raises. If you asked me, I will tell you that what I want are PPP procurement systems that work for Kenyans. The present regime was designed so that we spend taxpayers’ money paying the army of consultants that must be hired for these transactions.

And, they come in different shapes. Transaction advisers, PPP specialists and even the big audit firms all queue at the Exchequer’s trough.

I hope that this important project will not be held hostage by unending litigation. Under the present arrangement, the PPP tribunal must dispose of the dispute in 10 days.

In litigious Kenya, it does not work. A good procurement system must deliver speed, finality and cheapness. But we have an arrangement that works like a casino.

When – as a contractor- you lose at the PPP tribunal- you double your stakes and take your case to the High Court. When you lose there, you triple your stakes and escalate the matter to the Court of Appeal. A number of PPP projects have not been able to move after intervention by the Ethics and Anti-Corruption Commission that is also not famous for disposing of matters expeditiously.

If the disappointed contractor still ends up losing in all these players, they have the leeway of sponsoring parliamentary inquiries. In Kenya, some disappointed contractors resort to sponsoring civil society organisations and non- state actors to litigate over procurement matters on their behalf.

One of the very first cases to be heard by the PPP tribunal was a case filed by Kituo Cha Sheria, challenging the constitutionality of the appointment of members of the tribunal. It was no coincidence that this matter came up just as the PPP tribunal was preparing to hear what turned out to be a politically explosive concessioning of the second container terminal at the Mombasa Port.

The Northern Corridor is the busiest and most important highway in East and Central Africa, the gateway from Mombasa to several countries. If I were the one making decisions, I would call the two winning bidders to a conference and see whether they can reach some form of accommodation. We don’t need litigation. We badly need that road.

Zimbabwe spending 1B

noreply@blogger.com (Narayanan Ellango) — Tue, 12 Mar 2019 04:30:00 +0000

Mnangagwa's govt to spend $1bn on roads

by Staff reporter

21 hrs ago | 285 Views

Government has committed over $1 billion for road construction and rehabilitation with various projects underway across the country under the 2019 Road Development Programme.

Funding for this flagship project, which is the biggest road project in 20 years, is being mobilised from the two percent Intermediated Money Transfer Tax as well as the Zimbabwe National Road Administration Infrastructure Bond, as President Mnangagwa's administration pursues its development trajectory.

According to the 2019 Infrastructure Plan released by Treasury last year, the rehabilitation of the roads through private-public-partnerships has been difficult, hence the switch to seek financing from the domestic market.

Transport and Infrastructural Development Minister Joel Biggie Matiza, who is carrying out a nationwide tour to assess progress of the various roadworks, said Government's thrust was to refurbish existing roads and construct new roads which befit an upper middle income economy.

"As we embark on our 2030 vision, which aims to transform Zimbabwe into an upper middle income economy, we must construct roads which befit that status. There is quite a lot of work going on some of the projects which have been pending for a while without work going on," he said.

"We are coming of a recessionary situation. Our roads need to be revamped to a situation where we have a national standard or even SADC standards of roads so that we are able to ply there and do our economic deliverables easily."

The road dualisation programme for State roads and upgrading of gravel roads is in line with Government's Transitional Stabilisation Programme, which outlines that "the road, rail and air sub-sectors are critical in rapid industrialisation and agricultural advancement as they facilitate trade and movement of goods and people, hence, the need to rehabilitate and upgrade the current stock of assets".

The TSP document further states that the comprehensive Roads Development Programme, with support from the fiscus, is targeting upgrades from gravel to bituminous surfacing at an average cost of US$500 000 per kilometre.

The target is to complete 20km for each gravel road every year until completion. Through the fiscus, over US$250 million has been released for roadworks. Minister Matiza said the roads should be done properly and there is need for quality control as Government was not interested in "seeing just black tar".

He said tenders were being drawn up for consultants to come and assist road authorities to ensure that roads can last up to 20 years.

"We are introducing the project management programme in the ministry. As I speak, tenders are being prepared to get other consultants to come and assist provincial road engineers to make sure there is quality in the roads. We know we have challenges of manpower in some areas in terms of experience," he said.

"We have experience out there in the private sector and we want them to participate in this national programme which have seen us doing a lot of work over a short time. Before the coming in of the new dispensation there was no activity taking place but now 1km a day or more." He said the new dispensation was geared to revamping the country's roads. Writing for The Herald last week, Finance and Economic Development Minister Professor Mthuli Ncube said construction was at the heart of Government's agenda.

"Indeed, building is at the heart of our agenda, in particular road building. This essential infrastructure is arguably the most important of all our public assets, contributing to economic development and growth whilst providing access to economic opportunities, employment, health and education services," he said.

"It connects Zimbabweans and levels the playing field. All Zimbabweans have the basic and fundamental right to access healthcare, access markets, and the freedom of movement. Roads, therefore, are key. Drawing from the short-term Transitional Stabilisation Programme, the 2019 Infrastructure Investment Plan, with an allocation of over US$900 million, targets to more than double our investment in the road sector."

He said Government was upgrading 781km of Zimbabwe's road network, re-gravelling 483km and constructing 22 bridges. Minister Ncube said each of the targeted roads has been identified including specific works for the year, which provides an opportunity for citizens to monitor progress in implementing planned works.

The District Development Fund is gravelling and regrading at least three feeder roads per province, while urban and rural local authorities are up-scaling the road rehabilitation exercise for roads under their purview.

Qatar Road Works

noreply@blogger.com (Narayanan Ellango) — Fri, 08 Mar 2019 03:21:00 +0000

Peter Alagos

The Public Works Authority (Ashghal) has earmarked QR18.8bn for 55 new roads and infrastructure projects in new and existing subdivisions for 2019, it was announced at a seminar held in Doha Wednesday.
Ashghal president Dr Saad bin Ahmad al-Muhannadi made the announcement before construction industry stakeholders and companies at the authority’s ‘3rd Industry Briefing on Ashghal’s Current and Upcoming Infrastructure Projects in New and Existing Subdivisions’.

During the seminar, Ashghal presented the local roads and drainage projects that will be tendered this year, in addition to projects that are currently under construction.

The event was attended by stakeholders and companies in Qatar's construction industry.
Dr al-Muhannadi said Ashghal’s plan for 2019 is based on HE the Prime Minister and Interior Minister Sheikh Abdullah bin Nasser bin Khalifa al-Thani’s directives, “which emphasise the need to focus on the infrastructure projects in new and existing subdivisions and to complete them on time with the required quality.”

Of the 55 new projects, 32 are residential area projects worth QR15.8bn for over 22,000 plots (10 in tender and 22 to be tendered), according to Roads Projects Department manager, Saoud al-Tamimi.
Al-Tamimi added that the remaining projects are 23 Roads Improvement Works (RIWs) worth QR3bn, of which eight are in the tender stage and 15 are to be tendered.

He also said Ashghal has allotted QR9.1bn for 36 subdivisions projects under construction this year, of which 14 are in residential areas serving over 16,000 plots worth QR6.5bn in 10 areas, including south Al Wukair, Al Kharaitiyat, Izghawa, Al Ebb, Leabaib, Al Foroush, North Al Nasiriyah, West Al Mashaf, and Muaither, while 22 are RIW projects with a value of QR2.6bn.

From 2017, Ashghal focused on infrastructure projects in existing and new subdivisions across the country, and delivered 15 projects in 2017 and 2018 in 11 residential areas, including Al Wakra West, Rawdat Al Hamama, Al Mashaf East, and Al Wukair North, in addition to road and drainage projects.
The projects implemented in 2018 served about 3,900 subdivisions comprising road works of about 175km and 290km of pedestrian and cycle paths, as well as more than 125km of drainage networks and storm water network with a length of more than 285km.

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