EPC Contract Agreement to speed up highway construction: Dr. CP Joshi

With an aim to create a contractual framework for construction of highways in an efficient, economical and competitive environment, the Government has formulated the ‘Engineering, Procurement and Construction (EPC) Contract Agreement’ document.
Commenting on the same Dr. CP Joshi, Minister of Road Transport & Highways, said, “The Cabinet Committee on Infrastructure has recently accorded its approval to the EPC Contract document. It will minimise, if not eliminate, the time and cost over-runs characteristic of the extant item rate contracts.” Further, he feels, this will enable a faster roll-out of projects with least cost and greater efficiency & flexibility encouraging contractors to participate in such projects.
The EPC mode of execution is expected to ensure implementation of the road projects to specified standards with a fair degree of certainty relating to costs and time while transferring the design and construction risks to the contractors. “We are planning to award 4,000 kms. of highway projects under the EPC mode contract this year. These projects will primarily aim at two-laning of single-laned roads on existing right of way thus not involving much land acquisition,” Dr. Joshi said.
He also announced that the Ministry has received the approval of Cabinet Committee on Infrastructure for awarding projects in the NHAI domain on Operate-Maintain-Transfer (OMT) basis. “We plan to award road projects covering around 4,000 kms for better maintenance primarily under OMT mode through the Public Private Partnership route. This would not only help improve the existing roads with better maintenance, leading to higher level of users’ satisfaction but also open a new line of business for OMT concessionaires,” he said.
Alluding to the disputes in the sector, Dr Joshi said, “Around ` 11,000 crore is stuck up in disputes in the roads and highway sector. This is a cause for concern and the Government has taken serious measures to resolve these issues at the earliest by conforming to the report of the B.K. Chaturvedi Committee for faster resolution of pending disputes pertaining to National Highways Development Project (NHDP) works.” Further, an Independent Expert Group has also been constituted comprising former Chief Justice of High Court as Head and former Deputy Comptroller & Auditor General, former Vigilance Commissioner among others.

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