The Andhra Pradesh Capital Region Development Authority (AP-CRDA) on Monday invited competing counter proposals through international competitive bidding from prospective bidders for selection as master developer of a 6.84-sq. km. start-up area of the capital city Amaravati under the Swiss Challenge method.
On July 4 the Andhra Pradesh Government cleared the proposals submitted by a Singapore consortium comprising Ascendas-Singbridge and Pte. Ltd. and Sembcorp Development Ltd. under the same (Swiss Challenge) method for construction of Amaravati, in conformity with the A.P Infrastructure Development Enabling Act, 2001 after due scrutiny by a high-power committee headed by Finance Minister Yanamala Ramakrishnudu.
Monday’s notification by the AP-CRDA opens up a window of opportunity for potential master developers to literally challenge the original proposals.
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If the Government finds one of the competing proposals more attractive, then the original proponent (Singapore consortium) will be given the chance to match the competing counter proposals and win the project. Otherwise, the mandate to build the capital goes to the successful bidders (challengers) subject to the right of first refusal.
The Government of A.P has to reimburse ‘reasonable costs’ incurred by the Singapore companies in preparing suo motu proposals and concession agreements if they end up the loser.
The RFP (Request for Proposal) documents, Singapore consortium’s proposals and draft contract agreements have been posted on the website www.apeprocurement.gov.in for access by the new proponents.
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It may be noted that Amaravati is being developed as a Greenfield capital city spread over 217 sq. km. for which the AP-CRDA was formed in December 2014. It has since taken the process forward starting with the issue of notification for a Master Plan in February this year.
The field is now open for potential bidders to come up with better plans (submit bids) before 3 p.m. of September 1, 2016. According to official sources, the 6.84 sq. km of start-up area accounts for 40.47 per cent of the core / seed capital area of 16.9 sq. km.