The Japan International Cooperation Agency (JICA) will be approached for funding the Rs.1,076-crore second phase of the Chennai Outer Ring Road (ORR) project.
The project, envisaging a total distance of 62 km, is to reduce vehicular congestion in Chennai.
The ORR will start at Vandalur, 30 km south of Chennai on National Highway 45 or Grand Southern Trunk Road. It will circle western fringes of the city, connecting NH4 (Chennai-Chittur-Bangalore), NH5 (Chennai-Kolkata) and NH 205 (Chennai-Tirutani-Renigunta) and terminate at Minjur on the Tiruvottriyur-Ponneri-Panjetty Road on the northern fringes. Its Rs.1,080-crore first phase has just been taken up on Design, Build, Finance, Operate and Transfer (DBFOT) basis.
A senior official here says the Centre will shortly send the State government's proposal on the second phase of the project to the Agency for approval.
While the State Highways Department is executing the ORR project, the Chennai Metropolitan Development Authority (CMDA) is in-charge of land acquisition. The Tamil Nadu Road Development Company (TNRDC) is the managing associate.
The GMR-group led consortium, in partnership with the NAPC, has bagged the contract for the first phase, which will be executed by a special purpose vehicle — GMR Chennai Outer Ring Road Limited.
Another official says financial closure was achieved early last month. A 30-month period has been assigned for the SPV. This means the first phase will be completed by December 2012.
In respect of the first phase, the State government has decided to provide Rs.300 crore as project support fund. During the operation period of seventeen and a half years, the concessionaire would be paid semi-annual annuity.
As of now, the government has no intention of levying a toll for the proposed road, says the official.
Asked what will be the pattern of execution for the second phase, the official says this issue will be addressed on getting financial assistance.
