New Delhi: A concession agreement has been signed today for construction of 6.5 kilometer Z-Morh tunnel in Jammu & Kashmir. The project has been awarded on Design, Build, Finance, Operate and Transfer (DBFOT) Annuity basis.
The project will involve construction, operation and maintenance of the tunnel with approaches on NH-1 at Srinagar-Sonmarg-Gumri Road from 61 kilometer to 89.30 kilometer, the government said in a statement.
The 2-lane bi-directional tunnel with parallel escape tunnel will be completed in 3.5 years at a cost of Rs 2378.76 crore. The concessionaire has been awarded DLP Period /Operation & maintenance period of 15 years from the date of completion.
Bids for this contract were re-invited in June 2019 with a total project cost of Rs 2378.76 crore on BOT (Annuity) basis. Four bids were received, and were opened in August 2019.
After receiving the necessary approvals and financial sanction, the project award was sanctioned by the Ministry of Road Transport on 17.12.2019. The LoA for the project was then issued on 19.12.2019 to the APCO Infrastructure Pvt. Ltd.