Financial Daily from THE HINDU group of publications
Thursday, Jul 21, 2005
Financial Daily from THE HINDU group of publications Thursday, Jul 21, 2005 |
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Logistics
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Shipping SPV likely for Beypore port development Mony K. Mathew
Thiruvananthapuram , July 20 THE concession agreement for the development of the Beypore port is expected to be signed next month with the Ports Department and the Kozhikode-based Parisons group having already held discussions on the details of the techno-economic bid submitted by the latter. The Parisons group has prepared the bid in association with PriceWaterhouseCoopers, while the Ports Department has roped in IL&FS to draft the concession agreement. According to sources in the Ports Department, a special purpose vehicle (SPV) with equity participation of the Government, is likely to be formed for implementing the project. The question of floating an SPV has come up in the context of the Government having spent considerable money on setting up some of the infrastructure such as breakwaters and a berth in the port. This will be reckoned as the equity participation of the Government in the proposed SPV, the sources said. The port is to be developed on a build-operate-transfer basis and the agreement is likely to be for 30 years. The Government's revenue will be fixed after arriving at the potential traffic at the port. The total cost of the project was earlier estimated at Rs 500 crore. This has since been scaled down to Rs 200 crore, with the first phase costing Rs 35 crore. The first phase of development will involve increasing the length of the existing berth and deepening the draft. Meanwhile, the Sharjah-based Universal Lubricants has submitted a proposal for the development of the Azhikkal port. The cost of the project has been scaled down from the originally estimated Rs 1,200 crore, and the development is now planned to be taken up in modules.
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