The Hindu Business Line : Vizhinjam container terminal — Kerala Cabinet clears Chinese consortium bid

THE Kerala Cabinet has cleared the tender submitted by a Chinese consortium for developing the proposed international container transshipment terminal at Vizhinjam near here.

The consortium comprises two Chinese companies - Kaidi Electrical Power Company and China Harbour Engineering Company - and the Mumbai-based Zoom Developers.

The Ports Department had received two techno-economic bids for the project. Apart from the Chinese consortium, the Mumbai-based Gammon India was also in the fray and the tender evaluation committee, at its sitting a week ago, had zeroed in on the bid submitted by the consortium.

According to department officials, the debt support of Rs 98.73 crore sought by the consortium was lower than what the Government had expected and this clinched the issue in favour of the consortium. The company will repay the amount to the Government from the eleventh year onwards.

The total cost of the project is Rs 4,360 crore. The development of the terminal may be taken up in three phases with the first phase costing Rs 1,850 crore. The projected outlays for the second and third phases are Rs 990 crore and Rs 1,520 crore, respectively.

Of the total cost, the Government's commitment will be Rs 335 crore. Besides the debt support of Rs 98.73 crore, the Government will extend revenue support of Rs 19.8 crore and also spend Rs 80 crore for the development of basic infrastructure.

The Government will have equity participation to the tune of Rs 136.4 crore in the joint venture company that will take up the implementation of the project. The Government, meanwhile, has sought project viability gap funding of Rs 370 crore from the Centre.

The terminal, being developed on build-operate-transfer (BOT) basis, will be returned to the State Government without any financial liabilities after 30 years.

The Chief Minister, Mr Oommen Chandy, said after the Cabinet meeting on Wednesday that the Prime Minister, Dr Manmohan Singh, would be requested to lay the foundation stone for the project during the latter's proposed visit to the State next month.