He said the project, with an estimated cost of Rs 3.07 billion, will ensure uniform road quality, consistency in construction and timely execution, while improving financial efficiency for the corporation. This marks the first time such a model is being implemented in Visakhapatnam.
The new system replaces the current practice of awarding numerous small roadworks to multiple contractors. Instead, a single large contractor will be responsible for delivering the entire package, enabling better quality control and design uniformity. Similar models have already been successfully executed in Hyderabad and Thiruvananthapuram.
Currently, GVMC spends around Rs 900 million annually on road maintenance, with frequent tendering cycles contributing to delays and uneven results. The annuity model is expected to attract reputed contractors capable of delivering higher standards without administrative bottlenecks.
The project will cover major roads measuring 40 feet or more in width. The scope includes resurfacing, median development, greenery enhancement and the installation of various urban amenities.
The roads selected for the annuity package fall across:
Zone II – 31.61 km
Zone III – 14.24 km
Zone IV – 8.65 km
Zone V – 3.70 km
Zone VI – 30.15 km
Zones were chosen based on technical feasibility, traffic density and strategic significance, covering major arterial routes and VVIP movement corridors.
The bidder’s responsibilities will include capital expenditure for lighting, utility ducts, CCTV systems, dustbins, benches, safety features, junction upgrades, bio-toilets, parking facilities, way-finding systems and bus shelters.
Operation and maintenance duties will cover mechanical sweeping, drainage cleaning, pothole repair, landscaping, street-light upkeep, road-marking, management of road furniture and the civil and electrical maintenance of junctions.
The contractor must complete all works within one year, followed by ten years of maintenance. Revenue from advertisements and other sources will be offset against annuity payments.
The Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML) will act as Transaction Advisor and provide Independent Engineer Consultancy for the project.
