State Governments such as Punjab and Karnataka are now trying the ‘Swiss challenge' bidding process to implement rapid transit projects on a public private partnership (PPP) basis.
Also known as the unsolicited bid process, the Swiss challenge procurement process is one where a private project owner suo moto submits a proposal to the Government with technical and financial details.
The erstwhile Dabhol project was also set up using a similar process, though it was in power sector.
In the Swiss challenge method, after receiving an unsolicited proposal, the Government floats an open tender asking the other players/challengers to come up with a better offer. This step is taken by the Government if it finds the project proposal unique and in public interest.
RAPID TRANSIT PROJECTS
While the Karnataka Government is considering the Swiss challenge process for the Bangalore monorail project, the Punjab Government has invited tenders implementing a personal rapid transit (PRT) system in Amritsar.
If either of these projects is implemented successfully, it will be the first of its kind in the country.
Till date, all rapid transit projects implemented through PPP - such as the Mumbai metro and monorail, Hyderabad metro, Gurgaon private metro rail -- have used the competitive bidding method.
AMRITSAR PROJECT
For Amritsar, the project proponent -- ULTra-Fairwood – has offered to run a PRT system on a 3.3 km route connecting Golden temple with three destinations including a railway station. The project cost is about Rs 500 crore.
In a PRT system, small, driverless, battery powered vehicles with Central control system or pod cars run on slender, special purpose tracks. The tracks can be on ground or elevated. The cars – with capacities of seating 4-6 people – provide on-demand transport.
ULTra (Urban light rapid transit) is a UK-based company, which owns this PRT technology, has concluded trials on its 4-km track at Heathrow airport.
Following the proposal, the Punjab Investment Development Board has now floated a tender for offering a PRT solution on design, build, finance, operate and transfer basis on this route.
“We have to adopt the Swiss challenge method to accelerate infrastructure development…Standardised bidding procedures do not accelerate infrastructure development, nor do they always ensure best value for money,” Mr Anil Gandhi, President and Chief Executive Officer, Government Advisor and PPP Division, Feedback Ventures, said.
BANGALORE PROJECT
In Karnataka, a consortium of IL&FS, Scomi and Geodesic have submitted a detailed project report (DPR) to the Government to implement a monorail project in Bangalore. The DPR has various options with regards to ticket pricing, concession period, funding pattern. Now, Karnataka Government has to invite bids from ‘challengers'.
“We have submitted a DPR to the Karnataka State Government to implement monorail project on a 16 km stretch, with an approximate cost of Rs 2,200-2,400 crore, as a feeder service to Bangalore Metro rail in the first phase,” Mr Sanjiv Rai, ITNL Enso Rail Systems, told Business Line . Mr Rai declined to share more specifics.
There are three rolling stock vendors in the monorail segment: Scomi, Hitachi and Bombardier.