KARNATAKA ROAD DEVELOPMENT CORPORATION LIMITED Consultancy Services for Preparation of Detailed Feasibility Report (DFR) for the Construction of Proposed Elevated Corridors within Bengaluru Metropolitan Region, Bengaluru FEASIBILITY REPORT VOLUME-I : MAIN REPORT MARCH, 2017 AECOM Asia Co. Ltd. in association with Deloitte Touché Tohmatsu India LLP & Infra Support Engineering Consultants Pvt. Ltd Consultancy Services for Preparation of Detailed Feasibility Report for the Construction of Proposed Elevated Corridors within Bengaluru Metropolitan Region, Bengaluru Feasibility Report VOL- I Main Report MAIN TABLE OF CONTENTS EXECUTIVE SUMMARY CHAPTER 1 : PROJECT BACKGROUND CHAPTER 2 : SOCIAL ANALYSIS OF PROJECT CHAPTER 3 : SURVEYS AND INVESTIGATIONS CHAPTER 4 :TRAFFIC DEMAND FORECAST CHAPTER 5 : DESIGN PROPOSALS CHAPTER 6 : ENVIRONMENTAL ASPECTS CHAPTER 7 : SOCIAL IMPACT AND RAP CHAPTER 8 : COST ESTIMATE CHAPTER 9 : ECONOMICS AND FINANCIAL ANALYSIS CHAPTER 10 : CONCLUSIONS & RECOMMENDATIONS Consultancy Services for Preparation of Detailed Feasibility Report for the Construction of Proposed Elevated Corridors within Bengaluru Metropolitan Region, Bengaluru Feasibility Report VOL- I Main Report TABLE OF CONTENTS E. EXECUTIVE SUMMARY 1 E 1 PROJECT BACKGROUND ................................................................................................................. 1 E 2 PRESENT TRAFFIC SCENARIO ........................................................................................................ 2 E 3 PROPOSALS: ....................................................................................................................................... 4 E 4 DESCRIPTION OF PROJECT CORRIDORS: ..................................................................................... 5 E 5 COST ESTIMATE ................................................................................................................................. 7 E 6 SOCIAL IMPACT OF PROJECT ......................................................................................................... 8 E 7 ENVIRONMENTAL ASPECTS OF PROJECT ................................................................................... 9 E 8 ECONOMICS AND FINANCIAL ANALYSIS OF PROJECT ..........................................................11 LIST OF TABLES Table E-1:- Present Traffic in PCU ..................................................................................................................... 2 Table E-2: Proposed Corridor Details................................................................................................................ 4 Table E-3: Summary of Construction Cost ........................................................................................................ 7 Table E-4: Total Project Cost .............................................................................................................................. 8 Table E-5: Additional land requirement ........................................................................................................... 8 Table E-6: Category wise Affected Buildings ................................................................................................... 9 Table E-7: Project Phasing, Completion & Operation Schedule .................................................................... 11 Table E-8: Economic costs of the project ......................................................................................................... 11 Table E-9: Base Toll Rates in INR/Km ............................................................................................................ 11 Table E-10 : Revenue estimates in Cr. INR...................................................................................................... 12 Table E-11: Benefits Till 2041 in Scenario I ...................................................................................................... 12 Table E-12: Benefits till 2041 in Scenario II...................................................................................................... 12 Table E-13: Financial options ........................................................................................................................... 13 Table E-14: Brief summary of Financial Indicator (inflows and Outflows) .................................................. 14 Table E-15: Key financial indicators: BOT (Toll) with Two-wheelers (assuming base case EIRR of 15%) . 16 Table E-16: Key financial indicators: BOT (Toll) with Two-wheelers and Real Estate rental income for 30 year concession (assuming a base case EIRR of 15%) ...................................................... .17 Table E-17: Key financial indicators: Hybrid Annuity model (assuming a base case EIRR of 15%) ........... 18 Table E-18: Key financial indicators: Toll with Annuity model (Base case EIRR of 15%): .......................... 18 LIST OF FIGURES Figure E-1: Key plan of the corridors ................................................................................................................ 5 Figure E-2: Brief Overview Of The Different Stages And The Role Of SPV ................................................. 15 Executive Summary i Consultancy Services for Preparation of Detailed Feasibility Report for the Construction of Proposed Elevated Corridors within Bengaluru Metropolitan Region, Bengaluru Feasibility Report VOL- I Main Report E. EXECUTIVE SUMMARY E 1 PROJECT BACKGROUND Bengaluru (Earlier called “Bangalore”) city is the capital of Karnataka State and is the IT capital of India. The city is distinct in its nature because of its climate, terrain and peace loving people, the city attracts enormous people from all corners of India and hence has sizeable population originating from other states making it the most cosmopolitan city in India. The city is the third most populous city & fifth largest Metropolis in India as well as 18th most populous City in the World making it the most sought after cities in India by people, companies and multinationals. The massive growth that the city has witnessed in the last two decades has brought the city to fame but also to chaos due to grossly inadequate infrastructure in all fronts. Due to large scale initiative and support by Govt of Karnataka for establishment of IT & BT industries during 1990-2000, Bangalore attracted large scale investments in IT / BT sector from many global / MNCs thus triggering exponential growth of Real estate industry and many other service related industries. It resulted in rapid increase of population from 4.10 million in 1991 to 8.4 Million in 2011 census and 115.50million in 2016 thus the city is 3rd most populous city in the country. With the exponential growth of IT/ BT and service sectors, the population has increased from 7-8 % per annum during 2011-2016 as against 0.5% per annum during 1991 – 2001 and the vehicle population has also grown at a rate of over 10% per annum during 2011-2016. With this, the projected population by 2020 will be 13 million. Bengaluru is endowed with a radial pattern of road network converging in the core area of the city. As per CTTP report-2011, the total road network of the city is over 4000 km of which arterial/sub-arterial roads account for about 350 km. The road network in the central parts of the city has developed organically over last century and has inadequate Right-of- Way. There are also Ring Roads (IRR-30 kms, ORR-62 Km) which cuts across the various radial roads creating vast number of bottle necks. Also, a fractured Intermediate Ring Road has been constructed in fragments at south-east of the city between Koramangala and Old Airport Road. Keeping inview of the narrow ROW and heavy developments along the arterial roads the widening of existing arterial roads is not feasible. As such the necessity of going in for elevated corridor with minimal land acquisition for widening / at grade improvement for ramps and provision of grade separators at all major intersections is the best alternative to improve the traffic condition in Bangalore. Government of Karnataka (GOK), through Karnataka Road Development Corporation Limited (KRDCL) vide letter KRDCL/CE-EE2/EC/LOA/2015-16/- 3024 dated 30jan2016 has appointed M/s AECOM joint venture (JV) with M/s Deloitte and M/s Infra Support Engineering Consultants Pvt. Ltd as technical consultant for “Consultancy Services for Preparation of Detailed Feasibility Report for the Construction of Proposed Elevated Corridors within Bengaluru Metropolitan Region, Bengaluru”. Executive Summary E-1 Consultancy Services for Preparation of Detailed Feasibility Report for the Construction of Proposed Elevated Corridors within Bengaluru Metropolitan Region, Bengaluru Feasibility Report VOL- I Main Report The main objective of the Consultancy is aimed to alleviate congestion and provide unhindered travel along the Proposed Corridors that will contribute to savings in travel time, vehicle operating cost, improve road safety and minimize carbon emissions resulting in overall economic growth of Bangalore. The overall objective of the Consultancy assignment is to assist KRDCL in developing Feasibility Study, recommend financing mechanisms, identify preferred procurement route. The Feasibility Study and Preliminary Engineering Design that will demonstrate the bankable feasibility of the project from traffic, technical, economic, social, environmental and financial angles leading to preparation of detailed engineering design, tender documentation and project procurement