The much delayed Bandra-Worli sealink project is set for completion by September 2007 following which a Rs 38 toll charge per four wheelers (to be revised upwards by five per cent annually) for a period of 30 years would be imposed to recover the project costs.
Making this announcement, Maharashtra public works department minister, Anil Deshmukh said, "There are penal provisions available in the contract to ensure it is completed by the December 2007 deadline."
Responding to a query, he expressed confidence that there would be no more cost-escalations that would further increase the project cost of the Bandra-Worli sealink that is now pegged at Rs 1306 crore (Rs 13.06 billion).
However, according to a senior Maharasthra State Road Development Corporation official, "If the point of connecting the sealink with the Worli seaface is changed again, the course correction may lead to a minimum increase of Rs 200 crore (Rs 2 billion)."
Besides, as a senior MSRDC official cited, "A further cost escalation might become inevitable if people opposed to the project, went in for litigation."
Interest costs of Rs 320 crore (Rs 3.2 billion) on the funds borrowed for the project have already caused cost escalations. The land development cost, earlier estimated at Rs 5 crore (Rs 50 million) has also spiraled to Rs 70 crore (Rs 700 million), the official said.
At present, around 18.2 per cent of work of the contract-cost is completed. The 5.6 km sea link begins at the Mahim interchange (junction of the western expressway on SV road) and at its northern end joins the Khan Abdul Gaffar Khan road on the Worli seaface.
The sealink will support eight traffic lanes and have two lanes reserved for buses to ply on. The project is being implemented on a build operate and transfer basis by the MSRDC.
