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INFRASTRUCTURE
expected development period of
10 years would be approx_ INR
82Bn
Project Financing
Framework
A project of such significant
investment will require skillful
financial engineering to help cost
effective resource mobilization
and financial sustainability. The
proposed financing strategy
aims at mobilizing both public
and private resources using cost
effective financing instruments
and use appropriate value capture
framework to finance the project
Comparative Advantage Ponmudi in the Capital region. cost
of Project Area Further the several reputed Capex for the transit corridor
The location in the southern higher education institutions has been agreed in principle
by MoRTH/NHAI to be funded
tip of India serves to give it in the capital region, including under the Bharatmala scheme of
considerable advantage in IISER, would help offer the much Government of India and value
marine logistics being closest to needed knowledge networks capture financing shall be from a
the international sea route and required for a high tech economic mix of user fee and infrastructure
the upcoming ICTT at Vizhinjam city. development charges / property
is expected to boost the trade Presence of many good tax revenues for the access
related economic activities. quality health care institutions controlled corridor.
The Project area has lower and multiple cultural institutions
The land cost is expected to be
population density thus offering in capital region would financed through an innovative
adequate vacant land for help compliment the social scheme of Land Bonds which
development activities. It has a infrastructure to achieve the will aim to finance the cost of
fair degree of social infrastructure desired levels of quality of life. acquisition by capturing the value
thus reasonably lowering the Project Outlay enhancement in real estate and
development cost. The area also
has less vulnerability to ecological The project envisages a additional economic activities
systems. Thus the project will capital expense of approx Rs 20 generated by the project.
have higher benefit –cost ratio billion for construction of the Land pooling approach will
(BCR). transit corridor. In addition, the be actively promoted to help
Proximity of the project area projected cost of land (about interested land owners become
to the capital city helps in easier 600 hectares) for Right of Way entrepreneurs by making land
administrative facilitation which is (60 meter for road section and availability to investors/developers
crucial for the success factor for 10 meter for green cover area) to engage and implement joint-
project. of the transit corridor would be development projects.
Rs 30 billion. The cost of land
Apart from proximity to Strategy for
upcoming ICTT, Vizhinjam, the (about 600 hectares) for multiple Infrastructure
project location can derive benefit development zones identified Development in SIR
from its proximity to the aero- would be Rs 20 billion and the
space center of VSSC, IT Hub cost of public infrastructure in the Role of Development
of Technopark, and around 40 SIR would be Rs 12 billion. Partners
major tourist locations including Thus the expected total capital Government of Kerala is keen to
Kovalam, Varkkala, Poovar and outlay for the project over the partner with Development Finance
www.trafficinfratech-com-500653.hostingersite.com April - May ’19 / TrafficInfraTech 41