Bihar's Rs 17,000 Crore Investment in Three Major Ganga River Road Projects Using Hybrid Annuity Model

Under the Hybrid Annuity Model, the government provides 40% of project funding, while private developers contribute 60%.

New Delhi:

Bihar will shortly commence development of three significant road projects along the Ganga river utilizing the hybrid annuity model (HAM) at an estimated cost of Rs 17,000 crore. According to Bihar's Road Minister Nitin Nabin, these projects aim to enhance economic activities and boost tourism in the region.

The three HAM-based projects include Digha-Sherpur-Bihta-Koilwar (35.65 km), Munger (Safiabad)-Bariyarpur-Ghorghat-Sultanganj (42 km), and Sultanganj-Bhagalpur-Sabour (41.33 km).

In the HAM framework, the government contributes approximately 40% of project funding, while private developers finance the remaining 60%. The developers then operate the road for a designated concession period, receiving regular annuity payments from the government.

The Sultanganj-Bhagalpur Gangapath project has a projected cost of Rs 4,849.83 crore, while the Munger-Sultanganj Gangapath is estimated at Rs 5,119.80 crore. The Digha-Sherpur-Bihta-Koilwar project will require approximately Rs 6,495.79 crore.

Minister Nabin emphasized that these roads would not only improve connectivity but also attract tourists due to their scenic routes running parallel to the Ganga river.

The tender process for all three road projects has been completed, with letters of acceptance already issued. Chief Minister Nitish Kumar is scheduled to perform the groundbreaking ceremony for one of the projects on October 4.

It's worth noting that the Bihar Assembly elections are approaching, with many significant projects scheduled for inauguration before the announcement of election dates.

The Election Commission team, led by CEC Gyanesh Kumar, will visit Patna on October 4 and 5 to assess election preparedness in Bihar. Election dates are expected to be announced shortly after this visit, as the current 243-member legislative assembly's term concludes on November 22.

Providing additional details, Nabin stated that this marks the first time the state government has awarded a contract using the HAM model. Once completed, the nearly 84 km long Munger-Bhagalpur Sabour project will become a vital transportation artery in Bihar, connecting major cities including Munger, Sultanganj, and Bhagalpur.

"Under the leadership of Nitish Kumar and Prime Minister Narendra Modi's guidance, the Bihar government has successfully established an extensive network of quality roads across the state. These Ganga River road projects further demonstrate the NDA government's dedication to infrastructure development," he stated.

The new road network will significantly reduce travel time between cities. Additionally, the upcoming Gangapath will function as a ring road for Bhagalpur and Munger, substantially alleviating traffic congestion in these areas.