Kerala - Kozhikode   

Ponnani port development process under way

Kozhikode: The process of selecting a private partner for development of the Ponnani port is under way.

A global tender has been floated for award of contract.

The deadline for online bidding ticked by Wednesday last week. However, only one bidder has come forward.

The investor who has shown interest is the Chennai-based High Valley Infra Projects Private Ltd.

Since the selection of the private investor will be through the ‘Swiss Challenge' method, the bidding cannot be seen as the end of the process.

Master plan

The master plan for the port development, estimated to cost Rs.763 crore, was prepared by another Chennai-based company, Malabar Ports Private Ltd. Under the ‘Swiss Challenge' method, it will be given an opportunity to match the bid by High Valley Infra. If it does, the contract will be awarded to it. Otherwise, Malabar Ports will be paid the fee for preparing the plan by the successful bidder.

Ponnani is proposed to be developed as an all-weather port. After its development is completed, it will be able to handle cargo vessels of up to 50,000 DWT. When fully operational, it is expected to speed up all-round development in the Malabar region and act as a big stimulus to the proposed Coimbatore-Palakkad industrial belt.

BOT basis

The project will be executed on build-operate-transfer (BOT) basis and the concession period for the private investor will be 30 years after allowing one year for project formulation and three years for construction.

Sources said High Valley Infra had quoted 1.7 per cent of the revenue profit accruing from the operation of the port to be paid to the State government. The government could negotiate for a higher share of the profit.

Similarly, if Malabar Ports staked its claim through the ‘Swiss Challenge' method, the government could negotiate with them, too, for an increase in the share of the profit.

A final decision on awarding the contract would be taken within a month, the sources said. 

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