Lahore Ring Road Southern Loop 2015
LAHORE: The Lahore Ring Road Authority is set to advertise requests for proposals (RFPs) from construction companies for three packages of the southern loop of the Lahore Ring Road on Monday (11 May, 2015).
A senior LRRA official told that bids would be received till June 30.
He said in the first phase companies would be shortlisted based on their expressions of interest (EOI). There technical and financial proposals would be reviewed later, he said.
The official said the contract would be awarded to by end of July. He said the company would be required to complete construction in two years.
The construction of the three southern loop packages had been approved by the Planning and Development Department in end April.
The meeting had decided that the project would be undertaken in a build and transfer (BT) mode rather than the built, lease and transfer (BLT) mode approved earlier. Under the BT mode, the ownership of the LRR southern loop would be transferred to the Lahore Ring Road Authority at the completion of its construction (in about two years).
The LRRA would be responsible for the maintenance and operation (collection of toll). This would save Rs29 billion earlier earmarked as a lump-sum payment to the construction company for maintenance.
Under the revised plan, the LRRA would pay back the construction cost in eight years at a 17-percent rate of interest.
Under the BLT mode, the ownership of the southern loop would have stayed with the construction company for 18 years after construction. The company would have leased the road to the government for toll collection.
The meeting had also decided to construct service lanes on both sides of the road for only a five-kilometer stretch to bring down the construction cost from Rs54 billion to Rs35 billion.