Infrastructure projects advisor decision postponed

Kochi: The state government has extended by one month the due date for the submission of proposal for the selection of a financial advisor-cum-consultant (FAC) for raising Rs 25,000 crore from financial markets to fund key infrastructural projects. As per the revised schedule, the last date for the submission of the bids will be September 30, 2015.

The bids will be opened on October 5. Letter of award will be issued 15 days after the interview, for which the date is yet to be decided. The agreement will be signed within 15 days of the letter of award.

Additional chief secretary (finance) Dr K.M. Abraham told Deccan Chronicle that the government decided to extend the deadline because it now plans to include consortiums also in the bidding process. “The FAC will have three roles to play: management and financial consultancy services, issue advisory services and legal consultancy services,” he said.

“Some of the applicants suggested that they would like to form consortia since they do not possess all the three capabilities on their own. We thought it is only fair to give them some more time.” The government will bring in the necessary changes in the documents soon. As of now, 10 companies have shown interest in the project, Dr Abraham said.

The government had said it will raise funds through innovative routes to fund projects which include Vizhinjam deep sea port and container transshipment terminal, light metro projects in Thiruvananthapuram and Kozhikode, the second phase of Kochi Metro and its extension, Kannur airport, the second phase of Vyttila mobility hub, first phase of rapid rail transit system (Thiruvananthapuram-Chengannur)  and Sustainable and Planned Effort to Ensure Infrastructure Development (SPEEID) Kerala Project-Road.

The budget had earmarked Rs 2,000 crore for the large infrastructure projects, which the government said will use as the initial capital for raising money from financial markets.