Hybrid model to bring in uniformity in city roads

Update: 2025-11-27 06:51 IST

Visakhapatnam: Commuters will soon be relieved from the horrendous journey along the uneven and bumpy roads as a new system has been introduced to overcome commuting woes.

As far as road designing is concerned, each stretch in the city differs from the other. In an attempt to ensure uniformity in the road design and ensure their appropriate maintenance, the Greater Visakhapatnam Municipal Corporation (GVMC) council is set to implement the 'Annuity Payout Model'. Initially, the development and maintenance will be taken up along the 88.35- km-long stretch of roads that fall in the corporation’s jurisdiction.

The new hybrid model, which offers significant advantages, has been introduced for the first time in Visakhapatnam.

The new approach, with an estimated project cost of Rs.307 crore, will ensure consistency in road quality, uniformity in construction and time-bound completion of works. This would largely benefit the GVMC financially by reducing the maintenance cost, among other expenditures.

Currently, the corporation is awarding small, individual works to multiple contractors for laying new roads, assigning repair works and their maintenance.

As part of the hybrid model, the entire project will be assigned to a single major contractor. Apart from ensuring consistent quality, the biggest advantage of this is to attain uniformity in road design.

The GVMC spends approximately Rs.90 crore annually on road maintenance. Compared to the present system, which requires frequent tendering, assigning the work to a single contractor under the Annuity Payout Model will attract reputed contractors who can deliver high-quality standard of work while avoiding inordinate delays caused by multiple tendering processes.

The project will cover major roads that are 40 feet or more in width. The scope of the project includes road resurfacing, development of the central median, greenery development and the provision of various urban amenities.

With similar systems being successfully implemented in cities like Hyderabad and Thiruvananthapuram, the model has been proposed in Visakhapatnam.

The new hybrid model was approved by Chief Minister Nara Chandrababu Naidu during a review meeting held in Visakhapatnam.

The selection of roads in Zones II, III, IV, V, and VI was based on technical feasibility, traffic density and strategic importance, covering key, major, arterial, and VVIP movement corridors.

Speaking about the system, GVMC Commissioner Ketan Garg stated that the bidder's scope will include Capital Expenditure (CapEx) for project components such as lighting, utility ducts, CCTV cameras, dustbins, benches, safety equipment, major junction development, bio-toilets, parking, way-finding systems, and bus shelters.

Operation and Maintenance (O&M) responsibilities will encompass mechanical sweeping, drainage cleaning, pothole repairs, landscaping, street light maintenance, road marking, maintenance of road and street furniture, and civil and electrical maintenance of junctions, he informed.

The allocated works must be completed within a year, after which, the contractor will be responsible for maintaining those roads for 10 years, the Commissioner said.

The corporation will adjust the revenue generated from advertisements and other income streams developed along these roads for the annuity payments.

The Andhra Pradesh Urban Infrastructure Asset Management Limited (APUIAML) will provide transaction advisory and independent engineer consultancy services to the GVMC for the execution of the project.

The selected roads to be developed under the Annuity Payout Model of a total of 88.35 km stretch includes 31.61-km in Zone-2, 14.24-km in Zone-3, 8.65-km in Zone-4, 3.70-km in Zone-5, and 30.15-km in Zone-6.

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