1. International Conference on Construction, Real estate, Infrastructure and Project (ICRIP) Management – 2017 on November 10-11, 2017 at NICMAR - Pune
Hyderabad Outer Ring Road (HORR) Project: A Case Analysis of the Project and Its Success
Ramakrishna Nallathiga
Associate Professor
School of Project, Real estate and Infrastructure Management
National Institute of Construction Management and Research (NICMAR), Pune

2. Structure Introduction Urban Ring Roads Road Development through PPP
HORR Project Case
Location
Importance
Development Phases
Project Costs and Finances
Implementation Model
Land Acquisition
Performance Analysis
Conclusions

3. Introduction
With rapid urbanization, urban areas are also expanding very fast and posing challenges to transportation of goods/ people
Transportation infrastructure is important not only for enabling the movement of goods and people but also to foster city development through trade and other linkages
With the rapid growth of peripheral areas of cities, urban transportation systems and infrastructure projects that support them are becoming vital for integrating them and it is here that the ring roads can play a vital role
Ring roads began to assume important recently and several Indian cities make attempts for them

4. Urban Ring Roads Definition :–
‘A ring road, orbital motorway, beltway, circumferential highway, or loop highway is a road that encircles a city so as to streamline the inner-city traffic flow through better circulation and connectivity between various nodes as well as by serving as a bye-pass for highway traffic’
(Road Traffic Technology 2013)

5. Road Development through PPP
PPP has become a major vehicle for road infrastructure development in India (primarily highways)
The advantages of the PPPs are well known e.g., risk sharing, technology transfer, investment inflows, better delivery and contractual arrangements
However, the project success measured in terms of ‘Golden Triangle’ (Time-Cost-Quality) is not always the case with PPP projects, including the road PPP projects
This is an attempt to analyze it on one such case – Hyderabad Outer Ring Road (HORR) Project in India.

6. HORR Project - Introduction
HORR is an initiative of the GoAP promoted by the HMDA with Hyderabad Growth Corridor Limited (HGCL) as a Special Purpose Vehicle for implementation
Some of the salient features of HORR project include:
Road corridor designed as 8 lane fully access controlled expressway with 2 lane service roads on both sides (the link road connecting ORR is of 6 lanes).
RoW of 150 m with the main expressway covering about 66 m and the balance for providing ramps at interchanges, service roads wherever necessary, utility ducts, rail corridor, etc.,
Design speed of 120 kmph with 100 kmph absolute minimum speed that gives minimum time for travel.
No at-grade intersections and the provision of suitable interchanges like cloverleaf, diamond type for National and State Highways.

7. HORR Project - Location

8. HORR Project - Importance
De-congestion of metropolitan area and inner ring road traffic
Infrastructure to meet future traffic demand
Provides orbital linkage to radial arterial roads
Leads to the development of further satellite townships
Provides linkage to the proposed MRTS and Bus system
Provides faster access to the International Airport
Connects urban nodes like Hi-tech city, Games village, IIIT, ISB, Hardware Park, Singapore Township and Financial district
Develops linkages with SEZs, industrial hubs and service hubs

9. HORR Project - Development Phases
Phase I covers 24 Km road stretch between Gachibowli Junction and Shamshabad NH-7 Junction. It was developed and opened for traffic in July The PVNR Expressway connecting the city to Shamshabad international airport was also developed in this phase as a radial road project connecting HORR and opened for traffic in October This phase was developed using conventional construction contracts.
Phase II covers 137 Km covering Narsingi-Kollur-Patancheru- Medchal-Shameerpet-Turkayamzal-Shamshabad parts of Hyderabad. It is sub-divided into Phase II-A & II-B. It was proposed to be developed under BOT-Annuity model of PPP. Phase II A & B were planned to be completed in 2010 and 2012 respectively, but they are yet to be fully completed. Some stretches, however, have been opened for traffic from

10. HORR Project – Costs and Finance
Development Phase
Estimated Cost (INR)
Mode of Finance
Remarks
Phase I
(including PVNR Expressway)
500 Crores
Long Term Loan from the Consortium of Five National Banks
Land bank of HMDA was mortgaged to the Consortium
Phase II
(including 3 radial roads)
2,500 Crores
Development Assistance from Japan International Cooperation Agency (JICA)
Development Credit agreement signed between GoAP and JICA
33 Radial roads development
750 Crores
Own Funds of HMDA
Taken up for partially and remaining proposed under other schemes
Source: Net Resources International (2012)

11. HORR Project – Implementation Model
International Competitive Bidding was used to procure partners under Phase I and executed through EPC Contracts in two packages
Phase IIA was divided into five packages given to five different partners under EPC and Phase IIB was divided into six packages under JV model
Project Phase
Implementation Model
Contract Amount (Rs)
Road Length (Km)
Contract Date
Phase I
EPC Contracts
561 Crores
24.38
March 2006
Phase II-A
BOT-Annuity Contracts
2,439 Crores
62.3
December 2007
Phase II-B
3,558 Crores
75.3
June 2009

12. HORR Project –Land Acquisition
5,142 acres of land in 83 villages was required for HORR. Out of this, 902 acres belonged to Forest department, leaving land acquisition of 4,940 acres from private land owners.
Land acquisition through General Award of Compensation under Land Acquisition Act 1894 was planned initially. For House losers, rehabilitation measures were based on R&R Policy 2005 of the GoAP.
Land owners protest against compensation forced formation of a State Level Nodal Committee (SLNC), which raised the compensation to be paid ranging from 40% to 100%.
Land acquisition proved to be difficult to handle and it contributed to time delays of and resulted in concomitant cost overruns. Whereas, in other States like Gujarat such hurdles are overcome through land pooling schemes like TPS.

13. HORR Project – Performance Analysis
The cost estimates of Phases I and II were revised to Rs 561crores and Rs 4,500 crores in They were further revised to Rs 6,000 Crores for Phase II. This itself is a large cost escalation.
The final cost estimates are pegged at Rs 699 crores and Rs crores for Phase I and Phase II respectively (GoAP 2012).
HORR project met with funds crunch during Phase I itself which led to the deferral of radial ring roads component.
Phase II implementation was delayed due to finance crunch at HMDA and JICA’s development assistance gave a lifeline. JICA funds were utilised for Phase II-A works and entire Phase II-B.
Seven radial roads were developed during Phase II using JICA loan, but most of them are awaiting development under various other infrastructure development schemes due to the paucity of funds available with HMDA (Full Hyderabad 2013).

14. Conclusions
HORR has some good features e.g., traffic dispersal, improving city and regional connectivity and promoting regional economic development; also, it comes at a time when such projects are needed for metropolitan region development i.e., it is designed well ahead of time.
However, HORR project implementation is a different experience:
Project Phase I was simple, small and well specified to be achieved within budget and timelines using EPC contracts.
Project Phase II was complex without good implementation (BoT/JV) and financing arrangements, therefore was little success.
Land acquisition difficulty in Phase II led to time delays and cost overruns.
However, HORR project is a larger ‘corridor project’ that would give a boost to development through residential (townships) as well as industrial (SEZs) development; these may give rise to more benefits in future and give long term success.

15. Thank You !!!