L&T wins Hyderabad Metro contract

Indian developer Larsen & Toubro has been awarded the design, build, finance, operate and transfer (DBOT) contract for the Hyderabad Metro rail project. The concession for the public-private partnership runs for 30 years.

The government of Andhra Pradesh has awarded the 30-year concession for the design, build, finance, operate, transfer (DBOT) contract for the Hyderabad Metro to Indian construction firm Larsen & Toubro (L&T).

L&T is understood to have beaten off competition from consortia led by developers Reliance Infrastructure, Essar Constructions, Lanco Infratech, Soma and Transstroy. It was reported that GVK and GMR pulled out before submitting bids amid concerns over the financial viability of the project. It was reported that L&T submitted the lowest offer at around $2.6 billion.

It is understood that L&T is aiming to achieve financial close for the project within the next six months. Construction of the 71-kilometre long metro rail project, which will have 66 stations, will start in January 2011 and is expected to complete in five years.

The Hyderabad Metro contract was originally bagged by Maytas Infrastructure in July 2008, but Maytas failed to reach financial closure, as agreed, in March 2009. In July 2009, the Andhra Pradesh government cancelled the contract and called for fresh bids.