Hurdles to clear

Japanese agency yet to formally approve funding proposal and choosing a builder will also take time

MUMBAI: The state government has finally bagged two crucial environmental clearances for the Mumbai Trans-harbour Link (MTHL) but a closer look at the project reveals that it will be far from plain sailing.

The government said it plans to complete the project by 2019 and is confident that it will be able to bid for companies to build it by the end of February. However, the state’s plans to fast-track the project, envisaged way back in 1970, may face a few hurdles.

For one, the Japanese International Co-operation Agency (JICA), which has agreed to fund up to 80% of the project, is yet to formally approve the proposal to fund it, even though in September last year, when chief minister Devendra Fadnavis visited Japan, he said that JICA had agreed to fund it.

“The state government will reach financial closure with JICA this month and ensure that tenders are issued by the start of March 2016,” Fadnavis said on Saturday.

However, Fadnavis’s optimism may be unfounded. JICA’S environment impact assessment and social impact assessment studies are yet to be completed. The firm recently appointed a consultant to conduct these studies. This means JICA still needs time to complete the studies, and only after this will it clear the proposal, said a senior officer, who did not wish to be named.

“Clearance from JICA’S appraisal committee is still awaited, and only once it arrives can the loan agreement be signed,” the officer added. The state government recently requested JICA to expedite the process.

The government has set a deadline of 2019 for both MTHL and the Navi Mumbai International Airport. The 22-km MTHL will connect Sewri in Mumbai with Nhava in Navi Mumbai, where Mumbai’s second international airport is coming up.

The six-lane road will have a 16.5km section under the sea and a 5.5km portion on land, which will pass through areas owned by the two ports.

Even the appointment of a construction company, officials said, will take time and effort. What will help the authorities at this stage is the decision to opt for a cash-contract system for the project – probably a first for a major infrastructure project. Earlier, it was to be built on a public-private partnership model.