1. Total 110 km of priority urban corridors to be upgraded: 88.54 km in Vizag (₹306.95 cr) and 23.54 km in Vijayawada (₹171.14 cr).
2. GVMC and VMC to issue Requests for Proposals (RFPs) next week. Projects to follow DBFOT–Hybrid Annuity Model (HAM) to ensure quality and long-term maintenance.
3. 40% of cost to be paid during construction; remaining 60% over 10 years through O&M annuities.
4. CRIP focuses on structural integrity, safety, and contractor accountability with a 10-year maintenance period.
5. AP Urban Infrastructure Asset Management Limited appointed as Independent Engineer.

The Municipal Administration & Urban Development (MA&UD) Department on Saturday accorded administrative sanction for implementing two pilot projects in Visakhapatnam and Vijayawada under the first phase of the City Roads Improvement Program (CRIP), with a total estimated cost of about ₹479 crore.

According to MA&UD Principal Secretary S. Suresh Kumar, the projects will cover 110 km of priority urban corridors across the two cities. Of this, 88.54 km of roads in Visakhapatnam will be upgraded at an estimated cost of ₹306.95 crore, while 23.54 km in Vijayawada will be taken up at a cost of ₹171.14 crore. The Greater Visakhapatnam Municipal Corporation (GVMC) and the Vijayawada Municipal Corporation (VMC) are expected to notify Requests for Proposals (RFPs) for the works next week.

The CRIP aims to comprehensively overhaul the condition of city roads across the State, with emphasis on quality construction, structural integrity, road safety and contractor accountability over a 10-year period. The projects will be implemented under the Design-Build-Finance-Operate-Transfer (DBFOT) Hybrid Annuity Model (HAM), a public-private partnership framework designed to ensure long-term asset performance and maintenance.

Under the HAM framework, 40% of the project cost will be released during the 12-month construction period against verified milestones, while the remaining 60% will be paid over a 10-year operations and maintenance (O&M) period through semi-annual annuities. This structure is intended to incentivise concessionaires to focus on durable construction and minimise long-term maintenance liabilities.

The CRIP goes beyond routine road resurfacing and envisages integrated redevelopment of urban streets, combining capital works with sustained O&M activities to transform entire road corridors. AP Urban Infrastructure Asset Management Limited has been appointed as the Independent Engineer for the programme. Mr. Suresh Kumar said the RFP structure has been made contractor-friendly to encourage wider participation, including from capable local firms and consortium-based bidders.