Surety bonds and e-bank guarantees allowed for road and ropeway contracts

The centre has tweaked contracts issued for making highway and ropeways, allowing bidders to furnish e-bank guarantees and surety bonds.

An order from the Ministry of Road Transport and Highways said that changes have been approved in clauses of model concession agreements for Engineering, procurement and construction (EPC), Hybrid Annuity Mode (HAM), and Build Operate Transfer (BOT) contracts.

It has also been stated that for all the existing contracts – including road development, toll contracts, and ropeways – the Bank Guarantee (BG) may be replaced by an Insurance Surety Bond.