Amaravati: The Andhra Pradesh government has approved the first phase of its City Roads Improvement Program (CRIP), committing Rs 478 crore to overhaul key urban corridors in Visakhapatnam and Vijayawada under a long-term, performance-linked public-private partnership (PPP) model.

Administrative sanctions have been accorded for projects worth Rs 306.95 crore in Visakhapatnam and Rs 171.14 crore in Vijayawada, covering a combined length of 110 km of priority city roads. Officials said tenders will be floated within the next few days.

For context, CRIP has been designed to address chronic urban road failures such as repeated re-laying, weak junction design, inadequate drainage, and poor maintenance accountability. The programme follows the Design-Build-Finance-Operate-Transfer (DBFOT) Hybrid Annuity Model, under which contractors will be responsible not only for construction but also for operations and maintenance over a 10-year period.

Under the model, 40 per cent of the project costs will be paid during the 12-month construction phase against certified milestones, while the remaining 60 per cent will be released through semi-annual annuity payments over the maintenance period. Officials said this structure incentivises durable construction and reduces lifecycle costs for urban local bodies.

The scope of the work extends beyond road resurfacing to include footpaths, medians, stormwater drains, streetlighting, utility ducts, safety signage, reflective markings, organised parking bays, vending zones, and upgraded junctions. Contractors will be responsible also for routine maintenance, drain cleaning, lighting upkeep, road markings and landscaping, with penalties linked to defined service-level benchmarks.

Principal secretary S Suresh Kumar said the programme aims to shift urban road management from reactive repairs to outcome-based maintenance.

“The focus is on consistent service quality over a decade, not just immediate post-construction results,” he said, adding that the model embeds accountability through independent engineering oversight and performance-linked payments.

Officials said the annuity payments will be routed through an escrow mechanism linked to urban local body revenues, improving fiscal predictability and discipline.

The AP Urban Infrastructure Asset Management Limited has been appointed as the independent engineer to monitor execution and maintenance standards.

With Visakhapatnam and Vijayawada positioned as pilot cities, the government plans to replicate the CRIP framework across urban centres in the state.

The tender structure has been designed to attract both national and regional infrastructure firms, including consortium bidders.

The initiative aligns with the state’s broader push to modernise urban infrastructure and improve service delivery through long-term asset management models, rather than piecemeal upgrades.