Abhijeet Angul-Sambalpur Toll Road Limited

cancelled

On 30th November 2011, National Highway Authority of India (NHAI) awarded a 30-year concession (including construction period of 910 days) to Abhijeet Roads Limited, for the strengthening, improvement,4-laning,operation and maintenance, and tolling of 153 kms of Angul-Sambalpur section from KM112.000 to KM265.000 of National Highway 42,in the state of Orissa. Under the contract, Abhijeet Roads was responsible for the design,construction,finance, operation and maintenance,strengthening and widening the existing 2-lane carriageway to 4-lane divided carriageway.The scope included construction of new pavement,rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges,culverts, road intersections,interchanges, drains, etc.The expansion project, part of the National Highway Development Program (NHDP-IV), was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Abhijeet Roads Limited established Abhijeet Angul-Sambalpur Toll Road Limited (AASTRL),a special purpose vehicle on 5th December 2011, to implement the project. The SPV won the tender through international competitive bidding, conducted by NHAI, by requesting the lowest grant of US$ 63.1mn (INR 3370mn @53.4 INR/USD). Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling, during the term of concession. The project was expected to start construction in September 2012 (scheduled appointed date), however no appointment date was issued since conditions precedent like land acquisition and funding closure was not achieved. Existing Right Of Way and land notified constitutes only 89% of land required for the Project due to delay on the part of NHAI and the State Government. The Concessionaire had also not submitted performance Guarantee.Finally NHAI canceled the concession in November 2013. The concession agreement was signed on 13th March 2012. The project was in the process of obtaining funding, at the time of cancellation. However, as per the declared common loan agreement to NHAI, the estimated capital cost of the project was US$ 247.3mn (INR 13206.5mn @53.4 INR/USD).