Agroh Ratlam Tollways Private Limited

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In 2013, Madhya Pradesh Road Development Corporation (MPRDC) signed a 15-year concession (including construction period of 2 years) with Agroh Infrastructure Developers Private Limited (AIDPL) for the strengthening, improvement,2-laning,operation and maintenance,and tolling of 43.58kms of Ratlam – Sailana - Banswada (SH-39) Road (km 0/00 to 42/6),in the state of Madhya Pradesh. The project road started from Ratlam city and ends at MP border (Banswada). Under the contract, AIDPL was responsible for the design, construction,finance, operation and maintenance,strengthening and widening the existing 2-lane carriageway to 2-lane undivided 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 MDR (major district roads) development project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The project road was an important corridor connecting Bhopal, Central Madhya Pradesh with Kota, Jaipur and North India. AIDPL established Agroh Ratlam Tollways Private Limited (ARTPL),a special purpose vehicle in 7th May 2013, to implement the project. The SPV won the tender through international competitive bidding, conducted by MPRDC,by requesting the lowest annuity of US$ 2.0mn (INR 119.8mn). Other details of bidding were not known at the time of collection of this information. Under the contract, the SPV was to recover the capital costs and operating costs including returns through semi-annual payment of INR 59.9mn from MPRDC and through tolling, during the term of concession. The concession agreement for the project was expected to be signed in 2013. In absence of information, we are assuming concession signing date of December 2013. The project was financed with a debt/equity ratio of 70/30. The estimated capital cost of the project at the time of financial closure was US$ 18.1mn (INR 1063.9mn @58.6INR/USD).Financing comprised of a term loan of US$ 12.8mn (INR 750mn) and sponsor equity of US$ 5.3mn (INR 313.9mn). Other details of financing were not known at the time of collection of this information. The project was expected to be completed by June 2015.