Ashoka Ranastalam Anandapuram Road

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The scope of work involves six laning of Ranastalam from 634.000 km to Anandpuram 681.000 km section of NH-5 (new NH- 16) in Vishakapatnam in Andhra Pradesh, under NHDP Phase-V (Package II), on hybrid annuity mode. The project will be executed by Ashoka Ranastalam Anandapuram Road, a wholly owned subsidiary of Ashoka Concessions (Ashoka Buildcon). The contract was awarded following a competitive bidding process held in March 2017. In the contest, Ashoka Buildcon has emerged as the lowest bidder for Rs 1,187.10 crore ($181.2 million) road project. Since the project is on hybrid annuity mode, the criteria for winning the rights to rehabilitate the road was the lowest bid at NPV for the construction and operation of the road. This is a brownfield project being developed under a BROT modality, with a concession period of 15 years, excluding 2.5 years of construction works. This project falls under the new Hybrid Annuity model, which is a mix of engineering, procurement and construction (EPC) and build operate transfer (BOT) system. 62% of the project cost will be funded by the government, under the Hybrid annuity model, while the concessionaire will arrange the balance 38%. The 38% funding will be split in 35:3 bank loan to sponsor's equity. During the operation period, NHAI will pay concessionaire this 38% in semi-annuity, along with interest thereon and maintenance costs. Debt funding was reported to be R415 crore ($63.4 million) with equity contribution of $5.9 million. Financial closure was announced on 16 November, 2017.