Atlanta Ropar Tollways Private Limited

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In July 2011, the Punjab Infrastructure Development Board (PIDB) signed a 16.5 years concession (including 1.5 years construction period) with Atlanta Limited for the strengthening, improvement, 2-laning, operation and maintenance, and tolling of of 54.8kms of existing carriageway of Ropar-Chamkaur Sahib-Neefon-Dorah section of State Highway, in the state of Punjab. Under the contract, Atlanta Limited was responsible for the design, construction, finance, operation and maintenance,strengthening and widening the existing carriageway of Ropar – Chamkaur Saheb - Neelon section of 45.175 Kms to two lane standard with paved shoulders and from Neelon-Doraha upto NH1 of 9.625 Kms to four lane standard with construction of new 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, traffic signages, traffic safety measures, etc. This Link road connected three National Highways viz NH-21 at Ropar, NH-95 at Neelon and NH-1 at Doraha and was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Atlanta Limited established Atlanta Ropar Tollways Private Limited, a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by PIDB, by quoting the highest upfront premium payment to PIDB of US$ 1mn (INR 51mn). Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. Atlanta Limited would execute the EPC for this project. The project attained financial closure on 17th December 2012. The debt equity ratio of the project was 60:40. The estimated capital cost of the project at the time of financial closure was US$ 44.4mn (INR 2220 mn @ 50 INR/USD). Financing comprised term loan of US$ 26.8mn (INR 1340mn) and equity of US$ 17.6mn (INR 880mn). The debt was underwritten by Union Bank of India. The project was expected to be operational by August 2014.