Bansal Pathways (Damoh – Katni) Private Limited

active

In May 2013, Madhya Pradesh Road Development Corporation (MPRDC) signed a 15-year concession with a consortium of Bansal Group and Path Group for the strengthening, improvement,two-laning, operation and maintenance,and tolling of 117.93kms of existing Damoh-Katni section of State Highway No.14,in the state of Madhya Pradesh. Under the contract, the consortium was responsible for the design, construction,finance, operation and maintenance,strengthening and widening the existing 2-lane carriageway to 2-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 state highway development project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The consortium of Bansal Group and Path Group established Bansal Pathways (Damoh – Katni) Private Limited (BPDKPL),a special purpose vehicle in May 2013, to implement the project. The SPV won the tender through international competitive bidding, conducted by MPRDC,by requesting the lowest annuity payment of US$ 6.1mn (INR 355.2mn @58.6 INR/USD). 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 payments of INR 177.6mn from MPRDC as well as tolling, during the term of concession. PATH group would execute the EPC for the project. The concession agreement for the project was expected to be signed in May 2013.The project was expected to be financed with a debt/equity ratio of 72/28. The estimated capital cost of the project at the time of financial closure was US$ 46.4mn (INR 2720.7mn @58.6 INR/USD). Financing comprised of a term loan of US$ 33.4mn (INR 1960mn) and sponsor equity of US$ 13mn (INR 760.7mn). Other details of financing were not known at the time of collection of this information. The project was expected to start construction by June 2013 and get completed by December 2014.