Bhavnagar - Talaja road

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Bhavnagar - Talaja road project envisages the widening and modernization (four lanes) of a 48.05 km section on NH - 8E in the state of Gurajat. The project will executed on a Hybrid Annuity basis under NHDP phase IV. Sadbhav Bhavnagar Highway Private Limited is the project company which will implement the venture on behalf of the sponsor. A sole sponsor of the project, and owner of the contract, is Sadbhav Engineering. Sadbhav was awarded the concession by NHAI after a competitive bidding process (lowest cost criteria). The project agreement has been concluded for a period of 15 years. The section will be developed under a Build, Rehabilitate, Operate and Transfer basis (Brownfield project). Bhavnagar - Talaja road is estimated to cost approximately $120.7 million (as per date of financial close). 40 per cent of the project cost ($48.3 million )will be funded by the government, under the Hybrid annuity model, while the concessionaire will arrange the balance 60 per cent. The 60 per cent funding will be split in 48:12 bank loan ($57.9 million) to sponsor's equity ($14.5 million). During the operation period, NHAI will pay concessionaire this 60 per cent in semi-annuity, along with interest thereon and maintenance costs. The tenor of the term loan is 16.5 years. The project is reported by the sponsor to have achieved financial closure on December, 16 2016. http://www.sadbhavinfra.co.in/en/pdf/financial-closure-intimation-16.12.2016.pdf