Bhuj Nakhtrana SH - 42

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In February 2006, the Gujarat State Road Development Corporation (GSRDC) signed a 13 year concession contract (including construction period) to India’s MS Khurana Engineering to strengthen the 44.6 km section on State Highway 42(SH 42) between Bhuj and Nakhtrana in the state of Gujarat. Under the contract, MS Khurana was responsible for the rehabilitation, finance, operation and maintenance of the existing two-lane highway with paved side shoulders. The project was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. MS Khurana established a special purpose vehicle, to implement the project. MS Khurana won the tender through competitive bidding, conducted by GSRDC. While the bidding details were not known at the time of collection of information, it is known that the SPV was to recover the capital costs and operating costs including returns through tolls during the concession period (excluding construction period). The concession agreement for the project was signed in February 2006. The total capital cost of the project was estimated at US$ 9 million. Construction on the project began in February 2006. None None