Birmitrapur Barkote Highway Private Limited

cancelled

In March 2012, National Highway Authority of India (NHAI) awarded a 23-year concession (including construction period of 2.5 years) to Gammon Infrastructure Projects Limited, for the strengthening, improvement,4-laning,operation and maintenance, and tolling of 125.615kms of Birmitrapur to Barkote section from KM211.200 to KM336.815 of National Highway 23, in the state of Orissa. Under the contract, Gammon was responsible for the design,construction,finance, operation and maintenance,strengthening and widening the existing 2-lane carriageway to 4-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 National Highway Development Program (NHDP-IV), was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Gammon Infrastructure Projects Limited established Birmitrapur Barkote Highway Private Limited (BBHPL),a special purpose vehicle on 13th April 2012, to implement the project. The SPV won the tender through international competitive bidding, conducted by NHAI, by requesting the lowest upfront grant of US$ 58.2mn (INR 3110mn @53.4 INR/USD).Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling, during the term of concession. Gammon would execute the EPC contract for the project. The concession agreement was signed on 31st May 2012. It could not be ascertained if the sponsors managed to obtain financial closure for the project. The estimated capital cost of the project at the time of bidding was US$ 145.7mn (INR 7781.5mn @53.4 INR/USD). The project was expected to start construction in June 2014 and was expected to be completed by December 2016. BBHPL was unable to start construction activities at the project site on account of non-availability of land and certain government approvals. Finally in March 2014, NHAI cancelled the concession for the project on amicable terms.