BSCPL Aurang Tollway Limited

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On 29th August 2011, the National Highway Authority of India (NHAI) awarded a 28-year concession (including construction period of 910 days) to BSCPL Infrastructure Limited for the strengthening, improvement, 4-laning, operation and maintenance, and tolling of 150.4kms of Chattisgarh/Orissa border-Aurang section from KM88.00 to KM239.00 on NH-6 in the State of Chhattisgarh. Under the contract, BSCPL was responsible for the design,construction, finance, operation and maintenance and strengthening of the existing 2-lane carriageway to a 4-lane highway with paved shoulders. The scope included construction of 4-lanes, including construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, service roads, road intersections, interchanges, drains, etc.The expansion project, part of National Highway Development Project Phase-IV would ease traffic congestion and give significant stimulus to trade and commerce in the entire region. BSCPL Infrastructure Limited established BSCPL Aurang Tollway Limited in September 2011, a special purpose vehicle, to implement the project. The SPV won the tender through competitive bidding, conducted by NHAI, by quoting the highest annual premium. The SPV would pay NHAI a sum of US$ 5.9mn (INR 297mn @50 INR/USD) in the first year of operations with 5% increase in each subsequent year (This amounted to an NPV payout of about US$ 90.8mn over the life of concession period at a discount rate of 10%). There were 10 final bidders for the project. The L2 bidder, Galfar-JMC consortium had quoted a premium of INR 166mn. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. BSCPL Infrastructure was awarded a fixed price EPC contract for this project in June 2012. The concession agreement was signed on 25th January 2012. The project attained financial closure on 28th June 2012. The debt/equity ratio for the project was 69/31. The estimated capital cost of the project at the time of financial closure was US$ 247.2mn (INR 12360mn @ 50 INR/USD) million. Financing comprised a term loan of US$ 171.2mn (INR 8560mn) and sponsor equity of US$ 76mn (INR 3800mn). The term loan was solely arranged by ICICI Bank.The other participating banks were IIFCL, Corporation Bank, Tamil Nadu Mercantile Bank Limited, State Bank of Hyderabad. Construction on the project began in February 2013 (the Appointed Date) and was expected to be completed by August 2015.