Chomu Mahla Toll Private Limited

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In February 2011, the Government of Rajasthan (Public Works Department) awarded a 25 year concession (including construction period of 18 months) to Unity Infraprojects Limited (UIL) for the strengthening, improvement, two-laning, operation and maintenance, and tolling of 89 kms of Chomu to Mahal via Renwal, Jobner (SH-8B, SH-19, SH-2C, SHG-8A & ODR-02), in the state of Rajasthan. Under the contract, Unity Infra was responsible for the design, construction, finance, operation and maintenance and widening of the existing carriageway to a two-lane highway with paved shoulders. The scope will include construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, road intersections, interchanges, drains, etc. The Government of India, Ministry of Road Transport and Highways (MORTH) through Public Works Department (PWD), Government of Rajasthan had decided to take up the development of various National Highway Corridors for augmentation of capacity for safe and efficient movement of traffic by widening to 2-lane with paved shoulder. Under this program, this project was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Unity Infraprojects Limited established Chomu Mahla Toll Private Limited, a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by PWD Rajasthan, by requesting the lowest fixed subsidy of US$ 3.6 million (INR 180 million @50 INR/USD). There were 17 pre-qualified bidders for the project. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. The concession agreement was signed on 5th June 2011. The project attained financial closure on 25th July 2012 ( PWD Rajasthan penalized the SPV with a fine of INR 23.15mn for not adhering to scheduled financial closure deadline of 2nd December 2011). The grant/ debt/ equity ratio of the project was 6/75/29. The estimated capital cost of the project at the time of financial closure was US$ 58mn (INR 2900mn @50 INR/USD). Apart from the grant from PWD Rajasthan of INR 180mn, financing comprised of a 13-year term loan of US$ 43.5mn (INR 2175mn) and sponsor equity of US$ 10.9mn (INR 545mn). The term loan had a moratorium of 18 months and a repayment schedule of 10 years. Union Bank of India was the lead bank and other participating banks were Oriental Bank of Commerce, United Bank of India, State Bank of Patiala & State Bank of Hyderabad. Construction on the project was expected to begin in June 2012 and be completed December 2013.