Concast Dhaneta Road Projects Private Limited

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On 22nd December 2011, Madhya Pradesh Road Development Corporation (MPRDC) signed a 15-year concession with a consortium of Concast Infratech Limited and Roman Tarmat Limited for the strengthening, improvement,two-laning,operation and maintenance,and tolling of 92.83kms of existing major district roads - (13.5kms of) Dhaneta-Rakhi-Shahajpur, (12.69kms of) Balikhedu-Saroud, and (13.22kms of) Suraiya-Simariya-Badhiyakheda-Padariya-Dhamni-Singori,and (53.42kms of) Bichiya-Shamnapur-Dindori section,in the state of Madhya Pradesh. Under the contract, Concast Infratech was responsible for the design, construction, finance, operation and maintenance,strengthening and widening the existing 2-lane carriageway to 2-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 MDR (major district roads) development project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The consortium of Concast Infratech Limited (74%) and Roman Tarmat Limited (26%), established Concast Dhaneta Road Projects Private Limited (CDRPPL),a special purpose vehicle in December 2011, to implement the project. The SPV won the tender through international competitive bidding, conducted by MPRDC,by requesting the lowest annuity payment. Other details of bidding were not known at the time of collection of this information. Under the contract, the SPV was to recover the capital costs and operating costs including returns through periodic payments from MPRDC, during the term of concession. Concast Infratech would execute the EPC for the project. The concession agreement for the project was singed on 22nd December 2011. The debt/equity ratio of the project was 70/30. The estimated capital cost of the project at the time of financial closure was US$ 28mn (INR 1305.6mn @46.7 INR/USD). Financing comprised of a term loan of US$ 19.6mn (INR 913.9mn) and sponsor equity of US$ 8.4mn (INR 391.7mn). Other details of financing were not available at the time of collection of this information. The project construction started in January 2012 and was expected to be operational by June 2013.