Concast Jawasa Road Projects Private Limited

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On 17th January 2012, 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 44.66kms of existing major district roads- Jawasa-Sunarpura from 0.0km to 22.625km and Pawai-Prithvipura from 0.0km to 22.34km,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 Jawasa Road Projects Private Limited (CJRPPL),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 monthly payments from MPRDC, during the term of concession. Concast Infratech would execute the EPC for the project. The concession agreement for the project was signed on 17th January 2012. The project was expected to be financed with a debt/equity ratio of 75/25. The estimated capital cost of the project at the time of financial closure was US$ 14mn (INR 747.7mn @53.4INR/USD). Financing comprised of a term loan of US$ 10.5mn (INR 560.8mn) and sponsor equity of US$ 3.5mn (INR 186.9mn). Other details of financing were not known at the time of collection of this information. The project construction started on 18th October 2012 (Appointed Date) and was expected to be operational by April 2014.