Datia Bhander Highway Project

active

In July 2011, Madhya Pradesh Road Development Corporation (MPRDC) signed a 15-year concession (including construction period of 2years) with DP Jain & Company Infrastructure Private Limited for the strengthening, improvement,two-laning,operation and maintenance, and tolling of 29.17kms of Datia to Bhander section of MDR road in Madhya Pradesh. Under the contract, DP Jain Co. was responsible for the design, construction, finance, operation and maintenance,strengthening and widening the existing carriageway to 2-lane road 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 expansion project, part of MPRDC Highway Development Project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. DP Jain & Company won the tender through international competitive bidding, conducted by MPRDC,by quoting the lowest fixed annuity of US$ 1.52mn (INR 76mn @50 INR/USD). Under the contract, DP Jain & Company was to recover the capital costs and operating costs including returns through fixed semi-annual payment of INR 38mn from MPRDC as well as through tolling during the term of concession. The project attained financial closure on 25th June 2012. The debt equity ratio of the project was 75:25. The estimated capital cost of the project at the time of financial closure was US$ 10.2mn (INR 510 mn @50 INR/USD). Financing comprised of an 11-year term loan of US$ 7.6mn (INR 380mn) and sponsor equity of US$ 2.6mn (INR 130mn). The term loan had a grace period of 3 months and a repayment schedule of 18 semi-annual installments. The debt was arranged by Dena Bank. Construction on the project began in June 2012 and was expected to be completed by May 2014.