DBL Ashoknagar Vidisha Tollways Limited

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In August 2013, Madhya Pradesh Road Development Corporation (MPRDC) signed a 15-year concession (including construction period od 730 days) with Dilip Buildcon Limited (DBL) for the strengthening, improvement,two-laning, operation and maintenance,and tolling of 35.68kms of existing road from the bypass junction of Ashoknagar to Bangla Chauraha Jaora,in the state of Madhya Pradesh. Under the contract, DBL 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. DBL established DBL Ashoknagar Vidisha Tollways Limited (DAVTL),a special purpose vehicle on 27th February 2013, to implement the project. The SPV won the tender through international competitive bidding, conducted by MPRDC,by requesting the lowest annuity payment of US$ 1.7mn (INR 99.4mn). 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 semi-annual payments of INR 49.7mn from MPRDC as well as tolling, during the term of concession. VEL would execute the EPC for the project. The concession agreement for the project was signed sometime in August 2013.The project was expected to be financed with a debt/equity ratio of 74/26. The estimated capital cost of the project at the time of financial closure was US$ 15.1mn (INR 887mn @58.6INR/USD). Financing comprised of a term loan of US$ 11.3mn (INR 660mn) and sponsor equity of US$ 3.9mn (INR 227mn). Other details of financing were not known at the time of collection of this information. The project started construction in November 2013 (Appointed Date) and was slated for completion by October 2015, but achieved early completion on June 2014.