DBL Sitamau Suwasara Tollways Limited

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On 5th December 2011, Madhya Pradesh Road Development Corporation (MPRDC) awarded a 15-year concession (including construction periof of 2 years) to Dilip Buildcon Limited (DBL) for the strengthening, improvement,two-laning, operation and maintenance,and tolling of 34.97kms of existing Sitamau-Basai-Suwasara section 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 undivided 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. Dilip Buildcon established DBL Sitamau Suwasara Tollways Limited (DSSTL),a special purpose vehicle on 29th November 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 semi-annual payments from MPRDC as well as tolling, during the term of concession. DBL would execute the fixed price EPC for the project. The concession agreement for the project was signed on 5th December 2011. The project attained financial closure on 29th February 2012. The project was expected to be financed with a debt/equity ratio of 73/27. The estimated capital cost of the project at the time of financial closure was US$ 12.2mn (INR 652.2mn @53.4 INR/USD). Financing was expected to be comprised of a term loan of US$ 8.8mn (INR 470mn) and sponsor equity of US$ 3.4mn (INR 182.2mn). Other details of financing were not known at the time of collection of this information. The project started construction on 2nd June 2012 (Appointed Date) and and was slated for completion by 4th May 2014. DSSTL achieved final commercial operations date (COD) on June 15, 2013 as against Scheduled Project Completion Date (SPCD) of May 4, 2014. DSSTL received regular semi-annuity along with bonus semi-annuities from MPRDC within envisaged time frame.