DBL Uchera-Nagod Tollways Limited

active

In February 2013, Madhya Pradesh Road Development Corporation (MPRDC) signed a 15-year concession (inclduing construction period of 2-years) with Dilip Buildcon Limited (DBL) for the strengthening, improvement,two-laning/intermediate laning, operation and maintenance,and tolling of 55.60kms of Uchera–Nagod–Singhpur-Kalinjer section starting from Km 32.000 (near Nagod, NH-75) to Km 87.000 (near UP border) including 1.70 Km Nagod bypass on the section of SH-56 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 Uchera-Nagod Tollways Limited (DUNTL),a special purpose vehicle on 29th August 2012, to implement the project. The SPV won the tender through international competitive bidding, conducted by MPRDC,by requesting the lowest annuity payment. 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 (INR 993.2mn) for the project. The concession agreement for the project was signed sometime around February 2013. The project was expected to be financed with a debt/equity ratio of 69/31. The estimated capital cost of the project at the time of financial closure was US$ 19.8mn (INR 1158.4mn @58.6 INR/USD). Financing was expected to be comprised of a term loan of US$ 13.6mn (INR 800mn) and sponsor equity of US$ 6.1mn (INR 358.4mn). Other details of financing were not known at the time of collection of this information. The project started construction in April 2013 (Appointed Date) and was slated for completion by March 2015. DUNTL achieved early completion by May 2014.