Delhi - Meerut Expressway Package III

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The project envisages development of Delhi-Meerut expressway (Package-III) in length of 21.61 km to existing km 49.35 (Dasna to Hapur) in Uttar Pradesh. The scope of work will include development of existing road from 27.74 km to existing 49.35 km from Dasna to Hapur section of NH-24 by six-laning expressway and four-laning either side of the expressway. Delhi - Meerut Expressway will be developed in four phases, each with a distinct financial package. Package One includes Nizamuddin Bridge to Delhi-Uttar Pradesh Border section of NH-24. The second package will be a 19.2 km section from Uttar Pradesh border to Dasna; the final Fourth package will be Dasna - Meerut section, 46 km in length. The sponsors of the project are APCO Infratech Pvt Ltd and Chetak Enterprise Ltd (JV). They will develop the project (Package III) via its SPV Apco Chetak Expressway Pvt Ltd. The concession was awarded following bidding process under the Hybrid annuity model. The project agreement has been concluded with the NHAI for a period of 15 years in December, 2015. The section will be developed under a Rehabilitate, Operate and Transfer basis (Brownfield project). 40 per cent of the project cost will be funded by the government, under the Hybrid annuity model, while the concessionaire will arrange the balance 60 per cent. During the operation period, NHAI will pay concessionaire this 60 per cent in semi-annuity, along with interest thereon and maintenance costs. The project is estimated to cost $153.2 million as per concession agreement. Under HAM, sponsor's contribution to the project amounts to 12 per cent ($18.4 million) and debt financing to 48 per cent ($73.5). Package III is said to have achieved financial closure by November, 2016. http://www.careratings.com/upload/NewsFiles/SplAnalysis/Hybrid%20Annuity.pdf