GDC-JLS Tollways Private Limited

Cancelled

In July 2011,the National Highway Authority of India (NHAI) awarded a concession (including construction period of 30 months) to Gannon Dunkerley & Company Limited (Gannon) for the strengthening, improvement, 4-laning, operation and maintenance,and tolling of 80.82kms of Jabalpur to Lakhanadone section from Km 465.500 to Km 546.425 of NH-7,in the state of Madhya Pradesh. Under the contract, Gannon was responsible for the design, construction, finance, operation and maintenance and widening of the existing 2-lane carriageway to a 4-lane highway with paved shoulders. 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 National Highway Development Project Phase-IV would ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Gannon Dunkerley & Company Limited established GDC-JLS Tollways Private Limited, a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by NHAI, by requesting the lowest upfront subsidy of US$ 7.4mn (INR 370mn @50 INR/USD). There were 40 pre-qualified bidders out of which 6 finally bid for this project. The L2 bidder, Gammon Infra quoted a grant of INR 2237mn. Other participating companies were JMC Projects, PNC-BFUL Consortium, Ramky Infrastructure and Abhijeet Roads.Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. The concession agreement for the project was signed on 14th October 2011. The status of financing couldn't be ascertained at the time of collection of this information. The estimated capital cost of the project at the time of bidding was US$ 155.3mn (INR 7767.6mn @50 INR/USD). Construction on the project was expected to begin in November 2011 but Appointed Date was not confirmed by NHAI at the time of collection of this information. Due to delay in land acquisition, there was delay in achieving conditions precedent of the concession agreement. Finally in July 2012, NHAI canceled the concession.