GVRMP Belgaum Khanapur Tollway Private Limited

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In July 2010, the National Highway Authority of India (NHAI) awarded a 30 year concession (including construction period of 30 months) to a consortium of GVR Infra Projects Limited, RMN Infrastructure Limited, and Prathyusha Associates Shipping Private Limited for the strengthening,improvement,widening,operation and maintenance of 81.89kms of Belgaum-Khanapur-Goa/Karnataka Border section of National Highway-4A (NH-4A) in the state of Karnataka.The project road (NH-4A) starts within Belgaum city limits, runs southward and traverses the districts of Belgaum (Belgaum & Khanapur tehsils) and Uttar Kannada (Supa Tehsil) and ends at the Goa/Karnataka border. Under the contract, the SPV was responsible for the design, construction, finance, operation and maintenance and strengthening of existing carriageway including construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, service roads,road intersections,interchanges, drains,etc.The project involves 4-laning of the NH4A of Belgaum-Khanpur Section(KM 0.00 to KM 30.00) and 2-Laning with paved sholuders of Khanpur-Karnataka/Goa border (KM 30.00 to KM 84.120) The expansion project, part of National Highway Development Project Phase-III will ease traffic congestion on the existing road which runs through the city of Belgaum. The consortium of GVR Infra Projects Limited, RMN Infrastructure Limited (26%), and Prathyusha Associates Shipping Private Limited,established a special purpose vehicle, GVRMP Belgaum Khanapur Tollway Private Limited, to implement the project. The SPV won the tender through competitive bidding, conducted by NHAI,by quoting the lowest grant from NHAI. Details of the bid 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 tolling during the term of concession.GVR Infra and RMN Infra were the EPC contractors for the project. The project attained financial closure on 19th September 2011. The debt/equity ratio of the project was 72.6/24.7. The estimated capital cost of the project at the time of financial closure was US$ 84mn (INR 3949mn @ 47 INR/USD) million. Apart from the NHAI grant (details not known),financing comprised INR 2960mn 14year 6month term loan,and INR 989mn sponsor equity. The INR 2960mn term loan had a grace period of 6months and a repayment schedule of 46 quarterly instalments. The loan was priced at 12.25% in the first year.The debt was arranged by SBI Capital. The participating banks were Bank of India (670mn), State Bank of Mysore (430mn),State Bank of Travancore (430mn), Indian Overseas Bank Ltd (430mn),State Bank of India (1000mn). Construction on the project began in March 2011 and was expected to be completed by September 2013.