Gwalior Bypass on NH-3 and NH-75

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In March 2007, the National Highways Authority of India (NHAI) signed a 20 year contract (including construction period of two and a half years) to the consortium of Era Constructions Ltd.(39%), Ramky Infrastructures Ltd.(51%), and Shriram Chits Pvt. Ltd. (10%) to construct a new four lane Gwalior bypass. The bypass will connect the total stretch of 42 Km on NH-3 and NH-75 in the state of Madhya Pradesh. Gwalior Bypass Project Pvt. Ltd. (GBPPL), was the company established to implement the project. The consortium won the tender through competitive bidding conducted by NHAI with lowest annuity payment as the bidding criteria. Under the contract, GBPPL was responsible for the design, construction, finance, operation and maintenance of the bypass road. The expansion project, part of National Highway Development Project - Phase II, was expected to ease traffic congestion of the existing north-south corridor and the city of Gwalior and give significant stimulus to trade and commerce in the entire region. Under the contract, GBPPL was allowed to recover the capital and operating costs through fixed annual payment (annuity) of US$ 13.26 million during the concession term. Under the annuity scheme the private operator was not allowed to collect tolls from the users. The project reached financial closure in March 2007 with a debt equity ratio of 4:1. The total capital cost of the project was estimated at US$ 75.23 million. Construction on the project began in March 2007 and was expected to be completed by October 2009. www.projectstoday.com www.pppinindia.com www.nhai.org www.infrastructure.gov.in http://www.projectsmonitor.com/detailnews.asp?newsid=13833