Gwalior-Jhansi NH-75

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In November 2007, the National Highway Authority of India (NHAI) signed a 20 year concession contract (including two and a half years of construction period) to a consortium formed by India’s D.S. Construction Limited and Apollo Infrastructure Project Finance Company to strengthen and widen the 80 km section on National Highway 75 (NH-75)between Gwalior to Jhansi, in the state of Madhya Pradesh. Under the contract, the consortium was responsible for the design, construction, finance, operation and maintenance and widening of the existing two-lane highway to a four-lane highway with paved shoulders. The expansion project, part of National Highway Development Project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Gwalior Jhansi Expressway Ltd. (GJEL), a special purpose vehicle established to implement the project, was a joint venture between D.S. Construction Limited and Apollo Infrastructure Project Finance Company. The consortium won the tender through competitive bidding, conducted by NHAI, by asking for the lowest annuity payment from NHAI. Under the contract, GJEL was to recover the capital costs and operating costs including returns through a fixed annual payment (annuity) from NHAI in the amount of US$ 26.14 million during the concession term (excluding two and a half years of construction period). Under the annuity scheme, the private operator cannot collect tolls from the users of the facility. The project reached financial closure in November 2007.The total capital cost of the project was estimated at US$ 151 million. Construction on the project began in November 2007 and was expected to be completed by May 2010. www.projectstoday.com www.pppinindia.com www.nhai.org www.infrastructure.gov.in