IRB Jaipur Deoli Tollway Private Limited

active

In October 2009, the National Highway Authority of India (NHAI) awarded a 25 year concession (including construction period of 910 days) with a consortium of India’s IRB Infrastructure Limited and MRM Private Limited for the strengthening and improvement of a 146.3 km stretch on National Highway-12 (NH-12 from Km 18.700 to Km 165.000) in the state of Rajasthan. 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 Phase - III, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The consortium of IRB and MRM established IRB Jaipur Deoli Tollway Private Limited, a special purpose vehicle, to implement the project. The consortium won the tender through competitive bidding, conducted by NHAI, by requesting for the lowest subsidy requirement of US$ 63.2 million (INR 3060 million @ 48.41 INR/USD). Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. Other bidding details were not available at the time of collection of this information. The concession agreement was signed in December 16th, 2009. Construction was expected to be completed by Dec 2012. The estimated capital cost of the project at the time of bidding was US$ 303.6 million (INR 14700 mn @ 48.41 INR/USD) million. Financial closure was achieved in March 2010.