Jhansi to Lalitpur (Km 0 to km 49.79) NH-26

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In March 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 Gayatri’s Projects Limited and Infrastructure Development Corporation of India (IDFC) to widen and strengthen the 49.7 km section on National Highway 26(NH26)between Jhansi and Lalitpur, in the state of Uttar 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. The consortium established Gayatri Jhansi Roadways Limited (GHRL), a special purpose vehicle, to implement the project. The consortium won the tender through competitive bidding, conducted by NHAI by making the lowest annuity payment request. Under the contract, GHRL was to recover the capital costs and operating costs including returns through a fixed annual payment (annuity) from the NHAI in the amount of US$ 15 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 March 2007 with debt equity ratio of 4.3:1.The total capital cost of the project at financial closure was estimated at US$ 106 million. IDFC has syndicated entire debt of US$ 86 million and also is the Leader of the Consortium of Lenders. Contribution of Gayatri Projects Ltd. and IDFC to the equity was US$ 10.2 million and US$ 9.8 million respectively. Construction on the project began in March 2007 and was expected to be completed by September 2009. www.projectstoday.com www.nhai.org www.infrastructure.gov.in www.pppinindia.com