Jind Haryana Border Toll Road Private Limited

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In May 2012, the National Highway Authority of India (NHAI) awarded a 27-year concession (including construction period of 910days) to Unity Infraprojects Limited for the strengthening, improvement, 4-laning, operation and maintenance, and tolling of 68kms of Punjab/ Haryana Border to Jind Section from km 239.000 to km 307.000 of NH-71,in the State of Haryana. Under the contract, Unity Infra was responsible for the design, construction, finance, operation and maintenance and strengthening of the existing 2-lane carriageway to a 4-lane highway with paved shoulders. The scope included construction of 6-lanes, 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 expansion project, part of National Highway Development Project Phase-V would ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Unity Infraprojects Limited established Jind Haryana Border Toll Road Private Limited, a special purpose vehicle, to implement the project. The SPV won the tender through competitive bidding, conducted by NHAI, by quoting the highest annual premium. The SPV would pay NHAI a sum of US$ 2.04mn (INR 102mn @50 INR/USD) in the first year of operations with 5% increase in each subsequent year (This amounted to an NPV payout of about US$ 31mn over the life of concession period at a discount rate of 10%). There were 40 pre-qualified bidders out of which 5 offered their final bids. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. The concession agreement was signed on 1st June 2012. The project attained financial closure on 17th June 2013 at a debt/equity ratio of 66/34. The estimated project at the time of financial closure was US$ 87mn (INR 5100mn @58.6 INR/USD). Financing comprised a term loan of US$ 57.1mn (INR 3347.5mn) and sponsor equity of US$ 29.9mn (INR 1752.5mn). The lead arranger for the term loan was ILFS Financial Services and the lead loan provider was Central Bank of India. Construction on the project was expected to begin after the financial closure but Appointed Date was not confirmed by NHAI at the time of collection of this information.