Jodhpur Pali Expressway Limited

active

On 11th February 2013, the Government of Rajasthan (Public Works Department on behalf of Ministry of Road Transport and Highways (MoRTH), Government of India) awarded a 20-year concession (including construction period of 18 months) to GR Infraprojects Limited for the strengthening, improvement, 4-laning, operation and maintenance, and tolling of 71.55 kms of Jodhpur–Pali Section of NH-65 (from Km 308.000 to Km 366.000 and including bypass to Pali starting from KM366.000 of NH-65 connecting NH-14 at KM 114.000,in the state of Rajasthan. Under the contract, GR Infraprojects was responsible for the design, construction, finance, operation and maintenance and widening of the existing carriageway to a 4-lane highway with paved shoulders. The scope would include construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, road intersections, interchanges, drains, etc. The Government of India, Ministry of Road Transport and Highways (MORTH) through PWD, Government of Rajasthan had decided to take up the development of various National Highway Corridors for augmentation of capacity for safe and efficient movement of traffic by widening to 4-lane with paved shoulder. Under this program, this project covering Jodhpur and Pali districts of Rajasthan was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. GR Infraprojects Limited established Jodhpur Pali Expressway Limited, a special purpose vehicle, to implement the project. The SPV won the tender through competitive bidding, conducted by PWD Rajasthan, by quoting the highest annual premium of US$0.18mn (INR 10.8mn @58.6 INR/USD),which would increase by 5% per annum through the life of concession period (this amounts to an NPV of about US$2.3mn @ 10% discount rate).Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. GR Infraprojects would execute the EPC for this project. The concession agreement was signed on 28th February 2013. The project attained financial closure in September 2013. The estimated capital cost of the project at the time of financial closure was US$ 65.9mn (INR 3864.1mn @58.6 INR/USD) implying a debt/equity ratio for the project of 78/22. Financing comprised of a 14-year 9-month term loan of US$ 51.2mn (INR 3000mn) and sponsor equity of US$ 14.7mn (INR 864.1mn).The debt was arranged by HDFC Bank and the participating banks were State Bank of Mysore (500mn), Allahabad Bank (500mn), Union Bank of India (500mn). Construction had already progressed at the time of collection of this information and was expected to be completed by February 2015.