Jogbani Highway Private Limited

Cancelled

On 3rd May 2010, National Highway Authority of India (NHAI) awarded a 15-year concession (including construction period of 1 year) to a consortium of GPT Infraprojects Limited and RDS Projects Limited for the strengthening,improvement,two-laning, operation and maintenance of 9.258 kms of Forbesganj-Jogbani section of NH-57A in the state of Bihar. Under the contract, the consortium was responsible for the design, construction, finance, operation and maintenance,strengthening and widening the existing single-lane carriageway to 2-lane road The scope included construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, road intersections, interchanges, drains, etc.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 GPT Infraprojects Limited (73.33%) and RDS Projects Limited (26.67%), established Jogbani Highway Private Limited (JHPL), a special purpose vehicle to implement the project. The SPV won the tender through international competitive bidding, conducted by NHAI, by quoting the lowest fixed annuity of US$ 3.1mn (INR 142.2mn @45.72 INR/USD). Under the contract, the SPV was to recover the capital costs and operating costs including returns through fixed semi-annual payment of INR 71.1mn from NHAI during the term of concession. The concession agreement was signed on 12th July 2010. The information regarding funding of the project couldn't be ascertained at the time of cancellation. The estimated capital cost of the project at the time of bidding was US$ 16.1mn (INR 735mn @45.72 INR/USD). Because of delay in acquisition of land by NHAI, no appointment date (schedule date of start of concession) was provided. Finally NHAI canceled the concession in October 2013. While GPT Infraprojects Limited had filed a case against NHAI, but no information on the verdict was available at the time of collection of this information.