Kollur to Patancheru - Outer Ring Road

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In December 2007, the Hyderabad Urban Development Authority (HUDA) signed a 15 year contract (including two and a half years of construction period) to Cyberabad Expressway Pvt. Ltd. (CEPL) for design, construction, development, finance, operate and maintain a 12 km, eight-lane expressway (AP-II). The project was part of Phase II program of outer ring road (ORR) of Hyderabad Urban Development Authority in Andhra Pradesh. This expansion project was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Cyberabad Expressways Pvt Ltd, the project company established to implement the project, was owned by India’s Gayatri Projects Ltd (50%) and Maytas Infrastructure Private Ltd (50%). The consortium won the contract through domestic competitive bidding, conducted by HUDA by making the lowest subsidy request. Under the concession contract, CEPL was compensated for the capital costs and operating costs including returns through a fixed annual payment (annuity) from HUDA in the amount of US$ 19.8 million during the concession term (excluding two and a half years of construction period) and one time subsidy of US$ 19.6 million. The total capital cost of the project was estimated at US$ 121.3 million. The project reached financial closure in December 2007 with a debt equity ratio of 8.3:1. Contribution by both Gayatri Projects Ltd. and Maytas infrastructure Private Limited was US$ 5.63 million each. IL&FS (IL&FS Financial Services Ltd) has syndicated entire debt of US$ 91 million and United Bank of India is the Leader of the Consortium of Lenders for the SPV. Construction on the project began in December 2007 and was expected to be in full commercial operation by June 2010. www.projectstoday.com www.gayatri.co.in