L&T Deccan Tollways Limited

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it L&T Infrastructure Development Projects Limited (LTIDPL) was awarded a 25 year concession (including construction period of 30 months) to for the strengthening, improvement, four-laning, operation and maintenance, and tolling of 145 kms of road connecting Sangareddy to Karnataka/Maharashtra section from KM 348.000 to KM 493.000 of NH-9 from in the states of Andhra Pradesh and Karnataka,in November 2011. The government granting authority was the National Highway Authority of India (NHAI). L&T IDPL established L&T Deccan Tollways Limited (L&T DTL), a special purpose vehicle, to implement this project. The SPV won the tender through competitive bidding, conducted by NHAI, by quoting the highest premium payment to NHAI. The SPV would pay NHAI a sum of of US$ 16mn (INR 800.1mn @50 INR/USD) in the first year of operations with 5% increase in each subsequent year (This amounted to an NPV payout of US$ 228.4mn over a concession period of 25 years at a discount rate of 10%). There were 37 pre-qualified bidders out of which 19 bidders offered their final bids. The L2 bidder Ramky Infrastructure had quoted a premium of about INR 750.6mn. Under the contract, L&T IDPL was responsible for the design, construction, finance, operation and maintenance and strengthening of the existing 2-lane highway to a 4-lane highway with paved shoulders. The SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. L&T would execute the EPC contract for this project. The total project cost (i.e. the investment in physical assets) was USD $219.5 million (INR 13.9 billion) to be funded in debt to equity ratio of 78:22. Financing comprises USD $172.1million (INR 10.9 billion) 17-year term loan and USD $47.4 million (INR 3.1 billion) equity. IDBI is the MLA, bookrunner, facility agent and documentation agent. Financial close occurred on 7 July 2015. i) Dealogic Report ii) Sponsor website iii) http://nhai.org.in/spw/ConcessionaireDetails/DOC050111-007.pdf iv) Factiva