Lucknow Raebareli Toll Roads Private Limited

Active

Prospective

In November 2011, National Highway Authority of India (NHAI) awarded a 17-year concession (including construction period of 2.5years) to Essel Infraprojects Limited for the strengthening,improvement,4-laning,operation and maintenance of 70kms of Lucknow-Raebareli Road section of NH-24B from Km 12.700 to Km 82.700 in the state of Uttar Pradesh. Under the contract, Essel was responsible for the design,construction, finance, operation and maintenance,strengthening and widening of the existing 2-lane carriageway to a 4-lane highway with paved shoulders. 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-IV, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Essel Infraprojects Limited established Essel Lucknow Raebareli Toll Roads Private Limited, 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$ 20.2mn (INR 1008mn @50 INR/USD). There were 37 pre-qualified bidders out of which 12 offered their final bids for the project. The L2 bidder L&T had quoted a semi-annual payment of INR 560.7mn. Under the contract, the SPV was to recover the capital costs and operating costs including returns through fixed semi-annual payment of INR 504mn from NHAI during the term of concession. The project had attained financial closure by November 2012. The debt/equity ratio for the project was 80/20. The estimated capital cost of the project at the time of financial closure was US$ 131.9mn (INR 6595mn @50 INR/USD). Financing comprised of a 16-year senior term loan of US$ 92.3mn (INR 4616.5mn), a sub-debt of US$ 13.2mn (INR 659.5mn), and sponsor equity of US$ 26.4mn (INR 1319mn).The term loan had a repayment schedule till March 2028. The sub-debt was brought in by IIFCL. Yes Bank was the sole book runner and the other participating banks were Oriental Bank of Commerce, Dena Bank, Vijaya Bank,United Bank of India, Corporation Bank, and Standard Chartered. In December 2012, Standard Chartered Bank arranged for a 13-year 10-months external commercial borrowings of US$ 46mn (INR2300mn @ 50 INR/USD) for substitution of a part of existing rupee loans. Construction on the project began in April 2012 and was expected to be completed by October 2014. Till November 2012, about 65% of the required land had been acquired.

Transport

World Bank Group

Project

Automotive, Bridge, Commercial, Road, Government, Waste Processing and Treatment