Matkuli-Tamia-Chhindwara Road Project

active

In June 2007, the Madhya Pradesh Road Development Corporation (MPRDC) signed a 25 year concession contract (including 18 month of construction period) to India’s Keti Construction Pvt. Ltd. to reconstruct and rehabilitate the 108 km section on Matkuli–Tamia-Chhindwara stretch of state highway in the state of Madhya Pradesh. Under the contract, Keti Construction Pvt. Ltd. was responsible for the construction, finance, operation and maintenance of the existing highway. The project was expected to ease traffic movement and give significant stimulus to trade and commerce in the entire region. Keti won the competitive tender, conducted by MPRDC, by making the lowest fixed subsidy request of US$ 9.68 million (out of this US$ 4.92 million was funded by Viability Gap Funding (VGF) scheme of Government of India). Apart from this upfront payment by MPRDC (and GoI), Keti was to allowed recover the capital costs and operating costs including returns through tolling during concession period (excluding construction period). The project reached financial closure in June 2007. The total capital cost of the project was estimated at US$ 23.52 million. Construction on the project began in June 2007 and was expected to be completed by November 2008. www.projectstoday.com MPSRDC