Mokama-Munger Highway Ltd

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Mokama-Munger Highway Ltd was set up to expand to two lanes (with paved shoulders) Mokama Munger section of NH-80 from km 1.430 to km 70.00 in the State of Bihar under NHDP III. Mokama-Munger Highway was a company owned by BSCPL (50%) and C&C Constructions (50%). The project was awarded under a 15 year annuity concession for Design, Build, Finance, Operate and Transfer (DBFOT). The National Highway Authority (NHAI) tender the project in May 2010 and BSCPL, C&C Constructions were declared by offering the lowest annuity payment, a fixed semiannual payment of 39.94 crore. The concession contract was signed in July 2010. The project cost was estimated to be Rs4.4 billion (US$96.2 million). The project reached financial closure in November 2010 with a Rs3.55 billion 13 year loan lead arranged by SBI Capital. The debt was priced at 250bp over SBI base rate pre-COD. Post COD the rate is linked to the base rates of the individual lenders. Fees are 1.2% on the amount undrawn beyond 60 days. Operating starting date was expected to be October 2013.