Mumbai Port Container Terminal Project

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The Government of Maharashtra awarded the development of all weather deep water greenfield port in Maharashtra to a consortium formed by Gammon Infrastructure Projects Limited and Spanish port operator Dragados Spl. SA. Under the agreement that was signed between the consortium and Government of Maharashtra, the consortium had the exclusive right to design, finance, build, manage and operate the Indira Container Terminal for 30 years from the date of commercial operations. The PPP project involved the development of Ballard Pier Station (BPS) container terminal in Mumbai Port. This would have a throughput capacity of more than 150,000 TEUs and an Offshore Container berth with capacity to handle vessels of 6,000 TEUs under a 30-year BOT concession basis in Mumbai Port, India. The Mumbai Port Trust awarded the concession to the consortium formed by Gammon Group, India and Dragados, Spain. These two companies have formed a 50/50 Joint Venture to set up a Special Purpose Vehicle (SPV), Indira Container Terminal Private Limited, to implement the project. The consortium won the tender through competitive bidding, by quoting the highest revenue share to government. The project reached financial closure in November 2008 with debt equity ratio of 80:20.The total capital cost of the project at financial closure was estimated at US$ 238 million. State Bank of India is the lead arranger for a 17 year US$ 190 million loan in consortium with four state owned banks: Canara Bank, Punjab National Bank, UCO Bank, and India Infrastructure Finance Co. Ltd (IIFCL). The equity component of the project will be around US$ 48 million. Construction was expected to start in November 2008 and commissioning was expected by 2011.