N.A.M Expressway Limited

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On 20th May 2010, Andhra Pradesh Road Development Corporation (APRDC) signed a 24-year concession (including a construction period of of 910 days) with a consortium of ILFS Transportation Networks Limited and Ramky Infrastructure Limited for the strengthening, improvement,4-laning, operation and maintenance,and tolling of 212.5kms of Narketpalli to Medarametla (via Addanki) section of SH-2, in the state of Andhra Pradesh. Under the contract, the consortium was responsible for the design, construction,finance, operation and maintenance,strengthening and widening the existing 2-lane carriageway to 4-lane divided carriageway.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 the state highway development project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The ILFS Transportation Networks Limited (50%) and Ramky Infrastructure Limited (50%) established N.A.M Expressway Limited (NAMEL),a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by APRDC,by requesting the lowest grant of US$ 102.2mn (INR 4670.2mn).Other details of bidding were not known at the time of collection of this information. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling, during the term of concession. Ramky Infrastructure would execute the EPC for the project. The concession agreement for the project was signed on 23rd July 2010. The project was financed with a debt/equity ratio of 75/25. The estimated capital cost of the project at the time of financial closure was US$ 385.2mn (INR 17605mn @45.7INR/USD). Apart from the upfront viabiligy gap funding of US$ 102.2mn (INR 4670.2mn), financing comprised a 10-year term loan of US$ 231.9mn (INR 10600mn) and sponsor equity of US$ 51.1mn (INR 2335mn).The term loan had a repayment schedule of 44 quarterly instalment from FY2015 to FY2025. Other details of financing were not known at the time of collection of this information. The construction started in February 2010 (appointed date). The scheduled completion date of the project was July 2013, which was delayed because of unavailibility of right of way. NAMEL commenced commercial operations of the project from 6th March 2014. However, a minor part of the land was yet to be handed over to NAMEL in relation to the project.