Nelamangala-Bangalore NH-4

active

In March 2007, the National Highway Authority of India (NHAI) signed a 20 year concession contract (including construction period of 24 months) to India’s Navayuga Engineering Company (NEC) to widen and strengthen the 19.5 km section on National Highway 4 (NH4) between Nelamangala and Bangalore, in the state of Karnataka. Under the contract, Navayuga Engineering Company was responsible for the operation, maintenance, and widening of the existing two-lane highway to a six-lane highway with paved shoulders. The expansion project, part of National Highway Development Project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. NEC established Navayuga Bangalooru Tollway (P) Ltd. (NBTL), a special purpose vehicle,to implement the project. NEC won the tender through competitive bidding, conducted by NHAI, by making the lowest subsidy request - a negative grant of US$ 35.51 million (Net Present Value discounted at 10%, disbursed upto thirteenth year of the concession). Under the contract NBTL was allowed to recover the capital and operating costs through tolling during the concession period(excluding the construction period). The total capital cost of the project was estimated at US$ 155 million, including the US$35.51 million of upfront payment to the government. The project recently attained financial closure with a consortium of bankers led by Oriental Bank of Commerce agreeing to finance the debt component of Rs 539 crore (US$116.3 million) Oriental Bank of Commerce will be the lead banker for the project along with State Bank of Hyderabad, United Commercial Bank, Indian Infrastructure Finance Co, United Bank of India, State Bank of Travancore, State bank of Mysore, Corporation Bank, Central Bank of India and State Bank of Patiala. Construction on the project began in March 2007. Work on the project is expected to be completed by January 2009. www.projectstoday.com www.nhai.org www.infrastructure.gov.in PPP Database - Ministry of Finance