Patiala-Malerkotla Road Project

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In 2006, the State Government of Punjab (through the Department of Public Works) awarded a 16.5 year concession to IDEB Projects Private Limited (IDEB) for the upgrade, operation and rehabilitation of the 55.7 km Patiala-Malerkotla road project. Under the concession, investments were made by IDEB in return for the exclusive right to collect tolls on the road during the operational period of 15.5 years. The total cost of the project was estimated at US$ 17 million. The project was financed through a combination of equity (US$ 2 million), debt (US$ 9.3 million) and a grant from the state government of Punjab in the amount of US$ 5.7 million. The project reached financial closure in August 2006 with term loans from Punjab National Bank and Canara Bank. Rehabilitation work on this road began in August 2006 and was expected to be completed by October 2007.