Raisen-Rahatgarh Road

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Madhya Pradesh Road Development Corporation Limited (MPRDC) awarded a 15 year concession to MSK Highways Limited in September 2002, for strengthening, widening, rehabilitating and maintaining the existing 101 km long Raisen-Rahatgarh state highway in Madhya Pradesh. MPRDC is a Madhya Pradesh state government undertaking responsible for the rehabilitation of state roads. The concession was in response to the urgent need to strengthen and upgrade the region’s roads due to a considerable increase in traffic and commercial activities. Under the contract, investment was made by MSK Highways Limited who was then allowed to collect tolls on the road for a 15 year term, which was inclusive of the construction period. MSK won the contract by requesting the lowest subsidy of US$ 7.04 million in a competitive tender conducted by MPRDC. MSK Highways Limited was a special purpose vehicle promoted by MSK Projects (India) Limited to implement this project. The total cost of the project was estimated at US$ 12.4 million. The project was financed through a combination of equity (US$ 2.53 million), debt (US$ 3.86 million) and a grant from MPRDC in the amount of US$ 7.04 million. Rehabilitation work on the Raisen-Rahatgarh highway began in 2003 and was expected to be completed by early 2006.