Rayalseema Expressway Private Ltd

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Rayalseema Expressway Private Ltd was created to implement the expansion of four lanes a 188 km of the existing 2-lane Kadapa-Mydukur - Kurnool section of NH-18 (from km-167.75 to km-356.50 and between Cuddappah and Kurnool) and construction of bypasses in the State of Andhra Pradesh, India. The National Highways Authority of India (NHAI) awarded the project to REL under a 30-year Build Operate and Transfer (BOT) Toll basis concession. This stretch, once completed, was to minimize the lead time between Chennai and Mumbai. Rayalaseema Expressway Limited (REL) was a special purpose vehicle led by KMC Group (54%), but also had equity participation of SNC-Lavalin Mauritius Limited (36%), an affiliate of SNC-Lavalin, and IVRCL (10%). The Project cost was estimated to be INR 16.36 billion (US$ 357.8 million). The Federal government provided the viability gap funding (VGF), which would not exceed 40% of the total project cost excluding the cost of land acquisition, R&R and pre-construction. There was not information on the viability gap funding provided to the project in public sources. The project reached financial closure in April 2010 a club-basis. Financing comprised Rs7 billion 17-year term loan in debt and Rs9.3 billion in equity (including viability gap funding). The debt was arranged by IDFC. Construction expected to start in Jul 2010 and expected to be operate in Feb 2013.