Sadbhav Bangalore Highway Expansion

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The project entails the rehabilitation (four laning) of a 170.92 km highway connecting Tiger Reserve Boundary to Bangalore in Karnataka. Sadbhav Bangalore Highway Ptv Ltd. The project is undertaken by Sadbhav Engineering Pvt Ltd under a 17.5-year concession, including construction period of 2.5 years. This is a brownfield project initiated under a BROT modality and once the concession period lapses, the project company will transfer the ownership of the project to the state. Sadbhav Bangalore Highway won the right to develop the project following a competitive bidding process administered by NHAI, with bidding criteria being the lowest cost of construction and operation. The project falls within the scope the new hybrid annuity model which combines characteristics of EPC and BOT contract, with the government and the private companies sharing the project cost in roughly 40:60. The project reached financial closure on May 8th 2017 as reported by the sponsor. Financing comprises 484 crore ($75.16 million) debt funding provided by State bank of India and HDFC bank, along with 403 crore ($62.59 million) capital subsidy provided by the NHAI in the form of annuity payments and 121 crore ($18.79 million) equity contribution. Hence, total project cost comes at 1008 crore ($156.54 million). Debt to equity ratio is 52:48 http://www.bseindia.com/xml-data/corpfiling/AttachHis/badaae61-a6f2-4590-9576-b66286fe4017.pdf