Sadbhav Udaipur bypass

active

The project involves six laning of Udaipur bypass (connection between NH-76 at existing km 118+500 at Debri to NH-8 km 287+400 at Kaya Village) on Hybrid Annuity Mode, Package-IV under NHDP Phase V in the state of Rajasthan. Sadbhav Udaipur Highway Private Ltd is the project company responsible for the development. It is wholly owned by Sadbhav Engineering Ltd. Initially, Udaipur bypass road project was awarded to MBL Infrastructures but cancelled in the beginning of 2017 by the National Highways Authority of India (NHAI) owing to lenders’ concerns over viability of the projects under the newly-introduced model. As a result, a new tender was launched and Sadbhav Infrastructure Projects was declared 'L1' HAM Project by NHAI on 27 March, 2017. Following a competitive bidding process with bid criteria being the lowest cost of construction and operation Sadbhav Udaipur Highway Private Ltd appeared to be the lowest bidder in the auction, thus bagging the right to undertake the project. This is a brownfield project being developed under a BROT modality, with a concession period of 15 years, excluding 2 years of construction works. This project falls under the new Hybrid Annuity model, which is a mix of engineering, procurement and construction (EPC) and build operate transfer (BOT) system. According to HAM, the project costs would be split between the sponsor, NHAI and debt financing arranged by the sponsor. Thereafter, NHAI would repay the costs incurred by the private sponsor through repayment of installments, plus interest thereon over the life span of the concession. The bid cost for the road is R891 crore ($137 million), of which the company will raise R427 crore ($65.7 million) from rupee term loan, R356.40 crore ($54.8 million) from NHAI (payment during construction) and rR107.60 ($16.5 million) crore as its own contribution. The tenure of the rupee term loan is 16 years at 9.25 per cent per annum. Financial closing occurred on 31st October 2017.