Sikar Bikaner Highway Limited

active

In March 2012, the Government of Rajasthan (Public Works Department on behalf of Ministry of Road Transport and Highways (MoRTH), Government of India) awarded a 25 year concession (including construction period of 2 years) to ILFS Transportation Networks Limited (ITNL) for the strengthening, improvement, two-laning, operation and maintenance, and tolling of 237.578 kms Sikar-Bikaner Section from Km 340.188 of NH-11 to Km 557.775 of NH-11 via Sikar Bypass and Bikaner Bypass from Km 553.869 of NH-11 to Km 267.325 of NH-89, in the state of Rajasthan. Under the contract, ITNL was responsible for the design, construction, finance, operation and maintenance and widening of the existing carriageway to a two-lane highway with paved shoulders. The scope included construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, road intersections, interchanges, drains, etc. The Government of India, Ministry of Road Transport and Highways (MORTH) through Public Works Department (PWD), Government of Rajasthan had decided to take up the development of various National Highway Corridors for augmentation of capacity for safe and efficient movement of traffic by widening to 2-lane with paved shoulder. Under this program, this project covering Sikar, Churu and Bikaner districts of Rajasthan was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. ILFS Transportation Networks Limited (ITNL) established Sikar Bikaner Highway Limited on 9th May 2012, a special purpose vehicle, to implement the project. The consortium won the tender through competitive bidding, conducted by PWD Rajasthan, by requesting the lowest upfront subsidy of US$ 49.5 million (INR 2473.2 million @50 INR/USD). ITNL was the sole bidder. Under the contract, Sikar Bikaner Highway Limited was to recover the capital costs and operating costs including returns through tolling during the term of concession. The concession agreement was signed on 29th June 2012. The project attained financial closure in December 2012. The grant/debt/equity ratio of the project was 27.5/44.5/28. The estimated capital cost of the project at the time of financial closure was US$ 179.6 mn (INR 8981.6mn @50 INR/USD). Apart from the grant from MoRTH, GoI of US$ 49.5mn, financing comprised term loan of US$ 80mn (INR 4000mn) and sponsor equity of US$ 50.2mn (INR 2508.4mn). The lead arranger for the debt was Central Bank of India and other participating banks were Punjab & Sind Bank, Allahabad Bank, Oriental Bank of Commerce. Construction on the project began in January 2013 and was expected to be completed by December 2014.