Soma Jabalpur Rewa Tollway Private Limited

cancelled

In August 2011,the National Highway Authority of India (NHAI) awarded a concession (including construction period of 30months) to Soma Tollways Private Limited (Soma) for the strengthening, improvement, 4-laning, operation and maintenance,and tolling of 225.686kms of Jabalpur–Katni-Rewa Section from Km 465.500 to Km 242.300 (including Katni Bypass) of NH-7, in the state of Madhya Pradesh. Under the contract, Soma was responsible for the design, construction, finance, operation and maintenance and widening of the existing 2-lane carriageway to a 4-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 expansion project, part of National Highway Development Project Phase-IV would ease traffic congestion and give significant stimulus to trade and commerce in the entire region.The project stretch is a component of the corridor from Maharashtra to West Bengal. It witnesses heavy traffic on account of dense industrial activity in the region. Soma Tollways Private Limited established Soma Jabalpur Rewa Tollway Private Limited, a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by NHAI, by requesting the lowest upfront subsidy of US$ 68million (INR 3400mn @50 INR/USD). There were 40 pre-qualified bidders out of which 4 finally bid for this project. The L2 bidder, ILFS Transportation (ITNL) quoted a grant of INR 3060mn. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. The concession agreement for the project was signed on 28th October 2011. The status of financing couldn't be ascertained at the time of collection of this information. The estimated capital cost of the project at the time of bidding was US$ 379.1mn (INR 18954.5mn @50 INR/USD). Construction on the project was expected to begin in November 2011 but Appointed Date was not confirmed by NHAI at the time of collection of this information. As on 18th June 2012, the forest clearances were pending with the Madhya Pradesh Government. However Soma had backed out of the project citing lack of statutory environmental and wildlife clearances, which was affecting the viability of the project under the severe economic downturn. Soma failed to deposit the 1% bank guarantee and start the work. Finally NHAI had terminated the Concession in January 2013.