Tada Nellore & Vijaywada Nadigama Highway

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The Construction Industry Development Board Inventures is a Malaysian consortium made of 11 companies including IJM Sdn Bhd, WCT and Bina Puri Holdings. The group signed an agreement with the National Highways Authority (NHAI) in December 2000 to build the NH-5 and NH-9 highways. Each is four-lanes wide and will stretch a total of 158 km. The NH-5 highway will stretch between Tada and Nellore over 110km. The NH-9 will stretch between Vijayawada to Nandigama over 48km. The consortium will manage, operate, and collect tolls for a 30-year period. Total cost of the project is estimated at US$181.6 million. In March 2002, the consortium closed financing of around US$75m from a seven-member consortium of public-sector banks led by the IDBI. Average cost of borrowing will be 14% with a tenure of 15-years including a three year construction period, a three year moratorium period and a repayment period of nine years. The project will also be financed using approximately US$50m of the consortium's own funds. However, the NHAI will disperse a capital grant of almost US$30m. The project was scheduled for completion in September 2003.