Talaja - Mahuva NH-8E Highway Expansion

active

The project envisages four-laning of Talaja-Mahuva section of NH-8E from 53.58 km to 100.10 km in Gujarat. This road upgradation is promoted by the Joint Venture of MEP Infrastructure Developers and Sanjose India Infrastructure & Construction, holding 60 per cent and 40 per cent, respectively. The concession was signed in May 2016 following a competitive bidding process with bid criteria being the lowest cost of construction and operation. MEP Sanjose JV 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 2.5 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. The project cost (as per concession agreement) is Rs. 643 crore ($ 96.4 million). According to HAM, the project costs would be split between the sponsor as follows: sponsor's equity of $14.46 million (15%), NHAI grant of $38.57 million (40%) and the remaining $43.4 million (45%) would be debt financing arranged by the sponsor. Thereafter, NHAI would repay the 60 per cent private funding in installments, plus interest thereon over the life span of the concession. Financial closure reached on March 13, 2017. https://ijglobal.com/data/transaction/37784/talaja-mahuva-nh-8e-highway-expansion https://ijglobal.com/data/transaction/37784/talaja-mahuva-nh-8e-highway-expansion