Thane Ghodbunder Toll Road Private Limited

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In December 2005, the Maharashtra State Road Development Corporation (MSRDC) signed a 15 year concession contract (including 18 month of construction period) to India’s Ideal Road Builder Pvt. Ltd. to strengthen the 14.9 km section on State Highway 42(SH42) between Thane and Ghodabunder in the state of Maharashtra. Under the contract, Ideal Road Builder Pvt. Ltd. (IRBPL) was responsible for the improvement of 4.4 Km four lane stretch, for providing concrete pavement on 7.1 Km four lane stretch out of existing six lane road and providing concrete pavement on 3.3 Km six lane stretch out of existing ten lane road. The total project lenght was 14.9 km. The project was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. IRBPL established a special purpose vehicle Thane - Ghodabunder Toll Road Pvt. Ltd., to implement the project. IRBPL won the tender through competitive bidding, conducted by MSRDC. While the bidding details were not known at the time of collection of information, it is known that the SPV was to recover the capital costs and operating costs including returns through tolls during the concession period (excluding construction period). The concession agreement for the project was signed in December 2005. The construction cost of the project was estimated at INR893.44 million (US$ 20.3 million). In addition, the concessionaire had to make an upfront payment to MSRDC of INR 1404 million (US$31.8 million). Construction on the project began in December 2005 and was completed by June 2007.