Thiruvananthapuram Road Development Company Limited

Active

Prospective

Thiruvananthapuram Road Development Company Limited (TRDCL) was awarded a 17.5 year concession contract for the construction and operation of road network in the Thiruvananthapuram Capital Region (Kerala State). The contract was part of Thiruvananthapuram City Roads Improvement Project. The concession involved widening and strengthening of 42 km of roads across 13 corridors in Thiruvananthapuram and construction of two flyovers, 64 junctions, 94 busbays and one underpass. The 17.5 year contract term included a construction period of 30 months. Under the contract, TRDCL would be compensated for the capital and operating costs including returns by way of a fixed semi-annual payment (annuity) from the Kerala Road Fund Board during the operation period of 15 years. Under the annuity scheme, the private operator does not collect tolls from the users of the facility. TRDCL was joint venture between Punj Lloyd Limited (50%), a private Indian firm, and Consolidated Toll Network India Private Limited (50%). TRDCL won the competitive tender conducted by the Government of Kerala in January 2004 by quoting the lowest annuity amount of US$ 4 million. The total cost of the project was estimated at US$ 50.5 million. The project reached financial closure in March 2004, with a debt equity ratio of 3:1. The loan was arranged by a consortium led by Punjab National Bank and included J&K Bank, Bank of India, Indian Overseas Bank and Oriental Bank of Commerce. The loan had a term of 12 years and an interest of 9.75 per cent during the construction stage and 8.75 per cent there after. Construction began in April 2004 and the roads were expected to be operational by December 2006. How to account for IL&FS. Karina advised to enter the annuity amounts as government cash support

Transport

World Bank Group

Project

Government, Road, Tunnel, Bridge, Commercial