TK Toll Road Private Limited

active

In July 2007, the National Highway Authority of India (NHAI) signed a 30 year concession contract (including 30 month of construction period) to Reliance Energy Ltd. (Reliance)to strengthen and widen the 80 km stretch of the National Highway 67 (NH-67) from Trichy to Karur in the state of Tamil Nadu. Under the contract, Reliance was responsible for the design, construction, finance, operation and maintenance and widening of the existing two-lane highway to a four-lane highway with paved shoulders. The above project was to have adequate provisions for construction of ROBs, bridges, flyovers, service roads, and wayside amenities. The expansion project, part of National Highway Development Project - Phase III, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Reliance established TK Toll Road Private Limited, a special purpose vehicle, to implement the project. Reliance won the tender through competitive bidding, conducted by NHAI, by asking for the lowest fixed subsidy of US$ 37.13 million. Apart from this upfront payment by NHAI, under the contract, the project company was to recover the capital costs and operating costs including returns through tolls during the concession period (excluding construction period). The project reached financial closure in July 2007. The total capital cost of the project was estimated at US$ 129 million. Construction on the project began in July 2007 and was expected to be completed by January 2010. www.projectstoday.com www.pppinindia.com www.nhai.org www.infrastructure.gov.in http://www.inrnews.com/realestateproperty/india/infrastructure/nhai_signs_four_concession_agr.html http://pib.nic.in/release/release.asp?relid=29272