Transstroy Bhopal Berasia Sironj Tollways Private Limited

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On 25th February 2011, Madhya Pradesh Road Development Corporation (MPRDC) signed a 25-year concession (including construction period of 2 years) with a consortium of Transstroy and OJSC Transstroy, for the strengthening, improvement,2-laning,operation and maintenance, and tolling of 106.9kms of Bhopal-Bersia-Sironj section of National Highway 23,in the state of Madhya Pradesh. Under the contract, Transstroy led consortium was responsible for the design, construction,finance, operation and maintenance,strengthening and widening the existing 2-lane carriageway to 2-lane divided carriageway.The scope included construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges,culverts, road intersections,interchanges, drains, etc.The expansion project, part of the state highway development project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The consortium of Transstroy (74%) and OJSC Transstroy (26%) established Transstroy Bhopal Berasia Sironj Tollways Private Limited (TBBST),a special purpose vehicle on 20th February 2012, to implement the project. The SPV won the tender through international competitive bidding, conducted by MPRDC,by requesting the lowest grant of US$ 4mn (INR 245.5mn). Other details of bidding were not known at the time of collection of this information. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling, during the term of concession. The concession agreement for the project was signed on 25th February 2011. The project attained financial closure in January 2014. The project was financed with a grant/debt/equity ratio of 13/69/18. The estimated capital cost of the project at the time of financial closure was US$ 31.9mn (INR 1948.1mn @61 INR/USD). Apart from the grant of US$ 4mn (INR 245.5mn), financing comprised of a 13-year term loan of US$ 17.9mn (INR 1090mn), an unsecured loan of US$ 4.3mn (INR 260mn) from Sponsor, and sponsor equity of US$ 5.8mn (INR 352.6mn). The term loan had a repayment schedule of 42 quarterly installments. The term loan was arranged by Allahabad Bank (750mn), and IIFCL (340mn). The project started construction in January 2014 (Appointed Date) and was expected to be completed by January 2016. TBBST had achieved physical progress of 26.13% upto June 25, 2014.