Transstroy Dindigul Theni Kumli Tollways Private Limited

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In May 2010, the National Highway Authority of India (NHAI) awarded a 20 year concession (including construction period of 24 months) to a consortium of Transstroy India Limited and Corporation Transstroy OJSC of Russia for the strengthening,improvement, two-laning, operation and maintenance of 134 kms of Theni-Dindigul Section of National Highway-220 (NH-220) from Km.15 to Km.67 in the state of Tamilnadu.The Stetch starts from NH-7 junction at Dindigul and extends upto Kumili on Western Ghat mountain. Under the contract, the consortium was responsible for the design, construction,finance, operation and maintenance and strengthening of the existing carriageway to a 2-lane highway with paved shoulders. The scope will include construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, tunnels, viaducts, culverts, road intersections, interchanges, drains, etc.The project road connects Dindigul, one of the important cities in Tamil Nadu to Kumili, the border town of Tamilnadu and Kerala. It passes through Dindigul and Theni Districts. It also forms an important link connecting Western districts of Tamilnadu such as Madurai, Trichy, Karur and Coimbatore from Dindigul. NH-45 Extension links to Northern, Eastern and Southern districts of Tamilnadu via. NH-45, NH-209 , NH-7 and NH49 Ext. This project was expected to give significant stimulus to trade and commerce in the entire region. The winning consortium of Transstroy India Limited (74%) and Corporation Transstroy OJSC (26%), established Transstroy Dindigul Theni Kumli Tollways Private Limited, a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by NHAI, by requesting the lowest fixed annuity of US$ 9.1 million (INR 410 million @ 45 INR/USD). Under the contract, the SPV was to recover the capital costs and operating costs including returns through fixed semi-annual payment of INR 205mn from NHAI during the term of concession. The concession agreement was signed in July 2010. The project attained financial closure on 8th January 2011.The estimated capital cost of the project at the time of financial closure was US$ 73.6 (INR 3311.8 mn @ 45 INR/USD) million. The Debt/Equity ratio was 60/40. Financing comprised INR 1980mn 15year term loan, and INR 1331.8mn sponsor equity. The INR 1980mn term loan had a repayment schedule of 50 quarterly instalments.The particpating banks were South Indian Bank Ltd(1000mn),and Andhra Bank(980mn). Construction on the project began in January 2011 and was expected to be completed by January 2013.