Transstroy Hoskote Dobbaspet Tollways Private Limited

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In March 2012, National Highway Authority of India (NHAI) awarded a 30-year concession (including construction period of 2 years) to a consortium of Transstroy and OJSC Transstroy, for the strengthening, improvement,4-laning,operation and maintenance, and tolling of 80.02kms of Hoskote-Dobbasapet section from KM58.30 to KM138.32, of National Highway 207.The project road was a segment of NH-207, which started in the state of Tamil Nadu near Hosur and ends at Dobbaspet in Karnataka. 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 4-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 Hoskote Dobbaspet Tollways Private Limited (THDT),a special purpose vehicle on 30th April 2012, to implement the project. The SPV won the tender through international competitive bidding, conducted by NHAI, by requesting the lowest grant of US$ 4.4mn (INR 270mn). Among the 34 pre-qualified bidders, only 4 developers participated in the final bids.Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling, during the term of concession. The project attained financial closure in February 2014. The project was financed with a grant/debt/equity ratio of 4/72/24. The estimated capital cost of the project at the time of financial closure was US$ 119.2mn (INR 7274.2mn @61 INR/USD). Apart from the grant of US$ 4.4mn (INR 270mn), financing comprised of a 15-year term loan of US$ 86.1mn (INR 5250mn), and sponsor equity of US$ 28.7mn (INR 1754.2mn). The term loan was arranged by India Infrastructure Finance Co Ltd (1120mn), Bank of Baroda (910mn), Canara Bank (910mn), Dena Bank (910mn), Central Bank of India (1400mn). The project started construction on 5th May 2014 (Appointed Date) and was expected to be completed by May 2016. THDT had achieved physical progress of 5% upto October 13,2014.