Transstroy Trichy Karaikudi Tollways Private Limited

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In May 2010, the National Highway Authority of India (NHAI) awarded a 15 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 110.4 kms of Trichy-Karaikudi Section of National Highway- commencing in Trichy on NH-210 at km 10.000 and extending upto Karaikudi at Km 94.000 and including Trichy Bypass on NH-67 which is 26.100Km in length from Km.110.016 to Km.135.930 of NH-67,located in the state of Tamil Nadu.The project also forms bypass roads to the towns of Keeranur, Pudukottai,Tirumayam and Karaikudi. 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 passes through heavily built up areas of Keeranur, Pudukottai, Tirumayam and Karaikudi and it is therefore proposed to form bypasses for these towns. Project road starts at Thuvakudi, which is in Tiruchirappalli city the fourth major city of Tamil Nadu located in its central part. There are four NHs criss-cross the city; NH-45 runs in North south direction and provides connectivity to Chennai and Dindigul, NH-45B branches of NH-45 from here and goes upto Tuticorin, NH-210 also starts from here and provides connection upto Ramanathapuram lastly, NH-67 comes from Nagapattinam/Thanjavur and goes upto Coimbatore via Karur. The city is also hub for Southern Railway providing broad gauge rail link to Chennai, Nagapattinam, Erode, Tuticorin and Rameswaram. Tiruchirappalli has a functional airport where connecting international flights are also available.Chennai is the nearest major port.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 Trichy Karaikudi 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$ 9.5 million (INR 426.9 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 213.45mn 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$ 68.7 (INR 3092 mn @ 45 INR/USD) million. The Debt/Equity ratio was 60/40. Financing comprised INR 1870mn 15year term loan, and INR 1222mn sponsor equity. The INR 1870mn term loan had a repayment schedule of 44 quarterly installments.The particpating banks were South Indian Bank Ltd (1000mn),and Andhra Bank(870mn). Construction on the project began in January 2011 and was expected to be completed by January 2013.