Trichy – Tanjavur Expressways Limited

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National Highways Authority of India (NHAI) awarded a 20 year concession to Trichy – Tanjavur Expressways Limited (TTEL) to upgrade, finance, operate and maintain the 56 km section on National Highway 67 (NH-67) between Trichy and Tanjavur in the southern state of Tamil Nadu. The project primarily involved four-laning of the existing two lane stretch. The concession term included a construction period of 30 months. The concession agreement between NHAI and TTEL was signed in June 2006. This road upgrade project was part of NHAI’s National Highway Development Project (NHDP) Phase III A. The objective of NHDP Phase IIIA was to four lane stretches of national highways carrying high volume of traffic, connecting state capitals with the NHDP Phases I and II network and providing connectivity to places of economic, commercial and tourist importance. TTEL, a wholly owned subsidiary of Madhucon Projects Limited (MPL), was established exclusively to implement this project. MPL won the project in an international competitive tender, conducted by NHAI, by bidding for the lowest grant of US$ 17.3 million. India’s highway development policy allowed ‘viability funding’ by NHAI to the tune of 40 percent of the capital costs as grant to the concessionaire, subject to competitive bidding. The total capital cost of the project was estimated at US$ 75 million. The project reached financial closure in December 2006. TTEL was to be compensated for the capital and operating costs from the tolls collected during the concession term. Construction work on the project began in December 2006 and was expected to be completed by June 2009. None None