Umari Phook Pratapur State Highway

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Madhya Pradesh Road Development Corporation (MPRDC) signed a 30-year concession (including construction period of 2years) with a consortium of S&P Infrastructure Developers Private Limited and Bla Infrastructure Private Limited for the rehabilitation, strengthening, improvement, two-laning, operation and maintenance, and tolling of 43.67kms of Umari-Phook-Pratapur Road section of MDR road in the state of Madhya Pradesh. Under the contract, the consortium was responsible for the design, construction, finance, operation and maintenance,strengthening and widening the existing carriageway to 2-lane road 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 MPRDC Highway Development Project, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. The consortium of S&P Infrastructure Developers Private Limited and Bla Infrastructure Private Limited won the tender through international competitive bidding, conducted by MPRDC, by quoting the lowest fixed annuity of US$ 2.8mn (INR 139.4mn @50 INR/USD). Under the contract, the consortium was to recover the capital costs and operating costs including returns through fixed semi-annual payment of INR 69.7mn from MPRDC as well as through tolling during the term of concession. The project attained financial closure on 21st June 2012. The debt equity ratio of the project was 69:31. The estimated capital cost of the project at the time of financial closure was US$ 14.5mn (INR 726.5mn @50 INR/USD). Financing comprised of a 15-year term loan of US$ 10mn (INR 500mn) and sponsor equity of US$ 4.5mn (INR 226.5mn). The term loan had a grace period of 1 year and a repayment schedule of 24 semi-annual installments. The debt was arranged by Allahabad Bank. Construction on the project began in June 2012 and was expected to be completed by May 2014.