Vindhyachal Expressway Private Limited

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Madhya Pradesh Road Development Corporation (MPRDC on behalf of National Highway Authority of India) signed a 30-year concession (including construction period of 2 years) with JMC Projects (India) Limited for the strengthening, improvement,four-laning,operation and maintenance, and tolling of 89 kms of Rewa-Hanumana to Uttar Pradesh/Madhya Pradesh Border section on National Highway-7,in the state of Madhya Pradesh. Under the contract, JMC was responsible for the design, construction, finance, operation and maintenance,strengthening and widening the existing carriageway to 4-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 the NHAI Phase-IV Highway Development Program, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. NH-7 was a major North- South National Highway that runs through the states of Uttar Pradesh, Madhya Pradesh, Maharashtra, Andhra Pradesh,Karnataka and Tamil Nadu. NH-7 is the longest highway of India running over 2,369 Km from Varanasi to Kanyakumari. JMC Projects established Vindhyachal Expressway Private Limited on 6th January 2012, a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by MPRDC, by quoting the highest premium of US$8mn (INR 40mn). Details of bidding couldn't be ascertained at the time of collection of this information. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession.The EPC would be executed by JMC. The project attained financial closure on 18th July 2012. The debt equity ratio of the project was 75:25. The estimated capital cost of the project at the time of financial closure was US$ 134.5 (INR 6724mn @50 INR/USD) million. Financing comprised of 15-year term loan of US$ 100.8mn (INR 5040mn) and sponsor equity of US$ 33.7mn (INR 1684mn).The term loan had a grace period of 12 months and a repayment schedule of 144 monthly installments.The debt was arranged by Union Bank of India. Construction on the project began in July 2012 and was expected to be completed by July 2014.