Wainganga Expressway Private Limited

Active

In May 2011, the National Highway Authority of India (NHAI) awarded a 18 year concession (including construction period of 910 days) to JMC Projects (India) Limited for the strengthening,improvement, 4-laning, operation and maintenance, and tolling of 46.2kms of Nagpur-Wainganga Bridge section of NH-06 from km. 498.000 to km. 544.200, in the State of Maharashtra. Under the contract, JMC Projects was responsible for the design, construction, finance, operation and maintenance and strengthening of the existing carriageway to a 4-lane highway with paved shoulders. The scope includes construction of 4-lanes including construction of new pavement, rehabilitation of existing pavement, construction and/or rehabilitation of major and minor bridges, culverts, service roads, road intersections, interchanges, drains, etc.The expansion project, part of National Highway Development Project Phase-III will ease traffic congestion and give significant stimulus to trade and commerce in the entire region. JMC Projects (India) Limited established Wainganga Expressway Private Limited,a special purpose vehicle, to implement the project. The SPV won the tender through international competitive bidding, conducted by NHAI,by quoting the highest premium payment to NHAI. The SPV would pay NHAI a sum of of US$5.4mn (INR 273.5mn @50 INR/USD) in the first year of operations with 5% increase in each subsequent year (This amounted to an NPV payout of US$ 61.8mn over a concession period of 18 years at a discount rate of 10%). There were 15 final bids for the project. Under the contract, the SPV was to recover the capital costs and operating costs including returns through tolling during the term of concession. JMC Projects (India) Limited would execute the EPC for the project. The concession agreement was signed on 21st June 2011. The project attained financial closure on 18th June 2012. The debt equity ratio of the project was 77/23. The estimated capital cost of the project at the time of financial closure was US$ 85.5mn (INR 4277.1mn @50 INR/USD). Financing comprised a 14-year and 6-month term loan US$ 65.6mn (INR 3280mn) and sponsor equity of US$ 19.9mn (INR 997.1mn). The term loan had a grace period of 1 year and repayment schedule of 44 quarterly installments. The debt was arranged by Yes Bank Limited (935mn). The other participating banks were Vijaya Bank(800mn), Corporation Bank(800mn),India Infrastructure Finance Co Ltd(745mn). Construction on the project began in June 2012 and was expected to be completed by December 2014. At the end of November 2012, 15% of the construction target was already complete.