West Haryana Highways Projects (Private) Ltd

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West Haryana Highways Projects (Private) LTD (WHHPPL) was created to a 25 year BOT project that involved construction of 64 Km including two four-lane greenfield bypass at Bahadurgarh (13km) and Rohtak (25km) and expanding to six lanes the remaining of the road which goes from Delhi/Haryana border to Rohtak Section of NH–10. The project was awarded on build, operate and transfer (BOT) basis under National Highways Development Project (NHDP) Phase III. WHHPPL was responsible for design, engineering, finance, construction, operation and maintenance of the existing two lane road from Delhi-Haryana Border to Rohtak Section of NH-10 i.e. from Km 29.70 to Km 87.00 (approximately 63.49 km) of NH-10 in Haryana (‘Project Highway’) to Six/Four lane configuration under NHDP Phase IIIA on Build, Operate and Transfer (BOT) basis. The 25 year concession included a 24-month construction period. The Concessionaire shall be responsible for improvement, Operation and Maintenance including Strengthening and Widening of Existing 2-lane Road to 4/6-lane. WHHPPL was incorporated as a Special Purpose Vehicle (SPV) by Era Infra Engineering Ltd. (49%) & Karam Chand Thapar & Bros (Coal Sales) Ltd. or KCT (50%) consortium on August 23, 2007. It is implementing toll based road project on BOT basis in Haryana. The agreement was signed on November 16, 2007 by NHAI and West Haryana Highways Projects (SPV of KCT-ERA Consortium). The concession period for the project is twenty five years (25 years) from the appointed date (inclusive of a 24 month construction period). Appointed date is the date 180 days from the date of execution of the CA (i.e. May 2, 2008). NHAI after evaluating the proposals awarded the Project to the EIEL-KCT(CS) consortium, which had quoted a premium to be paid to NHAI, beginning 4692 days from the date of completion (COD). The Concessionaire shall pay, after 4692 days from the COD, a Premium in the form of additional Concession Fee equal to 2% of the total Realisable Fee during that year and for each subsequent year of the Concession Period, the Premium shall be determined by increasing the proportion of Premium to the total Realisable Fee in the respective year by an additional 1% compared to the immediately preceding year. In the event Actual Traffic shall exceed the Target Traffic by more than 2.5%, then for every 1% excess as compared to the Target Traffic, the Concession Period shall be reduced by 0.75% thereof; provided that such reduction in Concession Period shall not in any case exceed 10% thereof. In lieu of a reduction in Concession Period under this clause, the Concessionaire may elect to pay a further premium equal to 25% (twenty five per cent) of the Realisable Fee. The total cost of the project is Rs 5,860 million. Funding came from equity (Rs 1,460 million), senior debt (Rs. 4102.3 million), and balance by subordinated debt of (Rs.293 million). The project was financed with a debt/equity ratio of 75/25. The project reached financial closure in 2008.