Zirakpur-Parwanoo NH-22

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In February 2007, the National Highway Authority of India (NHAI) signed a 20 year concession contract (including 30 month of construction period) to India’s Jaiprakash Associates Ltd. (Jaypee) to widen and strengthen the 28.69 km section on National Highway (NH) 22 between Zirakpur (in Patiala district of Punjab state) and Parwanoo (in Solan district of Himachal Pradesh state. Under the contract, Jaypee was responsible for the design, construction, finance, operation and maintenance and widening of the existing two-lane highway to a four-lane highway with paved shoulders. The expansion project, part of National Highway Development Project - Phase IIIA, was expected to ease traffic congestion and give significant stimulus to trade and commerce in the entire region. Out of the 28.69 km, 11.250 km are on a new alignment for a combined bypass for congested towns of Pinjore and Kalka in Haryana and Parwanoo in Himachal Pradesh. Jaypee established Himalaya Expressway Ltd., a special purpose vehicle,to implement the project. Jaypee won the tender through domestic competitive bidding, conducted by NHAI, by requesting the lowest fixed subsidy of US$ 29.25 million. Apart from this upfront payment by NHAI, under the contract, Jaypee was allowed to recover capital costs and operating costs including returns through tolling during the concession period (excluding construction period). The project reached financial closure in February 2007. The total capital cost of the project was estimated at US$ 73.75 million. Construction on the project began in February 2007 and is expected to be completed by July 2009. www.projectstoday.com www.pppinindia.com www.nhai.org www.infrastructure.gov.in