GMR OSE Hungund Hospet Highways, a consortium formed by GMR Group (51%) and Oriental Structural Engineers Pvt. Ltd. (49%), announced that the it has commenced full commercial operations of the Hungund-Hospet road PPP project on National Highway NH-13 in India.
The Hungund-Hospet Highway project involves design, construction, development, finance and operation of a 99.05 Km stretch on NH 13, this is a BOT Toll project with a concession period of 19 years (which includes the construction time of 30 months).
The project cost is estimated at US$308 million. In june 2012 the consortium achieved financial close for the project with a debt-equity ratio of 70:30. IDBI Bank and Axis Bank are the underwriters of the loan.
BVN Rao, Business Chairman, Urban Infra & Highways of GMR Group, stated:
The Project Highway caters to the iron ore mining heavy commercial traffic from Bellary region and also links the local industry with Mangalore and Karwar ports for export. The completion of the project is expected to provide stimulus to the local steel, fertilizer and chemical industries. This project will also boost the tourism to Hampi, Kishkindha, Bellary Fort Badami etc. The corridor shall play a vital role in the economic development of the region.
The project has earlier achieved commercial operation of two Toll Plazas in November 2012 and has now completed the balance highway after land clearances.
Twin tunnels of 300 mts have been constructed and a major interchange across the railway line has been created to reduce travelling time. Other facilities developed as part of the project include vehicular underpass, passenger underpass, bus shelters and truck lay-bys. The other user facilities include 24 hour ambulance and emergency support services.