IRB Infrastructure reaches financial close in road PPP project

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IRB Infrastructure reaches financial close in road PPP project

IRB Infrastructure Developers announced on December 26th, 2013, that it has achieved financial closure of Rs 14,060 million (US$227.5 million) for the Four Laning of Goa/Karnataka Border to Kundapur section of NH-17 from Km 93.700 to Km 283.300 in the State of Karnataka under NHDP phase IV on Design, Build, Finance, Operate and Transfer (Toll) Basis. 

A consortium of lenders, led by IDBI Bank and comprising of Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank and Union Bank of India have financed the project.

The total cost of the project is Rs 26,390 million (US$430 million approx.), out of which viability gap funding from the National Highways Authority of India (NHAI) is to the extent of Rs 5,360 million (US$86.7 million), while equity contribution by the company will be around Rs 6,970 million (US$112.8 million). The average cost of project finance is around 11.75 % per annum.

The Project has a concession period of 28 years. Scope of work involves upgradation of existing section of NH-17 between Goa/Karnataka Border and Kundapur from existing 2 lane highway to 4 lane highway. The SPV will get tolling rights on NH - 17 upon completion of construction.

The company has also announced that it has received the Letter of Award for the project of Four Laning of Solapur to Yedeshi section of NH-211 a Rs 15,000 million (US$242.7 million) road project on design, build, finance, operate and transfer basis in Maharashtra. The project is expected to be completed in 910 days and the concession period is 29 years. The total length is 98.717 km.

IRB has sought Rs 1,890 million (US$30.6 million) as VGF from NHAI for the project.

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