IRB Infrastructure closes $219M project financing for road PPP project in India

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IRB Infrastructure closes $219M project financing for road PPP project in India

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IRB Infrastructure has closed financing for the four laning of the Kaithal - Rajasthan border section of National Highway-152/65 PPP project in the state of Haryana, north India.

The total project investment is estimated at Rs22.9 billion (US$358.8 million). Viability Gap Funding from the National Highways Authority of India (NHAI) will be Rs2.34 billion (US$36.7 million), equity contribution by IRB Infrastructure will be about Rs6.56 billion (US$102.8 million) and the remaining investment will be funded through Rs.14 billion (US$219.4 billion) of project financing.

Project financing has been provided by a consortium of lenders comprising of:
  • IDBI Bank Limited - Lead Institution, India Infrastructure Finance Company Ltd. (IIFCL),
  • IDFC Limited,
  • Indian Overseas Bank,
  • Union Bank of India,
  • Bank of Baroda,
  • Canara Bank and
  • Bank of Maharashtra.

The project involves the construction of a four lane road connecting Kaithal and the Rajasthan border, a section of NH-152/65 from 33.250 km to 241.580 km, in Haryana. The construction period is estimated at 910 days. The total length of the road will be approximately 166 kilometres.

The toll road project will be developed as build-operate-transfer (BOT) on design, build, finance, operate and transfer (DBFOT) basis for a period of 27 years. The project is under the National Highways Development Project (NHDP) Phase IV.

We have recently reported on several road PPP projects in India:

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