IRB Infra preferred bidder for Rs 1,500-cr road project

December 18, 2013

Company has emerged as a preferred bidder for the project of four laning of Solapur to Yedeshi section of NH-211
Press Trust of India  | New Delhi 

IRB Infrastructure Developers Ltd today said it has emerged as a preferred bidder for a Rs 1,500-crore road project in Maharashtra.
“The company has emerged as a preferred bidder for the project of four laning of Solapur to Yedeshi section of NH-211…In the State of Maharashtra,” the company said in a filing to BSE.The project, to be executed on design, build, finance, operate and transfer (DBFOT) pattern, falls under phase four of the national highways development programme, the company said.

The construction period of the project is fixed at 910 days and the company has sought Rs 189 crore as viability gap funding (VGF) from National Highways Authority of India.

VGF is typically provided in competitively bid projects. Under VGF, the central government meets up to 20 per cent of capital cost of a project being implemented in public private partnership (PPP) mode by a central ministry, state government, statutory entity or a local body.

“The concession period is 29 years,” the company added.


Cabinet okays Rs.1,756 crore road project for Gujarat

October 9, 2013


The union cabinet Tuesday approved the development of a national highway between between Gadu and Dwarka in Gujarat at an estimated cost of Rs.1,756.36 crore.

The cabinet committee on economic affairs, at a meeting chaired by Prime Minister Manmohan Singh, gave green signal for the development of the road project on National Highway-8E.

Out of the proposed 209.89 km of the highway, 119.7 km will be four-laned and 90.19 km will be two-laned with paved shoulders.

 The cost is estimated to be Rs.1,756.36 crore, including the cost of land acquisition, resettlement and rehabilitation and other pre-construction activities,” according to an official statement released after the cabinet meeting here.

“The project will expedite improvement of infrastructure in Gujarat and also reduce the time and cost of travel for traffic, particularly heavy traffic, plying between Gadu and Dwarka,” it said.

This road stretch links a number of sea ports on the western coast of India apart from coastal places like Dwarka, Porbandar and Somnath.



IVRCL bags orders worth Rs 1430-crore

February 20, 2012

HYDERABAD: IVRCL Group, a city-based infra major today said it bagged orders worth Rs 1430 crore.

IVRCL Assets and Holdings Ltd, a subsidiary of IVRCL Limited bagged a road project of 151 km long connecting Rajasthan border and Haryana, worth Rs 1201.7 crore, a statement from IVRCL said.



IRB`s Ahmedabad Vadodara Project achieves financial closure

February 20, 2012

IRB Infrastructure Developers (IRB) one of the largest Road BOT developers in India, has declared that its Ahmedabad Vadodara Project has achieved financial Closure.

IRB Ahmedabad Vadodara Super Express Tollway, SPV for Ahmedabad Vadodara Project has tied up Project finance of Rs 33 billion. The total cost of this project is Rs 4.88 billion, out of which equity contribution by the Company will be approx. Rs. 1.58 billion and remaining will be funded through Project finance of Rs 33 billion. Out of thisProject finance, approx. Rs 11 billion can be drawn as ECB and remaining Rs 22 billion as Rupee Term Loan. The weighted average blended cost of this Project finance is approx. 10.5% p.a.

A Consortium of Lenders comprising of Infrastructure Development Finance Company (IDFC) – Lead Institution, India Infrastructure Finance Company (IIFCL), Andhra Bank, PunjabNational Bank, Indian Overseas Bank, Bank of India, Union Bank of India and ICICI Bank have financed this project.

Announcing this, Virendra D. Mhaiskar, Chairman & Managing Director of IRB said, “This is the largest debt tie-up in the Highway Infrastructure Sector till date in a pure play toll based BOT project. With this, IRB has achieved financial closure for all the projects awarded to it by NHAI and there is no project pending financial closure.“

Shares of the company declined Rs 2.25, or 1.31%, to settle at Rs 169.05. The total volume of shares traded was 269,294 at the BSE (Monday)


3i invests in Supreme’s BOT Road Projects

February 9, 2012

3i India Infrastructure Fund has entered into an agreement for an investment of around US$61 million. The investment is for a minority stake in a portfolio of road BOT companies of Supreme Infrastructure India Limited (“SIIL”). SIIL is a construction and infrastructure company in India, focused on roads, bridges, power, water, railways and civil construction and infrastructure among other activities, with its primary focus firmly in the roads and highway sector along with other verticals of infrastructure. Since it was set up in 1983, SIlL has established a strong track record in this sector, having built over 400km of highways, and with an order book currently standing at Rs5,700 crores of which unexecuted order book is Rs3,750 crores .SIIL was founded by Bhawani Shankar Sharma and is currently managed by his sons Vikram Sharma (MD) and Vikas Sharma (Whole Time Director).
Anil Ahuja, Managing Director and Head of 3i Asia, commented on the transaction: “SIBHPL offers us the opportunity to expand our presence in the road sector in India through a portfolio of high quality road BOT projects.


IRB Infra project cancellation just a one off case: NHAI

December 27, 2011

The National Highways Authority of India cancelled the Goa road project that it had awarded to IRB Infrastructure in January 2010 due to the inability to acquire land for the project.

In an interview to CNBC-TY18, AK Upadhyay, chairman of NHAI says, this is just one off case. “I don’t think this is a serious concern,” he adds.

He expects land acquisition costs to rise going forward.

Upadhyay expects awards of close to 7,000 km by year-end.

Below is the edited transcript of his interview with CNBC-TV18’s Latha Venkatesh and Sonia Shenoy. Also watch the accompanying videos.

Q: The most disturbing news we heard lately was the cancellation of Goa road project given to IRB Infra because of the inability to acquire land. Can you just confirm this for us? How disturbing it is that you are not able to acquire land?

A: This is just one off case. In some states, we do face problems, but you don’t take it as a repetitive case. The other projects are going on very well. It is just one-two projects, out of 40-50 projects that we are going to bid this year. So, I don’t think this is a serious concern.

Q: What went wrong? Where did the resistance and the inability to acquire land come from?

A: The state government has solutions. Because the alignment was passing through some fishermen’s areas and they wanted to have an elevated highway for a very long stretch, it made it difficult to fund it. We had to restructure the project. So, the project as it was structured that could not go ahead. So, we had to cancel the bid. I would again say this is a one off case.

Q: What kind of interaction have you had with IRB on this and penalty that you may have to pay them?

A: I don’t think so because this is not at the award stage, so no liability has yet occurred. But I don’t think there should be any major penalty.

Q: How much are you expected to raise via the bond issue? hHw much demand do you see for these kind of tax free issuances at this point?

A: Our perception is that the bonds will be highly in demand. We hope to have full subscription. We are going for first tranche of Rs 5,000 crore with option to retain up to Rs 10,000 crore. From whatever feedback we have got, our impression is that this is going to be very successful.

Q: How many projects in 2011 went on a premium?

A: Let me talk of this fiscal starting from April 1, out of 33 projects, we have awarded so far of over 4300 km, 22 have gone on premium.

Q: In that case, would you consider increasing the viability gap funding for those that did not go at a premium?

A: Viability gap funding has 40% cap. If you over 40%, you might as well fund it entirely from public funding. Therefore, it is a rational limit. We don’t think it’s necessary to increase that. But what it means is that the funds we are getting it would help us in case of any increase land acquisitions cost. After the viable projects under BoT toll are exhausted, we will have to go for more and more EPC projects. That would be almost entirely public funded. So, therefore, this premium is good for us, it has cushioned for future years.

Q: From now, up until FY13, what is the order target that you have? How many have been awarded? How many you expect government to approve?

A: To give you a picture of this financial year, the total target we had set was 7,300 km. This was about 40% more than last year’s target. We are on course. We have awarded over 4,300 km.  Another 1,000 km of the bids are in the pipeline either in evaluation or the bids have to come shortly. So that means that very shortly we will be crossing 5,300 km. Another 2,000 km of 14 projects are in various stages of evaluation and approving process.


Supreme wins new BOT road project

December 26, 2011

Supreme Infrastructure India has completed EPC for its first marine project, Kasheli Bridge and commenced tolling operations. The company added orders worth Rs212.30 crore along with a bridge project for Rs124 crore where it is declared L1.
Kasheli Bridge in Thane Vikas Sharma, whole-time director, Supreme Infrastructure, said “We are proud to report completion of our first Marine project Kasheli bridge at Thane. This project has added significant capabilities to our engineering team, which can now undertake complex and larger marine projects. Also, our efforts of expanding our reach in the northern territory is starting to show positive signs. We have also won orders from our existing customers and it is a mark of the good quality work we continue to deliver for our clients and a testimony to our work ethos.”
It has also added a road BOT project in Maharashtra. Further, the company is in advance dialogue with the strategic investors to explore possible investments in its BOT portfolio. The EPC work in the Marine Segment involves building a six lane flyover on old Thane-Nashik highway for a length of 1.2 Km on the Thane Creek for Rs301 core.
This project was awarded to Supreme in 2009 by the Sangam group and has been completed in 36 months. The project involved complex engineering skills to cast pilling with depths ranging from 15–25 meters. This project is an engineering marvel and a reflection of our in house capabilities.
Supreme holds 10 per cent equity stake in the Kasheli Bridge SPV through Kalyan Sangam Infratech. This SPV was involved in the construction of the Kasheli Bridge on a BOT basis. The construction of Kasheli Bridge is completed and tolling operations have commenced.
Construction of Villas and premium apartments have been awarded by BPTP Group, Gurgaon. This is a state-of-the-art project being developed in Gurgaon. Order size is Rs71 crore and is expected to be executed by March 2014.
The group also has project awarded by Ramprastha Group for construction and development of Multi storied tower ‘SKYZ’, at Gurgaon. The scope of work order involves construction of nine towers of 19 stories each. Order size is Rs141.30 crore, which is expected to be competed by March 2014.
The company has been declared L1 by MMRDA for the design and construction of flyovers at Rajnoli Junction and at Mankoli Junction on NH-3 at Thane Nashik road. Order size is Rs124 crore.


City welcomes decision to halt toll projects

October 31, 2011


THE City of Cape Town has welcomed the news that South African National Road Agency Limited’s (Sanral) tolling project to implement tolls on the N1 and N2 has been halted.

Sanral was planning to establish a R10 billion toll project that would include a 105km stretch on the N1 between the Old Oak Interchange and Sandhills, and a 70km section of the N2, from west of Swartklip to Bot River.

In July, the city declared an inter-governmental dispute with Sanral and more recently launched an application in the Cape High Court for an interdict to stop the project, which included two new tunnels.

Brett Herron, Mayoral Committee Member for Transport, Roads and Stormwater said the city welcomed the decision by the National Department of Transport to halt the projects until further investigation.

“Our application to the High Court is premised on our view that the process followed by Sanral, which eventually led to the N1 and N2 being declared toll roads, was fundamentally flawed and illegal.”

He said the city has been concerned about the impact the projects, which have not been fully investigated, would have on the economy and residents.

“The imposition of the toll roads would amount to unfair discrimination against poor and largely black communities who would be disproportionately affected,” said Herron.

If Sanral had its way the N1 and the N2 would be tolled from the R300, the N1 stretch would end just after Worcester, the N2 toll road at Bot River. The Huguenot Tunnel would be taken into the tolling plan.

“It appears from the statement issued by the National Minister of Transport that he shares our concerns with regards to the socio-economic impacts and that he is seeking to address one of our procedural concerns, (which is) lack of proper consultation with the city and the public.

“We welcome the department’s intervention.’’

Herron said other legal issues, which were not addressed by the minister, had also been raised.


Roadblocks for NH-widening in Goa

October 24, 2011

PANAJI: While nationally highways are being added at the rate of 11km-per-day, in Goa the national highways authority of India’s project to widen NH 4-A is yet to take off, a year-and-a-half after it was tendered. In fact, a status update of the project shows it is fast heading towards being re-tendered. The latter is already the fate of Goa’s other national highway-NH 17.

The delays in both projects are courtesy the state government’s demand for flyovers, realignments, toll exemptions for light motor vehicles, and overall delays in handing over the required land. These demands, in fact, led to the cost of widening NH 17, estimated and tendered in 2010 at 3,100 crore, to shoot up by over 806 crore. NHAI sources say the project may be retendered.

Similarly, when IRB Infrastructure Developers Ltd, Mumbai, was awarded the contract to widen the 65km-long NH 4-A in early 2010, the cost was estimated at 471 crore. Now, additional demands by the state government to construct more flyovers, more underpasses and change the alignment has raised the project cost by 106 crore, sources said. “The work is already awarded and there is no way the NHAI is going to bear such a high additional burden,” sources in the authority told TOI.

Incidentally, the land for widening the highway that connects the state to Karnataka via Ponda has also yet to be handed over to NHAI in both, North and South Goa.

Sources in the land acquisition section of the South Goa collectorate confirmed non-acquisition of land in the district. Clearances from the state wildlife board for the 10km-stretch that falls in deeply forested areas between the Mollem National Park and Bhagwan Mahavir Wildlife Sanctuary are also pending.

The lack of clearances led to the NHAI proposal being sent to the ministry of environment and forests in May 2007, only to be returned without approval. “The project was initiated by NHAI in 2003 and is only 65km long. But it is still dragging,” sources lamented.

From P1

The last nail in the NH 4-A coffin is probably the demand by the state government that non-commercial LMVs should be exempted from toll. “This demand cannot be accepted. Toll policy on national highways is finalized by the central government. This is a BOT (build-own-transfer) project being built under the public-private-partnership model. Toll is the only source of revenue for the contractor. If it is exempted, nobody will want to come to Goa,” said an NHAI source.

Sources in the authority further added that the economic evaluation of the project showed benefits that include reduction in vehicle operation cost, reduction in travel time and reduction in accident cost. Analysis period was taken as 30 years from the date of operation.

The Goa-Belgaum road is considered very important. There is a substantial movement of iron ore on the road. Other necessities like vegetables, fruits, etc, from Karnataka to Goa are also transported via this route. The road witnesses about 50 or 60 accidents every year due to mining traffic. If it is widened, this will stop, sources said.

The NH 17 widening project connecting Patradevi to Polem has long been bogged in controversy and delayed over proposed demolitions along the route in Goa. As reported earlier, the land acquisition procedure for widening NH 17 lapsed in the first week of April. tnn


Centre avoids Mayawati, rolls out roads on its own

October 24, 2011

NEW DELHI: With the Mayawati government refusing to play ball with the Centre on road development, the highways ministry is increasingly taking a short-cut. The ministry has been pushing for more projects under the engineering-procurement-construction model, under which it can get to work right away without state support. With elections ahead, it is becoming the road most taken.

The UP government has not yet signed the umbrella state support agreement (SSA) to facilitate highway development work, citing a “conflict of interest” with state highways. Under SSA, the state gives a commitment to maintain the law and order situation and to refrain from constructing any competing road.

NHAI has already invited tenders for pre-qualification for two EPC contracts in Sonia Gandhi’s constituency – Rae Bareli to Banda (140km) costing Rs 525 crore and Rae Bareli to Tanda (165km) costing Rs 692 crore. In these cases, the contractor will have to complete the projects within a stipulated timeframe and will also be responsible for their maintenance for at least one year.

Sources said there was a proposal to develop two more stretches under the same model, considering the slow progress any national highway development work has shown under the Mayawati regime. The NHAI, however, has favoured a build-operate-and-transfer (BOT-annuity) model for these stretches. “This is a tactical move and suits both Congress and NHAI. Since state support is crucial for annuity projects, the blame of any failure to take up the work will go to the state government or the contractor. On the other hand, this suits NHAI since it cannot escape accountability if any EPC contract gets delayed in such a VIP constituency,” said an industry insider.

NHAI has floated a tender for the two-laning project with paved shoulder for Rae Bareli-Jaunpur section of NH-231 (165.5km) on BOT (annuity) mode with an investment of Rs 626 crore. Two more projects will be taken up soon.

Under the new EPC model that is being used for two projects, NHAI will pay the entire amount to the contractor during construction period on a turnkey basis. In the case of BOT (annuity), the contractor raises investment for the project and the government pays back the principal amount with interest in instalments to the contractor.

“Since the SSA has not been signed with UP, we can’t delay the development work of highways in the state. We are hopeful of the state signing the agreement soon or at least extending support for early completion of these projects. We don’t see any reason why the state would not cooperate with the land acquisition process when the Centre is bearing the entire cost,” said a senior NHAI official.

Prior to Kamal Nath’s taking over as highways minister, the Centre used to sign SSA for each individual project. Nath had come out with the umbrella agreement plan to get it signed for all NH projects at one go. But UP had opposed this since it planned to build its own expressways including the Ganga expressway. Citing “conflict of interest”, the state government told the Planning Commission that a parallel NH would wean away traffic from state highways.