Financial closure on Rs 765cr Bangalore Expressway achieved

November 1, 2006

The consortium of Soma Enterprise Ltd., a leading infrastructure developer with Nagarjuna Construction Co. and Maytas Infra Pvt. Ltd., today announced that financial closure on the Rs.765 crore Elevated Toll Expressway Project on Bangalore – Hosur Section of NH-7 (from Km 9.5 to Km 18.5) on BOT basis has been achieved. Out of the Rs.765 crore, Rs.600 crore of debt has been raised from a consortium of banks, led by Canara Bank. The consortium will operate the expressway for a period of 20 years. The special purpose vehicle formed for this project is Bangalore Elevated Tollway Ltd.

Written by ITW Editor · Filed Under Investment and Finance

Evaluating toll road credits

November 1, 2006

It has been recently reported that the government of India has given its approval for six-laning of 6,500 km of national highways, including 5,700 km forming part of the Golden Quadrilateral at a total cost of Rs 41,210 crore. In terms of financing, the expectation is that private sector will commit investments of Rs 35,690 crore. Also the government, in order to accelerate implementation of highway projects of Rs 2,20,000 crore, has set a target of awarding 175 contracts for Rs 76,540 crore, all on BOT basis by March 2008. Since a number of these projects are going to be predominantly debt financed with repayments supported by toll collections, it would be timely and useful to have an analytical framework for assessing the credit quality of various types of toll roads and financing structures.

Written by ITW Editor · Filed Under Investment and Finance

4-laning of Amritsar to Wagah road okayed

October 14, 2006

With elections to the Punjab Assembly due early next year, the Union Cabinet today cleared the long-pending demand of four-laning of the Amritsar-Wagah section of National Highway 1 on built-operate-transfer (BOT) basis at an estimated cost of Rs 207 crore.

Written by ITW Editor · Filed Under Investment and Finance

New path or alleyway

October 12, 2006

Are contractual ‘innovations’ holding up the showpiece highway project?

It continues to be a slow trudge on the fast lane. Barely 35 per cent of the contracts for the North-South East-West corridor (NHDP-II) have been awarded. This lethargy in the awarding of contracts by National Highway Authority of India (NHAI), under the UPA, is predictably bound to lead to long delays in the construction of the highway network across the country.

Written by ITW Editor · Filed Under Investment and Finance

NHAI to expand operations

September 20, 2006

nhai NEW DELHI, SEPT 20: With increased private investment in highway projects, national highways authority of India (NHAI) is playing a much smaller role in highway construction and is now expanding the scope of its operations by providing additional services such as traffic management and wayside amenities.

Written by ITW Editor · Filed Under Investment and Finance

Stay invested in SREI Infrastructure Finance

September 14, 2006

Investment Advisor SP Tulsian is of the view that one can stay invested in SREI Infrastructure Finance.

Tulsian told CNBC-TV18, “SREI Infrastructure Finance is more an infrastructure play. This is the first company having gone for the overseas issue for mobilizing their funds. They have got the road project on BOT basis in alliance with some other company to the extent of Rs 3000 crore. Generally road projects on BOT basis takes longer time, generally the execution time is anywhere between two-four years and then thereafter for about 17.5 to 25 years. They operate those projects where they earn in the form of toll collected from the roads which they have constructed.”

Written by ITW Editor · Filed Under Investment and Finance

Happiness Index…Indians fare a lot better than most

September 8, 2006

Happiness Index...Indians fare a lot better than most

Written by ITW Editor · Filed Under Investment and Finance

Road projects in limbo, thanks to red tape

August 20, 2006

NEW DELHI: The Planning Commission’s failed attempt at redesigning public-private partnership contracts for roads since January 2005, has paralysed the nation’s highway building exercise, once the showpiece of government performance.

Government sources concede that apart from roughly 30 projects processed earlier, not a single kilometre of new BoT (build-operate-Transfer) projects have been awarded since early 2005. After two years, matters have reached a new low, with NHAI taking a decision in a July 29 board meeting, to hold award of projects, pending resolution of new norms.

Written by ITW Editor · Filed Under Investment and Finance

PLUS lands Mumbai job

August 8, 2006

PETALING JAYA: After years of scouting around globally for projects to widen its earnings stream, PLUS Expressways Bhd has landed a RM148mil BOT (build, operate and transfer) job that involves a 21.6km highway near Mumbai in India.

This is PLUS’ first foray overseas but the company hopes to clinch many more jobs in India where it is said to be in talks with several other state governments for similar projects. Nearer home, it is trying to secure projects in Indonesia and Vietnam.

Written by ITW Editor · Filed Under Investment and Finance, PLUS, Tech

Jharkhand hoping PPPs will attract investors

July 28, 2006

Jharkhand is yet to see the concept of public-private partnership (PPP) take off in any form, especially on its 7,000-odd km network of roads and bridges. The state has not itself tried out the concept; it has seen the National Highways Authority of India (NHAI) thrice floating tenders for the Ranchi-Barhi road on a build-operate-transfer (BOT) basis without evoking any response from the private sector. And the Barhi-Ranchi stretch is said to be the state’s highest traffic corridor!

“Let’s see what happens here (at the PWD level), as we are going to launch the concept in the state soon,” said an apprehensive senior road construction department bureaucrat. Says DK Tiwari, secretary of the department: “We are now seeking to get some roads on that (PPP) basis.”

Written by ITW Editor · Filed Under Default, Investment and Finance

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