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