IRB Infra’s SPV HAM Project commences soon; NHAI allots appointed date

New Delhi: VK-1 Expressway Private Ltd., a wholly-owned subsidiary and a Special Purpose Vehicle (SPV) of IRB Infrastructure Developers Ltd., has received an appointed date from NHAI for 23.740 Kms long Padra (Kim) – Vadodara Hybrid Annuity project, which is part of the upcoming Vadodara – Mumbai Expressway.

Commenting on the development, Spokesperson, IRB Infrastructure Developers Ltd. said, “This is an encouraging development. It means we can commence construction on our first Hybrid Annuity project. Getting appointed date is nothing but moving a step ahead to meet deadlines with quality construction and ensuring revenue flows as envisaged. We are confident of completing the project in time and ensuring congestion free, safe and comfortable travel experience to the commuters.”

He further added, “We are now looking forward to receiving Appointed Dates for other two HAM projects in South India, which would enable us to start construction activity on all projects.”

Key highlights of the Project are as under

The project is in Gujarat for eight lining of the stretch of 23.740 Kms on Vadodara – Mumbai Expressway, between Padra and Vadodara, with cost outlay of Rs. 2043 Crs.

The concession will comprise 730 days for construction and 15 years Operations & Maintenance rights thereafter.

Construction will be commenced from (date) as per the Appointed Date.

The project had recently achieved the financial closure, despite the weak lending scenario across the industry for bid cost.

As a part of financial closure, the SPV will be receiving financial support of Rs. 817 Crores from the NHAI; equity support of Rs. 245 Crores from the IRB Infra and Project Financing of Rs. 981 Crores from the lenders.

To reiterate, IRB Infra had won three Hybrid Annuity projects in the Q4 of FY18; two in South India and one in Gujarat. All the projects had achieved Financial Closures recently and rest two also now set to receive appointed date soon; thus, enabling the Company to commence construction activity on those projects too.

[source_without_link]ANI[/source_without_link]