The Rs 400-crore (over $90 million) project involves strengthening of the existing two lanes and constructing two more lanes on the 64-km-long stretch between Panagarh and Palsit on NH-2 in West Bengal, it forms a part of Delhi - Kolkatta section of Golden Quadrilateral.
Malaysia's Gamuda-WCT won the project through competitive tender from the National Highways Authority of India (NHAI) on an annuity basis. In all 10 entities bid for this project, including L&T, HCC, GMR Group, Jaiprakash Industries, IRCON and Punj Lloyd.
The concession period of 17 years and 4 months commences seven months from the date of the Concession Agreement. Construction must be completed within 28 months. Thereafter, the consortium, which will form an SPV for this purpose, will maintain the highway for the remainder of the concession period. As per the agreement, NHAI will pay 30 fixed semi-annual payments of Rs 39.99 crore.
BUSINESS | CONSTRUCTION OBLIGATIONS | PRIVATE FUNDING | SERVICE DELIVERY | SOURCE OF REVENUE |
BUSINESS - New: The project involves a new road.
CONSTRUCTION OBLIGATION - Refurbish: The project company is responsible for the construction and refurbishment of the road.
PRIVATE FUNDING - Finance: The project is financed through a combination of equity from sponsors and commercial financing.
SERVICE DELIVERY - User: The project company provides access to the road to individual users.
SOURCE OF REVENUES - Fee: The project company revenues are derived from performance based fees paid by the Government.