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IRB Infrastructure’s subsidiary executes concession pact with NHAI

25 Jul 2011 Evaluate

IRB Infrastructure Developers’ wholly-owned subsidiary company -- IRB Ahmedabad Vadodara Super Express Tollway -- has executed concession agreement with National Highways Authority of India (NHAI) for the project of Six laning of Ahmedabad to Vadodara section of NH-8 from km. 6.400 to km. 108.700 (Length 102.300 km) and improvement of existing Ahmedabad Vadodara Expressway from km. 0.00 to km 93.302 in the State of Gujarat (Length 93.302 km.) under Phase V on Design Build Finance Operate Transfer (DBFOT) Toll basis.

The project is to be executed on DBFOT pattern with a concession period of 25 years. The scope of work involves up-gradation of existing section of NH8 between Ahmedabad and Vadodara from existing 2 lane highway to a 6 lane super expressway and value addition to the existing Ahmedabad-Vadodara Expressway. The estimated construction cost is about Rs 3600 crore and the construction is to be completed within 3 years from the appointed date.

The SPV will get tolling rights on Ahmedabad-Vadodara expressway from the appointed date and on NH8 post-completion of construction. The premium offered to NHAI in year one is Rs 309.60 crore which will increase by 5% YoY. The capitalized cost of the project is about Rs 4920 crore.

IRB Infrastructure reported net profit of Rs 17.82 crore for the quarter as compared to Net loss of Rs 3.76 crore for the quarter ended June 30, 2010. Its total Income surged by 4905.05% at Rs 199.74 crore for the quarter ended June 30, 2011 from Rs 3.99 crore for the quarter ended June 30, 2010.

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