Investment in an operating Toll Project in Southern India
Investment in an operating Toll Project in Southern India
Key Highlights –
- IVALUE IS PROJECT MANAGING ALL CONTRACTUAL ISSUES, ~USD 12 MN OF COMPREHENSIVE MAJOR MAINTENANCE WORKS AS WELL AS THE TOLL COLLECTION & OPERATIONS OF THE ENTIRE HIGHWAY
- INVESTOR IS EXPECTED TO RECOVER ~6.5x ON INVESTED AMOUNTS
An operating Toll asset, was in financial stress due to:
- Lower than expected toll collections, resulting in account being classified as NPA
- Several contractual issues including
- Unpaid NHAI dues = $ 50 Mn
- Concession Extension of 7.61 years not confirmed
- Full toll revision pending implying impact of 10% on tolls
Investor purchased 100% of debt (discount of 40% and investment of $ 78 Mn). iValue managed the entire debt purchase which was completed in November 2021.
iValue has since managed the investment and taken control of the entire project enterprise for the Investor under CIRP resulting in debt resizing to $ 157 Mn. iValue has further resolved following contractual issues:
- Premium Deferment: NHAI in principle approval received
- Concession Extension & full toll revision : Approvals received from Independent Engineer and NHAI Project Implementation Unit.
| Particulars | Details |
| Authority | NHAI |
| Mode | BOT (Toll) |
| Length | 43 Km / 6 Lanes |
| No. of Toll Plazas | 1 no. |
| Provisional Completion | October 2015 |
| Concession Period | 27 years |
| Concession End | February 2045 |
| Annual Toll (FY23) | $ 20 Mn |
Clients:
NHAI
Category:
project
Date:
October 2015
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OPERATING TOLL PROJECT IN EAST INDIA
