Delhi GGN Epxressway

8/7/2019 Delhi GGN Epxressway

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AMIT TIWARI 09BM8078



� The National Highways Authority of India

(NHAI), under the Ministry of Road Transport

& Highways (MoRT&H), was entrusted the

responsibility for implementation of theGolden Quadrilateral project.

� As a part of this project, it proposed the

conversion of a very busy section of NH-8

connecting Delhi to Gurgaon into a 6/8 laneaccess controlled divided carriageway.



� The then existing 4 lane, 27.7 km section of

NH-8 between Delhi and Gurgaon with as

many as 20 intersections, experienced high

vehicular density (145,000 Passenger CarUnits (PCUs)/day in 2000) and non-

segregation of traffic that led to increase in

accidents, acute congestion, wastage of fuel

and excessive pollution.



� The project was awarded to the consortiumof Jaypee Industries and DS Construction Ltdto design, finance, construct, operate &maintain the facility for a concession periodof 20 years.

� As a BOT highway project, theConcessionaire was allowed to collect tollfrom the users of the project facility during

the operation period to recover hisinvestment and the expressway is required tobe transferred back to the Government atthe end of the concession period.



� This was the first BOT project in India to

have been awarded on negative grant basis

� Concessionaire offered to pay an upfront fee

to NHAI in return of the concession as againsta capital grant from the Government.

� In consideration of robust traffic

projections, the selected bidder offered to

pay Rs. 61.06 crore to NHAI.



� The Concessionaire was required to design,

construct, operate and maintain the

expressway in accordance with the

specifications as approved by NHAI.

� The concession period included the

construction period to encourage the

concessionaire to complete the constructionearly.



� An SPV - Delhi Gurgaon Super Connectivity

Ltd was created for execution of the

project.

�While at the time of bidding, JaiprakashIndustries had a controlling stake of 51% and

DS Constructions held 49%, during the course

of project implementation, Jaiprakash

Industries reduced its stake in the SPV toabout 1.2%.



� NHAI was responsible for undertaking land acquisition. A notional

concession fee of Re.1/- was to be paid annually by the

Concessionaire to NHAI.

� During the development period, NHAI undertook the operation

and maintenance of the existing highway at its own cost.

� The shifting of utilities and related expenses was the

responsibility of NHAI.

� NHAI was also required to have necessary environmentalclearances, permits etc. granted to the Concessionaire.

� A loan facility, in case of the revenue falling short of subsistence

revenue level, was made available by NHAI at the SBI PLR. Such aloan could also be provided by NHAI to cover a shortfall in

meeting debt service payments.



� The Concessionaire was required to comply with the all therequirements needed for clearances, approvals, permits etc.from various government agencies.

� A performance security was to be paid by the Concessionaire on

or before the date of the Agreement for its due and faithfulobligation during the Construction Period.

� To allow recovery of investment and to earn a suitable return,the Concessionaire is entitled to collect toll from the users of theexpressway during the operation period.

� The toll is notified by the MoRTH and there is an annual revisionlinked to the extent of variation in the WPI. The toll has to beshared with NHAI if more than 130,000 PCUs are tolled on theexpressway.



� Debt Rs. 383.3 crore. Equity Rs. 164.2 crore. TOTAL Rs. 547.5

crore

� Rs. 200 crore of the debt was provided by the Housing and Urban

Development Corporation Limited (HUDCO). The other lenders

included State Bank of Mysore (Rs. 30 crore), Punjab NationalBank (Rs. 30 crore), Srei International Finance (Rs. 25 crore) and

Jammu & Kashmir Bank (Rs. 15 crore). The SPV also issued nonconvertible debentures amounting to Rs. 50 crore to LIC and Rs.

37.30 crore to UTI Bank.

� The actual cost of the project was eventually Rs. 1,175 crore.

The project cost overrun was funded by the promoters, bywithholding payments to DSC Limited (EPC contractor) and from

the amount received from NHAI (Rs. 155.25 crore) on account of

changes in scope.



� The expressway has been operational for three years now after it

was opened to traffic in January 2008.

� It carries more than 180,000 PCUs per day, which is much higher

than the traffic estimates for the project by 13,000 to 15,000PCUs per day.

� The substantially higher number of vehicles using the facility has

often led to a queuing up of vehicles at the toll plazas.

� The expressway consists of 9 flyovers, 4 underpasses and 2 foot-over bridges and 3 toll-plazas. Smart tags have been introduced

to enable cashless automatic payment.



� The project was commissioned on 25 January, 2008.

� The expressway is fully operational and is handling a significanttraffic volume of more than 180,000 PCUs per day, growing at 9%

year-on-year.

� The concession period is for 20 years and the projected end date

is 11 January 2023 when the expressway will be handed over to

the government.





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Delhi GGN Epxressway