Ashoka Buildcon notices termination of concession agreement to NHAI
Ashoka Buildcon has announced that PNG Tollway has given notice of termination of the concession agreement to NHAI in respect of the Pimpalgaon-Nasik-Gonde road of NH-3 in Maharashtra, India.
The concession involved the design, engineering, finance, procurement, construction, operation and maintenance of 6 laning of the road. The total project investment was estimated at Rs16 billion (US$237.3 million).
In a filing to the Bombay Stock Exchange, the company reported:
“Ashoka Concessions Ltd, a subsidiary of the company, has informed the company that one of its associate companies viz. PNG Tollway Ltd (SPV) has given notice of termination of the concession agreement to NHAI in respect of the project viz. to undertake design, engineering, finance, procurement, construction, operation and maintenance of 6 laning of Pimpalgaon-Nashik-Gonde section of NH-3 in the state of Maharashtra on Design, Build, Finance, Operate and Transfer (DBFOT) basis.”
The project was launched on 15 January 2009 and the concession agreement was signed on 3 July 2009. The road was expected to start operations in October 2012 but was delayed because political parties pressed for no toll-collection until the project was completed.
Later, in May 2014, Ashoka Buildcon announced that full operations of the road had been started, but finally the concession has been canceled.
Country news
-
-
March 09, 2016
India´s Welspun signs concession agreement with NHAI
National Highways Authority of India (NHAI) and Welspun Enterprises have achieved commercial closure for the Delhi - Meerut road PPP project. Read more -
March 09, 2016
Bilaspur waste PPP to follow PPP model
The Urban Administration and Development Department of the Chhattisgarh State (India) has announced the implementation of an integrated solid waste management project in the city of Bilaspur. Read more -
March 08, 2016
India isues RFP for 24 road PPP projects
The road will be developed on hybrid annuity basis (HAB), which is a mix of engineering, procurement and construction (EPC) and build-operate-transfer (BOT) formats, with the government and the private sector sharing the total project cost in the ratio of 40:60 respectively. The private partner continues to bear the construction and maintenance risks as in BOT projects but it is required only to partly bear financing risk. The developer is also insulated from revenue/traffic risk and the inflation risk. Read more -
March 08, 2016
BRICS new bank to finance solar projects
The New Development Bank established by the BRICS states, Brazil, Russia, India, China and South Africa, plans to lend about US$2 billion to finance energy solar projects in India. Read more -
March 04, 2016
Kandla Port signs concession agreement with operator
Kandla Port Trust (KPT) and Kandla International Container Terminal Ltd. (KICTL) have signed the concession agreement for the Kandla Port container terminal berth 11 & 12 project in India. Read more
