MEP Infrastructure Developers Limited and Spanish Constructora San Jose have achieved financial close for  the Mahuva - Kagavada section in India.

In June 2016, the consortium was awarded by the National Highway Authority of India (NHAI) the project on Hybrid Annuity Model in the state of Gujarat.Hybrid Annuity Mode is a mix of engineering, procurement and construction (EPC) and build operate transfer (BOT) model. The Authority and the private companies share the total project cost in the ratio of 40: 60 respectively.

The project has been awarded under a 15-year concession contract excluding the contruction period, which is estimated at 2 years and 6 months

The project involves the four laning of Mahuva – Kagavadar section of NH-8E from Km. 100.100 to Km. 139.915 (Design Chainage from Km. 100.450 to Km. 140.470) (Package – III) under NHDP Phase IV on Hybrid Annuity Mode. It is a part of the Bhavnagar – Veraval stretch.

The estimated total investment is INR6046.8 million (US$93.6 million) out of which project finance will contribute INR2721 million (US$42.1 million) and remaining will be funded by grant of INR2418.7 million (US$37.4 million) from NHAI and equity contribution of INR907 million (US$14 million) by the subsidiary company.

It is MEP's 6th Hybrid Annuity project in Gujarat. The company becomes the only infrastructure company to achieve financial closure for all of its Hybrid Annuity projects of road construction and has tied up total project finance of INR17.2 billion (US$267 million) towards all its 6 projects.