ADB approves Indian road loan
Asian Development Bank disclosed this week that it had approved an Rs3.7921 billion ($55 million) loan to Dilip Buildcon’s project company of the under-construction 51km Anandapuram-Pendurthi-Anakapalli section of National Highway-16, formerly NH-5, in Andhra Pradesh in India.
Dilip Buildcon is converting the 2-lane highway into six lanes under a build-operate-transfer and hybrid annuity mode (BOT-HAM) at an estimated total project cost of Rs20.13 billion. The concession's terms comprise a 30-month construction period; a 15-year operation period from commercial operations date; and first-year O&M of Rs30 million.
Structured via Anandapuram Anakapalli Highway Private, wholly owned by Dilip Buildcon, the SPV reached financial close in January 2019, following the signing of the concession agreement in April 2018 between National Highways Authority of India and the Dilip Buildcon subsidiary.
ADB declined to comment on why the project company would need the non-sovereign loan some 2 years after achieving financial close. “Any information dissemination and public release of the details will be carried out only after the facility agreement is signed,” the ADB source said.
