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Sector: Ports  |  Module 3: Tools and Resources

Case Studies

Vadodara Halol Toll Road
PPP structure of the Project

The VHTR project is developed under the Built, Own, Operate and Transfer (BOOT) basis. For the purpose of effectively executing the project, an SPV – VHTRL was created. VHTRL was promoted by the GoG and IL&FS. It entered into a concession agreement with GoG to design, finance, build, operate, maintain, and transfer the facility after recovery of a predetermined return. VHTRL in turn appointed a consortium of Punj Lloyd Limited and IRCON International Limited as contractors to construct, operate and maintain the project. The contractors also have an equity stake in VHTRL.

The scope of work for VHTRL included the following activities:
Construction

This included the design and completion of the road, including the pavement, cross drainage system, bridges, toll facilities, medians, separators, road furniture, and horticultural aspects.

Management, operation and maintenance

This includes toll collection, operating the toll plaza, traffic regulation and maintenance of the facility. It also includes special maintenance activities such as eliminating potholes in the pavements, replacing drainage structures, road markings and signage, cleaning lanes, shoulders, right-of-way strips, structures, maintaining operational installations and drainage facilities.

Rehabilitation works include preliminary works, slurry seals, surface treatments, resurfacing and emergency works.
In consideration for performing its obligations, VHTRL has a right to charge toll directly to the users of VHTR and is permitted to earn from advertisements, hoardings and other commercial activities at the project site.

The concession period is for a period of 30 years. In case VHTRL is unable to recover the total cost of the project, including a 20% return, within 30 years from the date of operation, the concession period shall, at the request of VHTRL, without qualification be extended by GoG for a period of two years at a time until the total project cost and returns have been recovered by VHTRL. Any request for an extension needs to be supported by a certificate from an ‘Independent Auditor’ confirming the same.

Further, the GoG may also grant certain development rights to VHTRL. The terms and conditions governing the utilization of development rights shall be specified in a separate agreement entered into between the parties. All the development income generated by VHTRL shall be applied towards the recovery of the total cost of project and the returns.
The land for the project is leased to VHTRL by GoG through a lease agreement between the parties.

On the termination of the Concession Period, the Concessionaire has to transfer and assign to the GoG all the Concessionaire's rights, title deeds, and interest in the facility for a nominal consideration of Rupee 1. The Concessionaire also has to deliver to GoG operating manuals, plans, design drawings and other information to enable it to continue operating the Facility.

 

 

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