Chapter 3

The National Highway Authority of India (NHAI) and the Project

Highway

3.1 Introduction.

3.2 Establishment.

3.3 Functions.

3.4 Projects of the NHAI.

3.5 The NHAI and the Project Highway.

3.5.1 The location of the Project Highway.

3.5.2 Clearances.

3.5.3 The Build – Operate – Transfer (BOT) Project.

3.5.4 The Model Concession Agreement (MCA).

3.5.5 Grant of Concession.

3.5.6 Construction Aspects of the Project Highway.

3.5.7 Obligations of the NHAI.

3.5.8 Completion of the Project Highway.

3.5.9 Tests of the Project Highway.

3.5.10 Operation and Maintenance of the Project Highway.

3.5.11 Financing Arrangements.

3.6 The Provisional Completion Certificate.

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Chapter 3

The National Highway Authority of India (NHAI) and the Project

Highway

3.1 Introduction

The National Highway Authority of India (NHAI) is an autonomous agency of the

Government of India, responsible for management of a network of over 60,000 km of

National Highways in India. The Authority is a nodal agency of the Ministry of Road

Transport and Highways (MoRTH).

3.2 Establishment

The NHAI, a statutory body, was created under the provisions of the National

Highways Authority of India Act, 1988. In February 1995, the Authority was formally

made an autonomous body. It succeeded the erstwhile Ministry of Surface Transport

(MOST).

It’s principle office is at G-5 and 6, Sector 10, Dwarka, New Delhi – 110075.

3.3 Functions

It is responsible for the development, maintenance, management and operation of

National Highway totalling over 70,548 km in length.

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3.4 Projects of the NHAI

The NHAI has the mandate to implement the National Highway Development Project

(NHDP). The NHDP is one of the most ambitious projects launched in the

independent India. The NHDP comprises following phases:

Phase I: Approved in December 2000. It includes 5,846 km. Golden

Quadrilateral (GQ) connecting the four major cities of Delhi, Mumbai,

Chennai and Kolkata, portions of the NS – EW corridors and connectivity of

four major ports to National Highways.

Phase II: Approved in December 2003. Estimated cost of Rs. 34,339 Crores

(At 2002 prices). It included the completion of the NS – EW corridors and

other 486 km highways. It links Kashmir in the North to Kanyakumari in the

South including spur from Salem to Kochi and Silchar in the East and

Porbandar in the West.

Phase III A: Approved in March 2005. Estimated cost Rs. 22,207 Crores (At

2004 prices). It included up gradation and 4-laning of 4,035 km of National

Highways on the BOT basis.

Phase III B: Approved in April 2006. Estimated cost Rs. 54,339 Crores. It

includes up gradation and 4-laning of 8,074 km National Highways.

Phase V: Approved in October 2006. It includes upgrades to 6-lanes for 6,500

km of which 5,700 km is on Golden Quadrilateral (GQ). This phase is

entirely on a Design, Build, Finance and Operate (DBFO) basis.

Phase VI: Approved in November 2006. It includes development of 1,000 km

of Expressways at an estimated cost of Rs. 16,680 Crores.

Phase VII: Approved in December 2007. It will develop ring roads, by-passes

and flyovers to avoid traffic bottlenecks on selected stretches at an estimated

cost of Rs. 16,680 Crores.

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3.5 The NHAI and the Project Highway

3.5.1 The Location of the Project Highway

Mumbai – Agra road, National Highway No. 3 is one of the most important highways

in the network of National Highways that carries heavy long distance commercial

traffic.

The Ministry of Road Transport and Highways (MoRTH) decided to improve this

road on the BOT basis. The National Highway Authority of India (NHAI) is the

implementing authority for this project.

For the purpose of project preparation, the selected length of this corridor is divided

into convenient sections based on their traffic generation and attraction potential,

geographic location and other considerations.

One such section that falls in Maharashtra between Vadape (km 539/500) to Gonde

(km 440/000) is chosen for implementation. (Ch 0.00 is at Indore and increases

towards Mumbai).

Village Gonde is about 25 km south of Nashik and Vadape is at the end of 4-lane

wide Bhiwandi By-pass toll section, about 20 km. north of Thane.

The Ministry appointed Consulting Engineering Services (India) Private Limited

(CES) as the Consultant for providing necessary technical service to prepare Detailed

Project Report (DPR).

The Project Road length runs in North-South direction and passes through Nashik and

Thane district. Out of the 100 km road length, 30% lies in the Nashik district and

remaining in the Thane district. Alignment traverses through Igatpuri Taluka in

Nashik district and Shahapur and Bhiwandi Talukas in Thane district. There are in all

52 number of villages through which the alignment passes.

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The important towns on way are Ghoti (km 453) in Igatpuri Taluka, Igatpuri (km

463), Khardi (km 493) and Shahapur (km 513).

There are six major roads (State Highways) that join or cross the National Highway.

In addition there are 73 more road junctions of village roads joining the highway.

3.5.2 Clearances

For construction of the Project Highway following clearances were obtained.

i) Environment Clearance from Ministry of Environment and Forest

(MoEF).

ii) Forest Clearance from Regional Forest Office, Bhopal.

iii) Road Over Railway Bridge from Central Railway.

iv) Permission from Tree Authority for tree cutting.

The clearances from above authorities were required because –

1) The project affects forest lands. In some places it needed acquisition of the

forest land.

2) The Noise level along the Project Road was already high and was expected

to increase progressively. It also causes air pollution.

3) For 4-laning, transplanting the existing trees to the extent possible was

planed but still cutting the existing trees was unavoidable.

4) The Project Highway crosses various streams, rivers, gorges and railway

tracks.

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3.5.3 The Build, Operate, Transfer (BOT) Project

The BOT Documents were prepared and offers were called by the Ministry. The BOT

i.e. Build, Operate, Transfer arrangement means the private investor (Concessionaire)

builds, operates and transfers the project back to the Government at the end of a

specified period, called the ‘Concession Period’.

3.5.4 The Model Concession Agreement (MCA)

The Model Concession Agreement for this Project Highway was signed on 14th

October 2005 between the National Highway Authority of India (NHAI) and the

Concessionaire i.e. M/s. Mumbai Nasik Expressway Limited, a company incorporated

under the provisions of the Companies Act 1956. It has its registered office at

Gammon House, Veer Savarkar Marg, Prabhadevi, Mumbai – 400 025. The NHAI

was keen to implement a project envisaging Improvement, Operation and

Maintenance, Rehabilitation and Strengthening of the existing 2-lane NH-3 and

widening it to 4-lane divided highway of Vadape to Gonde section of NH-3 from km

539.50 to km 440.00 in the State of Maharashtra on the BOT basis.

The MoRTH invited the Request for Proposals on the BOT basis on 19th September

2003 and subsequent to that the NHAI issued and prescribed the technical and

commercial terms and conditions vide its letter no. NHAI/BOT/11019/1/2003 dated

28th February, 2004 (the Tender Notice) and invited Bids from the BOT

Entrepreneurs.

The NHAI received the BID from the Consortium Members, Gammon India Limited

(having its registered office at Gammon House, Veer Savarkar Marg, Prabhadevi,

Mumbai – 400 025) as the Lead Member, Sadbhav Engineering Limited (having its

registered office at Sadbhav House, Opposite Law Garden Police Chowki, Ellis

Bridge, Ahmadabad) and B.E. Billimoria and Company (having registered office at

Wankhede Stadium (North Stand) ‘D’ Road, Churchgate, Mumbai – 400020).

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After evaluation of the Bids so received, the NHAI accepted the Bid of the

Consortium and issued its Letter of Acceptance No. NHAI/BOT/ 11019/1/2003/227

dated 16th June, 2005 (LOA) to the Consortium, requiring its confirmation of

acceptance of LOA, the execution of the Concession Agreement within thirty days of

the date of acceptance of LOA and furnishing of Performance Security before signing

of the Concession Agreement.

The Consortium accepted the said LOA and the terms and conditions therein and

issued its acceptance of the LOA vide its Letter No. VG/PKU/VSK/2005/31 dated

29.06.2005.

Subsequently the Consortium has promoted and incorporated the Concessionaire

(M/s. Mumbai Nasik Expressway Limited) to enter into the Concession Agreement

for undertaking the design, engineering, financing, procurement, construction,

operation and maintenance of the Project Highway on the BOT basis.

The Consortium also submitted the Performance Security of Rs. Seventeen Crores and

Thirty Seven Lakhs for the Project vide its Letter No. VG/PKU/VSK/20O5/43 dated

27th July, 2005.

3.5.5 Grant of Concession

Subject to and in accordance with the terms and conditions of the Concession

Agreement, the concession period of 20 years commencing from the Appointed Date

(means the date, 180 days from signing of the Concession Agreement [Date of

Signing 14th October, 2005]) was granted by the NHAI.

According to the Concession Agreement, the Concessionaire is entitled to develop,

design, engineer, finance, procure, construct, operate and maintain the Project

Highway during the Concession Period and after completion of the Project Highway

and during the Operations Period to manage, operate and maintain the Project

Highway. The Concessionaire according to the MCA is entitled to levy and collect

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Fees from the users of the Project Highway and refuse entry of any vehicle to the

Project Highway if the due fee is not paid.

The overall estimated cost of the project was estimated approximately Rs. 536 Crores

(a base cost including the Kasara Ghat Bypass) and the Financial Internal Rate of

Return (FIRR) is worked out to 15.48%.

The Concessionaire is entitled to suggest locations of Toll Plazas and the Project

Monitoring Unit Complex and pay for acquisition of lands for it.

The NHAI and the Concessionaire will jointly appoint Independent Consultant and

the Project Monitoring Unit to supervise the progress of the work.

The construction programme will be of 5 years, divided into 2 stages. In the 1st stage

of 3 years duration, most of the priority works will be completed. The 2nd stage of 2

years will attend to residual works like service roads, drains, amenities and

arboriculture etc.

3.5.6 Construction Aspects of the Project Highway

As the major work has to be completed within an initial limited period of 3 years, all

the sections should remain in progress simultaneously and there are no intersay

priorities in between them.

Each section will have two major components, that is, improvement of the existing

road and construction of second (new) carriageway. It will be necessary to construct

the new carriageway, divert traffic on it and then switch over to improvement of the

existing highway. For this purpose eccentric widening of the roadway is preferred to

symmetrical widening of the existing road, which will ensure minimum hindrance to

traffic plying on the existing road. As far as possible, it will be preferable to keep the

construction vehicles separated from the main traffic flows. Concessionaire has to use

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his ingenuity in planning and implementing construction methodology and adopt

traffic control methods accordingly.

The overall prioritization of component sub-works comprise of preconstruction and

during construction activities. The sequence of such construction activities is

suggested below.

A) Pre Construction Activities :

1) Obtaining ‘No Objection Certificates’ (NOCs).

2) Environment Clearance.

3) Land Acquisition.

4) Relocating Utilities.

5) Felling of Trees.

6) Appointment of the BOT Agencies.

B) During Construction :

1) Construction of new road starting with construction of culverts and

bridges and service roads, including construction of New Kasara Ghat

road. It is possible to take up construction of about 15 km of road length

between Ghoti and Kasara within available ROW i.e. till additionally

required land is acquired in other stretches.

2) New road embankment and pavement (including Ghat bypass).

3) Diverting traffic to new road (in sub-sections if possible).

4) Construction of culverts and bridges if any, on the existing road.

5) Improvement to existing road, camber correction and pavement.

6) Road furniture, side drains, median.

7) Toll plaza, amenities, land scaping.

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3.5.7 Obligations of the NHAI

The NHAI agrees to observe, comply and perform the following:

1) Enable access to the Site to the Concessionaire, free from Encumbrances, in

accordance with the MCA.

2) Permit peaceful use of the site by the Concessionaire as licensee under and in

accordance with the provisions of the MCA without any let or hindrance from

the NHAI or person claiming through or under it.

3) Assist and provide all reasonable support to the Concessionaire in obtaining

Applicable Permits.

4) Upon written request from the Concessionaire, assist the Concessionaire in

obtaining access to all necessary infrastructure facilities and utilities,

including water, electricity and telecommunication facilities at rates and on

terms no less favourable to the Concessionaire than those generally available

to commercial customers receiving substantially equivalent services.

5) Procure that no barriers are erected or placed by the Government of

Maharashtra or any Governmental Agency on the Project Highway except on

account of any law and order situation or upon national security

considerations.

6) Enter into the State Support Agreement with the Concessionaire and the

Government of Maharashtra.

7) Assist the Concessionaire in obtaining necessary assistance to regulate traffic

on the Project Highway subject to and in accordance with the Applicable

Laws.

8) Assist the Concessionaire in obtaining Police assistance from the Government

of Maharashtra against payment of prescribed costs and charges, if any, for

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traffic regulation, patrolling and provisions of security on the Project

Highway.

9) Operate and maintain the Project Highway during the Development Period, at

its own cost and expenses, in a manner that the level of service is at no time

inferior to the level prevailing on the date when bids were received for this

Concession.

10) Observe and comply with its obligations set forth in this Agreement.

11) Take all necessary steps towards accomplishment of acquisition of additional

land. The NHAI shall bear the cost of additional land.

12) Coordinate with the Government of Maharashtra authorities for completing

the legal requirements and maintaining law and order during removal of

encroachment by the Concessionaire.

13) Provide necessary support to the Concessionaire in obtaining necessary

clearances / permissions / permits in respect of environmental clearances, tree

cutting, compensatory afforestation, shifting of all types of utility services,

construction of ROB/RUB on Railway lines and rehabilitation and

resettlement.

14) Bear all expenses as per demand note raised by the concerned Government

or other concerned agencies in respect of environmental clearances, tree

cutting, compensatory afforestation, shifting of all types of utility services,

construction of ROB/RUB on Railway lines and rehabilitation and

resettlement.

15) Arrange to issue fee notification to get legal opinion from a legal counsel to

the concessionaire.

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3.5.8 Completion of the Project Highway

According to the MCA, the Project shall be deemed to be complete and

open to the traffic only when the Completion Certificate or Provisional

Certificate is issued.

Commercial Operation Date (COD) of the project shall be the date on

which the Independent Consultant has issued the Completion Certificate or

the Provisional Certificate, as the case may be, under the MCA and the

Concessionaire shall not levy and collect any Fee until it has received such

Completion Certificate or Provisional Certificate.

The Concessionaire guarantees that the Project Completion shall be

achieved in accordance with the provisions of the MCA on a date not later

than 36 months from the Appointed Date.

If the Project Completion is not achieved by the Scheduled Project

Completion Date for any reason, the Concessionaire shall pay the NHAI as

Weekly Damages for delay in the achievement of Commercial Operation

Date [COD] an amount calculated at the rate of 0.01% of the Total Project

Cost per week or part thereof.

If the COD does not occur within 12 months from the Scheduled Project

Completion Date, the NHAI shall be entitled to terminate the MCA.

3.5.9 Tests of the Project Highway

‘Tests’ means the tests to be carried out to determine the Project

Completion and its certification by the Independent Consultant for

commencement of Commercial operation of the Project Highway. The

NHAI shall designate a NHAI Representative to witness and observe

Tests.

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The Independent Consultant shall monitor the results of the Tests to

determine the compliance of the Project Highway with the Specifications

and Standards. The Concessionaire shall provide to the Independent

Consultant and the NHAI with copies of all Test data including detailed

Test results.

At least 30 days prior to the likely completion of the Project Highway or

each of (a) a continuous stretch of at least 50 km of the Project Highway

and (b) the balance stretch of the Project Highway (if the length of the

Project Highway is more than 50 km), the Concessionaire shall notify the

Independent Consultant and the NHAI of the same and shall give notice of

its intent to conduct any final Tests. The Concessionaire shall give to the

NHAI and the Independent Consultant at least 10 days prior notice of the

actual date or which it intends to commence the Tests and at least 7 days

prior notice if the commencement date of any subsequent Tests. The

Independent Consultant shall have the right to suspend or delay any Test

that the performance of the Project Highway or any part thereof does not

meet the Specifications and Standards.

Upon the Independent Consultant determining the Tests to be successful,

then that stretch of the Project Highway can be legally, safety and reliably

placed in commercial operations, the Independent Consultant issues

Completion Certificate to the Concessionaire and the NHAI in respect of

that stretch. When all the stretches of the Project Highway receives

Completion Certificate for all the stretches, a final Completion Certificate

certifying the Project Completion is issued.

The Concessionaire shall bear all the expenses relating to the Tests.

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3.5.10 Operation and Maintenance of the Project Highway

The Concessionaire shall operate and maintain the Project Highway by itself, of

through O & M Contractors (O & M Contractor means the person or entity with

whom the Concessionaire has entered into an O&M Contract for discharging

Operation and maintenance functions for and on behalf of the Concessionaire) or if

required modify, repair or otherwise make improvements to the Project Highway to

comply with Specifications and Standards such as:

Permitting safe, smooth and uninterrupted flow of traffic during normal

operating conditions.

Charging, collecting and retaining the fees in accordance with the MCA.

Minimizing disruption to traffic in the event of accidents or other incidents

affecting the safety and use of the Project Highway by providing rapid and

effective response and maintaining emergency services.

Undertaking routine maintenance including prompt repairs of potholes,

crocks, concrete joints, drains, line markings, lighting and signage.

Undertaking major maintenance such as resurfacing of pavements, repairs

to structures, repairs and refurbishment of tolling system and hardware and

other equipments.

Carrying out periodic preventive maintenance to Project Highway including

tolling system.

Preventing with the assistance of concerned law enforcement agencies,

unauthorized encroachment on the Project Highway including site and

preserve the right of way (ROW) of the Project Highway.

Maintaining Public Relations Units to interface with and attend to

suggestions from users of the Project Highway, the media, the Government

Agencies, and other external agencies.

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In case of unsafe conditions, vehicle breakdowns and accidents; the

Concessionaire shall follow up temporary traffic cones and lights, removal

of obstructions and debris etc.

The Concessionaire shall ensure that any diversion or interruption of traffic

is remedied without delay. The Concessionaire’s responsibility for rescue

operation on the Project Highway shall be limited to the removal of

vehicles or debris or any other obstruction, which may endanger or interrupt

the smooth traffic flow on the Project Highway.

The Concessionaire shall be responsible for the maintenance of the

approach roads to and underpasses and overpasses upto 100 meters from

the Project Highway.

3.5.11 Financing Arrangements

a) Financial Close :

The Concessionaire shall provide to the NHAI, a copy of Financing Package

furnished by it to the prospective Senior Lenders. (Senior Lender means the financial

institutions, banks, funds and agents or trustees of debenture holders, including their

successors and assignees, who have agreed to provide finance or guarantee facility to

the Concessionaire under any of the Financing Documents for meeting costs of all or

any part of the Project). As and when such Financing Package is approved by the

Senior Lenders, with or without modifications, a copy of the same shall be furnished

by the Concessionaire to the NHAI.

The Concessionaire shall achieve Financial Close within 180 days from the date of

the MCA. If the Concessionaire fails to achieve the Financial Close within 180 days

period, the Concessionaire shall be entitled to a further period of 180 days subject to

an advance weekly payment by the Concessionaire to the NHAI of a sum of

41

Rs. 1,00,000/- per week or part thereof for any delay beyond the said first 180 days

period as Damages on account of such delays.

‘Financing Close’ means the date on which the Financing Documents providing for

funding by the Senior Leaders have become effective and the Concessionaire has

immediate access to such funding under the Financing Documents.

‘Financing Documents’ means the documents executed by the Concessionaire in

respect of financial assistance to be provided by the Senior Lenders by way of loans,

guarantees, subscription to non-convertible debentures and other debt instruments,

security agreements and other documents relating to the financing (including

refinancing) of the Project.

‘Financing Package’ means financing package of the Project furnished by the

Concessionaire along with its Bid indicating the Total Project Cost and the means of

financing thereof and shall be deemed to have been modified to the extent as

submitted to the Senior Lenders and as approved by the Senior Lender for the purpose

of funding of the Projects.

Notwithstanding anything to the contrary contained in the MCA, the NHAI shall be

entitled to terminate the MCA.

b) Grant :

The NHAI agrees to provide to the Concessionaire cash support by way of Grant

equal to the sum as set forth in the Bid of Consortium and accepted by the NHAI

aggregating to Rs. 159.00 Crores and the Concessionaire agrees to provide to the

NHAI cash payment (the Negative Grant) equal to the sum as set forth in the Bid of

the Consortium and accepted by the NHAI, aggregating Rs. 120.00 Crores during the

Concession Period.

Negative Grant shall be paid in advance within 90 days of the commencement of the

year for which it is due and payable.

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The Grant shall be applied by the Concessionaire for meeting the Capital Cost of the

project and expenditure during the Operations period and shall be treated as part of

the shareholders’ Funds i.e. the ‘Equity Support’.

c) Revenue Shortfall Loan :

If the Realisable Fees (means all the Fees due and realisable under the MCA but does

not include fees that the Concessionaire has not been able to realise after due

diligence and best effort) in any Accounting year during the Concession Period shall

fall below the Subsistence Revenue Level (means the total amount of Fee revenue that

is required by the Concessionaire in an Accounting Year to meet the sum of (a) the O

& M Expense subject to an annual ceiling of 1.5%. Operations year, to be revised

each year to reflect the variations in the WPI in each subsequent years and (b) Debt

Service Payments due to the Senior Lenders in an Accounting Year) as a result of an

Indirect Political Event (i.e. an act of war, invasion, armed conflict or act of foreign

enemy blockade, riot, terrorist or military action etc. which prevent collection of Fees

by the Concessionaire for a period of exceeding a continuous period of 7 days in an

Accounting Year) or a Political Event (means change in law, expropriation or

compulsory acquisition by any Government Agency of any Project Assets or rights of

the Concessionaire or of the Contractors, etc.) agrees to provide to the Concessionaire

such shortfall support by way of a loan called “Revenue Shortfall Loan” with interest

thereon @ SBI PLR per annum.

‘SBI PLR’ means the prime lending rate per annum for loans with one year maturity

as fixed from time to time by the State Bank of India, and in the absence of such rate,

the average of the prime lending rates for loans with one year maturity fixed by the

Bank of India and failing that any other arrangement that substitutes such prime

lending rate as mutually agreed between the Parties.

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d) Escrow Account :

‘Escrow Account’ means an Account which the Concessionaire shall open and

maintain with a Bank in which all inflows and outflows of cash on account of capital

and revenue receipts and expenditure shall be credited and debited, as the case may

be, in accordance with the provisions of the MCA.

According to the MCA, the Concessionaire shall within 60 days from the date of the

MCA open and establish the Escrow Account with a Bank and all funds constituting

the Financing Package for meeting the Total Project Cost shall be credited to such

Escrow Account. During Operation Period all fees collected by the Concessionaire

from the users of the Project Highway shall be exclusively deposited therein. In

addition, all fees collected by the NHAI in exercise of its right under this MCA during

the Concession Period and all disbursements or payments by the NHAI shall also,

subject to the rights of deductions and appropriations therefrom of the NHAI, should

be deposited by the NHAI in the Escrow Account.

e) The State Support Agreement :

The “State Support Agreement” means the agreement to be entered into between the

Government of Maharashtra, the NHAI and the Concessionaire substantially are fully

described in the draft State Support Agreement set forth as Schedule ‘R’ of the

Concession Agreement for provision of support, backup and services required from

the Government of Maharashtra for the performance of Concessionaire’s obligations

under this MCA.

f) Insurance :

The Concessionaire is required to take Insurance during the Construction Period as

well as the Operation Period, at no cost to the NHAI up to maximum sums required in

accordance with the Financing Documents and Applicable Laws.

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g) Accounts and Audit :

The Concessionaire shall maintain full accounts of all Fees including Realisable Fees

(means all the Fees due and realisable under the MCA but does not include fees that

Concessionaire has not been able to realise after due diligence and best efforts) and

other revenues derived / collected by it from and on account of use of the Project

Highway and of O&M Expenses and other costs paid out of the Project Escrow

Account and shall provide to the NHAI copies of these accounts duly audited and

certified by the Concessionaire’s Statutory Auditors within 120 days of the close of

each Accounting Year.

The ‘Statutory Auditors’ means an independent, recognized and reputable firm of

Chartered Accountants duly licensed to practice in India acting as independent

statutory auditors of the Concessionaire under the provisions of the Companies Act

1956.

3.6 The Provisional Completion Certificate

Sheladia Associates Inc. in association with M/s. Artefact Projects acted as

Independent Consultants on the Project “4 laning of Vadape to Gonde from km

440/000 to km 539/500, section of NH-3 in the State of Maharashtra, India” on the

BOT basis.

M/s. Mumbai Nasik Expressway Limited is the Concessionaire in the Project which

signed the Concession Agreement dated 14th October, 2005 with the NHAI.

The Independent Consultants provided the Provisional Completion Certificates, one

on 23rd December, 2009, the second on 11th May, 2010 and the third on 11th July,

2011.

The first Provisional Certificate dated 23rd December, 2009 mentioned that 4 numbers

of ROB’s and 2 numbers of major bridges along with approaches are still incomplete

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and competent Authority of the NHAI has approved their deletion from 1st Milestone

COD. Approximately 3 km. length is incomplete between km 440/000 to km 490/000.

In this regard the Concessionaire has completed upto km 493.000 to compensate for

the incomplete 3 km between km 440/000 and 490/000 and to complete the required

50 km length for the 1st Milestone.

The second Provisional Completion Certificate dated 11th May, 2010 was issued for

the stretch from km 493/000 to 508/000 deducting 1.00 km length on account of

incomplete status of ROB at 494+767 resulted in a total completed length of 14 km.

The Third Provisional Completion Certificate dated 11th July, 2011 was issued for the

stretch from km 508+000 to km 539+500 (2nd Milestone) and for excluded sectional

lengths of Milestone – 1. The certificate certifies that all works have been completed

on 31st May, 2011, excluding 2 numbers ROBs and items appended in Punch list. It

also states that the Competent Authority in NHAI HQ has approved the deletion of

these two numbers of ROBs from 2nd Milestone COD.

Receiving such Provisional Completion Certificate, the Concessionaire is permitted

that all parts of the Project Highway can be legally, safely and reliably placed in

Commercial Operations.

Chapter 4

Financing Procedures and Rules for the Road Projects of the

National Highway Authority of India (NHAI) Using

the Public Private Partnership (PPP) Scheme

4.1 Introduction.

4.2 Meaning and Definition of the PPP Project.

4.3 Reasons for opting to use the PPP Scheme.

4.4 The PPPs in National Highways.

4.5 Framework for the PPPs in National Highways.

4.6 The PPP Database.

4.7 The Model Concession Agreements (MCA).

4.8 The Public Private Partnership Approval Committee (PPPAC).

4.9 Finance for the PPP Projects.

4.9.1 Meaning of India Infrastructure Project Development Fund (IIPDF).

4.9.2 Purpose of the IIPDF.

4.9.3 The Viability Gap Funding Scheme.

4.9.4 Eligibility Criteria for getting support under VGF Scheme.

4.9.5 Procedure for getting the VGF.

4.9.6 Disbursement of the VGF.

4.10 India Infrastructure Finance Company Limited (IIFCL).

4.11 the BOT variants used in National Highways Projects.

4.11.1 Meaning and Definition of the BOT.

4.11.2 Parties to the BOT Projects.

4.11.3 The BOT (Toll) Model.

4.11.4 The BOT (Annuity) Model.

4.11.5 Applicability of the BOT Models.

4.11.6 Advantages of the BOT Projects.

4.12 Issues Limiting Greater Participation of the Private Sector in the

PPP.