Case study 01-Revival of a critical BOT Road Project in the state of Jammu & Kashmir

Srinagar - Banihal Expressway

The Scheduled Project Completion Date of the Project (Jun ’14) was delayed with construction at a stand still. Further, unprecedented floods in September 2014 led to massive damage to camps & equipment. The ongoing time overruns, land issues and lapsed annuities made the project financially unviable leaving the lenders (debt exposure of ~₹ 6500 million) distressed with no sign of recovery.

As part of the revival strategy, iValue recommended Lenders to take control of the Project execution. Further, as a part of the iValue’s strategy, we mobilized full project management team at site to resume construction & ensure timely completion of the Project.

iValue’s efforts on the Project since our engagement have resulted in a substantial turnaround of the asset with achievement of the following milestones:

  • Resolution of all contractual & land issues
  • Grant of time extension of 523 days through SAROD
  • Sanction of one time fund infusion by NHAI (₹ 2000 Mn)
  • Extension in Concession Period by ~200 days
  • Receipt of interim insurance payments of ₹ 850 Mn
  • COD achieved in March 2018 due to project revival measures and focussed efforts

KEY PROJECT HIGHLIGHTS:

BOT Annuity Road Project of 68 km length between Srinagar to Banihal in Jammu & Kashmir on NH1A
Project of strategic importance, which provides all-weather access to the valley
Project awarded by NHAI under NHDP Phase IV for a Concession Period of 20 years, including a construction period of 3 years
34 Semi-annuities, of ₹ 1348.20 Mn each