SVPRPL submits draft financing documents to NHAI for road project in Andhra Pradesh

Sadbhav Vizag Port Road Private Limited (SVPRPL), a wholly owned subsidiary of Sadbhav Infrastructure Project Limited, has submitted draft financing documents to the National Highways Authority of India (NHAI) for its road project in Andhra Pradesh. The project entails construction of a four-lane, 12.7 km road connecting to Visakhapatnam port from km 0.0 to km 12.7 under port connectivity projects of the Bharatmala Pariyojana. It will be undertaken through the hybrid annuity model. While NHAI’s cost for the project was Rs 3.97 billion, the company bid price for the project is Rs 5.49 billion. Further, the operation and maintenance (O&M) cost for the first year has been quoted at Rs 20.7 million. While the debt tie-up for the project is a rupee term loan of Rs 2.43 billion, a sum of Rs 2.2 billion will be received from NHAI during the construction period and Rs 735 million is SVPRPL’s contribution. The rupee term loan tenor will be 15 years and two months from the appointed date and will have an interest rate of 10 per cent per annum, which will be linked to the benchmark rate.