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IRB achieves financial closure for Kundapur project

The total cost of this project is Rs 2,639 cr

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Raghuvir Badrinath Bangalore
Last Updated : Dec 26 2013 | 1:36 PM IST
IRB Infrastructure Developers, a highway developer, has announced that  its wholly-owned Subsidiary - IRB Westcoast Tollway Pvt. Ltd. – SPV for Goa/Karnataka Border to Kundapur Project, has tied up project finance of Rs 1,406 crore for this project.

The total cost of this project is Rs 2,639 crore, out of which viability gap funding from NHAI of Rs 536 crore, equity contribution by the Company will be approximately Rs 697 crore and remaining will be funded through project finance of Rs 1,406 crore. The average cost of this project finance is approximately 11.75% p.a.

A consortium of lenders comprising IDBI Bank Limited (lead institution), Allahabad Bank, Bank of Baroda, Bank of India, Canara Bank and Union Bank of India have financed this project.

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IRB has also announced that it has now received an official communication from the National Highways Authority of India  by way of a Letter of Award whereby NHAI has accepted IRB's Price Bid and has declared them as the “Selected bidder” for the project of Four Laning of Solapur to Yedeshi section of  NH-211 under NHDP Phase IV on Design, Build, Finance, Operate and Transfer (DBFOT) (Toll) Basis.

The estimated project cost of the company is approximately Rs 1,500 crore with construction period of 910 days. The concession period for the same is 29 years. IRB has sought Rs 189 crore as Viability Gap Funding from NHAI for this Project.

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First Published: Dec 26 2013 | 1:29 PM IST

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