SBI supports Cube highway investment
Singapore-based Cube Mobility Investment Pte Ltd (Cube Highways) has paid upfront consideration of Rs.5,011 crore for taking over 566-km TOT 3 Bundle contract from the National Highway Authority of India (NHAI).
The payment was made to NHAI on 19 Oct 2020, said the Ministry of Road Transport and Highways which has ongoing privatizing highways on a concession basis to draw foreign investments.
The NHAI TOT 3 bundle consists of nine toll plazas in the state of UP, Jharkhand, Bihar and Tamil Nadu under the Toll-Operate-Transfer (ToT) model.
The concession period is 30 years and the concessionaire shall operate, maintain and collect the toll during the concession period.
This is the second award under TOT model. The first was a 681-km consisting 10 toll plazas concession awarded to MAIF for an upfront consideration of Rs.9,681.5 crores in 2018, said the Ministry.
The NHAI is in the process of award of more stretches under TOT model for monetization of its completed public-funded projects.
The award ceremony was held through video conferencing and chaired by Minister for Road Transport and Highways Nitin Gadkari, Minister of State for Road Transport and Highways General V.K. Singh and NHAI Chairman S S Sandhu. Member NHAI and representatives of Cube Highways also attended the ceremony.
Cube, backed by I Squared Capital of Singapore and Abu Dhabi Investment Authority, invests in road and highway projects as well as other infrastructure projects.
It has acquired 27 highways of 8,400-km across India including assets under various stages of closing.
In September 2020, Cube had secured a Rs.3,500 crore loan facility for the TOT Bundle 3 project.
The NHAI collects upfront concession fee on behalf of the Government and leases highway stretches on 30-year concession under the TOT model. #tenders #projects #investment #concession #contract #toll /fiinews.com
