Mumbai-based MEP Infrastructure Developers (MEPIDL) has tied up with ITD Cementation, a subsidiary of Italian-Thai Development Company, in order to bid jointly for upcoming road projects under the hybrid annuity model (HAM).
Jayant Mhaiskar, VC & MD, MEP Infrastructure Developers, told Fe, “In the next 20-days, we will be bidding for 10-12 road projects under HAM, for which we have completed our pre-bid studies. Of these, we will bid for two of them with our new joint venture (JV) partner, ITD Cementation. For the other 10 projects, we will bid for them with our existing JV partner, the Chinese state-owned firm, Longjian Road & Bridge Company.”
The JV with ITD Cementation is the third for MEP Infrastructure Developers, following the tie-ups with Spain’s San Jose and Longjian Road & Bridge Company. MEPIDL, which was a toll management company, entered the construction business only two of years ago when the HAM road projects were introduced by the ministry of road transport and highways. The tie-ups with overseas players has given the company much-needed access to construction expertise to execute the projects. ITD Cementation has constructed about 500 km of roads in India so far, along with flyovers, underpasses and river bridges.
A lower cost of capital is the other benefit MEPIDL derives through its joint ventures, as his partners are able to access cheaper credit overseas. For instance, the tie up with Longjian Road & Bridge Company has helped MEPIDL borrow funds at rates lower by about 2-3% than those prevailing in India.