NHAI to open financial bids for second TOT package December 24

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Published: December 22, 2018 1:03:22 AM

The last date for submission of bids for the second bundle, comprising eight highways totalling 586.55 km, closed on Wednesday. NHAI has set the base price for the second TOT package at Rs 5,362 crore. The concession period is 30 years.

NHAI to open financial bids for second TOT package December 24

The National Highways Authority of India (NHAI) is set to open the financial bids for the second toll, operate, transfer (TOT) package on Monday.

As reported by FE on December 20, NHAI has received just three bids for this second bundle with Mumbai- based IRB Infrastructure Developers, Cube Highways, and Adani Group in a joint venture with Madhya Pradesh- based Prakash Asphalting and Toll Highways being the bidders.

The last date for submission of bids for the second bundle, comprising eight highways totalling 586.55 km, closed on Wednesday. NHAI has set the base price for the second TOT package at Rs 5,362 crore. The concession period is 30 years.

According to official documents, in the early stages, Canadian asset manager Brookfield Asset Management, Global Infrastructure Partners (GIP), through its subsidiary Highway Concessions One, PSP Investments-owned ROADIS, and Tata Realty and Infrastructure (TRIL) had taken part in the preliminary bid meetings.

In the auction for the first TOT package earlier this year, IRB Infrastructure had partnered with Italy-based Atlantia. However, this time, they have decided to go it alone, a spokesperson for IRB told FE. Macquarie Group had won the first auction in February by bidding one and a half times the reserve price at `9,681 crore and nearly 28% more than the second bidder, Brookfield.

According to experts, bankers and advisers, the second round is likely to see less euphoric bids as the highways in this second bundle are not as well maintained while some of them are also less likely to see a good growth in traffic.

Recently, Vinayak Chatterjee, chairman, Feedback Infrastructure had tweeted that in the second package, the stretches of highways in the states of West Bengal and Bihar are the ‘key dampeners’. The growth rates in these states are much lower than the national average as a result of which toll collection and subsequent traffic growth are also expected to grow at a slower pace.

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