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Infrastructure & PPPs in India - Q4 2021 Update - Transport and Urban Infra

INDIA's transport sector is seeing significant infra development activity via PPP mode in roads, ports and airports. In line with the National Monetisation Pipeline (NMP) and National Infrastructure Pipeline (NIP), multiple projects have been announced. The urban infra opportunities for private sector participation are across stadium, real estate/ housing developments and water/ waste management.

Read more in our latest insight for the country.

This is first publication on a 2-part insight series on India

 

October 2021

ADANI SET TO WIN CARGO TERMINAL PPP AT KOLKATA

Adani Ports and Special Economic Zone (APSEZ) is set to win a concession at Kolkata’s Syama Prasad Mookerjee Port Trust to mechanise and operate a dry bulk cargo berth. The flagship arm of the Gujarat-headquartered Adani Group offered to pay INR 75 (USD 1) per tonne of cargo as royalty to the port trust authority.

The project will soon be formally awarded to APSEZ. Adani will need to invest approximately INR 3Bn (USD 40Mn). The berth will have an annual capacity to handle 3.7 million tonnes and will be operated under a concession of 30 years.

APSEZ is India’s largest private ports developer with twelve assets spread across Odisha, Goa, Andhra Pradesh, Maharashtra, Tamil Nadu as well as in its home state. The portfolio represents about 24% of India’s total capacity.


NHAI HIGHWAY AUTHORITY OF INDIA HAS INVITED AND AWARDED VARIOUS PROJECTS UNDER HAM

The National Highways Authority of India (NHAI) has invited proposal as well as awarded various highway projects under Hybrid annuity mode. The name, location and status of the projects are as follows:


INDIAN PORT RECEIVES 11 EOIS FOR CONTAINER TERMINAL REDEVELOPMENT

India’s Jawaharlal Nehru Port Trust (JNPT) - India’s largest container port by throughput - has received 11 expressions of interest for a project to redevelop a container terminal.

The interested parties are:

  • Adani Ports and Special Economic Zone.

  • DP World.

  • A joint venture between Dutch multinational APM Terminals and Taipei-based Wan Hai Lines.

  • A consortium of France's CMA Terminals Holding, Mumbai-based International Cargo Terminals and Infrastructure, and Abu Dhabi Ports.

  • Singapore sovereign wealth fund Temasek-owned PSA Terminals.

  • Terminal Investment, a unit of Swiss-Italian shipping line Mediterranean Shipping Company.

  • A joint venture between India's Allcargo Logistics and Tokyo-headquartered Mitsui & Co.

  • Singapore-based Samudera Shipping Line.

  • Manila-based port management company International Container Terminal Services.

  • India's Essar Ports; and

  • QTerminals, a port terminal operator set up as a joint venture between Qatar Ports Management Company and Qatar Navigation.

DP World already operates two of four container terminals at the Indian port. PSA International and APM Terminals run one each. The project is estimated to cost INR 8.63Bn (USD 114.5Mn), which the developer has to invest over two phases, with the first requiring INR 5.83Bn.

The total capacity at the end of the expansions will be 1.8 million twenty-foot equivalent units (TEUs), up from 1.5 million TEUs at present. The concession will be awarded to the bidder offering the highest royalty. It will need to operate and maintain the facility for 30 years.


INDIAN MUNICIPALITY PLANS RIVERFRONT REDEVELOPMENT IN PPP

The Pune Municipal Corporation in India’s Maharashtra state is planning a riverfront development project as a public-private partnership (PPP). The work will be divided into 11 stages including three pilot phases, The municipality estimates the total cost at INR 47.27bn (USD 630.6m), the first INR 7bn pilot phase will be built by the corporation.

The other two pilot stages will be in a PPP. The scope of the redevelopment includes beautifying both banks of the 44km river stretch flowing through the civic limits. The developer will need to construct pathways for pedestrians and cyclists, boating facilities, cafes, and ensure the river is clean and unpolluted. The objective is to also improve access to the riverfront and eliminate the risk of flooding.


November 2021

INDIAN STATE SEEKS INVESTORS FOR USD 1.34BN FILM CITY PPP

A state government authority in India’s Uttar Pradesh state is seeking investors to develop a film city project in a public-private partnership (PPP). The Yamuna Expressway Industrial Development Authority estimates the cost of the project at INR 100Bn (USD 1.34Bn).

The project, which will cover 1,000 acres, will be built in three stages, with the first starting operations in 2024, and the final phase in 2029.

The project is close to the upcoming Noida airport in Jewar and to the Yamuna Expressway and will have good transport connectivity. The other two are in Mumbai and Hyderabad. Mumbai film city officials are currently in the procurement stages for redeveloping and expanding their facility.

The Yamuna authority aims to select a developer in January 2021. The concession period will be for 40 years and can be extended by another 30. It will be awarded to the bidder quoting the highest revenue share or annual payment.

The project will include facilities related to movie production in the initial stages. The second and third phases of development will see the creation of retail, hospitality, and other commercial and leisure projects.


COMMISSIONING OF PURVANCHAL EXPRESSWAY

The 341 km Purvanchal Expressway in Sultanpur district, Uttar Pradesh, inaugurated on November 16, 2021, is the largest infrastructure project to be completed by the Uttar Pradesh Expressways Industrial Development Authority (UPEIDA). This expressway will serve as the backbone of eastern Uttar Pradesh, boosting economic development and pro­­viding jobs for a large number of people. The Purvanchal Express­way was completed in three years.

The overall length of the fully controlled six-lane expressway is 340.82 km, with a project cost of around INR 225Bn, including INR 118Bn for construction and a land acquisition (4,377 hectares) cost of roughly INR 107 Bn. It was built via the engineering, procurement, and construction mode. The project’s financing pattern included INR111.97Bn from a state government grant and a INR 113Bn loan from a consortium of banks.


INDIA GREENFIELD PORT PROJECT DRAWS FOREIGN INVESTOR INTEREST

Singapore’s Portek International and Rotterdam-based tank storage company Vopak are among those that attended a pre-bid meeting this for a greenfield port project in eastern India. Other participants included Adani Ports, DP World, JSW Infrastructure, Essar Ports, and the Syama Prasad Mookerjee Port Trust.

The project, to be located in Purba Medinipur district, will cost an estimated INR 150Bn (USD 2Bn). The port will be built in the design, build, finance, operate and transfer (DBFOT) model and carry a concession of 99 years.


DELHI AUTHORITY INVITES PROPOSALS FOR STADIUM PPP

The city planning authority for New Delhi is seeking proposals to develop an international stadium in a public-private partnership (PPP). The contract will be handed out in the design, build, finance, operate, transfer (DBFOT) model. The capacity is for 30,000 spectators. The Delhi Development Authority (DDA) estimates the cost of the project to be INR 3.5bn (USD 46.6Mn).

The stadium will include commercial development which will carry a lease of 99 years. The integrated sports facility will carry a concession of 30 years. The commercial development can occupy up to 35% of the total area of 54 hectares.

The stadium is meant to host both cricket and football matches. The city has just one cricket stadium at present - the Feroz Shah Kotla ground - which is unable to accommodate more than 40,000 people.

It will also have an indoor sporting arena with a seating capacity for 2,000 people. The concessionaire will need to build badminton and squash courts, a multi-purpose training centre and swimming pools, among other sports facilities.


December 2021

ADANI AND IRB WIN TENDERS FOR USD 4.8BN EXPRESSWAY

India’s Adani Group and IRB Infrastructure Developers have won tenders to build and operate parts of the 594km greenfield six-lane Ganga Expressway in Uttar Pradesh state. Adani Road Transport won packages two, three and four while IRB Infrastructure won the first stretch. The companies requested the lowest grant funding, the main criteria applied to evaluate the winning concessionaires. The total cost of the Ganga Expressway project, including land acquisition, is estimated to be INR 362.3Bn (USD 4.8Bn).

Adani requested INR 19.50Bn for the second package of 151.7km. The procuring agency, the Uttar Pradesh Expressway Industrial Development Authority (UPEIDA) estimates its development cost at INR 56.48Bn. For the third and fourth stretches totaling 312.5km, Adani asked for grants of INR 21.97Bn and INR 20.99Bn, respectively. The UPEIDA's cost estimate for the third package is INR 58.11Bn, and INR 56.26Bn for the fourth.

IRB Infrastructure won the first package with a request for INR 18.65Bn. The UPEIDA expects it will take INR 50.40Bn to build this 129.7km stretch. Each of the concessions is for 30 years.

The prequalification stage elicited interest from 11 companies, including Malaysia's IJM Corporation and South Korea's Intopia Construction. The expressway will connect Meerut-Bulandshahar in the National Capital Region to Prayagraj, a metropolis located at the confluence of three rivers, a pilgrimage destination for Hindus. It will reduce travel time between Delhi and Prayagraj to about six to seven hours from the current 11 hours.


INDIA LISTS PORT TERMINAL PROJECTS FOR PRIVATISATION

The Indian government is planning to tender port terminals estimated at INR 48.5Bn (USD 645Mn) in the fiscal year starting April 2022.

The 10 projects are located at six ports:

  • Berths 1,2,3 and 4 at the VO Chidambaranar Port Trust in Tamil Nadu state, for INR 21.44Bn.

  • A liquid cargo jetty and a coastal berth at Jawaharlal Nehru Port Trust (JNPT), Mumbai for INR 3.5Bn.

  • The redevelopment of barge berths 3 and 9 at the Mormugao Port Trust in Goa for INR 7Bn.

  • The operations and maintenance of berths 10 and 11, also at Mormugao, for INR 2Bn.

  • The mechanisation of two berths at Visakhapatnam Port Trust at a total cost of INR 4.5Bn.

  • The mechanisation of berth 10 at the Haldia Dock Complex at Syama Prasad Mookerjee Port in Kolkata for INR 3.5Bn.

  • Two oil jetties at Deendayal Port Trust for INR 4.85Bn; and

  • A coastal berth at JNPT for INR 1.7Bn

  • The list is part of a larger collection of maritime assets that the government aims to privatise by March 2025. The total investment value is about INR 144.6Bn.


NHAI SEEKS PROPOSALS FOR MULTIMODAL LOGISTICS PARKS

An arm of the National Highways Authority of India (NHAI) is seeking proposals to set up multiple multimodal logistics parks in public-private partnerships (PPP).

Contracts will be awarded in the design, build, finance, operate and transfer model for concessions of 30 years each

The authority has a pipeline of at least 35 multimodal logistics projects in a mix of public-private partnership and engineering, procurement, and construction models, these will be offered for bidding over the next two-three years, the government aims to reduce the cost of logistics in India to 10% from more than 15%, in turn lowering the cost of products.


INDIAN STATE AUTHORITY SEEKS CONSULTANT FOR AIRPORT DEMAND STUDY

A state authority in India’s Tamil Nadu state is seeking a consultant to identify a potential site near Hosur city for a greenfield airport project. The consultant will need to assess the demand for an airport and forecast air traffic. The corporation would consider all options, including a public-private partnership (PPP). Hosur, in Tamil Nadu, is close to India’s information technology capital Bangalore in Karnataka state.

An existing airfield in Hosur is currently idle as the concession agreement between Bangalore International Airport and the government restricts any new or existing domestic airport from opening within an aerial distance of 150km from Bangalore for 25 years. The agreement was signed in 2004 and the airport started operations in 2008.

A new domestic airport in Hosur will reduce the travel time for residents in south Bangalore, especially for those at the IT hub in the southeast.


ADB TO PROVIDE USD 300M FOR INDIA HEALTHCARE PROJECT

The Asian Development Bank (ADB) signed an agreement with the Indian government to provide a USD 300m loan to improve primary healthcare in urban areas of 13 states. The programme will include participation from the private sector, it would benefit 256 million urban dwellers, including 51 million from slum areas.

The states identified include Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Haryana, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Telangana and West Bengal. The programme is supported by a USD 2m technical assistance grant from ADB’s Japan Fund for Poverty Reduction.

The loans will support India's key health initiatives, Rajat Kumar Mishra, an additional secretary at the finance ministry's economic affairs department

 

List of key transactions - Transport and Urban Infra - India


List of Upcoming Projects - Transport and Urban Infra - India

Source: Inframation, YOG INFRA analysis

 

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