Project Details

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Results Chart for Delivery Method and Financing

Delivery Method

DBFOM All Private Finance
# of Projects: 1
100% of the Results

Background informationProject Created: March 8, 2018

Project Name: Toll-Operate-Transfer (TOT) Program Group 1 Auction
Year in Operation: 2018
Sector: Transportation
Subsector: Roads, Bridge, Tunnel
Status: Design / Construction
Type: Repositioning of Existing Facility
Description: First auction of a group of nine stretches of roadway (total length of 648 km) owned by the National Highway Authority Highway of India. There are nine roadways in the first group - five in Andhra Pradesh, one connecting Andhra Pradesh and odisha, and three in Gujarat. This is a "Monetization" program. The winner - Macquarie Asia Investment Fund (MAIF of Singapore) has Ashoka Buildcon as its maintenance partner. The first auction is part of a government plan to monetize publicly funded, operational national highways through the ToT model. Macquare is paying $1.48B (US) for the right to collect a user-fee (toll) on these sections of road for a period of 30 years. Macquarie and its maintenance contractor is responsible for maintenance, and capacity expansion over the 30 year operations period. India has authorized the NHAI to monetize 75 public-funded national highways with a road lenght of around 4,500 km.
Delivery Method as described in the country where it's located: Other
Is the project still active: Yes
Comments: Procurement strategy is to monetize portions of existing national highways for thirty years of private (tolled) operation and maintenance through an auction based on the highest offered price.

Project Locations

City: Chennai
Country: India, Republic of

Souces of Project Support (Non-monetary)

Checkbox Checked Land: These are already built national highways.
Checkbox Checked Access to Land: These are already built national highways.
Checkbox Checked Revenue Stream (Cash Flow) Protected Through Long Term Commitment(s) of Public Sponsor(s): Winning bidder is allowed to toll the roadway at rates disclosed at time of award.
Checkbox Checked Environmental Clearance: Already completed.

Souces of Project Support (Monetary)

Checkbox Checked

From Private Capital Markets Directly to Producers as Debt: $1.48 Billion US (Rs9,681.5 crore) is up-front payment by Macquarie Group to the National Highway Authority of India (NHAI). This amount was 50% higher than NHAI expected as a reasonble price. Three other bidders submitted quotes ranging from Rs6,611 to Rs7,511.

Checkbox Checked

From Producers as Equity: Some of the up front payment comes from the concessionaire as equity.

Project Delivery & Finance Method

Project Delivery:
Design Build Finance Operate Maintain (All Private Finance). Public Sponsor contracts for initial design, construction, and for long term operations and maintenance with a single entity. At the end of the term, Public Sponsor regains control of the facility.
Is there an independent checking engineer? No
Project Finance Method: All By Private Sponsor

Procurement Approach

Project Component
Based Selection
Request for
Request for
for Bids
Design Build Operate Finace & Maintain

Term for Key Components & Forms of Contract

Project Component
Combined Term: Initial Design, Construction, O&M Period
Don't Know
This is an auction by the government of an existing roadway with a 30 year commitment to ongoing operations maintenance and repair during that period. 

Project Value (If and As Known)

Date of Estimated Project Value: March 1, 2018
Project Value
Hard Cost
Hard & Soft Costs
Operations & Maintenance
$500 Million - 2 Billion US
$500 Million - 2 Billion US
$500 Million - 2 Billion US
$500 Million - 2 Billion US


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