MEP Infrastructure prepared for Thane-Vadape road project with financial closure

MEP Infrastructure Tuesday said it has achieved financial closure for the Rs 1,183-crore Thane-Vadape road project in Maharashtra by arranging project finance of Rs 567.78 crore. The remaining funding will be done by NHAI grant of Rs 473.15 crore and an equity contribution from a subsidiary company, it said. "MEP Longjian VTR Private Limited – subsidiary company of MEP Infrastructure Developers Limited, has achieved financial closure as per the Concession Agreement executed with the NHAI... for the project of Construction of 8 (eight) laning of existing 4 (four) lane Vadape to Thane... by tying up of project finance of Rs 567.78 crore," the company said in a statement.

It said Vadape-Thane stretch on NH-3 (new NH 848) in Maharashtra will be executed on hybrid annuity mode (HAM). "The bid project cost is Rs 1,182.87 crore out of which project finance will contribute Rs 567.78 crore and the remaining contribution will be funded by the grant of Rs 473.15 crore from NHAI and an equity contribution of Rs 141.94 crore of the subsidiary company," the statement said. The construction period of the project is 2.5 years, while concession period is 15 years, it said. The company operates one of the largest OMT (operate, maintain and transfer) contracts at five Mumbai entry points, for 16 years until 2026. The company has a pan-India footprint in operation, maintenance, transfer and tolling operations in road infrastructure.

(With inputs from agencies.)