This document provides information on two infrastructure projects in India: 1) The Vadodara Halol Toll Road (VHTRL) project, the first state highway PPP project in India, involving the upgrading of an existing road to four lanes under a BOOT model. 2) The Bandra Worli Sea Link (BWSL) project, an 8-lane cable-stayed bridge connecting Bandra and Worli in Mumbai to reduce travel time. It discusses the project structures, financing, risks and key learnings around private sector participation and environmental/social safeguards for the VHTRL project. For BWSL, it outlines the project details and potential environmental risks.

1. PROJECT FINANCE
PRESENTATION ON VHTRL AND BWSL

2. • PRATIK SAVLA-135
• ADITYA SHETH-171
• SAGAR SRIVASTAVA-155
• RITESH TRIPATHI-161
• RAHUL SIRSAT-149
• VISHAL WAVAL -169

3. ABOUT VHTRL
 First State Highway project developed on PPP in INDIA.
 SPV constituted named Vadodara Halol Toll Road Company Limited (VHTRL) .
 PPP structure-
 The VHTR project is developed under the Built, Own, Operate and Transfer (BOOT) basis.
 VHTRL was promoted by the GoG and IL&FS.
 Consortium of Punj Lloyd Limited and IRCON International Limited as contractors.
 Construction-
 included the design and completion of the road, pavement, cross drainage system, bridges, toll
facilities, medians, separators, road furniture, and horticultural aspects.

4.  Management Operation & maintenance-
 This includes toll collection, operating the toll plaza, traffic regulation and maintenance of the
facility.
 VHTRL is entitled to earn from advertisements, hoardings and other commercial activities at
the project site.
 ROI for IL&FS-
 The concession period is for a period of 30 years.
 In case VHTRL was unable to recover the total cost of the project, including a 20% return,
within 30 years, the concession period shall be extended by GoG for a period of 2 years at a
time until the total project cost and returns have been recovered by VHTRL.

6. PROCESS ANALYSIS OF VHTRL
 Inception-
• The GoG wanted to upgrade the Vadodara to Halol section of State Highway 87.
• need felt for improving efficiencies and attracting private capital for infrastructure
development
• positive environment for private sector participation
 Feasibility-
• After signing the MoA, a consulting firm was elected by GoG and IL&FS through a
competitive bidding process.
• undertaken a preliminary technical-economic feasibility study.
• GoG approved widening and strengthening of the existing two lane road to four lanes with the
provision of service roads.
• Investment recovery was recommended in the form of toll collections.

7.  Procurement-
• GoG entitled VHTRL the exclusive right and authority, during the concession period:
• To develop, design, engineer, finance, procure and construct the highway project
• Upon completion of construction to manage, operate and maintain the highway project.
• To demand, collect, retain and appropriate toll from the users of the facility and apply the same
to recover the total cost of the project.
• Appointed a contractor through a transparent international competitive bidding process.
The lowest price was the net present value (NPV)
1.fixed price of construction;
2.interest during construction;
3.costs during the concession period on routine maintenance, periodic maintenance
(renewal and overlay), toll systems, and toll augmentation

8.  Development
• Development of 31.7Km stretch in single phase was completed 4 months ahead of schedule (
18 months was schedule time )
• Environmental and Social Impact Assessment
rehabilitation of 300 affected families
Actually ONLY 10
World Bank as a 'best practice'
 Delivery-
• The toll operations commenced in October 2000
Four major items of operation:-
-Routine Maintenance (continuous)
-Periodic Overlay (every five years)
-Periodic Renewal (every fifteen years)
-Toll Operation and Management (once a year)

9. Risk allocation in VHTRL
• Land acquisition delay
-vacant possession to the concessionaire was a condition precedent under the agreement
• Permission delay
-Government had to facilitate approvals and permits, it was the private developer’s
responsibility to obtain the same
• Design risk
- to adhere to the performance standards and technical specifications. The contractor would
need to bear any additional costs due to rectification of construction due to non compliance
with the technical specifications.

10. • Revenue risk
-on account of a shortfall in traffic projections is borne by the Private Developer. However,
additional revenue streams in the form of development rights also possible at the discretion of the
GoG.
• Construction risk
-The complete construction was to be accomplished within 18 months. The increase in project cost
due to any delay had to be absorbed by the Concessionaire due to the fixed cost nature of the
contract
• Financial risk
-Any increase in the projected capital cost was to be borne by the private developer. However,
the developer was protected, in situations where the increase was beyond its control, with the
provision for extending the concession period till a 20% return was achieved.
• Political risk
-Comprehensive insurance package and GoG to at least pay compensation to meet all project
costs including takeout of lenders and other investors.

11. KEY LEARNINGS
• Pre-development market assessment is critical:
since such preparations can impact the long term objectives of the project.
• Competitive bidding can ensure a “better deal”
not only brings in the best private sector capabilities, but also allows the government to get
the best possible financial terms by ensuring competition and a level playing field.
• innovative financing mechanisms:
VHTR was one of the first projects to utilize several innovative financing methods. Deep
Discount Bonds financing , cumulative convertible preference shares and long term loans
from IL & FS.
• Environmentally and Socially responsive development framework: The VHTRL was the first
project that introduced Environmental and Social Safeguards measures as part of the
contractual obligation of the developer

12. ENVIRONMENTAL RISK ASSESSMENT
• One of the key features of this project
• Extent of resettlement
-earlier resettlement and rehabilitation of about 300 project affected families later reduced
to 10, having residential and/or commercial structures within the proposed right of way
• voluntary relocation
-of temples, schools, and environmental infrastructure
• additional facilities
-as pedestrian subways and compound walls and provided additional houses for the
relocation of communities
• minimize the negative impact
-to enhance the community benefits 550 trees were planted along the road, a noise barrier at
sensitive receptors

13. BWSL
• 8-Lane Bridge with 2-lanes dedicated for buses.
• Financial Implications
• Length of bridge 5.6 Km Width-2.5 Meters.
• Eco friendly material for supported Cable stayed bridge.
• Toll collection.
• About Seshadri Srinivasan.

14. Need for the Project
 Reduces travel time between Bandra and Worli during peak hours from 60–90 minutes to 20–
30 minutes.
 Mahim Causeway was the only road connecting the western suburbs to Mumbai's central
business district.
 Highly recommended project for Metropolitan city.
 It connects to Mumbai's arterial Annie Besant Road.

15. ENVIROMENTAL RISK
1) Impact on the Livelihood of Local Communities
2) Impact on water
3)Effect on Flora and Fauna

16. 4)The Impact of Additional Traffic – Congestion in South Mumbai.
5) Impact on soil .

17. THANK YOU