Delhi Gurgaon Expressway

Lakhan Khandelwal (AP16204)

Sachin Srivastava (AP16399)
V. Divya (AP16430)
Bhatt Vishal Madhusudan (AP16444)
Project Description and Key Obligations
 Project Overview
NHAI entrusted with the responsibility of Golden Quadrilateral (GQ)
Project
Conversion of existing 4 lane 27.7 km section of NH-8 connecting
Delhi to Gurgaon into 6/8 lane access controlled divided carriageway
proposed as a part of the GQ project
 Reasons for the proposal
High vehicular density of 145,000 Passenger Car Units (PCU)/day (in
2000, as on date 180,000 PCUs/day, against projected estimate
PCUs/day of 15,000)
Non segregation of traffic
Increase in accidents
Acute congestion
Wastage of fuel
Excessive pollution
 Current status
Expressway commissioned in January 2008
Reason for delay
Issues in land acquisition
Changes in scope of work
9 flyovers, 4 underpasses, 2 foot over bridges and 3 toll plazas
Higher traffic than the estimated figures- queuing up of vehicles at
toll plazas
Smart tags for cashless automatic payments
 Key Obligations
NHAI
Undertake land acquisition
Provide RoW to concessionaire
O & M of existing highway during
development period
Shifting of utilities and related
expenses
Environmental clearances, permits
etc.,
Loan provision in case of shortfall in
meeting debt service payments (SBI
Prime lending rate)
Concessionaire
Annual payment of a Notional
Concession fee of Re.1 to NHAI
Comply with requirements needed for
clearances, approvals, permits etc.,
State Support Agreement with
GoNCTD and GoH
Payment of Performance Security
Toll collection (Sharing with NHAI if
more than 130,000 PCUs are tolled
everyday)
Transferring back the expressway to
the Government
PPP Structure of the project and Financing
 PPP Structure of the project
Project awarded to : Consortium of Jaypee Industries and DS
Construction Ltd.
Scope : Design, Finance, Construct, Operate
and Maintain the facility
Concession period : 20 years (including construction period
to encourage speedy completion)
Speciality : First BOT project in India to have been
granted on negative grant basis
Negative grant : Rs.61.06 crores
An SPV was created. The SPV entered into a fixed time fixed price EPC
contract with DS Constructions for the project.
 PPP Structure of the project
Special Purpose Vehicle : Delhi Gurgaon Super
Connectivity Ltd. (formerly
Jaypee DSC Ventures Ltd.)
Controlling stakes : Bidding Project
Implementation
Jaypee 51% 1.2%
Industries
DS 49% 98.8%
Constructions
 Financial Information
Debt Rs.383.3 crores
Equity Rs.164.2 crores*
TOTAL Rs. 547.5 crores

Actual cost of project Rs.1.175 crores

Cost overrun 1. Funded by promotors by
withholding payments to DSC Ltd
2. From NHAI (Rs.155.25 crores) on
account of changes in scope

*Including grant of Rs.61 crores

 Debt Structure
Housing and Urban Development Corporation Ltd Rs.200 crores
(HUDCO)
State Bank of Mysore Rs.30 crores
Punjab National Bank Rs.30 crores
Srei International Finance Rs.25 crores
Jammu and Kashmir Bank Rs.15 crores
Non convertible debentures issued to LIC Rs.50 crores
Non convertible debentures issued to UTI Bank Rs.37.3 crores
Risk Allocation and Analysis
 Risk Allocation Framework
Risk type Sensitivity Risk Period Primary Risk Bearer
Pre-Operative Risks
Delays in land High 0-5 years NHAI
acquisition
Financing risks Medium 0-5 years Private sector
Approvals Low 0-5 years Private sector
Construction Phase Risks
Design Risk High 0-5 years Private sector
Construction Risk High 0-5 years Private sector
Operation Phase Risks
O & M Risks Medium Throughout Private sector
Market Risk Low Throughout Private sector
Financial Risks Medium Throughout Private sector
 Risk Allocation Framework

Risk type Sensitivity Risk Period Primary Risk Bearer

Handover Risk Events
Handover Risk Medium Last 2.5-3 years Private sector
Concessionaire event Medium Throughout Private sector
of default
NHAIs event of default Low Throughout NHAI
Other Risks
Change in Law Low Throughout Private sector and NHAI
Force Majeure Low Throughout NHAI
Post facto VFM Analysis and Key Learnings and
Observations
 Post Facto VFM Analysis
Remunerative for the Government
Risk of Time and cost overrun borne by the private sector
Efficiencies achieved
Particulars Earlier Now
Average Travel Speed 25.65 kmph 66 kmph
Average Travel Time 65 minutes 25 minutes
Capacity 6 lane 5 km 8 lane 22.3 km
4 lane 22.7 km 6 lane 5.4 km
Intersections 20 10 grade separated
intersections
 Key Learnings and Observations
Land Acquisition Process
Support from Stakeholders for the project
Approvals from multiple entities
Traffic risk is lower in case of brown field projects
Outdated Traffic Forecasts
Fee sharing requiring efficient contract management
THANK YOU