Delhi-Gurgaon

Expressway
Vaibhav-FP17014
Madhusudhan-FP17009
 It was a NHAI project
 The objective of the project was to convert the 4 lane highway to 6/8 lanes
 This was the first BOT project in India with a negative grant
 In 1998,a traffic study predicted 145000 PCU’s per day
Special purpose vehicle

 The project was awarded to the consortium of Jaypee industries ltd and DS
construction ltd.
 61.06 crore upfront as negative grant to the NHAI
 A SPV called DELHI-GURGAON SUPER CONNECTIVITY LTD was created
 SPV entered into a Fixed time-fixed price contract with DS construction ltd
Financing Information HUDCO
200
SBM
30
Debt PNB
Total cost 383.3 30
547.5 Equity SREI
164.2 25
J&K
15
 Process analysis
• The plan was initiated in late 1990’s
Inception • A detailed project report was prepared in 1998

• NHAI invited pre-qualification bids in 2001

Procurement • Jaypee DSC ventures for a negative grant of 61.06 crores

• Land acquisition and approval

Development • Another major reason for delay is Design modifications

• The expressway was operational on 25th January 2008

Delivery • Handles a traffic of 1,80,000 PCU’s per day

• The expressway will be handed over to the government on 11th

Exit January 2023
Risk allocation framework
Post facto value for money analysis

Renumerative for the government-

 State of the art facility
 Generated revenue due to the revenue sharing mechanism and negative
grant.
Risk of time and cost overrun
 The time and cost overrun due to approval problems and design changes was
borne by the private sector
Efficiencies Achieved

Particulars Earlier Now

Average travel speed 25km/hr 66km/hr
Average travel time 65 minutes 25 minutes
Capacity(in terms of lanes) 6 lane-5 km 8 lane-22.3 km
4 lane-22.7 6 lane-5.4 km
km
Intersections 20 10
Conclusions

 Land acquisition process

 Support from stakeholders for the project
 Approvals from various entities
 Traffic risk is lower in such projects
 Outdated traffic forecasts
 Fee sharing requiring efficient contract management
Thank you