NHAI signs first TOT agreement with Australia’s Macquarie
Under this model, the right to collect toll on nine selected national highway stretches has been assigned to Macquarie for 30 years against an upfront payment within 120 days to the government.
India/Australia- National Highways Authority of India (NHAI)1 signed its first toll-operate transfer concession agreement with Sydney-based Macquarie Group Ltd2 on April 2018 thru wining a bid valued USD 1.41bn to manage 648 km road.
Under this model, the right to collect toll on nine selected national highway stretches has been assigned to Macquarie for 30 years against an upfront payment within 120 days to the government.
The other bidders were The Brookfield3, IRB-Autostrade4 and Roadis-NIIF5, who quoted USD 1.1bn, USD1.01bn and USD0.97bn, respectively.
Deepak Kumar, Chairman, NHAI said “We are very happy with the response and it shows that investors see national highway assets as one of the most promising in Infrastructure space in India.”
Rohit Singh, member, finance, NHAI said “The deal is one of the largest foreign investments in India’s public infrastructure and will entitle the group to manage a little less than 700 km of national highways. These national highways are across Andhra Pradesh and Gujarat,”
1National Highways Authority of India (NHAI) is an autonomous agency of the Government of India, responsible for management of a network of over 50,000 km of National Highways out of 1,15,000 km in India. It is a nodal agency of the Ministry of Road Transport and Highways. NHAI has signed a memorandum of understanding (MoU) with the Indian Space Research Organisation for satellite mapping of highways.
2Macquarie Group Limited is a global diversified financial group. Headquartered in Australia Macquarie employs more than 14,000 staff in 25 countries, is the world's largest infrastructure asset manager and Australia's top ranked mergers and acquisitions adviser, with more than $A495 billion in assets under management.
3Brookfield Asset Management Inc. is a global alternative asset manager with approximately $285 billion of assets under management, focusing on real estate, renewable power, infrastructure and private equity.
4IRB Infrastructure Developers Ltd. Incorporated in year 1998, India’s leading and one of the largest Infrastructure Developing Company in BOT Space, committed to the Roads & Highway sector. Autostrade per l'Italia founded in the early 1950s, the Autostrade per l'Italia network and its Italian subsidiaries are one of Europe's most extensive toll motorway networks: with 3,020 km of network and 217 service areas, it serves 15 regions and 60 Italian provinces.
5ROADIS is a reference company in the development, operation and management of highway concessions with 1,882 kilometers of roads throughout the world. NIIF is jointly-owned by the Government of India (49%) and certain domestic and international investors (51%). With a professional management team that has a mix of domestic and international experience in infrastructure investing, funds management and operations, we have developed strong capabilities to execute the investment strategies of the funds
