Friday 8 February 2019

Cube Highways clinches new project in India

KUALA LUMPUR, Feb 7 (Bernama) -- Cube Highways and Infrastructure III Pte Ltd (Cube Highways) has signed an agreement to acquire a new highway project in Tamil Nadu, India.

The agreement signed with KNR Constructions Ltd and KNR Srirangam Infra Pvt Ltd is to construct and operate nearly 160 lane-kilometres in the state using the Hybrid Annuity Model (HAM).

HAM projects are a hybrid of conventional engineering, procurement and construction (EPC) contracts and a build, operate and transfer (BOT) annuity model using an innovative concession model developed by the National Highway Authority of India (NHAI).

Under the concession, 40 per cent of project cost will be paid by NHAI during the construction phase with the balance distributed as regular annuity payments on a fixed amortisation schedule over a 15-year operational period.

“The HAM offers robust growth potential for the Indian highways sector and we are excited to partner with KNR Constructions, one of the leading construction companies in India,” said Cube Highways director and I Squared Capital partner, Gautam Bhandari, in a statement today.

The transaction is contingent upon customary regulatory and lender approvals. The acquisition of equity will be phased in accordance with the terms of the respective concession agreement.

-- BERNAMA

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