by BERNAMA / graphic by MZUKRI MOHAMAD
A CONSORTIUM in which Sunway Construction Group Bhd (SunCon) is a member has bagged a RM315 million highway project in Tamil Nadu, India, plus a 15-year operating and maintenance contract of about RM850,000 per annum, from the National Highways Authority of India (NHAI).
SunCon said its wholly-owned unit Sunway Construction Sdn Bhd had a 60 per cent participating interest while RNS Infrastructure Ltd held the rest.
“The project will cover two laning with paved shoulder of Meensurutti (98.433 kilometres) to Chidambaram (129.965 kilometres) Section of NH-227 on hybrid annuity mode (HAM), under Bharatmala Pariyojana Phase-I (Residual Projects under NHDP) in Tamil Nadu (MC Project),” it announced to Bursa Malaysia today.
It said the MC Project would be operated under the HAM for a concession period of 15 years plus two-year construction period.
Construction is anticipated to start within 195 days from the letter of award, which was accepted by the consortium today.
“Under the HAM, NHAI will pay 40 per cent of the project cost in the first two years during the construction period in five equal instalments, whereas the remaining 60 per cent is paid over 15 years as fixed annuity amount plus interest which is benchmarked at RBI (Reserve Bank of India) rate plus three per cent,” it said.
There is no toll right for the concessionaire.
SunCon added that the project was expected to contribute positively to the earnings of the group from the financial year ending Dec 31, 2021, onwards.