The National Highways Authority of India (NHAI) has
formed a special purpose vehicle (SPV), Ahmedabad-Vadodara Expressway Co. Ltd.,
under the Companies Act, 1956, for implementing the Ahmedabad-Vadodara
expressway project in Gujarat. The 96 km long expressway is to be constructed in
two phases, at an estimated cost of Rs.450 crore.
The SPV has been registered with
funds from the NHAI. The SPV will also raise funds from the market. NHAI plans
to bring in financial institutions as equity partners in the SPV before the project
achieves financial closure. Construction contractors would also be invited to
pick up equity in the SPV. ICICI has been appointed as financial advisor and
lead fund arranger for the project.
Construction on the first phase
commenced in September 2000 and is expected to be completed by September 2002.