Its about the issues and problems face while building Delhi Gurgaon Expressway

1. Delhi Gurgaon Expressway
PRESENTED BY:- MALLIKARJUN VASTRAD FP17003
PRATEEK MATHUR FP17015
IFDM 7TH

2. Background
 Stakeholders
 Public Institutions: National Highways Authority of India (NHAI)
 Private Institutions: DS Constructions(49%) & Jaiprakash Industries Ltd(51%)
 Independent Consultants: RITES Corporation
 Government: Delhi Government and Haryana State Government
 Users: Patrons
 Salient Features
 Length of Expressway: 27.7 kms
 No of Flyovers & Overpasses: 11

3. Why adopt a PPP model?
 Ensure the necessary investments into public sector and more effective public resources
management;
 Ensure higher quality and timely provision of public services;
 Private sector expertise and experience are utilized in PPP projects implementation;
 Appropriate PPP project risks allocation enables to reduce the risk management
expenditures;
 Greater Value for Money for Public Procurement;
 Better Project Design & Implementation;

4. Key Obligations
 NHAI:-
 Responsible for land acquisition and providing RoW
 Operation and maintenance of existing highway at its own cost
 Environmental clearances, permits, etc
 Concessionaire:-
 Clearances, approvals, permits, etc from govt. agencies
 Agreement with NHAI, GoNCTD and GoH
 Recovery of investment

5. Financial Information
Total(547.5)
Debt(383.3)
HUDCO(200)
State Bank
Mysore(30)
PNB(30)
Srei International
Finance(25)
J&K Bank(15)
LIC(50) & UTI
bank(37.30)
Equity(164.2Cr)

6. Development
 Financial Closure in May 2003
 Work commenced in Jan 2003
 Jaiprakash Industries sold its stake to DS Cons and retained only 1.2%
 Project commissioned on 25th Jan, 2008
 Traffic Volume more than 1,80,000 PCU’s ,growing at 9% per year

7. Problems during Development
 Issues over approvals
 Land acquisition
 Change in scope of work
 Court cases, removal of trees, shifting of religious structures
 Demands made by HUDA and DDA regarding connected projects

8. Involvement of Government
agencies/civic bodies
 Delhi Jal Board
 The Ministry of Defence
 GAIL
 BPCL
 Delhi Development Authority
 Haryana Urban Development Authority
 GoH and GoNCTD
 Haryana Tourism
 Airports Authority of India, etc

9. Risk allocation framework
Risk Type Sensitivity Risk Period Primary Risk
A)Pre-Operative Risks
Delays in land
acquisition
High 0-5 years NHAI
Financing Risks Medium 0-5 years Private sector
Approvals Low 0-5 years Private sector
B)Construction Phase Risks
Design Risks High 0-5 years Private sector
Construction Risks High 0-5 years Private sector

10. Risk Type Sensitivity Risk Period Primary Risk
Bearer
C) Operations Phase Risks
Operations &
Maintenance
Medium Throughout Private sector
Market Risk Low Throughout Private sector
Financial Risks Medium Throughout Private sector
D) Handover Risks events
Handover Medium Last 3 years Private sector
Concessionaire
Event of default
Medium Throughout Priavte sector
NHAI’s Event of
default
Low Throughout NHAI
E) Other Risks
Change in Law low Throughout Both
Force Majeure Low Throughout NHAI

11. Efficiencies Achived
Particulars Earlier Now
Average travel speed 25.65 km/hr 660 Km/hr
Average travel time from
Delhi to Gurgaon
65 min 25 min
Capacity (in terms of lanes) 6 lane-5 Km
4 lane-22.7 Km
8 lane- 22.3
6 lane- 5.4 Km
Intersections 20 Intersections 10 Grade Separated
Intersections

12. Key Learning & Observations
 Land Acquisition process
 Support from Stakeholders for the project
 Approval from multiple entities
 Traffic Risk is lower in case of brown-field projects
 Outdated traffic forecasts
 Fee sharing requiring efficient contract management

13. THANK YOU…