MEP Infra
MEP has arranged project finance worth $80.98m for the road project. Credit: Himanshu Sarpotdar.

MEP Infrastructure has achieved financial closure for the Thane-Vadape road project in Maharashtra, India.

The road development company has arranged project finance worth Rs5.68bn ($80.98m), while the remaining funding assistance will be fulfilled using an NHAI grant of Rs4.73bn ($67.48m) and equity contribution of Rs1.42bn ($20.25m) from a subsidiary company.

The Thane-Vadape project is estimated to cost Rs11.83bn ($168.75m) and includes the construction of eight lanes on the Vadape-Thane section of NH-3 (new NH-848).

“The Thane-Vadape project is estimated to cost Rs11.83bn and includes the construction of eight lanes on the Vadape-Thane section of NH-3.”

MEP Infra said in a regulatory filing that its subsidiary company MEP Longjian VTR has achieved the financial closure as per the concession agreement executed with the NHAI for the construction of eight lanes from the 539.202km to 563km section of NH-3 in Maharashtra.

Construction of the road will last approximately 2.5 years and the concession period will last 15 years.

MEP Infra is responsible for one of the largest operate, maintain and transfer (OMT) contracts at five Mumbai entry points until 2026.

The company also has ten operational projects, such as six toll collection projects, three OMT projects and one build-operate-transfer (BOT) project.

Last August, it was announced that the company will offload its entire stake in six road projects to Singapore-based Indian Highways Developers for more than Rs4.5bn ($64.19m).