gayatri projects limited - Edelweiss

Performance Security 1. The concessionaire has to provide to NHAI Bank Guarantee aggregatingto Rs.10.77 crores being 3% of the total project cost for due and faithfulperformance of its obligations during construction period. The concessionairehas submitted the Bank Guarantee.The above shall be released by NHAI to the Concessionaire uponcontribution to the Equity (excluding Equity Support, if any) by theshareholders of the Concessionaire to the extent of 100% and upon havingexpended on the project and paid out an aggregate sum of not less than20% of the project cost as certified by the Statutory Auditors.Operation and MaintenanceConcessionaire shall operate and maintain the Project Highway by itself orthrough O&M contractors and if required modify, repair or make improvementso as to require with the various specifications and standards and importantare as follows:1. Permit safe, smooth and uninterrupted traffic flow during normal operatingconditions.2. Charge, collect and retaining the Fees in accordance with the agreement.3. Minimizing disruption to traffic in the event of accidents or other incidentsand providing a rapid and effective response.4. Undertaking routine maintenance5. Undertaking major maintenance such as resurfacing of pavements, repairsto structures, repairs and refurbishment of tolling system and hardware.6. Adherence to safety standardsFinancing ArrangementsFinancial Closure to be achieved within 180 days of signing of the agreement.However concessionaire is entitled to further period of 180 days subject toadvance weekly payment of Rs 1.00 Lakhs to NHAI per week or part thereofas damages. However if the Financial Closure is not completed within 360 daysof signing of the Agreement than the agreement shall be deemed to beterminated by mutual agreement.GrantFollowing grants amounting to Rs. 12780.23 lakhs will be paid by NHAI to theConcessionaire:During Construction period: Rs. 5638.00 LakhsYear 1 2 3Amount (Rs. in lakhs) 554.00 2647.00 2437.00During Operations Period: Rs 7142.23 LakhsYear 4 5 6 7 8 9Amount(Rs. in lakhs) 1268 1268 1268 1268 1268 802.23The grant shall be applied by the Concessionaire for meeting the capitalcost of the project and expenditure during the Operation period and shallbe treated as part of the shareholders fund (Equity Support). This Equitysupport shall:1. Not exceed 25% (considered at NPV @ 10%) and2. During construction period in no case shall be greater than total equitycapita actually subscribed and paid in cash by the shareholders for meetingthe total Project CostConstruction Period 3 Years period from beginning from the Appointed date.25