With a presence in six countries, Roadis manages 1,892 kilometres of highways in ten concessions, including 710 km in India alone
Canada's highway concessions manager Roadis and National Investment and Infrastructure Fund (NIIF) have partnered to create a vehicle for investing $2 billion (over Rs 13,800 crore) in India's road sector, the biggest such platform in the country.
The vehicle will make equity investments in toll operate transfer (TOT) projects being brought out by National Highways Authority of India (NHAI) and also look at acquiring concessions from the existing road developers.
José Antonio Labarra, chief executive officer, Roadis, said in a statement, "This agreement, which aligns with our growth strategy, strengthens our long-term commitment to India. NIIF is a partner that perfectly fits our profile given its commitment to infrastructure investment and the robust governance standards it follows."
Roadis is a wholly-owned subsidiary of the Public Sector Pension Investment Board, one of Canada's largest pension funds. With a presence in six countries, Roadis manages 1,892 kilometres of highways in ten concessions, including 710 km in India alone. The other countries include Mexico, Brazil, Portugal and Spain. It also holds stake America's Wind Energy Transmission Texas, a transmission line.
Anchored by the Indian government, NIIF is a fund manager with a focus on infrastructure and related sectors. NIIF creates investment platforms for international and Indian investors with a mandate to invest equity capital in domestic infrastructure.
NIIF managing director and chief executive officer Sujoy Bose said, "The Indian road sector has attracted significant global capital over the last two decades and will continue to offer large investment opportunities. The road network is a key enabler for the Indian economy to grow and sustain its position as the fastest growing major economy in the world, and this provides significant upside potential for investments while creating value for users."
Earlier this year, NHAI had scrapped the bids received for the second round of TOT package in which Singapore-based Cube Highways was the highest bidder, but its bid was 14% short of the Rs 5,362 crore reserve price set by NHAI.
Cube Highways, IRB Infrastructure Developers and Adani Group-Prakash Asphaltings & Toll Highways India Ltd had submitted their bids of Rs 4,612 crore, Rs 3,675 crore and Rs 2,718 crore, respectively, for the second package. The bids were invited in August 2018.
The maiden TOT package bagged by the joint venture of Macquarie and Ashoka Buildcon had received a 'bumper response' and the quote was 54% higher than the base price.
PAVING THE HIGHWAY
- 1,892 km – Highways managed by Roadis across the globe
- 710 km – Roads the Canadian company manages in India
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