KUALA LUMPUR: Sunway Construction Group Bhd said its joint venture company was officially appointed on Monday, Aug 9 to undertake a highway project in India.

       SunCon said on Wednesday the JV was informed by the National Highway Authority of India (NHAI) about the appointed date for the road expansion in Tamil Nadu where the construction period is two years.

       In a filing with Bursa Malaysia on Wednesday, SunCon said the operating and maintenance period is 15 years from the commercial operation date.

       On Oct 28, 2020, SunCon announced the JV, Sunway RNSIL MC Private Ltd (Sunway RNSIL MC) had accepted the letter of award for the project. Suncon Construction holds a 60% stake in the JV and RNS Infrastructure Ltd the remaining 40%.

       The JV was set up undertake the project valued at RM315mil in addition to a 15-year operating and maintenance contract at RM850,000 per annum.

       The project involved two lanes with paved shoulder of Meensurutti (Km. 98.433) to Chidambaram (Km. 129.965).

       The project will be operated under the hybrid annuity mode for a concession period of 15 years plus two-year construction period.

       Under the mode, NHAI will pay 40% of the project cost in the first two years during the construction period in five equal instalments whereas the remaining 60% is paid over 15 years as fixed annuity amount plus interest which is benchmarked at RBI (Reserve Bank of India) rate + 3%.

       There is no toll right for the concessionaire. Revenue collection from the highway toll would be the responsibility of the NHAI.