Infra.india Regulatory News (IIP)

15 Jan 2010 10:02



Infrastructure India plc

Update

Road Investment begins partial tolling ahead of schedule

Infrastructure India plc ("Infrastructure India" or the "Company"), the investment company focusing on Indian infrastructure assets, is pleased to provide an update in respect of the Toll Road in Central India - Western Madhya Pradesh Infrastructure & Toll Roads Ltd. ("WMPITRL")

The Company's investment into WMPITRL, a 26% shareholding in a toll road in Madhya Pradesh, has made excellent progress since the last update. The SPV was awarded the project on a DBFO (Design, Build, Finance, Operate) basis in August 2007 for a term of 25 years. The toll road project comprises a single 125 km stretch which is being widened from the existing 2 lanes to 4 lanes in order to reduce congestion experienced on the route and to provide further scope for traffic growth. The project is currently 21 months into construction and works to date are ahead of schedule. Following the announcement in the Company's interim results for the six month period ended 30 September 2009, when the expected date of the start of tolling was forecast to be 1 April 2010, the Company is pleased to report that tolling operations have now commenced on approximately 67km of the road. The final sections of the road will begin tolling on completion of various bridges currently in construction. A follow on investment of INR 128m (c. £1.6m) was required for completion of the project, of which £881,000 has already been paid.

The Board of the Company also notes the announcement made by Advance UK Trust plc ("Advance UK") yesterday. For the record and further to the announcement the Company made on 17 December 2009, Infrastructure India wrote to Northern Trust, which is acting on behalf of Advance UK, on 21 December 2009, inviting Northern Trust to withdraw the requisition for a general meeting. The Company made this request due to the uncertainties created in light of the developments in relation to Advance UK, specifically the directors of Advance UK having three months to convene a general meeting at which a special resolution will be put to wind up Advance UK voluntarily. As at today's date, Advance UK has not responded to any of the matters raised in this letter. 

The Company will provide a further update in this respect in due course.

Commenting on the update, Rupert Cottrell, Chairman of Infrastructure India said:

"The Directors are very pleased with the progress made with the toll road in Madhya Pradesh with tolling operations having now commenced earlier than anticipated over a substantial proportion of the road.  The Directors believe such progress underlines both the attractiveness of the investment as well as the quality of the Company's partner on this project. 

The Directors remain committed to achieve the objective of becoming a highly relevant and strategic entity in the Indian infrastructure market and to create significant value for all shareholders. We look forward to updating shareholders again shortly."

 -Ends- 

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