NIIF, Roadis partner to create platform to invest up to $2 bn in highways projects
NIIF is a fund manager that invests in infrastructure and related sectors in the country
Private infrastructure investor ROADIS and the national investment and infrastructure fund (NIIF) have come together to create a platform for investing up to $2 billion in road projects in India.
The platform will target Toll-Operator-Transfer (TOT) model, acquisition of existing road concessions and potential investment opportunities in the country's roads sector.
The Indian government introduced the TOT model in 2016 for monetisation of publicly-funded highways. Under the model, investors make a one-time lump sum payment in return for long-term toll collection rights backed by a sound tolling system.
“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,” said José Antonio Labarra, CEO, ROADIS.
With 710km of highways under ownership and management, ROADIS claims to be the largest European highway concession manager in India. Itcurrently manages 1,892 kilometers of highways, divided among ten concessions in Mexico, Brazil, Spain, Portugal and India.
“The Indian road sector has attracted significant global capital over the last two decades and will continue to offer large investment opportunities,” said Sujoy Bose, MD at NIIF.
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, Bose said.