New Generation Infrastructure to Acquire Three Toll Road Projects in India

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Toll Roads will help fuel industrial, financial and economic growth across India

These infrastructure investments in emerging markets can help boost the economy while facilitating easy trade in and around these regions.

New Generation Infrastructure, Inc. (NGI), a subsidiary of New Generation Holdings, Inc., a global leader in renewable energy and infrastructure, today announced they have entered into an agreement to acquire three toll road projects from Valecha Infrastructure Limited (VIL).

NGI will invest approximately $60 million USD toward acquiring stakes from the project’s equity partners – VIL and Piramal Infrastructure Private Limited. Artha Energy Resources (AER) will advise the transaction.

Original agreements between Valecha Group and various state governments in India involved the development, operation and maintenance of the toll road projects on a build, operate & transfer (BOT) basis in the states of Madhya and Gujarat.

“We take pride in the quality and timely delivery of the various infrastructure projects we undertake. Our BOT journey began just under five years ago and this deal will be a landmark deal for the company completing a full circle of build, operate and now transfer to our partners, New Generation Power. Valecha will now focus on completion of its existing projects and bidding for larger projects under the new government to continue setting newer benchmarks in the industry,” said Jagdish Valecha, Director of Valecha Engineering Limited.

Together, the three BOT toll roads have an estimated enterprise value equivalent to $207 million USD.

“This transaction sets another milestone for FDI in the Indian infrastructure sector,” said Dimple G. Jangda, Managing Partner of Rudra Investments, advisor to the M&A transaction on all three toll roads. “This will facilitate larger interest from international investment groups that have been closely watching the Indian market over the last few months.”

Traditionally, the Indian government had built most of the country’s roads through regular EPC contracts. In the last five years, there has been a shift toward executing these roads through a public-private partnership model, which exists worldwide.

With the constant demand for quality infrastructure in a fast developing country, these often run-down and heavily congested roads have threatened to slow-down economic development. Private companies such as NGI have stepped in to help fund these infrastructure projects.

The project will represent a balance of operating and under construction toll roads.

Lebad Manpur BOT toll road is a four-lane, new alignment project located in the state of Madhya Pradesh and goes from Lebad on State Highway 31 to Manpur on National Highway 3. With a strong influence on the surrounding industrial areas, the toll road helps facilitate additional investments and industrial setups throughout the State.

Part of State Highway 39, Badwani Sendhwa, is a 57km stretch connecting Badwani and Sendhwa via Palsood in Madhya Pradesh. The road serves as an agricultural link for produce, forestry and mineral wealth between nearby areas.

Lastly, Bhuj-Bhachua is a 77km stretch of toll road in the state of Gujarat still under construction. Plans to improve road conditions and create wider lanes on a BOT basis are currently underway. After recovering from a devastating earthquake in 2001, the project road, located in Kutch District, now forms a major industrial hub along with National Highway 8A, where the project road ends.

Dr. Chirinjeev Kathuria, Chairman of NGI, commented, “This acquisition adds tremendous value to our already diversified India investment portfolio. We want to continue making a sizable impact on the economy by facilitating growth for other industries. These infrastructure investments in emerging markets can help boost the economy while facilitating easy trade in and around these regions.”

As part of the company’s strategic growth plan, NGI will continue to explore various opportunities in both developing and developed countries globally. Most recently, the company has been assigned the license to build one of the largest biomass facilities in Japan under the current Feed-in-Tariff program.

ABOUT NEW GENERATION POWER
NGP is headquartered in Chicago, and is a global investor, owner and operator of infrastructure assets in the key areas of Utility Scale Power Generation including Conventional and Renewable Energy Production, Distributed Generation and Mining Exploration & Extraction in the USA and internationally. NGP is developing world class Infrastructure projects including Toll Roads and Energy projects about 3000 MW in capacity in areas of hydro, solar, wind, thermal projects across the globe. The company will be generating energy for developed and developing countries that will create job opportunities and employment for several million people. Visit the company online at http://www.newgenpower.com.

ABOUT VALECHA ENGINEERING LIMITED
With over 50 years of Engineering Pedigree, Valecha Engineering Limited is one of the leading construction and infrastructure development company in India Listed in the National Stock Exchange and the Bombay Stock Exchange, the company constructs various infrastructure and engineering projects, including roads, highways, and expressways; bridges and tunnels; airports; irrigation dams, reservoirs, and canals; and railways and specialized underground tunneling. The company also has a pedigree of working internationally and has done extensive foundation engineering works in the Middle East and is now also looking at opportunities in part of Africa and other developing counties.

ABOUT ARTHA ENERGY RESOURCES, LLP
Artha Energy Resources (AER) provide avenues for investments into renewable power. AER has relationships with governments, EPCs, developers, etc. across all verticals and stages of project development in India, Japan and the United States. They have advised 165 MW of transaction closures, bringing in a total of $548 million of renewable investments for 2014. Find out more at http://www.ArthaEnergyResources.com.

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