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Thursday, July 25, 2024

IRB Infrastructure Trust Secures Rs 1,720 Crore Arbitration Award for Highway Project

Yedeshi Aurangabad Tollway Ltd (YATL), a special purpose vehicle under IRB Infrastructure Trust, has been granted a significant arbitration award of Rs 1,720 crore for a highway project, as per a recent statement. The arbitration was initiated by YATL against the National Highways Authority of India (NHAI) following a dispute regarding the extension of the concession period by 870 days and a compensation claim of Rs 1,751 crore.

IRB Infrastructure Developers Ltd serves as the sponsor for IRB Infrastructure Trust and was the EPC contractor for YATL, continuing as the project manager. The arbitration centered on compensation owed to IRB for time and cost overruns during the construction period due to delays attributed to NHAI and certain Force Majeure events.

Following a comprehensive hearing, the Arbitration Tribunal has directed NHAI to pay a compensation of Rs 1,720 crore, inclusive of interest as of the award date. Additionally, NHAI has been instructed to grant an extension of 689 days to the concession period.

YATL, established by IRB for the Yedeshi Aurangabad NH211 BOT highway project, faced delays in completion due to land handover delays and other NHAI-related factors. The project, scheduled for completion by December 26, 2017, was ultimately finished on September 24, 2020. The incurred time and cost overruns led to YATL’s compensation claim, sparking the arbitration process.

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