BOT Toll MCA amended: termination payment cap raised to 115% of TPC
MoRTH OM (2024)
Open the sourceWhat the circular says
MoRTH amended the Model Concession Agreement for BOT Toll projects under the capacity augmentation framework. The most significant change for concessionaires: NHAI's default termination payment cap was raised from 100% to 115% of Total Project Cost. The amendment also clarified the capacity augmentation trigger mechanism and NHAI's obligation to compensate for additional lane costs arising from NHAI's own traffic forecasting errors.
Contractor action
If you are in financial close or bid pricing for a BOT Toll project, verify that your concession agreement references the March 2024 MCA version. The 15% uplift on termination payment improves lender comfort on tail-risk and may reduce your interest margin on senior debt.
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