Morgan Stanley Infra to invest $200 mn in road project

Morgan Stanley Infrastructure Partners (MSIP), an arm of US-based financial firm Morgan Stanley, today committed to invest up to $200 million in a joint venture with Isolux Corsan Concesiones in India.

Isolux Corsan will bring in an equal investment in the venture through the unit.

Spain-based Grupo Isolux Corsan has also committed to match the investment in the joint venture, bringing the total commitment to $400 million, one of the largest foreign investments in Indian transport infrastructure to date, MSIP said in a statement.

The joint venture is constructing three highway projects in the country under long-term concession agreements awarded through the Build-Operate-Transfer (BOT) programme of the National Highways Authority of India (NHAI).

The three projects, it said, which total over 400 kilometres of road, are estimated to cost over $1.6 billion and have already received debt financing from leading financial institutions and substantial equity investment from Isolux Corsan.

The projects are expansions of existing roads and will link major cities, industrial hubs, as well as ports and tourist attractions, it said.

In addition to these three projects, Isolux Corsan has qualified to bid on several new NHAI projects, it said.

"The joint venture with Isolux Corsan Concesiones adds to our successful presence in India's transportation sector, providing us with an excellent road concession platform in a market that is experiencing rapid urbanisation and dramatic growth in vehicles," MSI Asia Head Gautam Bhandari said.