Morgan Stanley, Isolux Corsan to invest $400 mn in India JV

Morgan Stanley Infrastructure Partners (MSIP), a $4-billion global infrastructure fund, has committed to invest up to $200 million in a joint venture (JV) with Isolux Corsán Concesiones in India.

Isolux Corsán Concesiones is an infrastructure concessions subsidiary of the $4-billion Grupo Isolux Corsán, specialising in large projects across construction, engineering and concessions.

Grupo Isolux Corsán will bring in an equal amount in the JV, bringing the total commitment to $400 million.

The JV is constructing three highway projects under long-term concession agreements awarded through the build-operate-transfer programme of the National Highways Authority of India (NHAI). The three projects, which totalled over 400 kilometres of road, were estimated to cost over $1.6 billion, said a Morgan Stanley statement. These projects had already received debt financing from leading financial institutions and substantial equity investment from Isolux Corsán, it added.

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

“The JV with Isolux Corsán 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,” said Gautam Bhandari, head of MSI Asia.

The road development programme undertaken by the NHAI under a public-private-partnership (PPP) model is among the largest PPP programmes in the world on Tuesday. NHAI’s National Highway Development Programme, initiated in 1999, is estimated to total $50 billion when completed. India has witnessed double-digit growth in vehicle registrations over the past 10 years, according to Euromonitor, and Morgan Stanley Research identifies it as the second-fastest growing auto market in the world.