Canadian institutional fund manager Caisse de dépôt et placement du Québec (CDPQ) through its infrastructure investment trust — India Highway Concession Trust — has signed an agreement with Bharat Road Network Limited to acquire a 67-kilometre toll road project from Bhubaneswar to Chandikhole, in Odisha.

The enterprise value of the SPV — Shree Jagannath Expressway Private Limited — is estimated in the range of Rs 1800-2000 crore, people familiar with the development said. The SPV is in charge of the development, operations and maintenance of the project which began in December 2011 with an initial concession period of 26 years.

BRNL is the largest shareholder with a 40 per cent stake. The company is looking to reduce debt and to use the proceeds for organic and inorganic growth. BRNL’s borrowings were at Rs 260 crore as in September 2020.

“It will be the first asset integrated into the new CDPQ-owned roads platform in India, which we set up and staffed in 2020. This reflects our interest for the sector and more broadly the Indian infrastructure market,” said Emmanuel Jaclot, executive vice-president and head of infrastructure, CDPQ.

"The transaction is expected to help BRNL in reducing its debts and will also provide the company with funds for reinvesting in its existing assets under construction," said Bajrang Kumar Choudhary, managing director, BRNL.