Coastal Gujarat Power gets $450 mln loan for
power project in India - ADB
Apr 25, 2008 - Thomson Financial
The Asian Development Bank (ADB)
said it has executed a loan agreement for a
$450 million loan to India's Tata Power Company
Ltd.'s wholly-owned unit, Coastal Gujarat Power
Ltd. (CGPL), which will build, own and operate
the 4,000-megawatt Mundra Ultra Mega Power Project
in the western Indian state of Gujarat.
The ADB said it will provide
long-term financing of up to 20 years which
will translate into a competitive power tariff
for the benefit of the economy and ultimately
of power consumers.
The ADB loan will be provided
in two tranches, with the first totaling $250
million and the balance syndicated by ADB to
the Export-Import Bank of Korea (KEXIM) through
a risk participation agreement.
The project will provide a significant
volume of additional electricity to address
shortages and will promote private investment
in power and show good practice in building
and financing large-scale power projects in
India through public-private partnerships, the
ADB said. TFN.firstname.lastname@example.org ans
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