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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.newsdesk@thomsonreuters.com ans


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