Washington, D.C., October 16, 2003—The
International Finance Corporation, the private sector arm of the World
Bank Group, has approved a loan of up to $75 million to Powerlinks Transmission
Ltd. of India. IFC’s loan will have a maturity of 15 years and will
be denominated in Indian Rupees.
Powerlinks will build, own, and operate five 400 kV and one 220 kV double-circuit
transmission lines. The 1,200 km transmission lines will extend from
Siliguri, West Bengal to Mandaula, Uttar Pradesh (near New Delhi) and will
have a capacity of about 3,000 MW. Powerlinks is a joint venture
between Tata Power Company Ltd., India’s largest private power company,
with a 51 percent equity share and Power Grid Corporation of India Ltd.,
the country’s national transmission utility, which holds the balance 49
percent. Powerlinks will make its entire capacity available to Power
Grid for a 30-year period.
Dimitris Tsitsiragos, IFC’s Director for South Asia, noted, “IFC’s financing
to Powerlinks demonstrates our continued commitment to support innovative
infrastructure projects which are important to the Indian economy. IFC
welcomes the opportunity to work with Tata Power and Power Grid – both
leading players in India’s power sector – to support the development
of the transmission sector in India."
Mr. R. P. Singh, Chairman and Managing Director of Power Grid Corporation
of India Ltd. said, “India’s power sector holds great potential for private
sector participation and this transmission project is the first such endeavor
in the developing countries of Asia in recent years. Its successful
implementation – under a public-private partnership framework – is likely
to provide a model to attract much-needed private investments in the transmission
sector, and could be further replicated in India and abroad.”
Mr. F. A. Vandrevala, Managing Director of Tata Power Company Ltd., added,
“We have been associated with IFC since the late 1980s and look forward
to continuing our partnership with them. In the past, IFC supported
Tata Power’s expansion plans in Mumbai and, with this investment, IFC
will be supporting a pioneering project in India’s transmission sector.”
The mission of IFC is to promote sustainable private sector investment
in developing countries, helping to reduce poverty and improve people's
lives. IFC finances private sector investments in the developing world,
mobilizes capital in the international financial markets, helps clients
improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY03, IFC has committed more than $37 billion of its own
funds and arranged $22 billion in syndications for 2,990 companies in 140
developing countries. IFC's worldwide committed portfolio as of FY03 was
$16.8 billion for its own account and $6.6 billion held for participants
in loan syndications.