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.
