Washington DC, February 28, 2006
—The International Finance Corporation, the private sector arm of the World Bank Group, today announced an agreement to provide debt financing in the amount of $15.2 million to two Indian subsidiaries of India Hydropower Development Company (IHDC) for construction and acquisition of six small hydroelectric power facilities in three Indian states. The investment will be IFC’s first financing of small-scale hydropower in India’s power generation sector.
Small hydropower facilities can make a significant contribution to future energy needs with minimal environmental impacts. Such projects have the potential to provide energy in remote and hilly areas of India, where extension of the grid system is uneconomical. The activities being financed include construction of three greenfield mini-hydroelectric generation facilities (for a total of 13 megawatts) in Himachal Pradesh; acquisition, rehabilitation, and refurbishment of an existing 34 MW hydroelectric facility in Maharashtra; completion of a 2.2 MW facility in Madhya Pradesh; and refinancing of a 12 MW operational facility in Maharashtra.
IHDC was formed in 2005 through a strategic partnership between Dodson-Lindblom International, Inc., and Franklin Park India. Dodson-Lindblom International is a subsidiary of DLZ Corporation, an engineering firm based in Columbus, Ohio; it has been involved in the development of hydropower projects in India since 1994 and completed the first private small hydropower rehabilitation project in Maharashtra state in 2001. Franklin Park India is an affiliate of Franklin Park Energy, an investment company based in Washington, D.C., that is engaged in developing, owning, and operating infrastructure businesses worldwide. IHDC envisions significant growth in its hydropower development business in India over the next decade.
“With financing from IFC, IHDC plans to implement significant additional hydropower projects in India in the near future,” said IHDC’s Chairman and CEO Vikram Rajadyaksha.
“We are pleased to support IHDC’s investment in renewable power generation in India,” noted IFC’s Director of Infrastructure, Francisco Tourreilles. “These new and expanded hydropower projects will not only help increase the supply of low-cost electricity in states that are experiencing electricity shortages, but will also help reduce greenhouse gases in India.”
“The IHDC project supports the Indian government’s efforts to diversify its power sources and meet increasing electricity demand with a clean, emission-free natural resource,” added IFC’s Director for South Asia, Iyad Malas.
About IFC
The International Finance Corporation is the private sector arm of the World Bank Group and is headquartered in Washington, D.C. IFC coordinates its activities with the other institutions of the World Bank Group but is legally and financially independent. Its 178 member countries provide its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment in developing and transition 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 FY05, IFC has committed more than $49 billion of its own funds and arranged $24 billion in syndications for 3,319 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY05 was $19.3 billion for its own account and $5.3 billion held for participants in loan syndications. For more information, visit
www.ifc.org
.
