AllainDuhanganII

completed

AD Hydro Power Limited (ADHPL or the project) involves the construction, operation and maintenance of a 192MW run-of-the-river hydro-electric merchant power plant in the Kullu district of Himachal Pradesh and the construction of a 174km, 220kV transmission line for evacuating power to the regional grid. The project will utilize the perennial flows of the Allain and Duhangan rivers, and combine the flows through two underground tunnels to feed a single powerhouse near Prini Village. The project is one of the first private hydropower plants financed on a merchant basis in South Asia. IFC financing was approved by IFC’s Board on September 28, 2004 and project construction began in early 2005 with the plan of commissioning by June 2008. However, as of end October 2007, the project is behind schedule and is now expected to be commissioned in two stages, with ADHPL projecting the Allain component to start operation in June 2009 and the Duhangan component in January 2010. ADHPL is seeking additional financing from IFC to partially cover cost over-runs of the project.