Basin Bridge Diesel-Fired Power Plant

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The 200-MW (4x50-MW), $236m Basin Bridge Diesel-Fired Power Plant was originally developed by a joint venture between local firm GMR Vasavi Group (26%), CMS Energy Corporation (49%), and Energy Electricity Corporation (EEC, 25%). CMS Generation Co, a subsidiary of CMS Energy, acquired its interest in the plant in November 1997 and will provide operational and maintenance services for the plant upon completion. EEC acquired its stake in January 1999 from GMR Vasavi Group. In fourth quarter 2001, CMS Energy announced its plans to sell all interests in its India power projects. In 2003, the GMR Energy Group picked up the equity stake of CMS Energy. Construction began in March 1997 and the plant was expected to be completed during 1999. The plant will serve as a base-load facility with its entire electric output sold to the Tamil Nadu State Electricity Board under a 15-year take-or-pay PPA that is renewable for two 5-year periods. Hyundai Heavy Industries Ltd. is the engineering, procurement, and construction (EPC) Contractor and Tata Consulting Engineers is the technical advisor. Financial closure was reached in October 1996 with Peregrine Capital as the financial advisor. The project has debt/equity ratio of roughly 70:30. The Industrial Bank of India (IBI) is providing $94.3 million and the Korean Export-Import Bank is providing suppliers credit worth $70.7 million. A 15-year fuel supply agreement was signed with the Hindustan Petroleum Corp Ltd. The necessary clearances for this project have been obtained.