Bothe Windfarm Development Private Limited

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Continuum Wind Energy of Singapore (through its Indian subsidiary,Surajbari Windfarm Development Private Limited) entered into an agreement with Maharashtra Government to develop a 174.6MW wind farm located at Satara district, in the state of Maharashtra. The wind farm will involve the building of 97 gearless Vestas wind turbines of 1800KW capacity each. The electricity generated from the project would be evacuated by the Maharashtra state grid. The delivery of the power plant would be done by Vestas Wind Systems(India) Limited. Power evacuation would be done by 43 km 220 kV transmission line and the 200 MVA substation, which are a part of the project. Surajbari Windfarm Development Private Limited established Bothe Windfarm Development Private Limited (Bothe Windfarm), a special purpose vehicle to execute this 175MW project. Bothe Windfarm would sell the power to Maharashtra State Electricity Distribution Company Ltd (MSEDCL) through a 13-year PPA.The APPC (Average Power Purchase Cost) base tariff as per MERC tariff order (dated 29 April 2011 for Wind zone 1) was US$ 0.10/Unit (INR 5.37 per unit @53.44 INR/USD) for the first 13 years of operation. The transmission charges would be paid by Bothe Windfarm to the state transmission utility.The total capacity of 174.6MW was eligible under REC as per the CERC and CDM benefits under UNFCC. Contracts for supply, erection and O&M had been executed with Vestas for this project. Financial closure took place in November 2012.The total project cost at the time of financial closure was US$ 244.7mn (INR 13080mn @ 53.44 INR/uSD).The debt equity ratio for the project was about 69/31. Financing comprised of a 13-year 3-months term loan of USD 168.4mn (INR 9000mn) and sponsor equity of US$ 76.3mn (INR 4080mn). The term loan had a repayment schedule of 46 quarterly instalments. The term loan was arranged by SBI Capital (INR2500mn). The participating banks were Central Bank of India (750mn), Indian Renewable Energy Development Agency (2250mn), IIFCL,State Bank of Patiala (1000mn), State Bank of Bikaner & Jaipur (500mn) and State Bank of Travancore (500mn).For equity, Continuum Wind Energy had an agreement with Morgan Stanley Infrastructure Partners (MSIP) LLP, a part of Morgan Stanley Investment Management for investment of US$200m for various wind projects of the group. Construction for the wind farm was expected to be completed by December 2013.