Essar Bulk Terminal Paradip Ltd

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Essar Paradip Terminals Limited (EPTL) was created to implement a project for the construction and operation of a 14 Million Metric Tonne Per Annum (MMTPA) deep draught coal berth (Central Quay- III berth) on BOT basis in the Paradip port, Orissa. Essar Paradip Terminals was a subsidiary of Essar Group via Essar Shipping Ports and Logistics Ltd. Coal berth was expected to have a capacity of 10 million tpa per annum. Under the agreement, Essar Paradip Terminals was responsible for building and operating the port while PPT was responsible for providing all supporting facilities like dredging, railway connectivity and backup area at an estimated cost of INRs 702.1 million (US$ 28.7 million). The public entity Paradip Port Trust awarded the project through an open tendering process to Essar Shipping Ports and Logistics Ltd, which offered to the government on a 31% of revenue sharing arrangement. The Paradip Port Trust (PPT) and Essar Paradip Terminals signed the BOT concession agreement on 10 November 2009. The concession period was for 30 years, plus 3 years of construction period. At the time the concession was awarded the project cost was estimated to be INR 4088 million (US$89.4 million). The project cost was estimated to be INR 5590 million (US$122.24 million) at the time of financial closure. Financial close was achieved on 27 Sep 2010. Financing comprised Rs4.1bn 11-year term loan debt. The remaining INR 1120 million (US$24.5 million) was equity contribution. The debt was arranged by YES bank and L&T Infrastructure Finance Company Ltd. The construction of the berth was expected to take 36 months from the date of award of the concession, and the port to become operational in September 2013.