Fortune Five Hydel Projects Private Limited

Active

Greenko Group Plc entered into an agreement with Karnataka Government to develop 100.8MW wind power project at Bijapur district in the state of Karnataka. The agreement was for a capacity of 128MW, but currently 100.8MW project was being developed. Greenko Group established Fortune Five Hydel Projects Private Limited, a special purpose vehicle, to execute this project. The wind farm would involve the building of 63 GE 1.6XLE wind turbines each of 1.6MW capacity. The project was expected to generate about 200,090 MWh of power annually at a PLF of 22.66% and would reduce approximately 179,474 tCO2/annum of GHG emissions.The electricity generated from the project would be evacuated by the Southern regional grid of India to the Karnataka Power Transmission Corporation Limited’s substation at Basavana Bagewadi, which was located at about 12 km from the wind farm. The installation and commissioning of WTGs is under the scope of GE India Industrial Private Limited, the WEG supplier. Fortune Five Hydel Projects was expected to sell the power to Karnataka State Electricity Board (or state Discom). The APPC (Average Power Purchase Cost) 10-year base feed-in tariff as per KERC (Karnataka State Regulator) relevant tariff order of December 2009, was US$ 0.069/Unit (INR 3.70 per unit @ 53.44INR/USD). The transmission charges would be paid by Fortune Five Hydel Projects to the state transmission utility. The total capacity of 100.8MW was eligible for CDM benefits and the company had initiated the process with UNFCC. Financial closure took place on 1st June 2012.The total project cost at the time of financial closure was US$ 114.3mn (INR 6110.3mn @53.44 INR/USD).The debt equity ratio for the project was 70/30. Financing comprised of a 14.25-year term loan of US$ 79.5mn (INR 4250mn) and sponsor equity of US$ 34.8mn (INR 1860.3mn). The term loan was priced at 13%. IL&FS Financial Services was the lead arranger. A consortium of 5 Banks/FIs, led by Oriental Bank of Commerce provided the term loan. The project started in January 2012 (the date on which the contract for the purchase of equipment executed with GE India). Land acquisition for the project was expected to be completed by September 2012. The commissioning of WTGs was expected to be between January and June 2013.