Gujarat Paguthan Power Station

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Torrent Power Ltd. divested its 46% share in the $671 million, 655-MW, Paguthan Power Plant to PowerGen in July 1999 and the project company changed its name to Gujarat PowerGen Electricity Corporation (GPEC). Additional equity was provided from an initial public offering (IPO) on the Bombay Stock Exchange. PowerGen is the project operator. Siemens AG and Siemens Ltd. India are the EPC contractors. Siemens AG, Siemens Ltd. India, Babcock Lengjes, Dillinger Stahlbua/Calcke, BHEL are the equipment suppliers. The project is a combined cycle, natural gas and naptha plant. Financial closure was reached in March 1997. Hermes and German banks are providing $233.0 million in export credits and foreign currency loans. Additional rupee (123.0 million) and DM loans (48.0 million) have been obtained from Indian Financial Institutions (IFIs). IFIs are also provided a payment guarantee on the export credits. A 20-year power purchase agreement was signed with the Gujarat State Electricity Board, which is backed by the State Government of Gujarat. A payment guarantee for the first year of operation is being provided by the Gujarat State Government. Construction for the project began in January 1996. In Oct. 2000, PowerGen bought the Siemens stake in the project, increasing its shareholding in the project to 88%. In Dec. 2000, China Light and Power Ltd. struck a deal with PowerGen in which both companies would form a new joint-venture that would own PowerGen's stake in the Paguthan power project. The Chinese company now holds 80% of the new venture and PowerGen held 20% before it sold its stake in the project in the same month that the deal was struck. None None