INCaF IHDC Small Hydros

completed

_x000C_INCaF is contracting with Dodson-Lindblom HydroPower Private Limited (DLHPPL) and Ascent Hydro Projects Limited (Ascent) on a joint and several basis to purchase Certified Emission Reductions (CERs) generated by the two companies’ small hydro projects in India. DLHPPL and Ascent are Indian companies, established in 1997 and 1994 respectively, that are 100% owned subsidiaries of Dodson-Lindblom International (DLI or the Sponsor), a wholly-owned subsidiary of DLZ Corporation of the U.S. IFC is also lending to these companies, on a joint and several basis (Note that a Summary of Project Information for IFC’s investment project with DLI Small Hydros, known by the name IHDC, was already released on June 16, 2005 by IFC). As of June 20, 2006, the project name changed from DLI small Hydros to IHDC Small Hydros. The reason for this change was because the first sponsor, DLI, formed a new company, IHDC, as a special purpose vehicle to own the projects and facilitate the investment of additional investors. In 2002, IFC and the Netherlands established the IFC-Netherlands Carbon Facility (INCaF) and an associated Trust to enable IFC to purchase, for the benefit of the Netherlands, certified emission reductions (CERs) under the framework of the Clean Development Mechanism (CDM) of the Kyoto Protocol. INCaF will purchase CERs from DLHPPL and Ascent generated between 2001 and 2012. INCaF’s purchase will be approximately 90% of the total amount of CERs expected to be generated by the Project during the period from 2001 to 2012. The Project comprises a package of six small- and mini-hydroelectric generation plants located in three states in India including: - the construction of three greenfield mini-hydroelectric generation facilities in the state of Himachal Pradesh (Sechi, Melan and Panwi); - the acquisition, rehabilitation and refurbishment of an existing 34 MW facility in Maharashtra (BH II); - an existing 12 MW operational facility in Maharashtra (BH I); and, - the completion of a 2.2 MW mini-hydropower plant in Madhya Pradesh state (Birsingphur) currently under construction.