LANCO Kondapalli Power Private Limited

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LANCO Kondapalli Power Private Limited (LKPPL) was established to build and operate a 355-MW naphtha power plant in Krishna district, Andhra Pradesh. The main sponsors are Lanco Industries (33.9%), Eastern Generation (30%), Globeleq (energy subsidiary of Commonwealth Development Corporation) (25%), and Korea Heavy Industries and Constructions. The company will sell its electricity output to Andhra Pradesh State Electricity Board. The project, whose total cost was US$266 million, reached financial closure in the fourth quarter of 1998. The project became the first project selected through international competitive bidding and that had a fixed price contract that reached financial closure. To ensure that the project receives payments, the board has agreed to set up an escrow account with the State bank of Hyderabad that will maintain funds equivalent to 120% of the project's monthly payment at 100% capacity utilization. The project entered service in October 2000. In June 2001, NRG Energy bought a 30% share in the project from Eastern Generation. In third quarter 2001, the project was being switched from naphtha to natural gas. In June of 2003, Genting Sanyen Power (Labuan) Limited, a subsidiary of Genting Sanyen Power Sdn Bhd (Genting Group), purchased NRG Energy's 30% stake. http://www.lancogroup.com/kondapalli_about.html None