PARE hydroelectric power station (NEEPCO), expansion

completed

The FC measure includes the construction of the new Pare hydroelectric power plant with an installed capacity of 110 MW in the underdeveloped north-east of India. The aim of the FC measure is the sustainable provision of climate-friendly energy for economic development through the use of hydropower. The total costs of the project were estimated at around EUR 132.2 million at the time of project appraisal. To finance the debt portion of the total costs, integrated joint financing of EUR 80 million and a grant of EUR 0.5 million for an accompanying measure were made available on December 11, 2008. However, significant cost increases have occurred in connection with the construction of the Pare hydroelectric power plant, and the total costs of the project are currently estimated at around EUR 157.4 million. In view of the significant additional costs in the construction of the Pare hydroelectric power plant, the existing loan financing is to be increased by around EUR 20 million to EUR 100 million. To finance the increase - contrary to the original form of financing - a low-interest loan of around EUR 20 million is to be made available.