RAIN Calcinating Project

active

GVK Reddy Group and Houston Industries Energy (HIE) are the primary developers of this $94 million, 49-MW, cogeneration plant. The plant will be fueled by recovered gases from calcinated petroleum coke, a processed aluminum smelting by-product. At full production, the plant is projected to sell 44-MW of its output to nearby industrial companies under a wheeling agreement with the Andhra Pradesh State Electricty Board. It will also export 11-MW, primarily to Persian Gulf aluminum producers and use 5-MW internally. The wheeling agreement gives APSEB the right to choose and change customers. Two cement companies have committed to purchase 13-MW. The APSEB is obligated to purchase any electricity that the project can sell. The project will be owned by the developer in perpetuity. The International Finance Corporation (IFC) has $5.4 million stake in the project. The IFC approved this equity position in its 1995 fiscal year. At the same time, it approved an $18.3 million direct loan and an US$ 1 million standby loan. In 1998, the IFC approved an additional US$ 0.84 million in equity investment. Applied Industrial Materials Corp. (AIMCOR), a supplier of coke products, has a 5% stake and the remaining 35% of equity finance will be raised through an Initial Public Offering. Financial closure was reached on June 13, 1995. None None