SunBorne Karmaria I & II Solar Plant

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In May 2010, SunBorne Energy Gujarat One Private Limited (SBEGOPL- a project SPV of SunBorne Energy Services India Private Limited),signed an MoU with Gujarat Energy Development Agency (GEDA) for setting up a 15-mw photovoltaic solar project at village Karmaria, in Kutch district of Gujarat, under the Gujarat Solar Policy 2009. The Project was proposed to be implemented in two phases- Phase I for 5 MW and Phase II for remaining 10 MW capacity.The project would consist of Poly Crystalline silicon modules (SolarWorld-SW230 make) of 230Wp capacity installed in series and parallel combination. The entire land and requisite approvals for the project were in place. The output from the project would be fed to the North-East-West-North-East (NEWNE) grid of India. SEGOPL has appointed its holding company SunBorne Energy Services India Private Limited (SESIPL) as an EPC for the project.The solar modules would be sourced from SolarWorld and inverters from SMA AG for phase I and Solar Technology AG and Suntech Power and Bonfiglioli for phase II.Power evacuation was planned through an 8 Km 66 KV line, which, as per the state policy, was the responsibility of Gujarat Energy Transmission Corporation Limited (GETCO) and GETCO had already commenced work on it. SBEGOPL had entered into a 25-year Power Purchase Agreement with the state utility Gujarat Urja Vikas Nigam Limited (GUVNL) on 31st May 2010, which would be effected at the time of commissioning of the project. The APPC (Average Power Purchase Cost) as per the Gujarat Solar Policy 2010, was US$ 0.33/Unit (INR 15 per unit @ 45INR/USD) for the first 12 years, and US$ 0.11/Unit (INR 5 per unit @45 INR/USD) from 13th year to 25th year. The total capacity of 15MW was eligible for carbon credits. Proceeds of carbon credit were to be shared as follows: (a) 100% by SBEGOPL in the first year after the date of commercial operation of the generating station/ transmission system;(b) in the 2nd year the share of GUVNL would be 10% which would be progressively increased by 10% every year up to 50% whereafter the proceeds would be shared in equal proportion, by SBEGOPL and GUVNL.Transmission and/or wheeling charges would be paid by SBEGOPL. Financial closure took place in August 2011.The total project cost was US$ 44.5mn (INR 2090mn @47 INR/USD).The debt equity ratio for the project was 67/33. Financing comprised of Debt of US$ 29.8mn (INR 1400mn @ 47INR/USD) and sponsor equity of US$ 14.7mn (INR 690mn @47 INR/USD). The 13year term loan of INR 1400mn had a grace period of 9months and a repayment schedule of 46 quarterly installments. The debt was arranged by SBI Capital. The other particpating banks were Export-Import Bank of India (500mn), State Bank of Travancore (200mn),State Bank of Patiala (400mn), Canara Bank (300mn). The loan pricing was 450bp over 6-month LIBOR for EXIM Bank, and SBI Base rate plus a constant spread (which presently was estmated at 13.25%). Total equity requirement of INR 690mn was to be 51% funded by Sunborne Group and 49% by private equity. Construction for the wind farm was expected to start in March 2011 and commercial operation was expected to start in December 2011 (as per the PPA).