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dam-l Fwd: LS: US Company May Buy into Maheshwar
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DATE: Fri, 17 Dec 1999 17:36:50
From: owner-irn-narmada@netvista.net
To:
Please write to Ogden (see below) urging them to not to invest in Maheshwar
Dam. Patrick.
Scott G. Mackin
President and CEO
Ogden Energy Group Inc
Two Pennsylvania Plaza
New York, NY 10121,
fax 212 868 3588
>Ogden Energy to pick up 49% in Maheshwar project
>R Radhakrishnan
>Economic Times, Mumbai, 13 Dec, 1999
>
>THE S Kumars Group has brought in the $2 bn Ogden Energy Inc as its new
>equity partner for its upcoming 400 MW hydel power project in Madhya
>Pradesh under Shree Maheshwar Hydel Power Corporation (SMHPC). Ogden will
>pick up the 49 per cent equity in the hydel project held earlier by German
>partners, Bayernwerke and VEW Energie. The S Kumars group holds the
>balance 51 per cent stake. The existing partners, Bayernwerke and VEW
>Energie, of Germany have been forced to back out as they could not obtain
>political risk cover from German government insurance agency Hermes to
>facilitate their equity participation in the hydel project. Speaking to
>ET, SMHPC director Mukul Kasliwal said they had to select Ogden in place
>of German utilities because of the delay by Hermes. ?It is not that the
>German utilities have pulled out of the project. We could not wait for
>long. We had to proceed with the project.? Ogden will be the operations
>and maintenance contractor for the hydel project. It will invest about $79
>m to pick up the 49 per cent equity stake in the project. Patrick Hart,
>country head of Ogden Energy, spoke to ET just before leaving for
>Frankfurt to meet the engineering, procurement and construction (EPC)
>contractors of the project, Siemens AG and ABB. ?We have carried out due
>diligence for about three months and are quite excited about this project.
>Ogden Energy Group came to India about a year ago and India remains a
>prominent investment destination. We are handling couple of energy
>projects based on solid wastes in India and other parts of Asia,? he said.
>The Rs 1,922-crore hydel project comprises Rs 1,344 crore of debt and Rs
>578 crore of equity. ?The change of partners is not going to affect or
>change the debt financing structure because the Hermes cover was towards
>equity investments. We have tied up all the required funds with IFCI
>(Industrial Finance Corporation of India), Power Finance Corporation and
>State Bank of India supported by a consortium of banks,? Mr Kasliwal said.
>The project comprises two foreign currency (FC) loans of 17-year tenor - a
>$220 m loan from Bayerische Veriensbank of Germany for which SBI has
>provided front end guarantee and a second loan of $46m raised through the
>risk cover provided by a Portugese agency, Companhia de Seguros de Credit.
>The rupee term loan in the project is Rs 300 crore. S Kumars is the first
>Indian corporate to raise a FC loan of a long tenor of 17 years. The hydel
>project has already obtained escrow cover from the Madhya Pradesh
>Electricity Board on the basis of its proposed low tariff. Ogden Energy
>Inc, a wholly owned subsidiary of Ogden Energy group with interests in
>entertainment, aviation and energy, is the world's largest power generator
>from waste material. Ogden also has interests in hydel, geothermal, coal
>and natural gas based power projects and holds the Martin Technology
>technology for converting solid wastes into electricity.
>
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