Announcement of India Private Power Utilities (BSES) Project on June 17, 1991

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 91/90 Contact: Pastor B. Sison Tel: (202) 458-0344 INDIA: PRIVATE POWER UTILITIES (BSES) PROJECT The following is information on a project approved by the World Bank's Board. DATE: June 17, 1991 WORLD BANK GROUP SUPPORT: World Bank loan: $200 million. The loan is for 20 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $653.3 million OTHER FINANCING: Indian financial institutions, $155.1 million; International Finance Corporation (IFC) investment, $50 million; IFC syndication, $18.0 million; Internal accruals, $65.6 million; Special reserves, $47.5 million; Fully convertible debentures (first and second issue), $117.1 million IMPLEMENTING AGENCY: Bombay Suburban Electricity Supply Limited (BSES) ESTIMATED COMPLETION DATE: 1997 PROJECT DESCRIPTION: The objectives of the Private Power Utilities (BSES) Project are to: (a) provide additional generation, trans- mission, and distribution capacity to meet the increasing demand for electricity in the Bombay area and maintain high-quality service to BSES consumers; (b) increase private sector participation in the supply of power; and (c) transform BSES from a distribution company into an integrated power utility with responsibilities for genera- tion, transmission, and distribution. The project includes: (a) a thermal power plant comprising two 250 megawatt coal-fired units located at Dahanu with steam generators, turbo-generator sets complete with auxiliaries, a once-through circulating water system, coal, ash, and oil handling plants, a water treatment plant, a power station switchyard, miscellaneous electrical and mechanical equipment, environmental safeguard and monitoring equipment, and associated civil works and consulting services; (b) two double- circuit 220 kilovolt transmission lines (about 105 kilometers) to transmit power from Dahanu to BSES's license area and three 220/33 kilovolt receiving substations; and (c) strengthening and extending BSES's 33 kilovolt and 11 kilovolt subtransmission and distribution system.