Thursday, 21. January 2010
DEG finances Bhoruka wind park in India
- 15.3 million euros as a long-term loan for Bhoruka Power Corporation Ltd.
- French Proparco as co-lender
- Contribution to climate protection through the promotion of
renewable energy
Reliable energy supply is a vital prerequisite for the economic
growth in emerging markets and developing countries. Against the
background of climate change, the utilisation of renewable energy
is becoming more and more important. This is why DEG – Deutsche
Investitions- und Entwicklungsgesellschaft mbH together with the
French development finance institution Proparco, grants a long-term
loan to the amount of 15.3 million euros for a wind park of the
Indian Bhoruka Power Corporation Ltd. (BPCL). Of this amount, DEG
provides 8.3 million euros and Proparco 7 million euros. Another
lender is the Indian Axis Bank, which will grant a loan in rupees
to the equivalent of 4.3 million euros. Edelweiss Capital Limited,
India, acted as the financial advisor and arranger for BPCL.
Thanks to the financing, BPCL is going to set up a wind park with
17 turbines and a total capacity of around 26 MW in the Karnataka
region in the south of India. Moreover, twelve kilometres of
high-voltage power lines will be laid to connect the wind park to
the mains supply.
BPCL has been developing hydro and wind power projects since 1992.
At present, the company runs twelve smaller hydropower stations and
three wind parks with a capacity of about 100 MW. The current
investment improves the power supply of an economic region of
India, which is of importance in terms of both industry and
agriculture and where the present demand for electricity exceeds
the supply by 3,500 MW. With BPCL DEG supports an experienced
enterprise in the field of renewable energy thereby making a
contribution to climate protection. Furthermore, BPLC excels by
high social responsibility and uses about five per cent of its
annual profits for social projects. In rural areas, the company,
for instance, finances schools for women and ophthalmic hospitals,
which can thus offer medical treatment at lower cost.
With climate protection being an important focus of DEG business,
it has already financed wind and hydropower stations in Africa,
Asia and Latin America. In early 2009, DEG arranged the debt
financing to the amount of 105 million US-dollars for the extension
of Olkaria III, the first private geothermal power plant in
Kenya.
Attached please find a Pdf-File for downloading.
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