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.