Washington DC, February 28, 2006—The
International Finance Corporation, the private sector arm of the World
Bank Group, today announced an agreement to provide debt financing in the
amount of $15.2 million to two Indian subsidiaries of India Hydropower
Development Company (IHDC) for construction and acquisition of six small
hydroelectric power facilities in three Indian states. The investment
will be IFC’s first financing of small-scale hydropower in India’s power
generation sector.
Small hydropower facilities can make a significant contribution to future
energy needs with minimal environmental impacts. Such projects have the
potential to provide energy in remote and hilly areas of India, where extension
of the grid system is uneconomical. The activities being financed
include construction of three greenfield mini-hydroelectric generation
facilities (for a total of 13 megawatts) in Himachal Pradesh; acquisition,
rehabilitation, and refurbishment of an existing 34 MW hydroelectric facility
in Maharashtra; completion of a 2.2 MW facility in Madhya Pradesh; and
refinancing of a 12 MW operational facility in Maharashtra.
IHDC was formed in 2005 through a strategic partnership between Dodson-Lindblom
International, Inc., and Franklin Park India. Dodson-Lindblom International
is a subsidiary of DLZ Corporation, an engineering firm based in Columbus,
Ohio; it has been involved in the development of hydropower projects in
India since 1994 and completed the first private small hydropower
rehabilitation project in Maharashtra state in 2001. Franklin Park India
is an affiliate of Franklin Park Energy, an investment company based in
Washington, D.C., that is engaged in developing, owning, and operating
infrastructure businesses worldwide. IHDC envisions significant growth
in its hydropower development business in India over the next decade.
“With financing from IFC, IHDC plans to implement significant additional
hydropower projects in India in the near future,” said IHDC’s Chairman
and CEO Vikram Rajadyaksha.
“We are pleased to support IHDC’s investment in renewable power generation
in India,” noted IFC’s Director of Infrastructure, Francisco Tourreilles.
“These new and expanded hydropower projects will not only help increase
the supply of low-cost electricity in states that are experiencing electricity
shortages, but will also help reduce greenhouse gases in India.”
“The IHDC project supports the Indian government’s efforts to diversify
its power sources and meet increasing electricity demand with a clean,
emission-free natural resource,” added IFC’s Director for South Asia,
Iyad Malas.
About IFC
The International Finance Corporation is the private sector arm of the
World Bank Group and is headquartered in Washington, D.C. IFC coordinates
its activities with the other institutions of the World Bank Group but
is legally and financially independent. Its 178 member countries provide
its share capital and collectively determine its policies.
The mission of IFC is to promote sustainable private sector investment
in developing and transition countries, helping to reduce poverty and improve
people’s lives. IFC finances private sector investments in the developing
world, mobilizes capital in the international financial markets, helps
clients improve social and environmental sustainability, and provides technical
assistance and advice to governments and businesses. From its founding
in 1956 through FY05, IFC has committed more than $49 billion of its own
funds and arranged $24 billion in syndications for 3,319 companies in 140
developing countries. IFC’s worldwide committed portfolio as of FY05 was
$19.3 billion for its own account and $5.3 billion held for participants
in loan syndications. For more information, visit www.ifc.org.