ASIA

Kakinada gets IDFC financing

22 years ago

The Infrastructure Development Finance Company (IDFC) has given its approval to long-term project funding amounting to $25.13m for Kakinada Sea Ports Ltd (KSPL).

This will enable financial closure to take place for the first phase of the port project five years after it started operations in April 1999.

The debt funding, which will be for a period of 11 years, will also be used by the special purpose vehicles set up by KSPL and its strategic investment partners to establish both an LNG terminal and a container handling terminal at the port.

Phase I development of Kakinada, which covers the development of backup areas, rail connections and equipment procurement, cost $38.24m, of which KSPL shareholders contributed $13.11m in the form of equity contributions.

KSPL, which was set up by Larsen & Toubro, Konsortium Logistik of Malaysia and Salgaokar Mineral Industries Ltd, is developing the port on an operate, manage, share and transfer basis over 30 years.

The consortium will have to pay 20% of gross revenues during the first five years of operation and thereafter 22% to the government of Andhra Pradesh.

At present, three berths along a 610 metre quay wall are operational. Dredging will allow vessels drawing a draught of no more than 12.5 metres to dock.