Financial closure of Gammon’s berth at Paradip port likely by March  

January 21, 2010

The iron ore berth planned at Paradip port in Orissa will see financial closure by March 2010, say company officials from Gammon Infrastructure Projects Ltd (GIPL). Along with the port project, two other projects in roads and hydro-power are also likely to achieve financial closure.

“We will see financial closure for the Paradip port project, the Muzzaffar–Patna road project and the hydro-power project in Sikkim by March 2010,” said Parvez Umrigar, managing director, GIPL.

GIPL, in a consortium with Noble Group and Minerals and Metals Trading Corp (MMTC), is developing a deep draught iron ore berth at Paradip port in Orissa. This Rs505 crore
build-operate-transfer (BOT) project was awarded to the consortium in July 2009.The concession period for this project is 30 years, including the construction period of 3 years.

GIPL’s 66MW hydro-power project in Sikkim will also achieve financial closure by March 2010. The power project is being developed by GIPL’s wholly owned subsidiary Sikkim Hydro Power Ventures Ltd. The concession period of this project is 35 years, excluding the construction period. The hydro project has been with GIPL since 2007.

GIPL also plans financial closure for its Patna-Muzzaffar road project by March 2010. The road is being developed on a BOT annuity basis. This Rs900-crore project is being developed by a wholly owned subsidiary of GIPL. The company had received the notification of interest (NOI) for this project from the National Highway Authority of India (NHAI) in October 2009. NHAI currently is in the land-acquisition process for the project. The concession agreement for this project is likely to be signed by January or latest by February 2010.

— Amritha Pillay