New Delhi, Dec.15 (ANI): A 113 million dollar ADB loan for the Himachal Pradesh Clean Energy Transmission Investment Program was signed today by officials from the Asian Development Bank (ADB) and the Government of India.t is the first loan in a 350 million dollar multi-tranche financing facility for the upgrading of transmission system to help Himachal Pradesh take greater advantage of its vast hydropower resources.
The Himachal Pradesh Clean Energy Transmission Investment Program, approved by the ADB Board of Directors on 30 September 2011, will help expand the supply of power, within and outside the state, and thereby contribute to job creation and poverty reduction.
Taking part in the signing ceremony on behalf of the Government of India was Venu Rajamony, Joint Secretary (Multilateral Institutions), Department of Economic Affairs, Ministry of Finance, and on behalf of the ADB, Hun Kim, Country Director of ADB's Resident Mission.
The project agreements were signed by Deepak Sanan on behalf of the Government of Himachal Pradesh and Vijay Kumar Kaprate, Director (Planning and Contracts) on behalf of H.P. Power Transmission Corporation Ltd. (HPPTCL).
"This program will not only benefit Himachal Pradesh, but will also enable a clean, indigenous source of energy to flow to other parts of the country where demand is rising as a result of strong economic growth," said Rajamony.
It will be complemented by ADB's technical assistance grant of $600,000 from its Technical Assistance Special Fund that will provide support to HP Power Transmission Corporation to implement and plan future projects.
Himachal Pradesh, a small mountainous state with five major rivers, has about a quarter of India's total potential hydropower resources. It wants to scale up generation, but its transmission facilities in certain locations are currently unable to handle large amounts of additional power.
"The program will fund much needed new high voltage lines and other transmission infrastructure to allow the state to increase output to meet growing local and national demand for electricity" said Kim.
"It will also enable the recently formed standalone transmission utility, HP Power Transmission Corporation, to get assistance to strengthen its financial and asset management capabilities, allowing it to press ahead with a transmission development plan that seeks to support current and future investment in new hydropower facilities."
HP Power Transmission Corporation will carry out the program which is expected to be completed in December 2017.
The first tranche loan from ordinary capital resources, signed today, has a 25-year term, with a grace period of five years and interest determined in accordance with ADB's LIBOR-based lending facility. The Government of Himachal Pradesh will provide counterpart funds of over 29 million dollars for a total first tranche project investment cost of about 142 million dollars.
The ADB, based in Manila, is dedicated to reducing poverty in Asia and the Pacific through inclusive economic growth, environmentally sustainable growth, and regional integration.
Established in 1966, it is owned by 67 members -- 48 from the region. In 2010, ADB approvals, including, cofinancing, totaled 17.51 billion dollars. In addition, ADB's ongoing Trade Finance Program supported 2.8 billion dollars in trade. (ANI)
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