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ADB to invest $75 mn in India LNG terminal project
Manila, Jan 14: The Asian Development Bank (ADB) said today it would make an equity investment and partial credit guarantee totaling USD 75 million in a project to develop India`s first liquefied natural gas terminal.
Petronet LNG Ltd. is developing the five million tonne
per annum terminal at Dahej in Gujarat.
An ADB statement said the Philippines-based lender would
subscribe up to a 5.2 per cent stake in Petronet, while the
credit guarantee will support a Petronet bond issue of up to
148.9 million dollars.
"The project is designed to promote economic growth by
meeting the growing energy demands of north and west India and
providing lower cost and cleaner fuel for the oil, power,
transport and fertilizer sectors," said ADB project finance
specialist Kurumi Fukaya.
"As a public-private partnership, it should provide a
model for good practice in energy infrastructure development.
It is a step towards the full liberalisation of the energy
sector."
The Petronet project is the ADB's first long-term credit
guarantee to be provided through its private sector
operations.
Bureau Report