Nava Bharat Ventures, a company engaged in power, mining and ferro alloys businesses, today
said it has achieved financial closure for 300 MW coal-fired thermal power project, estimated to cost $828 million, which is being set up in African nation Zambia.
"Our step-down subsidiary Maamba Collieries Ltd (MCL) has achieved financial closure for its integreted coal and power project estimated to cost $828 million," Nava Bharat Ventures Ltd Chairman D Ashok said in a statement.
He further said the project has already achieved 80 per cent of progress in all facets of implementation and is scheduled for commissioning by mid-2016.
The project is being funded on a debt-equity ratio of 70:30.
Large institutional lenders group, comprising Development Financial Institutions from South Africa and large international commercial banks from Africa and China, have participated in the limited recourse project finance deal, the company said adding that it is the first project in Africa to have obtained insurance cover from China Export & Credit Insurance Corporation (SINOSURE).
"The 300-mw power plant is fully integreted with captive coal mining, dedicated water supply system and exclusive 330 KV power transmission system, all under the ambit of the project," it said.
"Power plant operations and maintenance are to be driven by Nava Bharat which will leverage upon its rich Indian experience of successful operation of power plants, employing similar CFBC technology in boilers," it added.
Both the sponsors, Nava Bharat (Singapore) holding about 65 per cent and ZCCM-IM holding 35 per cent of stakes in MCL, fully discharged their respective equity commitments to the project, the company said.