Three Indian projects in KPMG’s Global 100 list
Three ongoing Indian infrastructure projects have made it to KPMG’s Infrastructure 100 Report. The report includes 100 most exciting infrastructure projects from around the world, as selected by independent judging panels due to their scale, complexity, innovation and impact on society. The report has been brought by KPMG’s Global Infrastructure practice, in conjunction with Infrastructure Journal.
Projects in the developing world – said a statement – were favoured by the judging panel largely due to their socioeconomic impact. "For similar reasons India’s KG-D6 development became a clear candidate worthy of particular note for its impact on the fast developing South Asian economy. The project, and accompanying East-West Pipeline, will provide India with 50 per cent of its current gas consumption. Consisting of 22 subsea wells in water up to 3,937 feet deep alongside an onshore processing plant the 1440km pipeline will then transport the gas product to India’s national grid acting as a real transformative game changer", the report said.
According to the authors of the report, India’s series of Ultra Mega Power Plants (UMPP) was always going to feature, and the 4,000MW Mundra plant is singled out here for honour. "It is one of nine UMPPs being planned and built in India, and though they use unfashionable coal they will be the most energy effcient plants in the country – and are vital to India’s continuing economic development.The successful financing of the Mundra IPP, in the shadow of the Enron’s Dabhol debacle, was a major achievement. The challenging debt market at the time also forced the IFC to abandon plans to syndicate a US$300 million B loan.
Funding is now provided on a rough 75:25 debt-equity split, with nearly US$2 billion funded by the ADB, IFC and South Korean’s ECAs. But beyond simply demonstrating that the UMPP projects are capable of reaching financial close – and within the pre-agreed timescale – Mundra’s financial close signalled that the Indian power sector had matured from the lessons of Dabhol and is now open for international business."
The role of an international sporting event as the catalyst for big-ticket investments in airports was undeniably the driver for the New Delhi Indira Gandhi International Airport Expansion which has to be ready in time for the 2010 Commonwealth Games in India. This airport was taken over by the GMR-led Delhi International Airport Limited (DIAL) team. It is being upgraded and modernised while still functioning, then operated under a 30-year concession. Not only will this mega project deliver a world-class facility, it is being turned around in record time," said the report.