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Press Releases

PR/2000-63
March 30, 2001

Overseas Economic Cooperation Operation

JBIC SIGNS ODA LOANS FOR INDIA
--To Support Transportation Project in Delhi and Thermal Power Station--

  • 1. Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Yasuda) today singed two ODA loan agreements totaling 18,926 million with India to finance the Delhi Mass Rapid Transport System Project (II) to be executed by the Delhi Metro Rail Corporation Ltd., and the Simhadri Thermal Power Station Project (II) being constructed by the National Thermal Power Corporation Ltd. This brings JBIC's cumulative ODA loan commitments to India to 145, totaling 1,660,711 million yen.
  • 2. As part of the sanctions imposed against India's nuclear testing conducted in May 1998, the Japanese government suspended extension of new ODA loans to the country in line with Japan's Official Development Assistance Charter. Although new ODA loans are not being extended, additional loans for existing projects are considered on a case-by-case basis and not regarded as part of the sanctions. ODA loans for the first phases of the Delhi Mass Rapid Transport System Project (II) and the Simhadri Thermal Power Station Project (II) were both extended in February 1997, totaling 14,760 million yen and 19,817 million yen, respectively. Therefore, the ODA loans this time are for existing projects where construction is already under progress.
  • 3. Of the two loans, the loan commitment for the Delhi Mass Rapid Transport System Project (II) amounts to 6,732 million yen. This loan will finance civil works and procurement of materials and equipment necessary to construct a 52-kilometer local rail line between the center and the suburb of Delhi, capital of India. The loan commitment for the Simhadri Thermal Power Station Project (II) totals 12,194 million yen. This loan will finance civil works and procurement of materials and equipment necessary to construct a 1,000MW coal-fired thermal power station (500MW x 2 generators) in the Vishakhapatnam District of the State of Andhra Pradesh in southern India.
  • 4. The transportation system connecting the center and the suburb of Delhi, including local trains, and the railway network in the city are inadequately developed. As a result, the transportation depends heavily on buses and private cars. This has caused serious problems in traffic congestion and air pollution, and there is an urgent need to improve the situation. The Delhi Mass Rapid Transport System Project (II) will construct 52-kilometers of subways and elevated and ground railways. This is part of the 198-kilometer extension of the local mass rapid transport system. This project aims to improve the urban environment by alleviating traffic congestion and reducing pollution.
  • 5. The electric generation capacity throughout India is far below demand at peak periods, and this gap has widened every year. In the State of Andhra Pradesh situated in southern India, where the Simhadri Thermal Power Station Project (II) is being constructed, power supply has fallen below demand that increased sharply as a result of industrial development. This shortage has been an impediment to economic development in the State, and construction of a power station to cover this shortage is an urgent requirement. India's National Thermal Power Corporation Ltd. is constructing a 1,000MW coal fired thermal power station (500MW x 2 generators) in the Vishakhapatnam District of the State of Andhra Pradesh. The first ODA loan for this project was extended in February 1997, and this loan is the second loan in order to continue construction of the power station. The purpose of this project is to invigorate industry by increasing the electricity supply, which will create employment, and supply electricity to farm villages and households. This will improve the living standards of local residents.

(See Appendix for details.)

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