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Sudan Tribune

Plural news and views on Sudan

India to set up power plant in Sudan

Nov 16, 2005 (NEW DELHI) — The Indian state-owned Bharat Heavy Electricals Ltd (BHEL) has been selected for a $500 million turnkey power project in Sudan, the second largest Indian investment in the African nation.

The 500-1,000 MW power generation project in White Nile State in central Sudan would be the second largest Indian investment in the country after the Oil and Natural Gas Corp (ONGC), said Sudan’s ambassador here, Abdalmahmoud A. Mohamed.

Other than equity participation in three exploration blocks in Sudan, ONGC has completed a 741-km oil products pipeline project in the country.

“The agreement to start the project will be signed by the end of this month or in December,” Mohamed told IANS Wednesday.

“Technical and financial discussions are on to finalise the turnkey project agreement for power generation and transmission which will help Sudan meet half its power needs,” he said.

Sudan’s finance minister is expected to arrive here for the signing of the agreement. Its cost is to be shared, with India contributing $350 million and the remaining $150 million borne by Sudan.

Cleared by the ministry of external affairs, the project would utilise part of the first half of a $100 million line of credit extended by India during President A.P.J. Abdul Kalam’s visit to Sudan earlier this year.

“Apart from the $10 million grant by India, the first tranche of $50 million line of credit has been used up for projects by RITES Ltd, a feasibility study by TCIL to set up a cyber city, solar electrification of 1,000 villages, strengthening a power grid transmission line and setting up a solar power equipment plant,” the ambassador said.

“For the remaining $50 million line of credit, various candidates have approached us to undertake projects like setting up a railway line, bridges and seaport, and rehabilitation of industries. Being an agriculture economy, we are also keen to benefit from India’s experience in green revolution.”

The Special Secretary, MEA, Rakesh Kumar said that in recent times the Government of India had extended a Line of Credit to Sudan within the range of US$110mn, which has been fully utilized and further Lines of Credit will also be extended to Sudan for its various development projects.

Out of the US$500mn cost of the project, the Government of India will extend a Line of Credit to the extent of US$350mn while the remaining US$150mn will be contributed by the Government of Sudan, according to Ambassador of Sudan.

He added that BHEL will be mandated to select its partners that will distribute electricity generated from the power plant. The project will be set up in the White Nile State of Sudan.

(IANS/ST)

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