JBIC inks accords to lend 9.5 bil. yen for 2 Indian projects

Asian Economic News, May 13, 2002

TOKYO, May 10 Kyodo

The Japan Bank for International Cooperation (JBIC) said Friday it has signed agreements to extend loans totaling 9,527 million yen to finance two power transmission projects in India.

Under the agreements signed in Tokyo the same day, the JBIC will provide 6,400 million yen in Japanese official development assistance (ODA) for the Simhadri and Vizag Transmission System Project and 3,127 million yen for the West Bengal Transmission System Project.

The projects are being implemented by Transmission Corp. of Andhra Pradesh Ltd. and West Bengal State Electricity Board, respectively.

The ODA loans will finance civil works, procurement of materials and equipment, and other activities in the second phase of the two projects, the JBIC said.

The Japanese governmental bank extended 10,629 million yen and 11,087 million yen for the first phases of both projects under agreements signed in 1997.

Japan froze ODA loans for new projects in India in response to nuclear tests conducted by that country in May 1998, but projects already in progress were exempt from the freeze. The Simhadri and West Bengal projects were regarded as ongoing projects by the Japanese government, according to the JBIC.

In October 2001, Japan announced the lifting of the loan freeze on India.