The Special Purpose Vehicle (SPV), the Bay of Bengal Terminal Private Limited was set up to design, construct and operate the projected new container terminal; but, it has decided to withdraw from the project due to delay in finalizing debt funding. Therefore, Ennore Port Limited may go in for fresh bids for the INR 1,300 crore new container terminal project. The decision to re-bid must be taken in Ennore Port’s Board; once taken, it will be forwarded to the Ministry of Shipping for a clearance. The London-based Eredene, which is a part of the international consortium led by Grup Martin TCB, Spain’s biggest port terminal operator, formed the SPV and as early as July itself it has hinted at the possibility of withdrawing from the project: “Protracted negotiations have taken place to secure debt funding for the project. However, there is no guarantee that the consortium will be able to agree to acceptable financial terms with the State Bank of India, particularly in light of the negative change in the global and Indian funding environment”. The delay in the new container terminal project is likely to benefit the neighbouring Kattupalli port of Larsen & Toubro which is quite ready to commission its container terminal.
Friday, 28 September 2012
Ennore Port container terminal project faces further delay
The Special Purpose Vehicle (SPV), the Bay of Bengal Terminal Private Limited was set up to design, construct and operate the projected new container terminal; but, it has decided to withdraw from the project due to delay in finalizing debt funding. Therefore, Ennore Port Limited may go in for fresh bids for the INR 1,300 crore new container terminal project. The decision to re-bid must be taken in Ennore Port’s Board; once taken, it will be forwarded to the Ministry of Shipping for a clearance. The London-based Eredene, which is a part of the international consortium led by Grup Martin TCB, Spain’s biggest port terminal operator, formed the SPV and as early as July itself it has hinted at the possibility of withdrawing from the project: “Protracted negotiations have taken place to secure debt funding for the project. However, there is no guarantee that the consortium will be able to agree to acceptable financial terms with the State Bank of India, particularly in light of the negative change in the global and Indian funding environment”. The delay in the new container terminal project is likely to benefit the neighbouring Kattupalli port of Larsen & Toubro which is quite ready to commission its container terminal.
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