New Delhi, India — ESI-AFRICA.COM — 29 April 2011 – Power Grid Corporation of India “’ the country’s largest electricity transmission company “’ is bidding for multi-billion-dollar contracts in various African countries, including Nigeria and Kenya, in order to expand its business international business.
Revealing this in an interview at his office in Gurgaon near the Indian capital, company chairman S.K. Chaturvedi said “We are trying to spread our wings in other continents. The domestic market is all regulated, so we are seeking other corners of the world where we can increase our revenue.”
Kenya plans to more than double the number of people who have access to its national grid, and last August Nigeria approved the construction of a US$3.5 billion electricity grid. Power Grid, which carries 51% of the electricity generated across India, is seeking overseas contracts as local rivals target expanded operations, according to the company’s secondary share sale document.
“State-owned Power Grid will be considered for projects under a US$61 million line of credit offered by India to improve Kenya’s grid system, as part of an agreement to train Kenya Electric Transmission’s engineers,” Chaturvedi said.
The grid operator was also named the lowest bidder for a US$400 million contract to manage Nigeria’s electricity grid, he added.
“We are waiting for elections in Nigeria to be completed, and are expecting to receive at least a portion of the US$400 million contract thereafter,” Chaturvedi said.
“Power Grid plans to spend US$3 billion in the five years to 2017 to expand, and will raise 70% of the requirement through debt,” Chaturvedi revealed. The operator is in talks with the World Bank for US$1 billion dollars in loans, and will issue rupee bonds of as much as 8 billion rupees (US$180 million) by May 10,” he added.
The company and the government together raised the maximum 74.4 billion rupees (US$1.7 billion) in a secondary issue in November.