Punj Lloyd to develop 100 MW power proj in Rwanda for Rs 1k cr

Project cost to be more than 1,000 crore, says Punj Lloyd's Director Luv Chhabra

Infrastructure firm Punj Lloyd has signed a pact with Rwanda to construct and operate 100 MW power plant from peat - a coal-like fossil fuel - with an estimated cost of over Rs 1,000 crore, a senior company official said.

As per the agreement, signed last week, Punj Lloyd will construct, finance, maintain and operate a 100 MW power plant in North Akanyaru of Eastern Province of Rwanda and the construction period is 42 months after securing finances for the project.

"We have just signed a memorandum of agreement (MoA) for a 100 MW peat based power project in Rwanda in Africa. Now we have to submit the feasibility report, then the PPA (power purchase agreement) and the concession agreement for peat will be signed," Punj Lloyd's Director (Corporate Affairs) Luv Chhabra told PTI.

When asked about the project cost, he said that it will be decided after the detailed feasibility report is prepared and would include certain other factors including financing cost during the construction period.

"May be in another six months we will be able to decide on that but I think it will be more than Rs 1,000 crore. Total project cost will be more than that," he said, adding that process of financial closure will also begin in next 6 months.

The project is divided into 4 units of 25 MW each and the company is confident of completing the project in 36 months from the time of financial closure (against the time-frame of 42 months), he said.

Punj Lloyd has an order book of about Rs 27,000 crore and is looking at 10-15% revenue growth this fiscal. It has developed power projects of about 10,000 MW as an EPC (engineering, procurement and construction) contractor.

According to the Rwanda media, the local government has announced plans to set up power plants of over 1,000 MW in next five years through various sources of fuels, including 215 MW peat-based power plant.

The African country is estimated to hold about 155 million tonnes of dry peat and have the potential to generate up to 1,200 MW power.

Peat is a partially carbonised decayed vegetable matter that forms in wetlands and is saturated with water. It is the earliest stage in the formation of coal and has low calorific value. Mostly used as heating energy source, it has been used as a fuel in many countries for a long time.