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Daewoo, ABB pull out of Korba power project
New Delhi, Aug 24: Daewoo Power India has pulled out of the 1,070 mw Korba (east) thermal project inl India, becoming the third foreign firm to withdraw from Indian power projects this year. The firm, a 50:50 joint venture between South Korea's Daewoo Power and ABB Energy Ventures Ltd, withdrew from the project following a refusal by the Madhya Pradesh state electricity board to grant escrow cover before the project attained financial closure, a senior ABB official told said on Thursday.The cost of the project is estimated to be above $1 billion. The official said the electricity board had insisted that the project attain financial closure before it could be granted an escrow cover. "But which lender would have given funds to the project without escrow cover in place? Daewoo Power had paid a security deposit of $28 million. To recover this deposit, it was necessary to terminate the PPA," he said. Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.
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