Cameroon

RECENT PROJECT FINANCE DEALS

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SOURCE OF CASELETS – PROJECT FINANCE MAGAZINE/ EUROMONEY AND OTHER SOURCES

CASELET 1

Anrak: Bring on the bauxite

Anrak Aluminium -- a joint venture between Andhra Pradesh based Penna Group (70%) and Ras Al Khaima Investment Authority (RAKIA) -- signed Rs29.95 billion ($651 million) of 12 year term loans in December for the first phase of its alumina refinery and 90MW captive power plant project at Makavarapalem in Andhra Pradesh.

The project emanates from a memo of understanding signed in February 2007 between the government of Andhra Pradesh and the government of Ras-al-Khaima in the UAE to set up a greenfield aluminium plant in phases -- the first of which will initially be built with a capacity of 1.5mtpa and at an estimated project cost of Rs46.08 billion.

The project is sited in a special economic zone near the port city of Visakhapatnam on the Eastern coast of India. All the land for the project has been procured and environmental permits are in place.

Worley Parsons is overall engineering consultancy and has hired SNC-Lavalin Engineering India for the detailed design engineering and project management. AluminPro Inc of Canada has also been appointed as sponsor consultant.

Anrak has already placed major orders for equipment with FLSmidth, for a gas suspension calcination system, and Hindustan Dorr Oliver/Outotech for a residue separation, washing, flocculation, oxalate removal and causticisation package.

Bauxite feedstock will be supplied by state-owned Andhra Pradesh Mineral Development Corporation (APMDC) which holds the mining rights to the Jerrella Block, about 85km away from the project site. The Jerrella block has estimated bauxite reserves of about 200 million tonnes.

The Rs29.95 billion debt comprises a Rs23.05 billion 12 year term loan, a $100 million eight year external commercial borrowing (ECB) tranche and a Rs2.3 billion sub debt tranche. The 12 year debt matures on 31 March 2022...