Dabhol Power Project
Stakeholders: Identify all the major stakeholders in the DABHOL power project. What are the intended benefits and costs of this project for the stake holders? Analyze the roles, responsibilities and reward structure of the stake holders. Based on the case study do you foresee a need to change the reward structure?
Enron, Bechtel Enterprises, and General Electric—through offshore subsidiaries—formed Dabhol Power Company to build the first phase of a major power plant in Maharastra state in India. Later, part of the equity was sold to the Maharastra State Electricity Board. Enron is also a stakeholder as fuel supplier and as the operator of the plant. Bechtel’s construction arm has engineering, procurement, and construction stakes; General Electric is a major equipment supplier; and the Maharastra State Electricity Board is the electricity purchaser. There are also other major sponsors of IPPs, such as AES Corporation, whose sole business is developing, owning, and operating electric power facilities. Moreover, the Asian Develop-
In India’s Dabhol project, for example, the owners are Enron, Bechtel, and GE Capital.
Shareholding Pattern
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Investment by Stake Holders
| | |
|Foreign lenders (ABN AMRO, Standard Chartered, BNP Paribas, Calyon, CSFB, etc.) |USD 325 million |
|Domestic lenders (the largest being IDBI, ICICI, SBI, Canara Bank and IFCI) |Rs. 62 billion |
|Export Credit Agencies (JBIC, US EXIM, Belgium OND) |USD 480 million |
|Overseas Private Investment Company (OPIC), USA |USD 250 million |
Counter guarantee by Govt. of INDIA
Ownership
Enron, Bechtel Enterprises, and General Electric—through offshore subsidiaries—formed Dabhol Power Company to build the first phase of a major power plant in Maharastra state in India. Later, part of the equity was sold to the Maharastra State Electricity Board. Enron is also a stakeholder as fuel supplier and as the operator of the plant. Bechtel’s construction arm has engineering, procurement, and construction stakes; General Electric is a major equipment supplier; and the Maharastra State Electricity Board is the electricity purchaser. There are also other major sponsors of IPPs, such as AES Corporation, whose sole business is developing, owning, and operating electric power facilities. Moreover, the Asian Develop-
In India’s Dabhol project, for example, the owners are Enron, Bechtel, and GE Capital.
Shareholding Pattern
[pic]
Investment by Stake Holders
| | |
|Foreign lenders (ABN AMRO, Standard Chartered, BNP Paribas, Calyon, CSFB, etc.) |USD 325 million |
|Domestic lenders (the largest being IDBI, ICICI, SBI, Canara Bank and IFCI) |Rs. 62 billion |
|Export Credit Agencies (JBIC, US EXIM, Belgium OND) |USD 480 million |
|Overseas Private Investment Company (OPIC), USA |USD 250 million |
Counter guarantee by Govt. of INDIA
Ownership