UK-based, India-focused investor Eredene Capital is part of a winning consortium bid to build and operate the container terminal at Ennore Port in the southern Indian state of Tamil Nadu for a period of 30 years, a source close to the deal told Infrastructureinvestor.com.
The project, estimated at a total cost of £207 million (€254 million; $311 million), will be completed by a consortium headed by Spanish port operators Grup Marítim TCB, together with international construction group Obrascón Huarte Lain, and India’s Lanco Infratech.
According to a press release issued by the company, Eredene has a 22 percent stake in the consortium through an equity commitment of up to £23 million, spread over a 48-month period. The commitment is understood to be initially funded through existing cash reserves and then through the raising of additional capital by Eredene.
Alastair King, founder and chief executive officer of Eredene said: “This is a major milestone for Eredene. The Ennore Container Terminal is a world class project, with an excellent growing hinterland and good existing transport connectivity.”
Work on the new Ennore Container Terminal at Ennore Port, one of 13 major ports in India, is scheduled to take 33 months and it is expected to be operational by the end of 2013, according to a press release.
Eredene is quoted on the Alternative Investment Market on the London Stock Exchange. It invests in infrastructure projects in India with a primary focus on ports, port services, logistics and distribution warehouses. Till now, it has made investments in ten infrastructure projects in India.