Skoda Export chief executive officer Jaroslav Hubacek and the state-owned Infrastructure Corporation of Andhra Pradesh chief general manager L Sashidhar signed the memorandum of understanding in the presence of Chief Minister Dr Y S Rajasekhar Reddy on Monday.
The project entails extension and construction of Nizampatnam port into a deep-water, medium-sized port - capable of handling bulk cargo such as coal, cement, granite and fertilizers - with container terminals and LNG terminal.
Apart from the port, the project also envisages a multi-product special economic zone and associated infrastructure spread over 2,500 acres of land along with an urea manufacturing plant with a capacity of 500,000 tonnes per annum, and a 250-megawatts thermal power plant.
Land will be the state government's equity in the project while Skoda Export planned to mobilise the required finances, both debt and equity, from the Czech Export Bank.
A special purpose vehicle-Nizampatnam Industrial Port Complex Company- will be set up jointly for implementation of the project.
Skoda Export will prepare the initial master plan and the feasibility report within four months of formation of the SPV. Skoda Export will also prepare the detailed project report in another four months. INCAP will ensure administrative support to the SPV.
It will take one year to complete the documentation and achieve financial closure thereafter. The project will be completed by 2010, that is, within three years from the date of grounding.
Nizampatnam port city complex will be the biggest project to be handled by Skoda Export. Besides investing in the project, Skoda Export will also invite investors from the Czech Republic to invest in the SEZ.
As per the MoU, the SPV will be responsible for planning, development, construction and other activities associated with the complex. Once completed, the complex is expected to generate over 10,000 jobs.
It was during the transit halt of Czech Prime Minister Jiri Paroubek in Hyderabad in January this year that an informal agreement was reached on this project.
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