Power Systems Group Inc
Andhra Pradesh Project
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The construction and completion of two (2) barge-mounted power plants for the state of Andhra Pradesh, India, is anticipated to begin on or about February, 1999, and to be completed by February, 2000.
The two power plants, totalling 212 megawatts of power, will be constructed in Newfoundland and installed and operated in Kakinada, Andhra Pradesh, India. The total cost of the project is anticipated to be over US$200 million.
SNC Lavalin, a multi-billion dollar international engineering and construction firm, will supervise the construction and installation of the power barges. CMS Energy (50% joint venture) and EGPSF will develop, construct, finance, own and operate the barge-mounted electrical generating units. The electrical generators are "combined cycle gas turbines."
As mentioned earlier, the "power barge" project will take one year to complete and the cost of the project will be over US$200 million. Nearly all of this generated revenue will flow to EGPSF. In essence, EGPSF is exposed to very little risk as the "general contractor", the "subs" and "joint venture" partner incur capital expense for the project, while EGPSF earns income for construction of the "power barge" project and then once operational will receive a percentage of profits generated from the sale of electricity.
Engineering Power Systems Group Inc. also has retained an investment banker (since 1997), namely, Everen Securities, Inc. (Everen is a subsidiary of Everen Capital Corporation (NYSE:EVR. Everen has approximately 2,000 brokers within 135 offices and ranks as the 12th largest retail sales force in the US).
Everen will aid EGPSF in obtaining financing through strategic corporate and institutional investors.
It is the intention of EGPSF to deliver to Andhra Pradesh from barge/ship mounted power plant utilizing a fuel flexible, energy cost saving Combined Cycle Gas Turbine power block. The power ship designed by EGPSF is 121 meters long and features a double skinned hull, on board reverse osmosis water treatment plant, sewage treatment plant, crew accommodations and on board fuel storage facilities. The power ship is designed to meet or exceed world standards and current engineering designs have received Det Norske Veritas classifications for a 40-year life span.
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