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Stone & Webster submits report to DPC lenders

Global energy consultants Stone and Webster, appointed by Indian and foreign lenders of Enron- promoted Dabhol Power Company, to evaluate the cost of suspension of its 2,184 power project, have submitted their report.

"We received the report on Monday and will examine it before deciding upon what will be in the best interest of the lenders and the project," Industrial Development Bank of India executive director R S Agarwal said in Bombay on Tuesday.

However, he did not elaborate on the report contents. The lenders, both domestic and foreign, had zeroed upon Stone and Webster during the two day Singapore meet early this month.

On the second day of the Singapore meet, Enron India managing director K Wade Cline in his presentation suggested a 'temporary suspension' of the $3 billion project, FI sources had said. Cline also provided detailed alternatives vis-a-vis a post-suspension scenario with reference to power blocks and almost ready Liquified Natural Gas terminal, they had added.

On June 17, DPC received a notice from their construction contractors for terminating work on the 1,444 MW phase II of the power project.

"Since the contractors cannot continue to work without payment, they have terminated their construction contracts," DPC had said.

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