SkodaExport Co Ltd has announced its plans to set up an integrated port complex at Nizampatnam in Andhra Pradesh. The project, estimated to cost $1 billion (Rs.4,500 crore) will include a port, a special economic zone, a 5 lakh tpa urea unit and a 250 MW power plant.

The Czech company on 10 April 2006 entered into an agreement with Infrastructure Corporation of Andhra Pradesh Ltd (Incap) to create an SPV -- Nizampatnam Industrial Port Complex Co.

The detailed project report would be ready within a year and financial closure is expected shortly thereafter. The project is scheduled for completion by 2010.

Incap will bring in its equity contribution through land for the port complex and the SEZ. Czech Exim Bank is likely to be a strategic investor in the project.

The project envisages modernisation of the existing harbour to a mid-sized port that has potential to handle bulk cargo, coal, granite, cement and agriculture products. The port will also serve a base to bring in imported coal for the power plant.

Asked the basis for selection of a port in this part of the world, Mr Hubacek said, "Our studies have indicated that there is huge potential for such a port as this is centrally located between Chennai and Vizag."

Indo-Czech bilateral foreign trade, which currently stands at $500 million, is expected to touch $1 billion by 2010.

Note: SkodaExport is basically a project management company based in Czechoslovakia. The company is the EPC contractor (along with L&T) for the refurbishment project of TNEB's Ennore power project in Tamil Nadu. Unit 5 (110 MW) and Units 1&2 (2x60) are being modernized under the project.