Asian Development Bank (ADB) has signed an agreement for extending $450 million loan to Coastal Gujarat Power Limited (CGPL), a wholly-owned subsidiary of the Tata Power Company Limited executing the 4,000 MW Mundra Ultra Mega Power Project in Western Gujarat. According to an official ADB statement here, the bank will provide long-term financing of up to 20 years which will translate into a competitive power tariff for the benefit of the economy and power consumers. The ADB loan will be provided in two tranches with the first totalling $250 million and the balance syndicated by ADB to the Export-Import Bank of Korea (KEXIM) through a risk participation agreement. ADB's risk participation arrangement with KEXIM was essential to mobilise a large volume of competitive financing from Korea and ADB had played a proactive and constructive role in structuring the debt financing and coordinating among the lenders, said Alok Kanagat, Project Director, CGPL. "We are pleased with the partnership with ADB and appreciative of its contribution to achieving the signing of this important project, all within the required time,' he added. Takeo Koike, Investment Specialist of ADB's Private Sector Operations Department said, the project would not only provide a significant volume of additional electricity to address shortages but it would also promote private investment in power and show good practice in building and financing large-scale power projects in India through public-private partnership.