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Overview

Bank of Communications contributes to $112.6 million syndicated loan for Chapainawabganj 100MW Heavy Fuel Oil (HFO) Power Plant Construction Project

Commitments (Constant USD, 2023)$58,900,969
Commitment Year•2015Country of Activity•BangladeshDirect Recipient Country of Incorporation•BangladeshSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
May 26, 2015
Start (actual)
May 16, 2015
End (planned)
Mar 23, 2017
End (actual)
Dec 10, 2017

Geospatial footprint

Map overview

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The purpose of the project was to construct a 100MW heavy fuel oil (HFO) power plant in Amnura within the Sadar upazila and the Chapainawabganj district. More detailed locational information can be found at https://www.openstreetmap.org/way/978805070

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% host country ownership

Funding agencies

State-owned Commercial Banks

  • China Bank of Communications (BoCom or BoComm)

Cofinancing agencies

Private Sector

  • HSBC (Hong Kong and Shanghai Banking Corporation)

Receiving agencies

Government Agencies

  • Bangladesh Power Development Board (BPDB)

Implementing agencies

State-owned companies

  • Hubei Electric Power Survey and Design Institute

Guarantors

Government Agencies

  • Government of Bangladesh

Insurance providers

Government Agencies

  • Finnvera

State-owned companies

  • China Export & Credit Insurance Corporation (Sinosure)

Loan description

Bank of Communications contribution to USD 112.6 million syndicated loan for Chapainawabganj 100MW Heavy Fuel Oil (HFO) Power Plant Construction Project

Interest rate (t₀)•5.41659%Interest type•Variable Interest Rate

Narrative

Full Description

Project narrative

On May 26, 2015, the Bangladesh Power Development Board signed a $112.6 million syndicated loan agreement with HSBC and Bank of Communications for the Chapainawabganj 100MW Heavy Fuel Oil (HFO) Power Plant Construction Project. The loan reportedly carried an interest rate of LIBOR plus a 5% margin. The other borrowing terms of the loan are unknown. It is known that the borrower was expected to use the proceeds of the loan to finance a commercial (EPC) contract (#09862) between Bangladesh Power Development Board and Hubei Electric Power Survey & Design Institute, which was signed on March 31, 2013. The loan is backed by a sovereign guarantee (issued on April 11, 2015) and credit insurance policies from China Export & Credit Insurance Corporation (Sinosure) and Finnvera. The purpose of the project was to construct a 100MW heavy fuel oil (HFO) power plant in Amnura within the Sadar Upazila and the Chapainawabganj district. Hubei Electric Power Survey & Design Institute was the EPC contractor responsible for implementation. On May 16, 2015, a foundation stone laying ceremony took place. The power plant was officially inaugurated and put into operation on December 10, 2017. The originally expected project completion date was March 23, 2017.

Staff comments

1. Finnvera is a specialised financing company owned by the State of Finland and it is the official Export Credit Agency (ECA) of Finland. 2. The exact monetary size of Bank of Communications’ contribution to the loan syndicate is unknown. For the time being, AidData assumes equal contributions across the two known members of the syndicate ($56.3 million). AidData has estimated the all-in interest rate by adding 5% to average 6-month LIBOR in May 2015 (0.41659%).