CNMIEC provides $74.5 million supplier’s credit for Rehabilitation, Renovation and Augmentation of 29 Grid Sub-Stations Project

Project narrative

On April 25, 2000, China National Electric Wire & Cable Import/Export Corporation (CNEWC) issued a $74.523 million supplier’s credit to the Bangladesh Power Development Board for the Rehabilitation, Renovation, and Augmentation of 29 Grid Sub-Stations Project. The supplier’s credit (loan) carried the following borrowing terms: a 16-year maturity, a 3-year grace period, and a 3.5% interest rate. The Government of Bangladesh issued a sovereign guarantee for this loan on July 27, 2000. CNEWC secured the funding to provide the supplier’s credit from an RMB 580 million export seller’s credit from China Eximbank. According to the Government of Bangladesh’s Economic Relations Division (ERD), the supplier’s credit had achieved a 100% disbursement rate ($74.523 million out of $74.523 million) but nothing had been repaid to the creditor as of June 30, 2018. According to the Government of Bangladesh’s ERD, the borrower had still not made any repayments as of June 30, 2021. The purpose of the project was to rehabilitate 29 grid substations and 819 kilometers of 132-kilovolt transmission lines and increase their capacity from 1100 to 2000 megawatts. CNEWC was the contractor responsible for project implementation. Construction work began in October 2005, and the project was successfully completed and handed over to the Bangladesh Power Development Board in February 2007.