China Eximbank provides RMB 1.6 billion government concessional loan for Shahjalal Fertilizer Factory Project (Linked to Project ID#38969)

On January 21, 2012, China Eximbank and the Government of Bangladesh signed an RMB 1.6 billion government concessional loan (GCL) and a $325 million preferential buyer’s credit (PBC) for the construction of the Shahjalal fertilizer factory near Fenchugonj Upazila (within the Sylhet District and the Division of Sylhett). Both the GCL and the PBC carried the following terms: 2% interest rate, 20-year maturity, a grace period of 5 years. This project captures the GCL, while Project ID #38969 captures the PBC. The Government of Bangladesh's loan identification number for the China Eximbank GCL is L1120120121a. The purpose of this project was to set up a new urea fertilizer factory with a production capacity of 1760 metric tons per day (or 5,80,800 metric tons per year) of granular urea at the premises of Natural Gas Fertilizer Factory Limited (NGFFL) in Fenchugonj Upazila within Sylhet District and the Division of Sylhett. China National Complete Plant Import and Export Corporation Ltd was the EPC contractor for this project. Its work was overseen by the state-owned Bangladesh Chemical Industries Corporation. China Chengda Engineering Company Ltd. was also involved in project implementation. A foundation stone laying ceremony took place on March 24, 2012. Construction began on or around the same date. The plant was handed over on February 29, 2016. Its originally expected completion date was June 15, 2015. The factory began commercial production on March 1, 2016. More detailed locational information on the location of the project is available at https://www.google.com/maps/place/Shahjalal+Fertilizer+Company+Limited/@24.6518429,91.923766,14z/data=!4m8!1m2!2m1!1sNatural+Gas+Fertilizer+Factory+Limited!3m4!1s0x3751a4528bd36571:0x67b59ff2cb522d18!8m2!3d24.6517952!4d91.9412756.

Additional details

The Government of Bangladesh loan identification number for the Eximbank GCL is L1120120121a. According to the Shahjalal Fertilizer Company Limited (SFCL) website, public assistance is listed as $560 million from China, or 39,860,800,000 Taka. Therefore, the exchange rate used was 1 USD = 71.18 Taka. Using this exchange rate, the funding listed from Government of Bangladesh in the document (8,883,672,000 Taka) would equal about $124.8 million.

Number of official sources

16

Number of unofficial sources

15