ICBC contributes $141.35 million to $257 million syndicated buyer's credit loan for 330 MW Shahjibazar Power Plant Project (Linked to Record ID#85155)

Project narrative

In June 2014, the Bangladesh Power Development Board (BPDB) signed a $257 million syndicated export buyer's credit agreement with three banks to finance the 330 MW Shahjibazar Power Plant Project. HSBC, China Eximbank, and Industrial and Commercial Bank of China (ICBC) formed a bank syndicate to fund 95% of the cost of the project. ICBC reportedly covered 55% of the funds provided in the buyer's credit agreement, while China Eximbank covered 35% and HSBC covered 10%. Record ID#50061 captures ICBC's share (55%) equal to $141.35 million. Record ID#85115 captures China Eximbank's share (35%) equal to $89.95 million. The loan carried a maturity of 13 years, but its interest rate and grace period are unknown. Sinosure provided credit insurance for the loan. The Government of Bangladesh also provided a sovereign guarantee on April 15, 2014. The purpose of the project was to construct a 330MW combined cycle gas turbine (CCGT) power plant in Shahjibazar within the Habiganj District and the Sylhet Division of northwest Bangladesh. In May 2013, Guangdong Power Engineering Corporation (GPEC) and the Guangdong Electric Power Design Institute (GEDI) of China Energy Engineering Group signed a Engineering, Procurement, and Construction (EPC) contract for this project. A project commencement ceremony was held on August 20, 2014. The power plant was then put into commercial operation on December 26, 2016. Prime Minister Sheikh Hasina inaugurated the new power plant on March 1, 2017. Then, in May 2022, a transformer of the 330MW Shahjibazar Power Plant exploded and caught fire, suspending the supply of electricity to local residents. Six fire fighting units rushed to the scene and brought the fire under control.