China Eximbank contributes to syndicated buyer's credit loan for Unit 2 of 220 MW Sirajganj Combined Cycle Power Plant Project (Linked to Record ID#69033)

Project narrative

In August 2015, North-West Power Generation Company Limited (NWPGCL) — a state-owned power company in Bangladesh — signed a $200.03 million syndicated buyer's credit loan agreement with a group of Chinese and non-Chinese lenders (including Standard Chartered Bank, the Export-Import Bank of China, and Siemens Bank) for Unit 2 of the 220MW Sirajganj Combined Cycle Power Plant Project. The transaction was structured as a long-term loan with a maturity of 15 years and a grace period of 3 years. The loan was scheduled for repayment (beginning in August 2018) in 24 semi-annual installments. The loan was backed by a sovereign repayment guarantee and split into 3 tranches: a Sinosure-insured loan tranche, a Euler Hermes-insured tranche, and a MIGA-insured tranche. It was also collateralized against a mortgage over the power plant assets. The Euler Hermes-insured tranche carried an interest rate of 6-month LIBOR plus a 1.95% margin, while the Sinosure-insured tranche carried an interest rate of 6-month LIBOR plus a 3.26% margin and the MIGA-insured carried an interest rate of 6-month LIBOR plus a 1.9% margin. The Sinosure-insured loan tranche disbursed $119,424,457 as of June 30, 2021. The Euler Hermes-insured loan tranche disbursed $32,288,027 as of June 30, 2021. The MIGA-insured loan tranche disbursed $39,044,768 as of June 30, 2021. The loan had achieved a 95.3% disbursement rate ($190.75 million out of $200.03 million) as of June 30, 2020 and June 30, 2021. The borrower (NWPGCL) was expected to use the proceeds of the loan to partially finance an Engineering, Procurement and Construction (EPC) contract that it signed with a consortium consisting of China National Machinery Import & Export Corporation (CMC) and Fujian Electric Power Survey & Design Institute (FEDI) on July 12, 2015. The purpose of the project was to construct the second power generation unit (Unit 2) of the 220 MW Sirajganj Combined Cycle Power Plant. More specifically, the project involved the installation of one gas turbine generator (GTG) capable of operating on natural gas and/or High-Speed Diesel (HSD), one Gas Booster Compressor, one heat recovery steam generator (HRSG), evaporators, cooling towers, main and bypass stacks connected to a steam turbine Generator (STG) of condensing type for indoor installation, condensate and feed water system, cooling water system and auxiliary equipment. The project site is located about 15 km southeast of Sirajganj town and 135 km northwest of Dhaka on the western bank of the River Jamuna. It is located in Khas Barashimul Mouza in the Saidabad Union of Sirajganj Sadar Upazilla (sub-district) of Sirajganj District. The closest settlements to the project site, Boroshimul and Ponchosona, are both located approximately 1 km from the complex. China National Machinery Import and Export Corporation (CMC) was the EPC contractor responsible for overall project management. FEDI was responsible for providing technical expertise, including concept design and basic engineering. Unit 2 of the 220 MW Sirajganj Combined Cycle Power Plant was successfully connected to the grid on August 2, 2017. The project achieved its commercial operation date (COD) on February 5, 2018. A Final Acceptance Certificate (FAC) was issued by the project owner on October 24, 2021, which marked the end of the warranty period.