ICBC provides 16.53 billion BDT loan for Ghorasal 365 MW Combined Cycle Power Plant Project

In February 2015, the Industrial and Commercial Bank of China (ICBC) issued a 16.53 billion BDT (nearly $202.5 million) loan to the joint venture of China National Technical Import and Export Corporation (CNTIC) and China National Machinery Import and Export Corporation (CMC) for the Ghorasal 365 MW Combined Cycle Power Plant Project in Bangladesh. The loan carried the following borrowing terms: an interest rate of LIBOR plus a 3.5% margin, a 10-year maturity, a 5-year grace period, a 1.50% management fee, a 1.0% commitment fee, and a 7.0% export credit insurance fee. The Government of Bangladesh provided a sovereign guarantee for this loan on February 16, 2015. The proceeds of the ICBC loan were used to be used by the borrower to finance about 83% of the 19.44 billion BDT (nearly $244 million) commercial contract signed in May 2013 with a joint venture between China National Technical Import and Export Corporation (CNTIC) and China National Machinery Import and Export Corporation (CMC). Project implementation commenced in January 2014, and the construction of the plant was originally expected to be completed by June 2016. However, the project ran into delays. ICBC reportedly 'failed to disburse money on time'. On January 30, 2018, this power plant was completed after successfully conducting a combined cycle commercial trial operation. It was officially handed over the the Bangladeshi side on May 15, 2018.

Additional details

1. The Chinese project title is 孟加拉古拉绍电站项目. 2. Although AidData could only identify the BDT-denominated amount, ICBC loans are typically denominated in USD. Therefore, the interest rate was calculated as follows: 0.118% (Feb. 2015 average USD LIBOR) + 3.5% (margin) = 3.618%. 3. According to Energy Bangla reporting from April 2014, the total project cost was 25.11 billion BDT (about $306.32 million USD). The Government of Bangladesh and the state-run Bangaldesh Power Development Board (BPDB) were supposed to finance any costs ICBC did not. 4. This source (https://pemecbd.com/ghorasal365.html) says the contract value with the Chinese contractors was US$ 1,302,354.40. It is also said the completion date was December 2014. These claims contradict many of the official sources.

Number of official sources

9

Number of total sources

17