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Overview

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

Commitments (Constant USD, 2023)$221,863,410
Commitment Year•2015Country of Activity•BangladeshDirect Recipient Country of Incorporation•UnknownSector•EnergyFlow Type•Loan

Status

Project lifecycle

Completion

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Feb 1, 2015
End (planned)
Jun 1, 2016
End (actual)
Jan 30, 2018
First repayment (originally scheduled)
Jan 31, 2020
Last repayment (originally scheduled)
Jan 29, 2025

Geospatial footprint

Map overview

Visualizes the AidData-provided feature geometry for this project.

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This power plant is located in the town council of Ghorashal in the Palash Upazila within the Narsingdi District. Location coordinates are: Latitude= 23.9797, Longitude= 90.637. More detailed locational information can be found at https://www.openstreetmap.org/way/147998669

Stakeholders

Organizations involved in projects and activities supported by financial and in-kind transfers from Chinese government and state-owned entities

Ultimate beneficial owners

At least 25% Chinese ownership

Funding agencies

State-owned Commercial Banks

  • Industrial and Commercial Bank of China (ICBC)

Receiving agencies

Joint Venture/Special Purpose Vehicles

  • Joint Venture of China National Technical Import and Export Corporation (CNTIC) and China National Machinery Import and Export Corporation (CMC)

Implementing agencies

Government Agencies

  • Bangladesh Power Development Board (BPDB)

Joint Venture/Special Purpose Vehicles

  • Joint Venture of China National Technical Import and Export Corporation (CNTIC) and China National Machinery Import and Export Corporation (CMC)

Guarantors

Government Agencies

  • Government of Bangladesh

Loan description

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

Grace period•5 yearsGrant element•31.7926%Interest rate (t₀)•3.618%Interest type•Variable Interest RateMaturity•10 years

Narrative

Full Description

Project narrative

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.

Staff comments

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.