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Overview

Bank of China provides buyer’s credit for 150MW Saidpur Power Plant Construction Project

Commitments (Constant USD, 2023)$60,063,932
Commitment Year•2020Country of Activity•BangladeshDirect Recipient Country of Incorporation•BangladeshSector•EnergyFlow Type•Loan

Status

Project lifecycle

Implementation

Pipeline: PledgePipeline: CommitmentImplementationCompletion

Timeline

Key dates

Commitment date
Jan 15, 2020

Geospatial footprint

Map overview

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The purpose of the project is to construct a 150-megawatt (MW) diesel-fired power plant in Saidpur upazila within the Nilphamari district and the Rangpur division. More detailed locational information can be found at https://www.openstreetmap.org/way/274341704.

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% host country ownership

Funding agencies

State-owned Commercial Banks

  • Bank of China (BOC)

Receiving agencies

Government Agencies

  • Bangladesh Power Development Board (BPDB)

Implementing agencies

State-owned companies

  • Dongfang Electric International Corporation

Guarantors

Government Agencies

  • Government of Bangladesh

Loan description

Bank of China provides buyer’s credit for 150MW Saidpur Power Plant Construction Project

Interest type•Unknown

Narrative

Full Description

Project narrative

In 2020, the Bank of China and the Bangladesh Power Development Board (BPDB) signed a buyer’s credit (Loan) agreement worth approximately $58,216,500 for the 150MW Saidpur Power Plant Construction Project. The borrowing terms of the loan are unknown. However, it is known that the Government of Bangladesh issued a sovereign guarantee in support of the loan on January 15, 2020. The borrower was expected to use the proceeds of the loan to finance 85% of the costs of a $68.49 million commercial (EPC) contract between Bangladesh Power Development Board (BPDB) and Dongfang Electric International Corporation, which was signed in January 2019. The purpose of the project is to construct a 150-megawatt (MW) diesel-fired power plant in Saidpur upazila within the Nilphamari district and the Rangpur division. The plant is to be set up at the gateway of the 130 km Indo-Bangla fuel pipeline project so that it can be run by imported fuel from India. Dongfang Electric International Corporation is the EPC contractor responsible for project implementation. The project was originally expected to reach completion by June 2021. However, project implementation was paused during the Covid-19 pandemic. In May 2023, the Government of Bangladesh announced plans to resume construction.

Staff comments

1. This project represents the first time Bangladesh has fixed the source of fuel to run a particular power plant. The state-run Bangladesh Petroleum Corporation (BPC) usually imports diesel and furnace oil from international market through different suppliers to run the country's power plants. The suppliers are selected every year through open tenders as well as government-to-government (G2G) negotiation.