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Bank of China provides buyer’s credit for 150MW Saidpur Power Plant Construction Project
| Funder | Bank of China (BOC) |
|---|---|
| Recipient Organization | Bangladesh Power Development Board (BPDB) |
| Country | Bangladesh |
| Start Date | Jan 15, 2020 |
| End Date | May 13, 2033 |
| Duration | 4,867 days |
| Number of Grantees | 1 |
| Roles | Recipient |
| Data Source | AidData Chinese Aid |
| Grant ID | 89113 |
Grant Description
Bank of China provides buyer’s credit for 150MW Saidpur Power Plant Construction Project 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.
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.
Sources & References
- BPDB
- Chinese Co to Build 150MW Plant
- List of Guarantee (Valid beyond 30 June, 2021)
- List of Guarantee (Valid beyond 30 June, 2023)
- BPDB
- Chinese co to build 150MW plant
- China company to build 150MW plant in Syedpur
- Tk 5.68bn deal signed for power plant at Syedpur
- Saidpur 150 MW Power Plant
- Siemens wins contract for Bangladesh power plant
- Securing the Future of Power Supply for Northern Bangladesh
- Govt plans to resume construction of high-cost Nilphamari power plant Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.
All Grantees
Bangladesh Power Development Board (BPDB)
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