Rampal power plant

Govt nod sought to use Exim Bank loan

The Bangladesh-India Friendship Power Company (Pvt) Ltd (BIFPCL) has sought the power ministry’s approval to utilise an Export Import Bank of India (Exim Bank) loan to finance the 1,200-MW Maitree Super Thermal Power Plant. On June 29, the company’s managing director, Ujjal Kanti Bhattacharyya, sought the approval of the secretary of the Power Division to utilise a USD 1,496.66 million Exim Bank loan, terming the source of financing as “critical” for the successful and timely completion of the high-priority fast-track project.
He stated: “The current USD six-month LIBOR rate is 0.93 per cent per annum as of June 29, 2016, but we have considered 1.44 per cent for calculating the loan facilities from Exim Bank of India, considering the fluctuation of LIBOR. As per the terms indicated by the Export Import Bank of India, 100 per cent of the above costs may be capitalised and funded under the Export Import Bank of India facility.” (The benchmark LIBOR is the London Interbank Offered Rate.)
The Maitree Super Thermal Power Project comprises the development of a super-critical 2x660 MW coal-fired power plant by the BIFPCL, a 50-50 joint-venture company between NTPC Ltd of India and the Bangladesh Power Development Board (BPDB). It is one of the five national priority projects of the Bangladeshi government.
A memorandum of understanding was signed by the BPDB and NTPC for the implementation of the project on August 30, 2010. On January 29, 2012, the BPDB and NTPC signed the JV agreement, confirming 50 per cent equity share for each company.
The project site is located in Rampal upazila of Bagerhat district, 23km south of Khulna city and about 12km northeast of Rampal upazila headquarters and 14km northeast of Mongla port. The proposed Khan Jahan Ali Airport is some 12km from the site.
Following an international tender for the selection of an engineering, procurement, and construction (EPC) contractor for the project to undertake the design, engineering, auction, construction, testing and commissioning of the project on a lump sum, turnkey fixed-price basis, the company chose Bharat Heavy Electricals Ltd (BHEL) of India. An EPC contract totalling USD 1,496.66 million was awarded to BHEL on January 31, 2016.
Cent per cent offtake of power by Bangladesh (through the BPDB) is established under a PPA with BPDB, based on typical capacity and energy charges. The company is responsible for procurement of coal and other feedstock.
The project is being developed by two highly experienced power generation companies with a combined installed capacity in excess of 50 gigawatts (GW), with over 34 GW of coal-fired power plants in operation.
The proposed power plant is a priority infrastructure development project to establish reliable and cost-effective base-load power production in Bangladesh. The project aims to use state-of-the-art technology to mitigate environmental impacts while boosting coal power generation capacity in the country.

 

Rampal power plant

Govt nod sought to use Exim Bank loan

The Bangladesh-India Friendship Power Company (Pvt) Ltd (BIFPCL) has sought the power ministrys approval to utilise an Export Import Bank of India (Exim Bank) loan to finance the 1,200-MW Maitree Super Thermal Power Plant. On June 29, the companys managing director, Ujjal Kanti Bhattacharyya, sought the approval of the secretary of the Power Division to utilise a USD 1,496.66 million Exim Bank loan, terming the source of financing as critical for the successful and timely completion of the high-priority fast-track project. He stated: The current USD six-month LIBOR rate is 0.93 per cent per annum as of June 29, 2016, but we have considered 1.44 per cent for calculating the loan facilities from Exim Bank of India, considering the fluctuation of LIBOR. As per the terms indicated by the Export Import Bank of India, 100 per cent of the above costs may be capitalised and funded under the Export Import Bank of India facility. (The benchmark LIBOR is the London Interbank Offered Rate.) The Maitree Super Thermal Power Project comprises the development of a super-critical 2x660 MW coal-fired power plant by the BIFPCL, a 50-50 joint-venture company between NTPC Ltd of India and the Bangladesh Power Development Board (BPDB). It is one of the five national priority projects of the Bangladeshi government. A memorandum of understanding was signed by the BPDB and NTPC for the implementation of the project on August 30, 2010. On January 29, 2012, the BPDB and NTPC signed the JV agreement, confirming 50 per cent equity share for each company. The project site is located in Rampal upazila of Bagerhat district, 23km south of Khulna city and about 12km northeast of Rampal upazila headquarters and 14km northeast of Mongla port. The proposed Khan Jahan Ali Airport is some 12km from the site. Following an international tender for the selection of an engineering, procurement, and construction (EPC) contractor for the project to undertake the design, engineering, auction, construction, testing and commissioning of the project on a lump sum, turnkey fixed-price basis, the company chose Bharat Heavy Electricals Ltd (BHEL) of India. An EPC contract totalling USD 1,496.66 million was awarded to BHEL on January 31, 2016. Cent per cent offtake of power by Bangladesh (through the BPDB) is established under a PPA with BPDB, based on typical capacity and energy charges. The company is responsible for procurement of coal and other feedstock. The project is being developed by two highly experienced power generation companies with a combined installed capacity in excess of 50 gigawatts (GW), with over 34 GW of coal-fired power plants in operation. The proposed power plant is a priority infrastructure development project to establish reliable and cost-effective base-load power production in Bangladesh. The project aims to use state-of-the-art technology to mitigate environmental impacts while boosting coal power generation capacity in the country.