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Bangladesh,India : INDIA: Exim Bank offers a $1.6b loan to the Indo-Bangla Friendship Power Company BIFPCL
Publish Date : 14-Apr-2017
The Export-Import Bank of India (Exim Bank) on Tuesday has made an announcement on its offering of a $1.6 billion worth of loan to the Bangladesh India Friendship Power Company Ltd (BIFPCL) in support of the 1,320MW ultra-super-critical Maitree Super Thermal Power Project in Bangladesh.
Issuing a statement here in New Delhi, Exim Bank revealed, Exim Bank has extended a term loan of $1.60 billion to BIFPCL a 50:50 joint venture between the Bangladesh Power Development Board and NTPC for financing the 1,320 MW ultra-super-critical Maitree Super Thermal Power Project on turnkey basis at Rampal, District Bagerhat, Bangladesh.
The Facility Agreement worth $1.60 billion related to this project has been exchanged by the two sides on Monday.
The State-owned Bharat Heavy Electricals Ltd. (BHEL) has been successful to secure the contract for the construction of the Indo-Bangla friendship project on turnkey basis via participating a global competitive bidding procedure.
The Exim Bank also stated, State of the art technologies have been selected for this project to make it an environment friendly project.
It is anticipated that the Maitree Super Thermal Power Project, upon commissioning, will be one of Bangladeshs biggest energy generation stations.
The power project is being established as part of the Bangladeshi Governments strategy to develop infrastructure in the country, with focus on the energy sector.
The Exim Bank has so far offered overall credit support of $4.462 billion to Bangladesh, including the latest Facility Agreement worth $1.60 billion for the Maitree scheme.
The figure of $4.462 billion extended by the bank to Bangladesh is also comprised of two Indian Government-backed Lines of Credits (LOCs) worth $2.862 billion in total.
New Delhi in August 2010 offered the first LOC of $862 million to Dhaka for financing export of goods and projects comprising development of railway infrastructure, dredging, as well as construction of bridges, plus bus purchases and procurements of locomotives and coaches.
The second LOC of $2 billion, which was extended in March last year to Bangladesh, is meant for financing a range of social and infrastructure development projects in the country, including the areas of power, railways, road transportation, information and communication technology (ICT), as well as shipping, healthcare and technical education among others.
