Buyer's Credit for Bangladesh Power Development Board
Supporting Export of Facilities for 400 MW Gas-Fired Combined Cycle Power Plant by Japanese Company
- Region: Asia
- Export Loans
The Japan Bank for International Cooperation (JBIC; Governor, CEO: Hiroshi Watanabe) signed a loan agreement on February 29th in buyer's credit (export loan) totaling up to approximately JPY18.5 billion (JBIC portion) with the Bangladesh Power Development Board (BPDB), a national power development entity in Bangladesh. The loan is cofinanced with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (BTMU), bringing the total cofinancing amount to approximately JPY30.8 billion, with Nippon Export and Investment Insurance (NEXI) providing insurance for the portion cofinanced by BTMU.
The loan is intended to provide financing for BPDB to purchase a complete set of facilities, including gas turbines (MITSUBISHI HITACHI POWER SYSTEMS, LTD.) and steam turbines (FUJI ELECTRIC CO., LTD.) from Marubeni Corporation for the construction of a new 400 MW gas-fired combined cycle power plant in the northeast of Bangladesh.
Despite growing demand for electricity in Bangladesh due to steady economic growth, power supply has not caught up with this demand, and the country has been experiencing a chronic power shortage. Given such circumstances, the Bangladesh government has been promoting the enhancement of power supply under its Power System Master Plan. This loan is expected to support Bangladesh's economic development by realizing steady power supply, and, at the same time, will contribute to maintaining and strengthening the international competitiveness of Japanese industries.
As Japan's policy-based financial institution, JBIC will continue to financially support the export of infrastructure-related facilities as well as the overseas business deployment of Japanese companies, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.