The government has approved proposals for taking foreign loans of $3.5 billion for two mega power projects, Rampal coal fired and Payra power plants.
Of the total amount, Rampal will get $1.6 billion from Indian Exim Bank while Payra will receive $1.9 billion from China Exim Bank.
According to the Power Development Board sources, the government’s top level committee on non-concessional loans, headed by Finance Minister AMA Muhith, approved the loan proposals in a meeting on September 15.
The Power Division officially communicated the matter to the respective implementing agencies on October 3rd.
“After completion of necessary procedures, we have officially communicated the matter of loan approval to the respective authorities,” Mostafa Kamal, deputy secretary of the Power Division said.
He, however, said the approved proposals will now go to the Law Ministry for legal vetting.
“Once the proposals are cleared by the Law Ministry, the concerned authorities will move for signing deal with foreign banks for receiving the loans,” he added.
Power Ministry took up the two projects with each having 1320 MW capacity. This is a part of the plan to generate 50 percent power from coal-fired power plants by 2030.
Of the two projects, Dhaka will execute the Rampal project with New Delhi while Payra plant will be built under joint venture with Beijing almost in the same period by 2019.
Dhaka has 50:50 equity shares in both Rampal and Payra power projects keeping 30:70 equity-debt provisions for execution of the two mega power projects.
State-owned Power Development Board (PDB) tied up with Indian state-owned National Thermal Power Corporation (NTPC) to execute Rampal power plant through forming a special purpose company—Bangladesh India Friendship Power Company Ltd (BIFPCL).
Similarly, state-owned Northwest Power General Company Ltd (NWPGCL) tied up with China National Machinery Import & Export Corporation (CMC) to implement Payra power plant under new joint venture—Bangladesh China Power Company Ltd (BCPCL).