China’s Exim bank has confirmed the funds for the power plant that is being built in Payra, Patuakhali.
The bank was sent a $430 million invoice by Bangladesh-China Power Company Limited (BCPCL) on Monday.
This comes after funds for the coal-based Rampal power plant was confirmed by India’s Exim Bank last year.
The first of several large power plants to be built, the Payra plant will provide 1,320 megawatts of electricity.
BCPCL Managing Director, engineer AM Khorshedul Alam said: “We have sent an invoice for $430 million to the bank already, and they will provide the rest of the funds in due time.
“China’s Exim Bank will provide a total loan of $1,980 million for the establishment of the power plant, which will arrive via Bangladesh Bank. 17 accounts have been opened in this regard, of which nine are Foreign Currency Accounts (FCA). These have all been opened with Standard Chartered Bank as it is working as the agent for China’s Exim Bank,” he also said.
A source at BCPCL said 38% of the work on the power plant has already been done, and that currently the infrastructure of the power plant is being developed. The mechanical equipment will arrive in Bangladesh from July, and the first unit of the ultra-supercritical plant will be operational from June 2019, followed by its second unit in December.
Affiliates say that the plant will be operational within the determined timeframe.
Local company North-West Power Generation Company Limited (NWPGCL) and China National Machinery Import and Export Corporation (CMC) are stakeholders in the power plant.
20% of the money for the plant is being provided by the state, with the other 80% coming from the Chinese bank.
This article was first published by banglatribune.com