Projects
Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Ashuganj Power Station Company Ltd. (APSCL)
- Project ID
- 10517
- Fiscal year
- 2012
- Status
- Active
- Guarantee holder
-
HSBC
- Investor country
-
China
- Host country
-
Bangladesh
- Environmental category
- A
- Sector
-
Power
- Date SPG disclosed
- September 06, 2012
- Project Board date
- November 20, 2012
- Gross exposure
- $300.0 million
- Project type
- Non-SIP
- Strategic priority area
-
South-South
IDA
Complex Project
- ESRS
- Environmental and Social Review Summary for Ashuganj Power Station Company Ltd. in Bangladesh
This summary covers a non-shareholder loan from the Hong Kong Shanghai Banking Corporation (HSBC) of Hong Kong SAR, China to Ashuganj Power Station Company Ltd. (APSCL) in Bangladesh. HSBC will coordinate and arrange a $420 million financing package to APSCL for the project. The investor has applied for a MIGA guarantee of up to $300 million for a period of up to 11 years against the risk of non-honoring of sovereign financial obligations. The Ministry of Finance of Bangladesh will provide an unconditional sovereign guarantee covering debt obligations of APSCL under its loan agreement with HSBC.
The project consists of the construction of a 450 megawatt combined cycle gas-fired plant on the basis of a contract awarded by APSCL to a consortium of TSK Electronica y Electricidad S.A. (Spain) and Inelectra International AB (Sweden). This project will replace certain existing units in the Ashunagj facility that will be decommissioned once the new plant is completed.
Environmental Categorization
The project is a category A under MIGA’s Policy on Social and Environmental Sustainability. Click here to view the Environmental and Social Review Summary.
Development Impact
Bangladesh currently faces an acute shortage of power generation capacity. This impairs the country’s economic and social development and constrains growth. The government of Bangladesh has made energy a high priority and recently adopted an updated Power Sector Master Plan, which includes this project. The proposed project will help meet the country‘s growing demand for power, using a domestic gas resource and efficient technology.
The project is consistent with MIGA’s strategic priorities of supporting investment into the world’s poorest countries, complex projects, and South-South investments.
