This summary covers a proposed investment by The Hongkong and Shanghai Banking Corporation Limited of Hong Kong, SAR, China, and other international financial institutions to be determined (together, the Guarantee Holders). The Guarantee Holders intend to provide a non-shareholder loan to the Bangladeshi state-owned enterprise Bangladesh Chemical Industries Corporation (BCIC) guaranteed by the Government of Bangladesh to finance a new fertilizer plant, the Ghorasal Polash Urea Fertilizer Project (the Project). The Guarantee Holders have applied for a MIGA guarantee covering up to US$450 million of principal, future interest and premium for a term of up to 15 years against the risk of non-honoring of a sovereign financial obligation.
The Project will consist of the engineering, design, procurement, construction, completion, testing, start-up, commissioning, operation and maintenance of the Project which is located in the district of Narsingdi, Bangladesh, with a capacity to produce up to c. 0.9 million tons per annum of urea from natural gas. When operational, the Project will replace two obsolete fertilizer plants.
If there are any material changes in the Project’s design and plan from what has been shared with MIGA at due diligence and presented in this review summary, BCIC will provide additional information and MIGA may update the Environmental and Social Review Summary and Environmental and Social Action Plan as needed. Such information disclosure will be governed by MIGA’s Access to Information Policy.
Based on initial environmental and social information received, the Project is Category A according to the MIGA Policy on Environmental and Social Sustainability.. Click here to view the Environmental and Social Review Summary prepared by MIGA for this investment in the project.
The Project will allow BCIC to increase the domestic production of an important input of the agricultural sector in a more energy-efficient manner whilst reducing CO2 emissions. The Project is also expected to reduce the country’s reliance on fertilizer imports which impact the country’s FX reserves. Finally, the Project is also expected to create employment opportunities directly and indirectly through construction, operation, support services, and other activities.
MIGA’s support for this Project is consistent with the Agency’s priorities of supporting investment into countries eligible for concessional financing from the International Development Association and potentially Climate Finance.