Khulna Power Company Ltd.

MIGA issued a $29.3 million guarantee to cover Coastal Power Khulna, Ltd., a wholly-owned subsidiary of the Coastal Corporation of the United States, for its investment in the construction and operation of a dual-fuel barge- mounted 110 MW power plant, located in Khulna. The plant will operate on heavy fuel oil in the initial years of operation, and will be converted for gas use as soon as it becomes available in the area. MIGA's guarantee covers the investment against the risks of transfer restriction, expropriation, and war and civil disturbance.

The plant is designed to alleviate the severe power shortages in the Khulna and adjacent areas, identified as industrial growth centers by the Government of Bangladesh, while improving the overall reliability of the country's power supply. The facility will displace the generating capacity of the older, less efficient, and high-cost plants in the region. The plant conforms to all applicable environmental standards.

The plant will directly and positively affect the economy of the immediate region. It provides employment to over 100 people from the surrounding areas and many of the jobs are technical and managerial in nature. Significant numbers of jobs have been created at the fuel terminal, barges, restaurants, transportation services, and other ancillary businesses created to serve the needs of the plant. New industrial and commercial establishments are likely to open to take advantage of the stable and reliable power, and existing establishments do not require back-up generators. In addition, the plant has contributed significant funds toward social causes in the region.