Sembcorp North-West Power Company Ltd.
This summary covers equity and shareholder loan investments from Sembcorp Utilities Pte. Ltd. and a non-shareholder loan from Clifford Capital Pte. Ltd into a power plant in Bangladesh. The investors have applied for MIGA guarantees of up to $250.0 million for a period of up to 20 years against the risks of transfer restriction, expropriation, war and civil disturbance, and/or breach of contract.
The proposed project involves the construction and operation of a combined cycle power project with net generation capacity of 413.8 megawatts in Sirajganj District of Rajshahi division in Bangladesh. The power plant will operate on natural gas as its primary fuel and is designed to operate on high speed diesel for short periods of time in case of interruption in gas supply. The project will be located in the same complex as the Sirajganj Unit 2 project (a 220 megawatt combined-cycle plant) that MIGA is currently supporting.
The electricity generated will be sold under a power purchase agreement with Bangladesh Power Development Board. The project enterprise will also enter into a gas supply agreement with Pashchimanchal Gas Company Ltd., a subsidiary of state-owned Petrobangla and a fuel supply agreement with state-owned Bangladesh Petroleum Corporation.
The project is a category A under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by IFC for its investment in the project.
The proposed project will help address the chronic electricity shortages and meet the growing demand for power in Bangladesh. In addition, the project is expected to contribute to reducing generation costs for the benefit of Bangladeshi consumers and users of power.
The proposed project will create significant employment opportunities during the construction and operational phases.
In addition, the project will be the first independent power producer (IPP) sponsored by foreign investors in several years and the first IPP in recent years to be financed on a limited recourse basis. The success of the project will demonstrate the sustainability of public-private partnerships in Bangladesh’s power sector to overseas power developers and operators—helping attract more capital flows into the country.
Information on this project is being disclosed under the early disclosure procedures outlined in MIGA’s Access to Information Policy.
MIGA’s proposed 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.