On October 20, 2016, MIGA issued a guarantee covering equity from SembCorp Utilities Pte Ltd of Singapore to Sembcorp North-West Power Company Ltd. for a period of 14 years against the risk of breach of contract. On August 31, 2017 MIGA issued guarantees covering non-shareholder loan from Clifford Capital Pte. Ltd. of Singapore to Sembcorp North-West Power Company Ltd. The guarantees are for a period of 13 years and 3 months against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.
The proposed project involves the construction and operation of a 414 megawatt (MW) dual fuel-fired combined cycle power project in Sirajganj, Bangladesh on a build-own-operate basis. 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 MW combined-cycle plant) that MIGA is currently supporting.
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 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.
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.