On November 25, 2015, MIGA issued a guarantee of $68.9 million covering a non-shareholder loans from Standard Chartered Bank of the United Kingdom and Siemens Bank GmbH of Germany for the Sirajganj 225 Megawatt Combined Cycle Power Plant (2nd Unit-Dual Fuel) in Bangladesh. The guarantee is for a period of up to 15 years against the risk of non-honoring of sovereign financial obligations.
The project involves the installation of a dual-fuel (natural gas or HSD) gas turbine, generator, steam turbine, and a heat recovery steam generator, as well as the construction of a switchyard, extension of an existing switching station, temporary and water treatment and cooling systems. The new plant will be located next to the Sirajganj first unit (also a 225 megawatt combined-cycle plant) about 15 kilometers south-east of Sirajganj town. The power will be provided to the national grid and will be purchased by the Bangladesh Power Development Board under a 22-year power purchase agreement.
Bangladesh currently faces an acute shortage of generation capacity, which is a serious impairment to the country’s economic and social development and growth. Peak electricity demand in the country is about 8,000 megawatts and the available generation capacity is only 6,500 to 7,500 megawatts. To address the current and future shortages, the government’s Power Sector Master Plan calls for the addition of 30,000 megawatts of capacity by 2030. MIGA is currently supporting the Ashuganj south facility being constructed under the master plan.
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.