Completed Mixed AidData Chinese Aid

Bank of China contributes to $1.77 billion syndicated loan for 1320 (2 x 600) MW Patuakhali Coal-Fired Thermal Power Plant Construction Project (Linked to Record ID#56005, #52748, #38245, #56357, #56547, and #56402)

$888.8K USD

Funder	Bank of China (BOC)
Recipient Organization	RPCL-NORINCO Intl. Power Ltd. (RNPL)
Country	Bangladesh
Start Date	Dec 24, 2020
End Date	Mar 21, 2027
Duration	2,278 days
Number of Grantees	1
Roles	Recipient
Data Source	AidData Chinese Aid
Grant ID	`96157`

Grant Description

Bank of China and China Eximbank contributions to $1.77 billion syndicated loan for 1320 (2 x 600) MW Patuakhali Coal-Fired Thermal Power Plant Construction Project On December 24, 2020, China Eximbank and Bank of China signed a $1,777,538,000 syndicated loan (facility) agreement with RPCL-NORINCO Intl.

Power Ltd. (RNPL) — a special purpose vehicle and joint venture of Rural Power Company Ltd. (RPCL) [50% ownership take] and NORINCO International Cooperation Limited [50% ownership stake] that was legally incorporated in December 2017 — for the 1320 (2 x 600) MW Patuakhali Coal-Fired Thermal Power Plant Construction Project.

📋 Loan / Grant Terms

💰 Loan Amountcarries an interest rate of 6-month LIBOR plus a 2

📅 Maturity15 years

⏳ Grace Period4 years

The borrower is responsible for repaying the loan in 22, equal, consecutive, semi-annual principal installments.

The Ministry of Finance of Bangladesh issued a sovereign guarantee in support of 50% of the face value of the loan ($888,769,000) on March 8, 2021. NORINCO issued a repayment guarantee for the remaining 50% of the face value of the loan. RPCL and NORINCO International Cooperation Limited also pledged their equity stakes in RPCL-NORINCO Intl.

Power Ltd. (RNPL) — as sources of collateral.

The borrower was expected to use the proceeds of the loan to partially finance an EPC contract that it signed with a consortium consisting of Tianjin Electric Power Construction Co. Ltd., China Huadian Engineering Co. Ltd, and China Wanbao Engineering Corporation (TEPC-CHEC-CWEC) on March 6, 2019.

The total cost of the project is approximately $2.54 billion and it is being financed according to a 70:30 debt-to-equity ratio. The first loan disbursement took place on September 26, 2021. Loan disbursements amounted to $1,000,693,531.64 as of June 30, 2023.

The purpose of the project is to construct a thermal power plant with two 660MW coal-fired units (‘Unit 1’ and ‘Unit 2’) in Kalapara within Patuakhali District.

The project site is located on the western bank of the Rabnabad River, in the vicinity of the Payra Port, 210km away from Dhaka and 160km away from Chittagong.

Each 660MW power generation unit will be equipped with an ultra-supercritical boiler along with a high-efficiency steam turbine and a generator.

The plant will be equipped with low nitrogen oxide (Nox) burner, electrostatic precipitators (ESP), and a flue gas desulphurisation (FGD) system to control emissions.

Other components of the project will include a closed-cycle cooling system, 275m-high flue stacks, and a 400kV gas-insulated substation (GIS). The plant will source water from the Rabnabad River for cooling.

The Patuakhali power plant is estimated to consume 4.48 million tonnes (Mt) of coal a year, which will be imported from Indonesia and Australia.

Other infrastructure for the Patuakhali power project will include a coal jetty, coal handling and storage facilities, and access roads for transporting material and equipment. The project site will also house a water treatment facility and a warehouse building. The construction works are being facilitated by a concrete batching plant and a temporary project office.

The electricity generated by the Patuakhali coal-fired power plant will be evacuated into the national grid of Bangladesh through a 400kV power transmission line.

The power plant will process 12273 tons of coal per day and sell power to the Bangladesh Power Development Board (BPDB).

Bangladesh Power Development Board (BPBD) will offtake the entire electricity output of the plant, under a power purchase agreement (PPA) that it signed with RNPL in February 2019.

The power plant is expected to displace 350 families, so RPCL plans to set up a village with schools, shops, community centers, and mosques to accommodate them. TEPC-CHEC-CWEC is the EPC contractor responsible for project implementation.

Central Southern China Electric Power Design Institute (CSEPDI) of China Power Engineering Consulting Group Corporation was also involved in the design of the project. RNPL issued a notice to proceed (NTP) to the EPC contractor (TEPC-CHEC-CWEC) on August 31, 2019. Construction began on September 1, 2019.

As of October 2022, the project had achieved a 61.19% completion rate.

The power plant’s first 660MW unit (Unit 1) was originally expected to come online by February 2023, followed by the commissioning of the second 660MW unit (Unit 2) in August 2023. In April 2025, both units were connected to the grid and by the end of June 2025 Phase II's unit was operating.

📋 Staff Comments

The Chinese project title 孟加拉博杜阿卡利1320MW燃煤电站项目建设 or Patuakhali 2台66万千瓦燃煤电站业主工程师咨询服务项目.
As of February 2023, this government-guaranteed BoC/CEXIM loan was not captured in the China’s Global Energy Finance (CGEF) Database or China's Overseas Development Finance (CODF) Database published by Boston University’s Global Development Policy Center.
There are three different power plants being constructed in the Patuakhali region of Bangladesh. Each one of these projects is funded partially via joint ventures between Chinese and Bangladeshi state-owned enterprises and partially via China Eximbank loans. Two of the coal-fired plants will contain two 660MW generators, with the third project involves two phases, both of which have two 660MW generators. The joint venture partners have clarified that these plants are near each other, but they are distinct plants supporting a region-wide electrification campaign. These projects include: (i) Bangladesh’s Northwest Power Generation Company Ltd. and China National Machinery Import & Export Corporation, which established the Bangladesh-China Power Company Ltd. (BCPCL) joint venture in October 2014 to oversee the financing, design, and construction of Patuakhali 1320MW (2 x 660MW) Ultra Supercritical Coal Based Thermal Power Plant Project (Phase 2). The joint venture is captured via Record ID #56005. China Eximbank is funding phase one (units 1 and 2) of this project (see Record ID#52748). China Eximbank financing for phase two (units 3 and 4) is currently unspecified, with the most recent details recorded in Record ID#38245.(ii) Bangladesh’s Ashuganj Power Station Company Ltd. (APSCL) and China’s China Energy Engineering Corporation Ltd. (CEEC) established a joint venture in July 2017 to oversee the financing, design, and construction of Patuakhali 1320MW (2 x 660MW) Coal-Fired Power Plant (Ashuganj/ APSCL). The joint venture is captured in Project ID#56547. CEEC will solicit a loan from the China Eximbank for the debt portion of the project. China Eximbank financing for this project is currently not captured in a stand-alone Project ID#.(iii) Bangladesh’s Rural Power Company Ltd. (RPCL) and China’s NORINCO, which established a joint venture in November 2017 to oversee the financing, design, and construction of 1320MW (2 x 660MW) MW Patuakhali Coal Fired Thermal Power Plant. The joint venture is captured in Project ID#56357.
The specific monetary contributions of Bank of China and China Eximbank to the loan syndicate are unknown. For the time being, AidData assumes equal contributions ($888,769,000) by the two members of the syndicate. Project ID#56402 captures China Eximbank's estimated contribution and Project ID#96157 captures Bank of China's estimated contribution.
For loan and debt rescheduling records with variable interest rates, AidData calculates the all-in interest rate at T0 based on the reference rate (such as LIBOR or EURIBOR) on the loan start date, plus any known margin. Please see the methodology for additional details.

📚 Sources & References

Chinese Ambassador H.E.Mr. Ma Mingqiang Attended the contract signing ceremony of Payra 1320 MW Thermal Power Plant Project
中国进出口银行：助力孟中印缅经济走廊，深化双边经贸合作
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COMMITMENT
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Statement VIA Loans & Advances and Other Operating Expenditure
Agreements/MoUs between Bangladesh countries of Far East
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DISBURSEMENT AND REPAYMENT OF SUPPLIERS'/BYERS CREDIT (ACTIVE)
COMMITMENT
DISBURSEMENT AND REPAYMENT OF SUPPLIERS'/BYERS CREDIT (ACTIVE) Upto 30 June 2014
Table-7.3 COMMITMENT
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List of Guarantee (Valid beyond 30 June, 2022) Loan applications and disbursements are still being received and processed as the projects continue to evolve. Ongoing monitoring and evaluation are in place to ensure project continuity.