ICBC contributes to $129.2 million syndicated buyer’s credit loan for 150 MW Kodda Power Plant Project (Linked to Record ID#53583)

China Eximbank and ICBC contributions to $129.2 million syndicated buyer’s credit loan for 150 MW Kodda Power Plant Project On July 2, 2013, the Export-Import Bank of China and the Industrial and Commercial Bank of China (ICBC) and BR Powergen Limited (or BR Powergen Ltd.) signed a $129,264,152.64 syndicated buyer’s credit loan agreement to build the 150MW Kodda Power Plant in the Gazipur District of Dhaka.

AidData assumes that both members contributed equally ($64,632,076.32 each) (captured in Record ID#53583 and #98764).

The 50 MW Kodda Power Plant Project was implemented as an independent power project (IPP) basis and financed according to a debt-to-equity ratio of 85:15.

Loan repayments were to be sent to China Eximbank and ICBC every 6 months, with the first payment taking place in July 2016. The Government of Bangladesh provided a sovereign guarantee for this loan on October 23, 2013.

BR Powergen Limited was established as a public limited company by Bangladesh Power Development Board (BPDB) and Rural Power Company Limited (RPCL) under the Power Division of the Government of Bangladesh’s Ministry of Power, Energy, and Mineral Resources. BPDB and RPCL each hold a 50% ownership stake in BR Powergen Limited.

China National Electric Import & Export Corporation, Jiangsu Construction Engineering Company, and Fujian Electric Power Engineering Company formed a consortium to construct the power plant.

BR Powergen signed an engineering, procurement, and construction (EPC) contract with this consortium on January 3, 2013. The proceeds of the syndicated buyer’s credit loan were intended to pay for 85% of the EPC contract value.

Then, on November 3, 2013, BR Powergen signed a Power Purchase Agreement with the Bangladesh Power Development Board (BPDB). It also signed a fuel supply agreement on December 5, 2013. MAN Diesel & Turbo SE of Germany manufactured the plant's engine.

Construction of the Kodda Power Plant began on January 28, 2014, and it was put into commercial operation on August 15, 2015. The plant runs on two fuel sources: heavy fuel oil and gas.

According to B-R Powergen's 2017-2018 Annual Report, the EPC contract with the consortium of Chinese firms was worth $155,842,358.61.

The project had an additional cost of R8,224,274.00 for insurance, which BR Powergen paid to the Ministry of Finance of Bangladesh. BR Powergen and the Ministry of Finance signed their agreement on October 23, 2013. As at June 30, 2021, the Government of Bangladesh reported that $64,632,082 USD was left as the closing balance.