Standard Chartered raises $190m to finance power plant in Bangladesh

Standard Chartered Bank Bangladesh has raised US$190 million from international lenders to develop Meghnaghat II, a 335 MW Dual Fuel fired power plant in Bangladesh.

The total investment is estimated at US$318 million of which the $190 million will be long-term debt. Standard Chartered is not only acting as the hedge bank, account bank, inter-creditor and security agent for the financing, but also for providing US$40 million on its own, the largest among the international investors.

The financiers include DEG of Germany, FMO of the Netherlands, Opec Fund for Industrial Development of Austria, CDC Group of the UK, OeEB (Development Bank of Austria), Belgian Investment Company for Developing Countries, and Infra-structure Development Company Ltd of Bangladesh.

The dual fuel 335 MW power project is being developed by the joint venture on a build, own and operate (BOO) basis. Summit Meghnaghat Power Company Limited (SMPCL) is a joint venture between Summit Industrial and Mercantile Corporation, and GE Energy. The JV is also responsible to insure and maintain the facility for a period of 22 years.

Meghnaghat II is the second phase of the Meghnaghat 450MW Combined Cycle gas-fired power plant which is located on a 25.09ha site 22km south of Dhaka on the northern bank of the Meghna River.

This second phase is scheduled to be operational in the last quarter of 2014. Test operations of the new plant featuring GE 9E gas turbines began in February 2014.

Bangladesh Power Development Board (BPDB) floated the tender for the second plant in 2010.