Bangladesh's 335MW power project to get 120M loan from Germany

Summit Meghnaghat Power Company Ltd will receive a syndicated loan of $120 million to develop the 335-megawat Megh-naghat-2 power project in Narayanganj.

An agreement has been signed by the company with DEG (German Investment Corporation) for the loan, which will
carry an interest of LIBOR plus 4.5 percent repayable over 12 years, the company announced.

Ayesha Aziz Khan, finance director of Summit, and Florian Munkle, investment manager of DEG, signed the agreement in Cologne in Germany.

Aziz Khan said the total cost of the project has been estimated at $285 million, which is the single largest project ever built by any Bangladeshi company in the country. “The work has been going in full swing. We hope to add electricity to the national grid by August 2013,” he said.

Of the total cost, Summit Group hopes to borrow $50 million from Standard Chartered Bank and $30 million from state-run Infrastructure Development Company Ltd.

The local leading power company has paired with General Electric to set up the power plant, with the American business conglomerate is supplying gas turbine, the main equipment of the power plant.
Khan also said two Chinese companies -- CNEEC and NEPC -- are constructing the gas-fired combined cycle power plant.

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