With total investment costs estimated at $131 million, the Chapainawabganj 100MW Heavy Fuel Oil (HFO) power plant will be equipped with 12 HFO engines.
HSBC arranged $112 million of ECA-backed facilities to finance the project.
Chinese ECA (Sinosure) and Finnish ECA (Finnvera) provided guarantees. The project is part of the country's Power System Master Plan 2010 and will help improve the overall electricity supply in the northwestern part of the country, where the export processing zones have been set up.
The plant will be powered by HFO due to the absence of gas supplies in the northern part of the country.
The financing package covers 100 percent of the EPC costs, including the supply of goods and services from China and Finland by way of the Sinosure and Finnvera supported loans. Associated costs and expenses have been financed under an uncovered facility. The implementation began in May 2015.
