Sirajganj 220MW Combined Cycle Power Plant 3rd Unit

Project description

On Feburary 10, 2017, MIGA issued a guarantee of $69.5 million to cover a non-shareholder loan from Standard Chartered Bank, UK and Siemens Bank GmbH of Germany for the Sirajganj 220MW Combined Cycle Power Plant 3rd Unit in Bangladesh. The $69.5 million guarantee will provide coverage for a period of up to 15 years against the risk of non-honoring of sovereign financial obligations.

The project involves the installation of a dual-fuel (natural gas or HSD) gas turbine, generator, steam turbine, and a heat recovery steam generator, as well as the construction of a switchyard and extension of an existing switching station. Water treatment and cooling systems will be shared with Sirajganj 2nd Unit. The plant is situated between Sirajganj 2nd Unit (a MIGA-supported project currently under construction), and Sirajganj 4th Unit (a proposed IFC and MIGA jointly supported project), about 15 kilometers south-east of the town of Sirajganj.

Environmental Categorization

The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary.

Development Impact

Lack of access to power is a key constraint for Bangladesh’s growth and development, and the Government of Bangladesh has sought to partially address this by use of expensive diesel generations. This project will contribute to much-needed additional capacity in the country, generating via an efficient technology that enables optimization of the scarce domestic gas resources.

MIGA’s support for this project is consistent with the Agency’s priorities of supporting investment into countries eligible for concessional financing from the International Development Association.