The government would provide $302 million fund support as equity to Bangladesh Power Development Board (BPDB) for implementing 1320MW joint venture coal-based power project at Rampal, the cost for which is around $2 billion.
“The finance ministry has fixed the module to disburse the amount in the form of loans. However, we sought support from the finance ministry earlier, and it gave its final status in this regard on Wednesday,” a official told. The finance ministry will advance the funds at an interest of 3 per cent, PDB sources said.
The finance ministry, earlier, announced it would provide equity money to PDB for implementing the 1,320 megawatt power project, and the ministry, on Wednesday, sat with the PDB and power division officials to know the procedure on disbursement of the funds.
According to the power division, the finance division wanted to know the update over equity deposit by National Thermal Power Company (NTPC) of India, to implement the joint venture project with PDB.
NTPC, however, is yet to deposit its equity, sources said. “However, the company would not require equity right now, as implementation of physical work on the project is yet to start,” they said.
The sources said NTPC shares the same portion of the equity, as the plant will be built on a 50:50 ownership basis with the PDB, and both the parties have already deposited initial paid-up capital of Tk. 8 crore.
The Bangladesh India Friendship Power Company Limited (BIFPCL) is scheduled to make the power plant operational in 2017, which has now been deferred to 2018.