A recent meeting on Fast Track Projects held at the Prime Minister’s Office decided to launch Road Shows in Japan and South Korea to garner loan for Rampal Power Project. The meeting was chaired by Abul Kalam Azad, Principal Secretary to the Prime Minister.
The Rampal 1,320 MW power plant would not be allocated financing from the government annual development project. Moreover, the World Bank and Asian Development Bank are not interested to finance the project, so the government has decided to borrow Export Credit Agency (ECA) loan which involves high interest, said power division official.
The Investment Board, Bangladesh Bank and Economic Relation Department (ERD) will jointly hold the road shows, he informed.
To implement the project Indian National Thermal Power Corporation (NTPC) and Bangladesh Power Development Board (PDB) formed the India-Bangladesh Friendship Power Company (IBFPC) in 2012.
The company estimated the cost of the project at Tk 14,000 crore and was supposed to collect Tk 10,000 crore by floating (Engineering Procurement and Construction) tender and rest Tk 4,000 crore to be contributed by Bangladesh and India from their own sources.
As per contract the project is supposed to go for power generation by 2018 but the loan is yet to be finalized.