Sembcorp secures financing deals for Sirajganj power plant

International Finance Corporation (IFC), a member of the World Bank Group, along with Singapore-based infrastructure project financing firm, Clifford Capital and CDC Group, the UK government’s development finance institution, have a share of $103 million each in the total project finance debt, said a press release yesterday. With the signing of financing agreements and targeted loan drawdown in January 2017, the construction work on the greenfield dual-fuel combined-cycle power plant in the Sirajganj district of Bangladesh has commenced. This build-own-operate project, with a contracted capacity of 414 megawatts, is estimated to cost approximately $412 million. Tang Kin Fei, group president and CEO of Sembcorp Industries, said: “This project reflects Sembcorp’s strong capabilities as a developer, owner and operator of energy and water assets. With the support of IFC, Clifford Capital and CDC, we have strengthened our commitment towards supporting Bangladesh’s vision for continued growth and development. Sembcorp’s Sirajganj power plant will allow us to provide cost-effective and reliable energy solutions to the country over a period of 22.5 years upon its completion.” The power plant will be developed by Sembcorp North-West Power Company, a joint venture between Sembcorp Utilities and Bangladesh’s state-owned North-West Power Generation Company. The project will be the second largest independent power plant in the country, and represents the largest foreign direct investment into this sector in recent years.