Bangladesh Power Development Board (BPDB) could not yet mobilise fund for the 300MW Shahzibazar combined cycle power project.
It might cause delays in implementation of the project. To facilitate mobilising the fund, the finance division on April 2 agreed to issue sovereign guarantee in response to a BPDB plea, officials said.
BPDB had signed the turn-key contract with Chinese joint venture Guandong Power Engineering Corporation and Guandong Electric Power Design Institute for the gas-fired power project on May 20 last year. The estimated cost of the contract is Tk334 crore.