Confidence Power Holdings Ltd (CPHL) signed a Memorandum of Understanding (MoU) with Infrastructure Development Company Limited (IDCOL), a government-owned financial development institution, on Thursday.
Managing Director of CPHL Khalid Islam, and Executive Director and CEO of IDCOL Mahmood Malik have signed the MoU on behalf of their respective organizations for the arrangement of the term loan.
Chairman of Confidence Group Engineer Rezaul Karim, and other officials of Confidence Group and IDCOL were present at the signing ceremony.
The aim is to raise $135 million term loan facility for three Heavy Fuel Oil fired Independent Power Plants (IPP) in Bogra, Rangpur, and Chittagong, which have a combined capacity of 280 megawatts.
Confidence Power Bogra Limited, Confidence Power Rangpur Limited, and Zodiac Power Chittagong Limited will establish the power plants at an estimated cost of $220 million with brand new European engines from MAN Truck and Bus Companies and Rolls-Royce.
All projects are expected to go into commercial operation by 2018.