Baraka Patenga Power Limited

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On 31st July 2011, state owned BPDB signed an implementation agreement with Baraka Patenga Power Limited (BPPL), a SPV set up by Barakatullah Electro Dynamics Limited (51% share), to set up a 50 MW HFO based power plant at Patenga in Chittagong. The plant was being set up on a build-own-operate basis.The plant would use total 8 units of Rolls-Royce B32:40V16 liquid fuel engines having a generation capacity of 6.984 MW per unit along with other balance of plants. The BPPL plant would generate and sell electricity to BPDB for a term of 15 years under a PPA signed between BPDB and BPPL on July 31, 2011.The Project was awarded through a competitive bidding process by BPDB to supply power for 15 years as Independent Power Plant (IPP). The project reached financial closure on 20th March 2013. The estimated project cost at the time of financial closure was US$ 40.3mn (BDT 3150mn @78.1 BDT/USD). Financing comprised term loans of US$ 27.5mn (BDT 2150mn) and sponsor equity of US$ 12.8mn (BDT 1000mn). The debt equity ratio was 68/32. Investment Promotion and Financing Facility (IPFF) Project disbursed around US$20 million from its on-lending component. The loan was for a tenure of 12 years and was priced at 330 basis points over LIBOR. This was the first US Dollar Financing from IPFF. IPFF is a project financed by the World Bank and the government of Bangladesh and implemented by Bangladesh Bank on behalf of Finance Division under the Ministry of Finance. The company started its commercial operation from 4th May 2014 having dependable capacity of 50.815 MW.