Khulna Power Company Limited

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Khulna Power Company Limited was awarded the construction and operation of a 110 MW barge mounted power plant located near the country's second port of Mongla on the river Bhairab by Bangladesh Power Development Board in 1997. The project was partially operational by the end of 1998 and fully operational by April 1999. The company sells its electricity output to Bangladesh Power Development Board under the 15 year power purchase agreement. The IFC approved a $51.9 m A-loan/B loan lending tranche - $29.4 m of this for the commercial syndication and a $3.3 m equity investment. In addition, in 1999 the IFC approved a US$ 1.3 million interest rate swap facility. The remaining funding was covered by major equity injections from Wartsila's NDS Corporation, Summit Industrial & Mercantile Corporation and United Enterprises. In late 1998, Coastal Power acquired a 73.9% equity stake in Khulna Power Company Limited. As for development bank support, MIGA provided a US$ 29.3 million guarantee to the project company in 1999. In 2003, the IFC provided the plant with a US$21.59 million syndication. In 2001, El Paso Corporation acquired Coastal Power along with Coastal's 73.9% stake in Khulna Power Company Limited. In the second quarter of 2008, El Paso Corporation sold its holding in Khulna Power Company Limited.