Regent Power IPP

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In May 2009, a 20 MW independent power producer (IPP) project being developed by Regent Power at Barabkunda (Chittagong), reached financial closure. In July 2007, the Purchase Committee of the Bangladesh government awarded the project to Regent Power, a subsidiary of Habib Group. The award was the result of a competitive tender for setting up 10 small IPPs called by Power Cell in April 2007. In October 2007, the Implementation Agreement (IA), Land Lease Agreement (LLA), Power Purchase Agreement (PPA) and the Gas Sales Agreement (GSA) were signed. The plant was to be operational within 15 months of the signing of these agreements. The total project cost was reportedly BDT1.3 billion (US$18.8 million). In May 2009, Regent Power secured a syndicated Term Loan facility of BDT 775 million (US$11.2 million), arranged by Eastern Bank. Of the term loan amount, a consortium of Eastern Bank Ltd., IDLC Finance Limited and Uttara Finance & Investments Ltd sourced BDT 620 million (US$9.0 million) from the Investment Promotion and Financing Facility (IPFF), a facility that was funded by World Bank (IDA) and administered by the central bank of Bangladesh, Bangladesh Bank. The remainder of the term loan was provided by Bangladesh Commerce Bank Limited, Trust Bank Ltd. and State Bank of India. The project became operational in December 2010.