Saiham Power IPP

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In March 2009, a 10 MW, greenfield, independent power producer (IPP) project developed by Saiham Power at Mohipal (Feni), reached financial closure. In July 2007, the Purchase Committee of the Bangladesh government awarded the project to Saiham Power, a subsidiary of Saiham Group. The award was the result of a competitive tender for setting up 10 small IPPs called by Power Cell in April 2007. Saiham Power was developing the plant through its subsidiary, Doreen Power House & Technologies Ltd. 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 BDT564 million (US$8.17 million). In March 2009, Dhaka Bank signed a syndicated Term Loan facility of BDT330 million (US$4.78 million). The loan amount included BDT180 million (US$2.6 million) in long-term financing from the Investment Promotion and Financing Facility (IPFF), a facility that is funded by World Bank (IDA) and administered by the central bank of Bangladesh, Bangladesh Bank.