Home ›› 20 Jan 2023 ›› Front
B-R Powergen Ltd has sought the government’s assistance in ensuring an adequate supply of USD to Dhaka Bank, so that the state-owned power company can repay loan installments of $79,56,418.26 to two foreign banks.
It has recently sent a letter in this regard to the finance ministry’s finance and financial institutions divisions, the central bank, power, energy and mineral resources ministry, and Bangladesh Power Development Board (BPDB).
B-R Powergen Ltd had signed a facility agreement with Industrial and Commercial Bank of China (ICBC) and Exim Bank of China for a $12,92,64,153 syndicated loan for the Kodda 150 MW Power Plant in Gazipur.
Under this agreement, ICBC and Exim Bank of China have been issued Sovereign Guarantee by the Finance Division on behalf of the Bangladesh government. The loan, including interest, has to be paid in 20 installments in total.
Till now, 13 installments have been paid through Rupali Bank Ltd, Brac Bank Ltd, and Dhaka Bank Ltd, the letter read.
Previously, B-R Powergen Ltd had sent a letter to Dhaka Bank to pay the 14th installment of $79,56,418.26. However, the bank expressed its inability to do so, citing as reason the shortage of foreign currency.
As per the facility agreement, if the installment is not paid within the due date, a default interest would have to be paid, the letter read. Default interest is a higher interest rate which is payable if a party to an agreement fails to fulfill an obligation to the other party.
Moreover, if the Sovereign Guarantee issued by the finance ministry is invoked by ICBC and Exim Bank of China, the image of the country will be tarnished, the letter read.
On the issue, B-R Powergen Managing Director (Additional Charge) Dhurjjati Prosad Sen said, “Failure to pay $79,56,418.26 as the 14th instalment to the ICBC and Exim Bank of China in time will tarnish the image of both the country and the company.
“Therefore, instruction has been sought to supply the necessary USD to Dhaka Bank Ltd.”
A letter has been sent to the Financial Institutions Division as well, asking them to request Bangladesh Bank to take necessary actions in this regard, he added.
B-R Powergen Ltd was established in 2010 as a public limited company, by equal shares of Bangladesh Power Development Board (BPDB) and Rural Power Company Limited (RPCL) under the Power Division of the Ministry of Power, Energy and Mineral Resources.
The construction of the state-owned company’s 150MW power plant at Kodda started in May 2013, by taking 10.5 acres of land on lease for 20 years from the company’s shareholder, Rural Power Company Limited (RPCL).
After construction was completed in May 2015, the plant went into production on August 16 of the same year, and started supplying electricity to the national grid.
