Bangladesh granted power project to Sembcorp

 

Singapore’s Sembcorp has been awarded the letter of intent for the Sirajganj power project by the Bangladeshi government.

 

At first the project has been awarded to Lanco Infratech but the government took away this as the Indian company became unsuccessful to deposit the security money for the project.

 

In June last year Sembcorp dealt out an uninvited proposal to Bangladesh’s power ministry to build the project on the same terms as Lanco if the project failed to go ahead. Lanco offered a 22-year levelised tariff of $0.0399/kWh for gas-fired power and $0.1696/kWh for oil-fired power.

 

The project involves the development of a 370MW power project in Sirajganj. The Asian Development Bank (ADB) and Clifford Capital showed their interest in loaning to the project.