Bangladesh is known as the "Land of Water". Here, waterways of all sizes crisscross, like the blood vessels of the earth, injecting vitality into this ancient land. However, in contrast to the abundance of water resources, Bangladesh has been plagued by severe power shortages.
As of April 2018, Bangladesh has approximately 1475700 square kilometers of land and ranks eighth in the world in terms of population. However, the problem of domestic power shortage has constrained the development of the local economy.
In order to solve the problem of power consumption, Bangladesh Northwest Power Co., Ltd. and China National Machinery Import and Export Corporation (Group) Co., Ltd. (CMC) will build three combined cycle power plants (CCPPs) in Shiraganje, northern Bangladesh, in three phases. Bangladesh Northwest Power Company Limited signed EPC contracts with CMC in 2010, 2014, and 2015, respectively, to purchase three Siemens SGT-2000E gas turbines and supporting generators, and signed long-term service contracts. The second phase of the power station was put into operation in February 2018. As of May 2018, the third phase of the power station project is still under construction. The project effectively alleviated the electricity problem in Bangladesh, allowing the night lights to light up a wider land.
In the third phase of the Hilaganje project, Siemens conducted in-depth analysis of the export components of the project with CMC, the owner, and relevant institutions, and all parties jointly designed a joint financing plan. During the implementation of the scheme, Siemens Financial Services Group, through its Siemens Bank, together with Standard Chartered Bank, acted as the lead bank of the project and the owner cooperated with CMC to help the project form a joint insurance structure composed of Sinosure (SINOSURE), Euler Hermes of Germany Export Credit Agency (ECA) and Multilateral Investment Guarantee Agency (MIGA) under the World Bank. Among them, China Export&Credit Insurance Corporation and Euler Hermes provide insurance for the export components of China and Germany, respectively, while MIGA provides insurance for the remaining parts of the project loan that cannot be insured by ECA. Under the above insurance arrangement, Chinese banks and foreign banks, including Siemens Bank, jointly participated in the loan for the project, achieving the financing closure of the project and facilitating its smooth progress.
At the same time, this is also the first time that Siemens Financial Services Group has financed overseas EPC projects under China Export&Credit Insurance Corporation. This is a 'zero breakthrough', "said Anton Conradie, head of debt business for the Asia and Australia regional energy financing department of Siemens Financial Services Group." In future EPC projects, with Siemens' participation, we are expected to provide more financing options for owners and EPC through cooperation with China Export&Credit Insurance Corporation