Biman faces difficulty in making PDP

The authorities find it difficult to make pre-delivery payment against purchase of four 787-800 aircraft mainly due to non-availability of pledged funds from a Canadian financial agency, officials said.
The problem has arisen after the government recently cancelled the loan agreement with the Canadian company M/S Maryna (private) Limited after the latter's failure to provide the Biman Bangladesh Airlines with $ 130 million in loans for pre-delivery payment (PDP) to the Boeing within the stipulated time.
In November 2015, the national flag carrier signed a loan agreement with the firm for PDP finance to the Boeing, an American multinational corporation that designs, manufactures and sells airplanes, rotorcraft, rockets and satellites. It also provides leasing and product support services.  
The government entity already sent a cancellation letter to the firm for withdrawal of the loan agreement in December last. On the other hand, the agreement has been cancelled automatically due to failure of the PDP finance to the Biman by January 15 this year, sources concerned said.     
The Ministry of Civil Aviation and Tourism (MoCAT) sent a letter to the central bank to take necessary steps on PDP financing through Sonali Bank (UK) Ltd.       
"We are not taking loan from Maryna for PDP finance. The Biman cancelled the loan agreement which was signed last year," Abul Hasnat Mohammad Ziaul Haque, joint secretary of the Civil Aviation and Tourism Ministry, told the FE.
The MoCAT has sent an official letter to the Bangladesh Bank (BB), asking it to take necessary steps for providing the PDP funds, he also said.
Some Tk 4.50 billion has been provided to the Boeing for the payment of last two new Boeing, he added.   
The BBA is now in the dark about arrangement of PDP for next four aircraft from the Boeing due to lack of required funds, an official of the MoCAT said.  
Aiming to modernise the Biman Bangladesh Airlines fleet with new generation aircraft, the aviation company signed two agreements with Boeing in April and May 2008 for purchasing four 777-300ER aircraft, two 737-800 aircraft and four 787-800 aircraft, according to the MoCAT data.
Four 777-300ER airplanes joined the fleet of the Biman in October-November 2011 and February-March 2014. The 5th of the Boeing series 737-800 has already been delivered in 2015, the data showed.
The remaining aircraft, mostly 787-800, popularly known as Dreamliner, are scheduled to be delivered by 2019 and 2020, the data mentioned.
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