New power project gets Tk 1.0b loan from BIFFL

The Bangladesh Infrastructure Finance Fund Ltd (BIFFL), a new state-run financial institution, has provided loan amounting to Tk 1.0 billion to a private company for setting up a power plant in Munsiganj.
It was the first loan of BIFFL since it was incorporation on March 21, 2011 under the Ministry of Finance (MoF) to finance the public private partnership (PPP) infrastructure projects in the country, officials said.
BIFFL formally handed over a cheque of the said amount of term loan to Sinha Peoples Energy Ltd (SPEL) at a ceremony held at the former's office in the city Thursday.
Atiquzzaman, Executive Director and CEO of BIFFL handed over the cheque jointly to Mamun Haider, Executive Director of SPEL and Md Asaduzzaman Khan, Managing Director (MD) of the IIDFC.
Senior officials of the PPP unit under MoF, BIFFL, IIDFC and SPEL also attended the ceremony.
The fund is part of a 10-year syndicated term loan facility worth Tk 2.18 billion; IIDFC is the lead arranger of the syndicated loan while its other participants are ONE Bank Ltd, National Bank Ltd and Union Capital Ltd.
Under the fund, SPEL is setting up the 52.50 MW heavy fuel oil (HFO) fired power plant at Kathpatti area in Munshiganj, they said.
An official of the BIFFL said the power plant is likely to be set for going into operation within a couple of months.
Speaking at the ceremony, Mr Atiquzzaman and Mr Asaduzzaman urged the SPEL officials to properly utilize the fund and run the power plant, and timely repay the loan.
Mr Atiquzzaman said that two more projects were also approved at the BIFFL and disbursement of the loans is in the pipeline.
Mr Mamun Haider assured of using the fund prudently and running the power plant efficiently.