Govt approves loan proposal to implement Sreepur power plant

The government has approved a proposal for receiving loan from the German KFW IPEX-Bank for implementing the Sreepur 150-megawatt (MW) HFO Power Plant Project, reports BSS.

With Finance Minister A H M Mustafa Kamal in the chair, the approval came from the 27th meeting of the Standing Committee on Non-concessional Loan at the finance minister's ERD office on Tuesday afternoon, said a finance ministry press release.

The project aims to provide uninterrupted power supply to the Industrial belt at Gazipur and Mymensingh districts, the release said.

The loan approval against the project was given subject to fulfillment of two conditions - firstly, the project executing agency B-R Powergen Limited will have to take financial liquidity certificate from the finance division and secondly, it will have to offload its shares in full scale at the capital market.

With the offloading of shares by this state-owned company, the shares from such state-run companies would start to come gradually to the capital market.

The project is expected to be completed by March 2021 and considering a grace period of three years. The loan repayment of this project would start from the FY24.

B-R Powergen Limited is building another 150MW Power Plant at Bangabandhu Industrial Estate in Mirersarai and once it begins its commercial operation

in January 2020, the liquidity of this company would increase.