Large & Medium Infrastructure Projects

Meghnaghat 450MW Power Project

On April 11, 2001, IDCOL achieved financial closing for the $300 million 450 MW Meghnaghat Power Ltd. (formerly AES Meghnaghat LTD.) a combined cycle gas turbine (CCGT) power generation facility, for which the sponsors provided $80 million in equity resources. The IDCOL facility, the largest loan ever made by a Bangladesh financial institution, breaks into two tranches: a 16-year $20 million senior facility and a 23-year $60 million subordinated facility. The two-tranche IDCOL loan should result in the following benefits, namely:

• Leveraging almost $3 in third-party money for every dollar lent;
• Interest earned by GOB over the course of 23 years anticipated to exceed $91 million;
• Fee income amounting to more than US$1 million; with
• Repayments received from the project over loan life deposited in Bangladesh Bank, rather than remitted abroad--as would have been the case had an external lender substituted for IDCOL.

Grameenphone Network Expansion Project

IDCOL has provided Tk. 12.50 crore to Grameenphone Ltd. (GP) for expansion of the latter's existing telecommunication network.

The expansion is being financed by a syndicate of lenders. Total BDT 200 crore has been arranged under the loan facility agreement. Standard Chartered Bank acted as lead arranger of this syndicated loan. Other major participants were Agrani Bank, Bank Asia, Citibank NA, IFIC Bank, Jamuna Bank, National Bank, Pubali Bank, SABINCO, Sonali Bank, Standard Bank, Trust Bank, The City Bank, United Commercial Bank and Uttara Bank.

Ranks Telecom Project

IDCOL has signed Loan Agreements with Ranks Telecom Limited for expansion of the latters existing wireless fixed line telephone network (PSTN project). The Signing Ceremony was held at a function in Dhaka on 15 February 2007. The proposed expansion is aimed at expanding existing subscriber capacity from 120,000 to 360,000. Based on CDMA 20001x technology, the project is expected to setup necessary infrastructure facilities in four zones namely north east, North West, south east, south west of Bangladesh excluding Dhaka central zone.

The expansion is being financed by a syndicate of lenders. Total BDT 1.01 billion has been arranged under the loan facility agreement. Infrastructure and Industrial Development Finance Company Limited (IIDFC) is the arranger of financing of this project. Other major participants were National Bank Limited, Uttara Bank Limited, United Commercial Bank Limited, EXIM Bank Limited, Saudi-Bangladesh Industrial and Agricultural Investment Company Limited, Standard Bank Limited, Agrani Bank, Premier Bank Limited, Mercantile Bank Limited and First Security Bank Limited. Under the agreement, IDCOL will provide BDT 50 million term loan to Ranks Telecom Limited.

PBTL Expansion Project,2004

The 'Document Signing Ceremony' of the US$ 77.4 million expansion plan of Pacific Bangladesh Telecom Limited (PBTL) was held on 30 November 2004. IDCOL's participation in the project was BDT 260 million equivalent to US$ 4.5 million. Other major participants were Overseas Private Investment Corporation (OPIC), Motorola, Citibank N.A. and a number of local and international commercial banks.

The project is expected to upgrade PBTL's network technology and add sufficient network capacity (from current 310,000 subscribers to expected 747,636 subscribers) to sustain the company's growth targets till 2006. After implementation of the project, PBTL's nationwide coverage is expected to increase from 51 to 58 districts out of total possible 61 districts and network technology is expected to be upgraded in the busy city centers of Dhaka and Chittagong from CDMA One to CDMA 2000 1X technology.

DNS SatComm Satellite Earth Station Project

IDCOL played the role of major loan provider in the DNS Sat Comm Satellite Earth Station project. Total project cost of this project was BDT 166 million. IDCOL Provided 30% of total project cost, which amounts to BDT 49.88 million. Other participants with IDCOL were Prime Bank and Janata Bank.

The earth station, also referred to as VSAT(Very Small Aperture Terminal) hub station, will be able to provide satellite based domestic and international data connectivity to Asian, Australian and African regions. It will provide clientele services to internet service providers (ISPs), banks, distribution companies, educational institutes and other local and multinational corporate houses at competitive rates through the following communication technology:

• Time Division Multiple Access (TDMA)
• Single Channel per Carrier (SCPC)
• Digital Video Broadcasting (DVB)
• Internet/VoIP via microwave

The project site is Located near the entrance to Savar EPZ. The civil construction work of the project was completed on November, 2005 and the project started commercial operation on January, 2006.

11.6 MW Shah Cement Power Plant Project

Shah Cement Power Ltd. (SCPL), a concern of Abul Khair Group has developed the 11.6 MW Shah Cement Power Plant Project. The total cost of the Project was Tk.59 crore. IDCOL acted as the arranger of financing, facility agent and security trustee for this Project. Other participants in this syndicated loan facility are BRAC Bank Limited (BBL), Industrial Promotion and Development Company Limited (IPDC), National Housing Finance and Investments Limited (NHFIL) and Saudi-Bangladesh Industrial and Agricultural Investment Company Limited (SABINCO). The Project was financed using modern Project Finance tools and techniques. It is a limited recourse financing where lenders focused primarily on the Project's cash flow and assets as security. The Project has achieved its commercial operation date and is supplying its energy output to Shah Cement Industries Ltd. and Shah Poly Sack Ltd., under a 15-year term Power Purchase Agreement. Titas Gas Transmission and Distribution Company Limited is the supplier of gas to the Project.

33.75 MW Summit Power Limited Expansion Project

IDCOL has signed loan agreement with Summit Power Limited for its 33.75 MW expansion plant at Savar, Dhaka. The expansion project is in addition to 11 MW existing facility of Summit. IDCOL will finance BDT 15.33 crore under the syndication facility of BDT 125 crore. Standard Chartered Bank acted as an arranger for this project. Other participants were United Commercial Bank Ltd., IIFC Bank Ltd., BRAC Bank Ltd., National Bank Ltd., SABINCO, NCC Bank Ltd., Premier Bank Ltd., One Bank Ltd. and State Bank of India. Electricity generated from this plant will be supplied to Rural Electrification Board (REB).

Hilli and Sonamasjid Land port Project

Bilateral trade between India and Bangladesh is increasing day by day. Import accounts for the major portion of this trade. According to Bangladesh Economic Review FY 2003-04, India is holding the top position in Bangladesh’s country-wise import from 1990-91 to 2003-04 and import volume has been increasing at the rate of 22% per annum. Most of the imported items come thorough the land ports. Due to inadequate security, management and supervision in the port areas, a significant portion of cargo is likely to pass through the ports avoiding formal procedures of the relevant authorities, resulting in loss of government revenue. Therefore, the government, for efficient management of the ports, has decided to develop necessary infrastructures at land port sites and to hand over 11 land ports to the private sector on Build-Own-Transfer (BOT) basis. Bangladesh Land Port Authority (BLPA) was created in 2001 to act as the regulator of all the land ports.

IDCOL has precipitated as an arranger and facility agent for two land port projects namely Hilli land port and Sonamasjid land port. Hilli land port is situated in Dinajpur and Sonamasjid is located in Chapai Nawabgonj. M/S. Panama Trading was awarded both the Projects to operate on BOT basis for a period of 25 years. The proposed Projects will be developed in two phases, phase-1 leading to Partial Commercial Operation and phase-2 leading to guaranteed full Commercial Operation. IDCOL has been mandated by the Projects’ Sponsors to arrange finance for the 1st phase of both Projects. Estimated project cost for the first phase are BDT 155.91 million and BDT 172.38 million for Hilli land port and Sonamasjid land port respectively. Tenor of the loans for both the Projects will be 5 years. The proposed Projects will be financed based on a debt-equity ratio of 70:30. Other participants in this syndicated loan facility are Janata Bank, Brac Bank, Jamuna Bank, National Credit and Commerce Bank Ltd. The projects are expected to reach partial commercial operation date at the end of August.

PBTL Expansion Project, 2006

IDCOL extended BDT 100 million to the network expansion project of Pacific Bangladesh Telecom Limited (PBTL). This is in addition to BDT 260 million term loan extended to PBTL last year. The Signing Ceremony of the New Taka Group Credit Agreement and Amended and Restated Taka Group Credit Agreement was held at Dhaka Sheraton Hotel on 21 June 2006. Total BDT 2144 million has been arranged under the New Taka Group Credit Agreement. Other major participants were Pubali Bank Limited, Prime Bank Limited, the City Bank Limited, Eastern Bank Limited, Premier Bank Limited, Agrani Bank, Dutch-Bangla Bank Limited, Export Import Bank of Bangladesh Limited, Jamuna Bank Limited, Uttara Bank Limited, Citibank, N.A. Dhaka Branch, Saudi-Bangladesh Industrial and Agricultural Investment Company Limited, Bank Asia Limited, and Shahjalal Islami Bank Limited.

Besides, IDCOL, along with Citibank N.A., has co-arranged USD 30 million Term Loan Facility for the network expansion project of Pacific Bangladesh Telecom Limited (PBTL). An International Dollar Loan Agreement has been signed among PBTL, IDCOL, Citibank N.A., Dhaka branch and Citicorp International Limited. Under this agreement, Citibank N.A., Bahrain Branch and IDCOL will provide USD 20 million and USD 10 million respectively. Citibank N.A., Dhaka branch will act as security agent and account bank while Citicorp International Limited will act as the Inter-creditor Agent.