Tokyo, March 29, 2017—IFC, a member of the World Bank Group, has brought in Japanese agency JICA to invest $30 million in Sembcorp North-West Power Company Ltd., a joint venture of Sembcorp Utilities and Bangladesh’s state-owned North-West Power Generation Company Ltd. that is building a 414MW dual-fuel combined-cycle power plant at Sirajganj, Bangladesh. The plant will significantly expand power-generation capacity in Bangladesh.
JICA’s $30 million is part of the total financing package of $ 165 million that includes a loan from IFC’s own account as well as additional loans mobilized through partners. The total project cost is estimated at around $412 million.
JICA’s Senior Vice-President Kenichi Tomiyoshi said, “The project is expected to be one of the most efficient plants in the country that will help modernize Bangladesh’s power sector. JICA is privileged to partner IFC and other investors in this ambitious agenda to meet the power needs of millions of people.” This transaction is IFC’s first co-investment with JICA since the two organizations signed a master cooperation agreement in April 2015.
Tang Kin Fei, Group President and CEO, Sembcorp Industries, said, “Sembcorp’s commitment towards supporting Bangladesh’s vision for continued growth and development is further strengthened with support from JICA, IFC, and other global investors. Sembcorp’s Sirajganj power plant will provide cost-effective and reliable energy solutions to the country for more than 22.5 years after its completion.”
“Bangladesh is on an ambitious growth path. Addressing the electricity gap is an immediate need. With JICA’s first investment into the country, IFC is confident of making a positive impact on the economy and the quality of life of Bangladeshi people. The project will help address the electricity gap while lowering the cost of generation,” said Hyun-Chan Cho, IFC’s Asia-Pacific Head for Infrastructure.
Nearly 40 percent of Bangladesh’s 160 million population live without access to electricity. Citizens encounter frequent blackouts. Severe power shortages are a major bottleneck for the growth of the job-creating manufacturing sector, hampering economic growth and poverty-alleviation efforts.
The power plant will be the second largest power plant in the country and represents the largest foreign direct investment into this sector in recent years. The success of the project will demonstrate the profitability and sustainability of public and private-sector partnerships in Bangladesh’s power sector to international players, helping attract additional capital to the sector.
IFC promotes sustainable growth and private-sector development in Bangladesh by investing in critical infrastructure, boosting financial inclusion, enhancing textiles competitiveness, and supporting reforms to make doing business easier for the private sector. IFC committed $635 million in Bangladesh, in own and mobilized funds across 13 projects, for the fiscal year ended June 30, 2016. IFC’s committed portfolio in Bangladesh is about $1 billion in 47 projects.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets. Working with 2,000 businesses worldwide, we use our six decades of experience to create opportunity where it’s needed most. In FY16, our long-term investments in developing countries rose to nearly $19 billion, leveraging our capital, expertise and influence to help the private sector end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org.
The Japan International Cooperation Agency is committed towards advancing its activities to promote economic development, equitable growth, human security and improving governance. JICA achieves this by providing assistance through Technical Cooperation, Japanese ODA loans and Grant Aid and by working in close cooperation with other international agencies.