In 2014, CDC committed $17.5 million to a $120 million long-term finance facility for the Summit Meghnaghat Power Company. The company will construct and operate a 335MW dual fuel combined cycle power plant near Dhaka.
The facility was wholly-funded by DFIs, including the lead lender, Germany’s DEG, and the Netherlands’ FMO. It will be the largest project financed by international investors in Bangladesh.
Bangladesh suffers from a severe power shortage. Just 60 per cent of all Bangladeshis have access to the grid, and the country remains one of the most difficult places for businesses to access electricity. Currently, the greater Dhaka area experiences multiple power cuts per day and rural areas are subject to vast load shedding.
Energy is one of the main drivers for economic growth, and reliable power is essential to achieve the projected annual GDP growth of over 6 per cent.
The lack of long-term finance has previously held back private sector development of power plants. Our funding for the Summit Meghnaghat Power Company will support the government’s target to provide electricity to all Bangladeshi households by 2021.
During the plant’s construction phase, Bangladeshi companies will provide up to 300 local workers, and up to 100 local workers during the operational phase. There will also be indirect business and employment benefits from the project.
Environmental and social aspects
We are working with the company and other lenders to ensure that it continues to operate the plant in line with international environmental and social standards.
Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
- South Asia
We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
- Investment type
We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
- Direct Debt
- Start date
For direct investments, this is the date CDC committed capital to the business or project.
For funds, this is the date that CDC committed capital to the fund.
For underlying fund investments, this is the date that the fund invested capital into the business.e
- July 2014
For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).
For funds, this is the total amount that CDC has committed to the fund.
This is the investee company’s place of incorporation; or a fund’s jurisdiction.