IFC signs $32.80m loan deal with Excelerate

Dhaka,  Wed,  23 August 2017
Published : 11 Jul 2017, 22:06:17
Construction of LNG terminal

IFC signs $32.80m loan deal with Excelerate

FE Report

International Finance Corporation (IFC) inked Tuesday a loan deal with US-based Excelerate Energy to provide US$ 32.80 million as loan to build the country's first LNG (liquefied natural gas) terminal at Moheshkhali Island in the Bay of Bengal.

The total project cost is $ 179.50 million of which $ 53.80 million would come as equity and $ 125.70 million as loan.

Prime Minister's Adviser on energy issues Dr Tawfiq-e-Elahi Chowdhury was the chief guest at the deal signing ceremony held at a city hotel.

Terming the project a 'milestone' for the country, Mr Chowdhury said it would be implemented in the quickest possible time to meet the mounting demand for natural gas across the country.

He gave an assurance that all-out support would be extended to the terminal developer -- Excelerate Energy Bangladesh Limited - to implement the project.

State Minister for Power, Energy and Mineral Resources Nasrul Hamid spelled out the government plan for using LNG and LPG (liquefied petroleum gas) as the substitutes of natural gas.

LNG is set to be imported from early 2018, he added and stressed the need for improvement of necessary skilled manpower to cope with the changing challenges of energy sector.

The LNG terminal having a floating, storage and re-gasification unit (FSRU) will be located five-kilometre offshore Moheshkhali Island in south-eastern Bangladesh, approximately 91-km south of the Chittagong port.

Bangladesh inked a final deal with the Excelerate Energy on July 18 last year for construction of the terminal. Excelerate will develop the FSRU on a build-own-operate and transfer (BOOT) basis.

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