The Kuwait Fund for Arab Economic Development has signed an agreement with the Government of the Bangladesh to provide a loan of KD15m ($51m), to be used for the construction of Shikalbaha 225MW combined-cycle power plant project in the People’s Republic of Bangladesh.

The loan amount would be paid in 40 semi-annual installments with interest at the annual rate of 2% in addition to a loan administrative charge at the annual rate of 0.5%.

Work under the project includes construction, supply, installation and commissioning of the plant comprising two 75MW gas turbine units, a heat recovery steam generator, a steam 75MW turbine unit and auxiliaries.

The plant also includes the fuel supply facilities (furnace oil and natural gas) and the power evacuation facilities to connect the plant to the 230kv sub-station.

The Kuwait Fund loan comprises 16.5% of the total project cost, estimated at KD91m ($324m).

The loan agreement, with a maturity period of 25 years, has been signed by the People’s Republic of Bangladesh undersecretary of the Ministry of Finance Musharraf Hossain Bhuiyan, and Kuwait Fund for Arab Economic Development deputy director-general Hesham Al-Waqayan.