Finance policy boosts China-Bangladesh production cooperation

The Export-Import Bank of China (China Exim Bank) and Bangladesh-China Power Company Limited (BCPCL) signed a loan agreement for the Payala 2×660MW supercritical coal-fired power station on May 12.

The Payala station will be the largest coal-fired power station in Bangladesh. The project contractor is a joint venture between Sinomec Group and Energy China Northeast No 1 Electric Power Construction Co. The contract was signed on March 29, 2016.

With a total investment of $2.48 billion, the project is expected to generate 8.3 billion kWh of electricity per year, which will greatly alleviate the country's power shortage and improve the power supply structure.

This is the first power project to be funded and carried out by Chinese companies in Bangladesh under a public-private partnership (PPP) model.

The core technology and equipment will be provided by Chinese enterprises, which will serve as a model for other Chinese enterprises involved in international economic cooperation in the future.

The loan agreement will provide financial guarantees for the smooth implementation of the project. It is also expected to help strengthen economic and trade cooperation between China and Bangladesh and consolidate the strategic partnership between the two countries.