Kodda 150MW station seeks default interest waiver

Shamim Jahangir

8th September, 2020 10:29:14 printer

Kodda 150MW station seeks default interest waiver

The B-R PowerGen Limited, a join venture of the state-owned enterprise, has sought interest waiver against its default loans and re-scheduling of bank loan amortization for a year for Kodda 150MW Power Station amid COVID-19 crisis.

The power plant is producing electricity 150MW daily since 2015.

The B-R PowerGen Ltd started repayment of the loan after a year of the plant without any interruption twice in a year.

But the plant authorities have faced some financial difficulties due to novel coronavirus.     

Once, the plant will get approval from the ministry of finance, then the B-R PowerGen Ltd make a proposal before the ICBC Bank and EXIM Bank of China to re-schedule the default interest, managing director of B-R PowerGen Ltd Md Fakhruzzaman told daily sun on Tuesday.

“We have already sought the finance ministry approval to repay the loan with reschedule default interest for a year,” Md Fakhruzzaman told daily sun.

He said the loan repayment continued despite COVID-19 crisis.

If the B-R PowerGen Ltd or contractor’s inability to perform by reason of force majeure lasts more than 90 days after notice has been given to either party as the case may be, the B-R PowerGen Ltd, request for extension of time schedule, as per the deal of the syndication loan.   

B-R PowerGen Ltd may seek relief for the effects of COVID-19 as a first step to this approach, B-R PowerGen may issue a notice to the lenders outline the current financial difficulties arising from the COVID-19, source said.

The ICBC Bank and EXIM Bank of China have provided syndicate loan of US$129,264,152 for 20 years.  

 B-R Powergen Ltd. was established in 2010 as a public limited company by equal shares of BPDB & RPCL under power division, Ministry of Power, Energy and Mineral Resources.