Sunrise solution

Bangladesh is known as "The Land of Water". Here, large and small waterways criss-cross, like the blood vessels of the earth, injecting vitality into this ancient land. However, contrary to the abundance of water resources, Bangladesh has been plagued by severe power shortages.

As of April 2018, Bangladesh has a land area of about 147,570 square kilometers, and its population ranks eighth in the world. However, its domestic power shortage has restricted the development of the local economy.

In order to solve the power problem, Bangladesh Northwest Power Co., Ltd. and China National Machinery Import and Export (Group) Co., Ltd. (CMC) will build three combined cycle power plants (CCPP) in Shiraganj, northern Bangladesh, in three phases. Bangladesh Northwest Power Co., Ltd. signed engineering general contracting (EPC) contracts with CMC in 2010, 2014 and 2015, purchased three Siemens SGT-2000E gas turbines and supporting generators, and signed a long-term service contract. The second phase of the power station was put into operation in February 2018. As of May 2018, the third phase of the power station is still under construction. The project has effectively alleviated the problem of electricity consumption in Bangladesh, allowing the lights at night to light up a wider land.

In the third phase of the Shiraganj project, Siemens, CMC, the owner and relevant institutions conducted an in-depth analysis on the export component of the project, and all parties jointly designed a joint financing plan. During the implementation of the plan, Siemens Financial Services Group, through its Siemens Bank, together with Standard Chartered Bank, acted as the lead bank of the project and the owner cooperated with CMC to help the project form a joint venture between China Export and Credit Insurance Corporation (SINOSURE), Germany Export Credit A joint insurance structure formed by the Euler Hermes Agency (ECA) and the Multilateral Investment Guarantee Agency (MIGA) of the World Bank. Among them, SINOSURE and Euler Hermes provide insurance for the Chinese and German export components respectively, while MIGA provides insurance for the rest of the project loan that cannot be insured by ECA. Under the above-mentioned insurance arrangement, Chinese-funded banks and foreign-funded banks including Siemens Bank jointly participated in the loan for the project, realizing the financing closure of the project and enabling the project to proceed smoothly.

At the same time, this is also the first time that Siemens Financial Services Group has financed an overseas EPC project under Sinosure Insurance. "This is a 'breakthrough from zero'." said Anton Conradie, Head of Debt Business, Regional Energy Finance Asia and Australia, Siemens Financial Services Group, "In future EPC projects, with Siemens' participation, we will hopefully Sinosure cooperates to provide more financing options for owners and EPCs.”