British International Investment

Sirajganj 4

South AsiaInfrastructure

The Sirajganj 4 Power Project is a greenfield dual-fuel combined-cycle power plant in the Sirajganj district of Bangladesh.

The power plant will be developed by Sembcorp North-West Power Company, a joint venture between Singapore-based Sembcorp Utilities and Bangladesh’s state-owned North-West Power Generation Company.

This investment was made when British International Investment was named CDC Group.

Our investment

Description of the investment.

We invested in Sirajganj 4 to finance the construction of the 414 megawatt (MW) project, alongside the IFC and Singapore-based infrastructure project finance firm, Clifford Capital.

The project will be the second largest independent power plant in the country, and represents the largest direct foreign investment into this sector in recent years.

Our investment will enable construction work on the Sirajganj power plant to begin.

Expected impact

Expected impact of investments made between 2012 and 2018. From 2019 onwards, we have published a fuller set of impact information, assessing each investment against six dimensions of impact.

The chronic lack of electricity in Bangladesh is a major barrier to the reduction of poverty and the country’s economic growth. In recent years, Bangladesh has had to rely on emergency power plants, which typically utilise either high speed diesel or heavy fuel oil, to deal with power outages.

Once operational, the Sirajganj 4 plant will be able to supply cost-effective and reliable energy to the country.

It will help to alleviate Bangladesh’s electricity shortages, lowering the cost of generation, and helping the country meet its growing demand for power.

This sustainable energy project has the potential to transform millions of lives and will help boost direct and indirect employment in the region.

Environmental and social information

  • Environmental and social summary

    A high-level description of the environmental and social aspects of the investment. This may include a summary of key environmental and social risks identified during environmental and social due diligence (ESDD); key elements of an environmental and social action plan (ESAP); or ways in which we plan to support the investee improve environmental and social standards, such as through their environmental and social management system (ESMS); as well as any other priority areas agreed with the investee.

  • Environmental and social risk

    A risk category rating, which indicates the level of environmental and social risk associated with an investment. For an explanation of the categorisations used, see here. We consistently provide an environmental and social risk category for all investments screened from 2023 onwards.

Environmental and social summary

Sirajganj has satisfactorily complied with the agreed ESAP and continued compliance on a ongoing basis during its operational phase. BII along with other co-investors reviews E&S performance periodically and has found it satisfactory.

Reporting and Complaints Mechanism

The Reporting and Complaints Mechanism allows anyone outside BII to report alleged breaches of the business integrity or environmental and social provisions of BII’s Policy on Responsible Investing. This includes breaches made by BII, a BII investee, or a portfolio company of a fund in which BII has invested. The Reporting and Complaints Mechanism Rules are available here. Reports and complaints can be submitted by email to [email protected] or by mail. See more details on our Reporting and Complaints Mechanism here.

For any other general enquiries contact us at [email protected]

  • Key facts

    Last updated

    When the last quarterly update of the website database occurred.

    :
    January 2024
    Project number

    An identifier number shared by investments in the same project.

    :
    D287
    Status

    The current status of the investment (green flag for active and red flag for exited).

    :
    Active
    Region

    The geographical region where the country is located. We currently invest in Africa, South Asia, South East Asia and the Caribbean. In 2023, BII’s investment mandate was extended allowing it to invest in regional funds linked to Ukraine, with the majority of activity expected to begin post-war. Investments outside these regions were made prior to 2012 under previous investment mandates.

    :
    South Asia
    Country

    The countries from which we derive the value of our investment. Where value is derived from multiple countries, this is indicated.

    :
    Bangladesh
    Sector

    We prioritise those sectors that facilitate development and need our capital the most. Our priority sectors contribute towards many of the Sustainable Development Goals. They range from investing in the power infrastructure that will provide people with better access to electricity, to investing in financial institutions that direct capital to the individuals and businesses that need it the most.

    :
    Infrastructure

    We provide capital in the following ways: directly – through direct equity, direct debt, guarantees and other non-intermediated financial instruments; and indirectly – principally through investment funds.

    For direct investments and fund investments, this is the date BII committed capital to the investments. This is typically the date on which legal agreements are signed by all parties.

    For the portfolio companies of our fund investments, this is the date (either the month or the quarter) on which the fund committed capital to the portfolio company.

    For direct equity investments, this is the date at which British International Investment exited the investment.

    For debt investments, this is the date at which the final debt repayment was made.

    For funds, this is the date at which the fund was terminated.

    For underlying fund investments, this is the date at which the fund manager exited the investment.

    The total amount committed, per financial instrument, per investment, on the date BII becomes subject to a binding legal obligation to provide funding or assume a contingent liability. This information is provided in US dollars.

    For direct investments, this is the amount that BII has committed to the business or project. For fund investments, this is the amount BII has committed to the fund.

    The currency in which the investment was made.

    Investment type :
    Debt
    Start date :
    October 2016
    Amount :
    $103.13m
    Currency of investment :
    USD
    Domicile

    The company or investment fund’s place of incorporation.

    :
    Bangladesh

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