Meghnaghat 450 MW Power Station Case Study
South AsiaOctober 22, 2020
At request of the Asian Development Bank (ADB), K&M prepared a paper and a presentation summarizing its’ experience including the process, the results, and lessons learned during performance of the Transaction Advisory assignment assisting the Government of Bangladesh and the Bangladesh Power Development Board (BPDB)) in implementing the country’s first Independent Power Project (IPP). K&M was responsible for the technical, commercial, financial and legal aspects of the 450 MW Meghnaghat Power Project. It was structured and tendered on a Build-Own-Operate-Transfer (BOT) basis. Specific assignments ranged from conducting a feasibility assessment, analyzing the sector institutional and regulatory framework to structuring the deal, developing the security package and project agreements, determining adequate tariff levels, identifying project financing resources, managing the international tendering process and providing negotiation support to the BPDB. K&M also analyzed wholesale operation procedures, regional energy issues related to the development of offshore gas fields, regional pipeline transportation options, and gas transfer pricing. The $300 million Meghnaghat natural gas-fired combined cycle project achieved financial close in 2001. The project was recognized as “Asia Power Project Deal of the Year” in 2001 by Project Finance International.