Due to the escalating dollar shortage, the power department has requested financial support from the finance department to cover the expenses of the 150 MW dual-fuel power plant in Koda, Gazipur. This assistance was sought on behalf of the state-owned power generator, BR Powergen Ltd.

The Ministry of Finance recently requested that the Central Bank lend 79 lakh 39 thousand US dollars to Dhaka Bank. This request stems from a dollar crisis that had prevented Dhaka Bank from fulfilling the payment for the 16th instalment of the loan to China.

The public sector power producer has finalised a syndicated loan agreement worth $129 million with the Industrial and Commercial Bank of China (ICBC) and Exim Bank of China, facilitated through Dhaka Bank. The Finance Department has provided a sovereign guarantee for the loan.

According to reliable sources, the company has successfully completed the payment of 15 out of 20 loan instalments. The impending 16th instalment, amounting to USD 79,39,323, is expected to be due shortly.

Recently, authorities from BR Powergen Limited informed the power department that failure to make timely loan instalments would result in the imposition of default interest, as outlined in Clause 5.2 of the agreement with the Chinese lenders. In response to the company's request, the power department has urged the finance department to arrange the necessary dollars for punctual loan repayment.

Meanwhile, the Export-Import Bank of China is considering listing a Bangladeshi-China joint-venture Bangladeshi power company as a defaulter due to the dollar crisis. This may jeopardize the financing of other new mega projects in Bangladesh. As a result, there will be uncertainty about recent projects in Bangladesh. It can even be worn face down.

Officials report that Bangladesh's foreign exchange reserves have come under strain following the conflict in Ukraine. Consequently, numerous foreign loans are experiencing delays. In response to these challenges, the government found itself compelled to secure a US$4.7 billion loan from the International Monetary Fund (IMF) as part of a comprehensive package that entails implementing various reforms aimed at reinstating macroeconomic stability.

Despite the government's implementation of several drastic measures, the situation surrounding foreign exchange reserves has not improved. Bangladesh has, regrettably, repeatedly fallen short of meeting the reserve targets set by the IMF.

According to data from the Department of Economic Relations, China has committed to investing over 1 thousand 77 crore dollars in loans and grants across various sectors of the country since its independence until the fiscal year 2021-22. Approximately 644 crore dollars of this amount have been provided as discounted funds, with a minimal portion allocated as donations. Predominantly, these financial commitments take the form of debt, and most of these loans have been disbursed in the last two decades.