International Finance Corporation has brought in Japan International Cooperation Agency to invest $30 million in Sembcorp North-West Power Company that is building a 414MW power plant in Sirajganj.

Sembcorp North-West Power Company is a joint venture of Sembcorp Utilities and Bangladesh's state-owned North-West Power Generation Company. Jica's $30 million is part of the total financing package of $165 million that includes a loan from IFC's own account as well as additional loans mobilised through partners, according to a statement.

The total project cost is estimated at around $412 million.

Jica's Senior Vice-President Kenichi Tomiyoshi said,

"The project is expected to be one of the most efficient plants in the country that will help modernise Bangladesh's power sector. Jica is privileged to partner with IFC and other investors in this ambitious agenda to meet the power needs of millions of people.”

This transaction is IFC's first co-investment with Jica since the two organisations signed a master cooperation agreement in April 2015.

Tang Kin Fei, group president and chief executive of Sembcorp Industries, said, “Sembcorp's commitment towards supporting Bangladesh's vision for continued growth and development is further strengthened with support from Jica, IFC and other global investors.”

The dual-fuel combined-cycle power plant will provide cost-effective and reliable energy solutions to the country for more than 22.5 years after its completion, he added.

“Bangladesh is on an ambitious growth path. Addressing the electricity gap is an immediate need,” said Hyun-Chan Cho, IFC's Asia-Pacific head for infrastructure.

The project will help address the electricity gap while lowering the cost of generation, he said.

The success of the project will demonstrate the profitability and sustainability of public and private sector partnerships in Bangladesh's power sector to international players, helping attract additional capital to the sector, according to the statement.

IFC committed $635 million in Bangladesh, in its own and mobilised funds across 13 projects, for the fiscal year ended June 30, 2016. IFC's committed portfolio in Bangladesh is about $1 billion in 47 projects.