AIIB Watch Cases

Status: Approved
Timeframe: 2022-?
Area: Dudhghata, Korbanpur, and Chanderchak villages, Narayanganj District, Bangladesh
AIIB Investment Amount: US$ 110 million
Total Project Cost: US$ 613 million
Co-financier: Deutsche Investitions- und Entwicklungsgesellschaft (DEG), OPEC Fund, and Standard Chartered Bank (with Swiss Export Risk Insurance (SERV) providing policy cover to Standard Chartered Bank)

E&S Category: A

Project Details: The Project involves the design, financing, engineering, construction, operation, and maintenance of a 584-megawatt (MW) greenfield gas-fired combined-cycle gas turbine (CCGT) plant on a Build-Own-Operate (BOO) basis, to be implemented as an Independent Power Producer (IPP) facility.

Capacity: 584-megawatt (MW)
Construction Company: Unique Meghnaghat Power Limited (UMPL)

Resettlement: Total 21.07 acres of mostly single crop agricultural land has been directly procured from the local villages based on one-to-one negotiation for setting up the project. Based on a review of the UHRL’s Annual Report, it is evident that the local people did not receive fair compensation in exchange for their land, which was not valued at current market rates, let alone at adjusted rates to take into consideration the implied long term losses to family income that could have been generated through the use of the land.

Organizations monitoring: BWGED

AIIB interactions to date: None so far

Further information: Recourse and partners Case Study; AIIB Page

Last update: 31.12.2023