Abul Khair Group- 75 MW gas-based power plant

Abul Khair Group operates, among other businesses, two steel mills in Chittagong, Bangladesh. The company has entered into a contract with Bergen Engines AS to purchase 8 gas engines that each generates approx. 9 MW. The engines will supply the steel mills with energy for the operations and compensate for lack of stability on the public grid.

Export Credit Norway is aiming to enter into a loan agreement with Abul Khair Group for the financing of the purchase. The loan will be guaranteed by GIEK and HSBC.

In accordance with OECD’s Common Approaches on Environmental and Social Due Diligence this transaction is categorized as category B.

The due diligence has focused on environmental and labour issues. An Environmental and Social Impact Assessment (ESIA) as well as an Environmental and Social Management Plan (ESMP) have been made, as well as a gap analysis and a Young Workers’ Plan. The project is benchmarked against IFC Performance Standards.