In a significant regulatory intervention aimed at maintaining critical energy production, Bangladesh Bank has granted approval for SS Power-1 Limited to open import Letters of Credit (LCs) under a mandatory 100 per cent cash margin requirement. State-owned Rupali Bank has been designated by the financial regulator to execute these import transactions on behalf of the mega-scale power facility located in Chattogram.
The decision was formalised when the Banking Regulation and Policy Department-2 of Bangladesh Bank issued two separate official directives detailing the governing parameters for the facility.
Under the regulatory conditions, Rupali Bank is permitted to open import LCs for SS Power-1 Limited provided that the entirety of the transaction value is backed upfront by a 100 per cent cash margin. The monetary authority has directed all scheduled commercial banks operating throughout Bangladesh to observe the official circular when handling related banking operations. To facilitate this mechanism, the central bank’s second directive provides a temporary exemption from Section 27KaKa(3) of the Bank Company Act, 1991. This statutory provision typically restricts credit facilities under specific ownership structure and liability parameters. The regulatory waiver granted for this venture will remain valid through 31 December 2027.
To mitigate financial exposure and safeguard public resources, Bangladesh Bank has built strict liability barriers into the arrangement. The central bank stated explicitly that no financial obligation, debt, or liability will accrue to the regulator as a result of these credit arrangements. Rupali Bank is strictly barred from applying for liquidity support, financial assistance, or financial indemnity from Bangladesh Bank regarding any obligations arising from these import transactions.
The SS Power-1 complex, located at Gandamara in the Banshkhali region of Chattogram, is an vital component of the national power generation infrastructure. Operating with a total installed capacity of 1,320 megawatts, it represents one of the largest private sector coal-fired thermal power stations in the nation.
Constructed with an overall capital investment exceeding 2.6 billion US dollars (equivalent to over 28,000 crore Bangladeshi Taka), the enterprise operates as an international joint venture. S. Alam Group holds a controlling 70 per cent equity share in the business, with the remaining 30 per cent stake jointly held by two Chinese engineering corporations, SEPCOIII Electric Power Construction Corporation and HTG Development Group.
The thermal facility consists of two identical generation units, each capable of generating 660 megawatts of electricity. Trial electricity generation from the initial unit began on 24 May 2022, followed by test transmission from the second unit on 28 June 2022. The entire plant achieved full commercial integration when it officially synchronized with the national electrical grid on 14 January 2023, delivering base-load power to sustain regional industrial demand and reinforce national grid reliability.