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China’s EXIM Bank has issued a warning to the Bangladesh-China Power Company Ltd (BCPCL) that a failure to repay a $129 million loan instalment for the 1320 MW Payra coal-fired power plant due in early December could trigger a formal default, potentially affecting other projects in Bangladesh financed by the bank.
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The warning follows BCPCL having missed several instalment deadlines over the past few years. Officials said that this raised concerns about its overall repayment capacity.
BCPCL has sought intervention from the Bangladesh government’s Finance Department to prevent a default and protect the country’s sovereign credibility. BCPCL, a joint venture between North-West Power Generation Company and China National Machinery Import and Export Corporation, operates the plant in Patuakhali in south-central Bangladesh.
The warning letter from the EXIM Bank stated that as of November 25, 2025, no payment had been made against the 10th instalment totalling $129.3 million, covering both principal and interest. The bank also noted that unpaid electricity tariffs, standing at $740 million, have disrupted BCPCL’s loan repayment schedule.
The first unit of the Payra plant entered commercial operation in May 2020, the second unit entered service in December 2020.