Rupali Bank repays 283 million USD foreign loan of S Alam’s power plant without central bank approval

State-owned Rupali Bank has repaid 283 million USD of foreign loans taken by SS Power Limited in two instalments without obtaining approval from the central bank. Bangladesh Bank stated that repaying the loan without prior authorisation violates the conditions of the loan agreement. Accordingly, a letter was issued seeking clarification from Rupali Bank, confirmed by a senior official.

The power plant, located in Gandamara of Banshkhali, is jointly owned by S Alam Group and China’s Sepco Three. Its chairman and managing director is Mohammad Saiful Alam Masud of S Alam Group.

Bangladesh Bank said in its letter that Rupali Bank transferred funds to the Bank of China’s Singapore branch without approval. The third instalment of 140 million USD was paid on 19 December 2024, and the fourth instalment of 143 million USD was paid on 23 June 2025. Earlier, the first instalment was paid automatically as per contract, while the second instalment of 243.76 million USD was paid by Islami Bank with proper approval.

The total loan taken from Bank of China for constructing and operating the plant till 2035 amounts to 1,697 million USD, of which 575 million USD has already been repaid. The project was inaugurated in 2016 by the then Prime Minister Sheikh Hasina and Chinese President Xi Jinping following the PDB–SS Power agreement.

Below is the repayment breakdown:

A Rupali Bank official said the payment reached the correct destination but some technical issues prevented following the approval procedure. The bank now plans to seek approval for future instalments. Rupali Bank’s communication department explained that under the Accounts Agreement, 10 accounts were opened including DSRA and DSAA. The funds used to purchase dollars for repayments were provided by SS Power. Bangladesh Bank has not issued any official comment.

Khaborwala/ASN