TPDC Clarifies on the 3 Escrow Accounts opened with Stanbic Bank
The Government through BoT instructed the Stanbic Bank to open three Escrow accounts as one of conditions for obtaining loans, for the new natural gas infrastructure, from the Exim Bank of China. The three accounts are:
1. Gas revenues Account: for the purpose of depositing all revenues accrued from gas sales through the new pipeline.
2. Operational Account: intended to be used for running operational activities of the new infrastructure
3. Loan Repayment Account: opened for depositing:
(a) collateral funds to cover interests and commitment fees for disbursements made by the Exim Bank during the project implementation period.
(b) funds to be used for repaying back loan amounts, received from the Exim Bank, after the project handover and after the end of the loan grace periods.
Condidering the Overview above, the following are the proposed answers to the questions:
1, The purpose of the accounts are as described in points 1 to 3 above.
2. The accounts are controlled by the provisions of the Escrow Accounts Management Agreement jointly signed between the Stanbic Bank (as the Escrow Bank), TPDC (as the End User), Exim Bank of China (as the Lender) and Ministry of Finance (as the Borrower on behalf of the GoT).
In addition, TPDC was authorized to be a Signatory to the accounts.
Currently, the two accounts of Gas Revenues and Operational are still dormant and expected to be active after declaration of the project’s official Commercial Operational Date (COD).
The Loan repayment account is active and funds deposited therein during different periods of time (by the GOT and TPDC) have reached to the tune of USD 60m.
3. The accounts were opened at the Stanbic Bank following a competitive bidding process as per procurement procedures.