BANGLADESH is being supported by development finance institutions (DFIs) like The World Bank, AIIB and ADB to help the country in it's journey to increase renewable energy in the power generation mix and to strengthen transmission infrastructure.
Read more about key developments in Infrastructure and PPPs in Q4 2021 in Bangladesh in our latest insight.
October 2021
BANGLADESH AND SAUDI TO SIGN PPP AGREEMENT
The governments of Saudi Arabia and Bangladesh will soon sign an agreement on public-private partnerships. Saudi Arabia is keen to invest in Bangladesh's infrastructure and communication system development.
Country will seek investment for constructing a railway line from the nation’s capital to Payra Port as well as promised to set up a special economic zone for Saudi investors. Bangladesh’s PPP policy with international government partnerships was formed in 2017. The legislation provides the framework for delivering PPP projects whereby the implementation is conducted with the support of other governments, executed through their state-owned or private sector entities.
Financing for these projects is arranged either from the state-owned or private sector company or a combination of both. The Bangladesh government reserves the right to take an equity stake or provide debt financing to the project company. The south Asian nation already has government partnerships for PPP projects with Japan and Korea.
November 2021
BANGLADESH AND ACWA POWER IN TALKS FOR 1 GW SOLAR PROJECT
Bangladesh and ACWA Power are in talks for developing a solar project for Southeast Asian countries for 1 GW capacity. This is in wake of generating electricity from clean energy sources.
Bangladesh has already added 2.4 GW of solar projects and needs more energy to widen its economy and attract investors. The country is shifting towards renewable sources
CCCC NEARS AGREEMENT ON BANGLADESH HIGHWAY PPP
China Communication Construction Company (CCCC) is close to signing an agreement to build, own and operate a USD 243Mn highway in Bangladesh. The state-owned infrastructure builder will work with affiliate China Road and Bridge Corporation (CRBC) to upgrade the 13.5km Rampura-Amulia-Demra project. The company will sign an investment agreement and final concession contract with the Bangladeshi government in due course.
The proposed expressway is a 13.5km four-lane, controlled-access, toll road including 9.4km of elevated sections from Rampura point of Hatirjheel to the junction with the National Highway No.1 (Chittagong Road) and the National Highway N2 (Sylhet Road). About 9.4km of the motorway will be elevated. The toll road is due to operate for 21 years.
Based on a feasibility study conducted by WSP / MMM Group of Canada, traffic on the road is forecast to reach 30,000 vehicles/day by 2025, and 55,000 vehicles/day by 2035. The Asian Development Bank has advised the Bangladeshi government on the project procurement. The Bangladeshi government proposed the project in 2015 and the South Asian country’s Cabinet Committee on Economic Affairs granted official approval to the project earlier this month.
AIIB TO GIVE USD 260MN LOAN FOR FIRST ARCH STEEL BRIDGE IN BANGLADESH
Bangladesh will receive USD 260Mn from the AIIB to implement the Kewatkhali bridge project, set to be the first arch steel bridge in Bangladesh, in Mymensingh. The Economic Relations Division (ERD) signed a deal with the Asian Infrastructure Investment Bank (AIIB).
Under the project, a 320-metre steel arch bridge, 780-metre approach bridge, 551-metre road overpass, 240-metre railway overpass, 6.20-km highway with four lanes, including slow-moving vehicular traffic (SMVT) lanes and one toll plaza, will be constructed. The loan will be received in AIIB’s standard terms and conditions. The repayment period of the loan is 33.5 years, including a five-year grace period.
December 2021
CHINA MACHINERY ENGINEERING TO BUILD BANGLADESH'S FIRST EFW PROJECT
China Machinery Engineering Corporation (CMEC) has signed four investment agreements with its partners in Bangladesh to set up the country's first energy from waste (EfW) power plant. The Chinese company will develop a 42.5 MW EfW plant at Aminbazar on the outskirts of Dhaka. The project will process around 3,000 tonnes of waste per day collected from the capital area. CMEC was found to be financially and technically viable for the project after evaluating 17 enterprises
BANGLADESH GOVERNMENT SIGNS UP FOR 181 MW OF SOLAR ELECTRICITY
The government of Bangladesh has agreed to buy the electricity to be generated by four solar projects with a total generation capacity of 181 MW. The state-run Bangladesh Power Development Board (BPDB) has signed 20-year power purchase agreements as offtaker for the power to be generated by facilities ranging in scale from 3-68 MW.
Two of the projects will receive USD 0.102/kWh from the power company, a third will receive USD 0.106/kWh, and the smallest facility, which will include battery storage and diesel to supply an island community, has secured the highest price offered for ‘clean energy' in Bangladesh to date: USD 0.25/kWh.
BANGLADESH’S LARGEST SOLAR POWER PLANT COMES ONLINE
Bangladesh’s largest PV project — the 130 MWp Bagerhat solar power plant with Sungrow’s central inverter solutions installed came into commercial operation in late December 2021. Working closely with ABB and Orion Group, Sungrow will offer its expertise and continue to support Bangladesh in its energy transition journey.
With 95% of Bangladesh’s power generation stemming from gas, diesel, and coal, this 130 MWp project is a significant development for a nation that had a total grid-connected capacity of approximately 100 MW in 2020.
Located in Khulna, the Bagerhat project overtook the 73 MW Mymensingh solar power plant as Bangladesh’s largest solar power plant upon its completion. Utilizing Bangladesh’s 2,500 hours of sunshine per year, the project will be able to generate power equivalent to that produced by more than 324,000 tons of coal a year.
TATA PROJECTS BAGS TRANSMISSION PROJECT IN BANGLADESH
India’s TATA Projects forayed into Bangladesh's Transmission & Distribution sector by securing a 400 KV double circuit transmission line project valued at approximately USD 121Mn from Power Grid Company of Bangladesh Limited (PGCB).
This 120-km length project from Barapukuria to Bogura has been secured on turnkey basis. The project will be executed in 30-months and funding shall be done by EXIM Bank India under Indian Line of Credit. the transmission line shall result in expansion of high voltage transmission infrastructure in the northern parts of Bangladesh.
WORLD BANK USD 500MN LOAN TO MODERNIZE BANGLADESHI GRID
The World Bank has offered up a USD 500 Mn soft loan to help the nation's grid keep pace with those developments.
The multilateral development lender has issued the 30-year loan, which includes a five-year grace period, via its International Development Association (IDA) concessional funding operation. The credit line will pay for more than 31,000km of power lines, 157 electricity substations, and related infrastructure in the Dhaka and Mymensingh divisions of the country.
The program, intended to modernize Bangladesh's power distribution network, will also increase the climate resilience of grid infrastructure in 25 rural electric cooperatives covered by the operations of government body the Bangladesh Rural Electrification Board.
List of Key Transactions - Bangladesh Q4-2021
Source: Inframation, YOG INFRA analysis
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