Saudi Arabia based company, ACWA Power has agreed to invest around $2.5 billion to build 3,600MW gas based power plant in Bangladesh. Bangladesh Power Development Board (BPDB) and ACWA Power signed a memorandum of understanding (MoU) to this end on Thursday at Intercontinental Hotel in the capital.
BPDP Chairman Engineer Khaled Mahmood and ACWA Power Chairman Mohammed Abunayyan inked the agreement on behalf of their respective sides. The deal also includes setting up a 2 MW solar power plant at a cost of $0.5 billion. Officials said this has been the first ever deal signed in the power sector between Bangladesh and Saudi Arabia regarding investment.
Prime Minister’s Private Industry and Investment Adviser Salman Fazlur Rahman was present at the signing ceremony as the chief guest.
In his speech, Salman Fazlur Rahman said the government is providing special focus on power sector for achieving the goals of Vision-2021 and Vision-2041 as the sector is playing a vital role to develop the country.
Welcoming the ACWA Power in Bangladesh, Rahman said, the power plant will be set up within the next 4-5 years and around $2 to $2.5 billion investment will come in the project. He said ‘the power is expected to act as the main driving force of the economy. Bangladesh has made remarkable success in the sector. Hope the final agreement and main construction work will be started soon.’
He said the location of the power plant will be decided after feasibility study and there are a number of locations being considered for the proposed power plant including Mongla and Chattagram. The State Minister for Power, Energy and Mineral Resources Nasrul Hamid thanked the ACWA Power for choosing Bangladesh to make investment.
He said Bangladesh is now producing around 24,000 megawatt (MW) electricity which was only 3,200 MW in 2009 when the Awami League government assumed office. Under the prudent policy and dynamic leadership of Prime Minister Sheikh Hasina, he said, Bangladesh has achieved remarkable success in power generation and many internationally renowned companies have already invested in the country’s power and energy sector.
“Many of the international companies are planning to invest in the country due to good governance and rule of law,” he added. The state minister said Bangladesh is looking for another $30 billion investment within the next couple of years. Nasrul Hamid said the country’s power sector has broken all records of investment as the total investment now stands at $22 billion from $2 billion in 2009. ACWA Power Chairmen Mohammed Abu Nayyan said now Saudi Arabia and Bangladesh are enjoying the highest relationship and the investment environment in Bangladesh. The environment is very favourable for investors.
He said this is the beginning of ACWA Power’s investment as the company is coming in the country for a long time. The recent economic development has prompted the kingdom to come to Bangladesh to invest in power sector. “Bangladesh has been a model for the Muslim world in the economic progress”, he said adding that this is the beginning of Saudi investment.
Among others, Executive Chairman of the Bangladesh Investment Development Authority (BIDA) Md Sirazul Islam, Bangladesh Ambassador in Riyadh Golam Moshi and Economic Counsellor of the Embassy of Bangladesh in Riyadh Mohammad Abul Hasan were present on the occasion. Officials said the Saudi company will conduct a feasibility study within next 6 months and then it will decide the location of the power plant.
