1,500MW power plants, gas facility among deals signed in Tokyo

Japanese leading companies have agreed to enter joint ventures with Bangladeshi investors in solar and gas-based power plants with a total capacity of 1500MW as well as in gas infrastructures, hospital and information technology.

Following the prime minister-level consensus announced the day before on the elevation of bilateral relations to a "strategic" level, Japanese and Bangladeshi investors teamed up in nine of the 11 memorandums of understanding (MoUs) signed in Tokyo on Thursday.

Construction of a high-efficiency 700MW combined cycle gas-fired power plant in Anowara, Chattogram is one of the business deals signed on the third day of Prime Minister Sheikh Hasina's state visit to Japan. KEPCO and AKH PP Project and Itochu will build and operate the plant which will enable future hydrogen co-firing and will leverage Kansai's operational and maintenance expertise.

Another MoU was signed between Doreen Group and Marubeni for joint investment and development of new solar power projects. Asian Entech Power Corporation Limited and Marubeni Corporation will jointly invest and develop new power projects, including solar power projects, with a total expected capacity of 600MW in various areas of Bangladesh.

Also, Parker Bangladesh Ltd and Sumitomo Corporation signed an MoU for the joint development of a 200MW floating and ground-mounted solar power plant in Bangladesh.

Japan's largest utility provider JERA has tied up with Bangladesh's Summit Group to construct energy infrastructure, gas supply, LNG supply, and storage in Bangladesh. Both sides are likely to spend around $2 billion to collaborate on providing cost-effective and reliable long-term Liquefied Natural Gas and other fuels supply while also developing both on-shore and off-shore regasification and storage infrastructure for Bangladesh.

The MoUs were signed on the sideline of the Tokyo Summit on "Trade and Investment Opportunities between Bangladesh and Japan" jointly organised by the Bangladesh Securities and Exchange Commission (BSEC) and the Bangladesh Investment Development Authority (Bida).

Prime Minister Sheikh Hasina who is on a three-day visit to Japan addressed the summit joined by around 400 Japanese business delegates.

"Many Japanese businesses came to know about the Bangladesh market through this summit. Trade and investments are likely to increase in future," Yuji Ando, chief country representative of Japan External Trade Organization (JETRO), Bangladesh, told Bangladeshi journalists who went there to cover the event.

He said Japanese companies are interested in Bangladesh's domestic market which has a large consumer base. Also, Japanese companies have interest in Bangladesh's agro-processing industries and fast-moving consumer goods, he said.

Bangladesh SEZ and Lion Corporation signed an MoU for land agreement in BSEZ to manufacture daily products for the domestic market. 

Bangladeshi firm BJIT and Marubeni agreed on a joint venture to build a next-gen global IT enterprise.

Another deal was reached between AICHI Health Care Group and MEDINA Dental Company for establishing a Japanese standard dental laboratory in Bangladesh.

Eero Vigil and Pipeline will develop a new cybersecurity training centre in Bangladesh. The centre will provide students with the skills they need to be successful in the world of cybersecurity.

Apart from the business deals, two MoUs were signed among top private sector and investment promotion bodies of the two countries. One was between the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI) and the Japan Chamber of Commerce and Industry (JCCI). Another was signed by the Bangladesh Securities and Exchange Commission and Japan's Financial Services Agency.

The eleventh MoU was signed between the Bangladesh Association of Software & Information Services and the Japan Information Technology Services Industry Association to cooperate in the ICT industry.

Businesses upbeat

DCCI President Barrister Md Sameer Sattar believes that this partnership will encourage more Japanese investment, innovation, technology transfer and export diversification in Bangladesh. He also urged Japan to consider investing in joint ventures and technology transfer in various sectors to improve productivity and efficiency.

The partnership will also steer towards the possibility of signing a bilateral Economic Partnership Agreement which may well-position Bangladesh to overcome the erosion of duty-free access in the Japanese market during the post-LDC era.

After signing an MoU with the Japan Chamber of Commerce and Industry, FBCCI President Md Jashim Uddin said, "Japan has been a consistent partner in Bangladesh's development journey."

Emphasising the market prospects of both countries, the FBCCI president said, "As we navigate the ever-changing global economic landscape, our two countries must explore new opportunities and deepen our bilateral relations and explore potential sectors."

He hoped the ongoing discussions to ease and support the businesses from both sides through the gateway of Regional Comprehensive Economic Partnership by 2026 will serve to further strengthen ties between the two friendly countries.

According to Afroz Alam, Chief Financial Officer of Doreen Power Generations and Systems Ltd, the location for the 600MW solar power plant has not yet been decided. He also said that he has not yet seen the MoU document, so he cannot comment on the investment and ownership aspects.