International Finance Corporation (IFC), a member of the World Bank Group, has signed an agreement with the Sustainable and Renewable Energy Development Authority (SREDA) of Bangladesh.
The agreement was signed on November 14, 2019 at SREDA office in Dhaka. It will support a solar power plant of 35-50 megawatts capacity in Kushtia district.
The pilot project will be developed through competitive bidding under a public-private partnership model. The model is aimed at demonstrating a viable model for a solar power plant in Bangladesh, drawing in the private sector.
IFC has a committed global portfolio of over $8.2 billion in power and energy sectors, half of which are in renewables.
"This is a unique concept as it will support the government in creating a viable and sustainable renewable energy model in Bangladesh, using marginal low-lying land to produce solar energy. This model can be repeated across the country," said Wendy Werner, IFC Country Manager for Bangladesh, Bhutan and Nepal.
"By engaging the private sector, we aim to promote more investment in renewable energy projects in Bangladesh and reduce reliance on thermal energy."
As the lead transaction advisor to SREDA, IFC will helping with structuring and tendering of the project to attract a credible private sector developer through a transparent and competitive process.
"This plan to bring in a solar independent power producer through a competitive bidding process will play a pivotal role in developing the country's renewable energy programme by providing increased electricity and clean energy. Which will have positive impact on businesses and households in Bangladesh," said Mohammad Helal Uddin, Chairman, SREDA.
The European Commission's Directorate General for International Cooperation and Development, Germany's Federal Ministry of Economic Cooperation and Development, and the Sustainable Development Investment Partnership are supporting the funding for consultants.