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Refinance agreement between BIFFL and Bangladesh Bank for green products
Bangladesh Infrastructure Finance Fund Limited (BIFFL) has signed a participation agreement with Bangladesh Bank (BB) under refinance Scheme for green products on January 03 at Bangladesh Bank office. The participation agreement was signed by S. M. Formanul Islam, Executive Director and CEO and Manoj Kumar Biswas, General Manager of Sustainable Finance Department of Bangladesh Bank on behalf of their respective organisations, said a press release. BB introduced a refinancing scheme of Tk 200 crore to offer as refinance facility against the Bank or financial institution’s financing to promote green products or initiatives in Bangladesh. The rate of interest for the participatory financial institutions (PFIs) will be equal to the bank rate (currently 5%) for the refinancing facility. For the borrowers, it will be bank rate plus margin where the margin can be up to 4% maximum based on the tenor of the loan repayment. Md. Abdul Kader, deputy general manager of Sustainable Finance Department of Bangladesh Bank and Mohammad Sagir Hossain Khan, COO of BIFFL were also present on the occasion. BIFFL, being the largest financial institution of the country, is committed to support green initiatives to uphold sustainable development in Bangladesh, BIFFL is also committed to protect environment and adopt eco-friendly measures which are of its foremost priority while considering any investment transaction.
Summit power approves 30pc cash dividend
December 10, 2018 Monday 4:41 PM By News Desk, energynewsbd.com
Summit Power Limited approved 30 percent cash dividend to its shareholders for the year ended on 30 June 2018. The dividend was approved in presence of the company’s shareholder at its 21st annual general meeting (AGM) held at Krishibid Institution Bangladesh (KIB) Complex at Farmgate in Dhaka, said a press release. Summit Power Limited has been consistent in giving out dividend since its enlistment in the Dhaka and Chittagong Stock Exchanges in 2005. Presided over by chairman of Summit Power Limited Muhammed Aziz Khan, the meeting was attended by vice chairman Md Latif Khan, director Anjuman Aziz Khan, director Jafer Ummeed Khan, director Md Farid Khan, director Faisal Karim Khan, director Azeeza Aziz Khan, managing director Lt Gen (Retd) Engr. Abdul Wadud, director Faruq Ahmed Siddiqi,  director Helal Uddin Ahmed, director Arif Al Islam, director Mustafizur Rahman Khan, financial controller and company secretary Swapon Kumar Pal and other senior officials. Summit Power Limited (SPL) is the leading independent power producer (IPP) of Bangladesh and a publicly listed AAA rated company. Presently Summit Group is supplying 1,941 MW electricity to the national power grid. Recently Summit Power have installed 449 MW power plants at Kodda in Gazipur. Summit Group has received five consecutive the best power plant awards from government of Bangladesh since 2013.    
Category: Power
IFC invests $20m in Omera Petroleum to enhance LPG access
October 13, 2018 Saturday 12:01 PM By UNB
International Finance Corporation (IFC), a member of the World Bank Group, has invested $20 million as a long-term loan in Omera Petroleum, a subsidiary of MJL Bangladesh Limited, to help the company double its capacity and increase the availability of liquefied petroleum gas (LPG), especially in rural areas. Omera, whose parent MJL is majority owned by the Bangladeshi conglomerate, East Coast Group, is the second-largest player in Bangladesh’s LPG market by volume, said the IFC in a statement on Thursday. The IFC loan is part of its project to double its capacity and make LPG available in nearly all sub-districts of the country. This will expand access of LPG to 350,000 additional households (around 12 percent of the total market potential) over the life of the loan. It will also help reduce greenhouse gas emissions by substituting kerosene, wood, and other hazardous cooking fuels, and allow the limited reserves of natural gas to be diverted to power generation and industries. Declining natural gas supplies have prompted the Government of Bangladesh to promote LPG as a major source of primary energy. The government aims to supply LPG as cooking fuel for 70 percent of households within the next three years. It has also been promoting LPG usage in vehicles as an alternative to compressed natural gas CNG) and bulk LPG for industrial purposes. “IFC is committed to delivering clean energy to all people in Bangladesh,” said Wendy Werner, IFC Country Manager for Bangladesh, Bhutan and Nepal. “Omera’s expansion will enable businesses and families across the country to switch from biomass energy to clean LPG fuel for cooking and commercial activities. LPG makes positive development impact in Bangladesh’s energy mix. We laud the Government’s stance to promote privatization of LPG sector to create a resilient energy sector.”  Bangladesh is a low-income International Development Association (IDA) country. IFC`s country strategy for 2017-21 – while addressing other key development gaps – focuses on increasing access to electricity, and diversifying energy sources. This project will enable the end users to switch to a much cleaner and efficient fuel. “Omera has made great socio-economic contribution across Bangladesh by delivering the largest volume of LPG using our state-of-the art infrastructure across urban & remote areas”, said Tanzeem Chowdhury, Head of Corporate Planning and Business Development. He said this is the beginning of a long term partnership between IFC and East Coast Group to finance and build larger projects that will help achieve our Group objective to provide easy access of green fuels and clean energy to every district of Bangladesh. Access to energy and diversification of fuel are two critical bottlenecks in the growth trajectory of Bangladesh. In the last five years, IFC has invested about $800 million to remove these obstacles. This is IFC’s first investment to promote LPG in Bangladesh, said the statement.
Category: Business
Unique Hotel joins consortium to invest in 600MW power plant
October 1, 2018 Monday 12:26 PM By News Desk, energynewsbd.com
A consortium, led by Unique Hotel & Resorts, will set up a 600 megawatt power plant to be based on gas or re-gasified liquefied natural gas (RLNG) at Meghnaghat of Narayanganj. The board of directors of Unique Hotel has decided to pay Tk 2.72 billion as equity in advance to Unique Meghnaghat Power Plant, according to a disclosure posted on the Dhaka Stock Exchange (DSE) website on Sunday. The Unique Hotel will pay the amount for advance payment of 10 per cent of contract value for engineering, procurement and construction (EPC) works to GE Global Parts & Products GmbH as per the commitment agreement for implementation of the power plant, said the disclosure. Earlier on June 27, Unique Hotel informed that the consortium of Unique Hotel, Guayama PR Holdings BV and Strategic Finance Ltd received a letter of Intent (LoI) from Bangladesh Power Development Board (BPDB). The sponsor and initial shareholding position of the company is Unique Hotel 65.01 per cent, Guayama PR Holdings BV with 30 per cent and Strategic Finance 4.99 per cent. The cabinet committee on public purchase also gave go-ahead to the proposal of the consortium on May 30 this year to run the plant for 22 years on build-own-operate basis from the date of commencement of the commercial operation. The company will set up necessary transmission lines and sub-stations at its own cost. Each share of the Unique Hotel, which was listed on the Dhaka Stock Exchange (DSE) in 2012, closed at Tk 53.70 on Sunday, losing 1.10 per cent over the previous session. The company disbursed 20 per cent cash dividend for the year ended on June 30, 2017.
Category: Business
Harmonised pricing formula can boost regional power trade
September 7, 2018 Friday 3:41 PM By UNB
Speakers at a seminar on “Future prospects of regional connectivity” said that lack of harmonisation in the pricing formula has been a major barrier in developing the regional energy and power trade. They said all the nations in the regional initiative should harmonise their pricing formula. “I think harmonisation in pricing of power and energy has been very essential to promote the regional trade,” said Alamgir Kabir, former chairman of Power Development Board (PDB) while making his remarks at the seminar. Power and Energy Ministry organised the seminar at International Convention City Bashundhara in the city as part of the three-day Power and Energy Week that began on Thursday. Taking part in the seminar, Nepal’s Minister for Energy, Water Resources and Irrigation, Barsha Man Pun ‘Ananta’ said his country has been ready for regional power and energy trade. “We have already created enabling environment through enacting law and infrastructure. We have entered deal with Bangladesh to export electricity,” he told the seminar. The seminar was also addressed by chairman of parliamentary standing committee on Power and Energy Ministry Tajul Islam, Asian Development Board (ADB) country director Monmohan Prakash and Dr. Hans-Paul Burkner, Chairman, of Briton Consulting Group. Syed Munir Khosru, chairman of think tank body IPAG, moderated the seminar while power secretary Dr Ahmad Kaikaus made keynote presentation on the seminar topic. Tajul Islam said Prime Minster Sheikh Hasina has been continuously trying to promote regional trade. “Bangladesh is very keen to move forward with the regional power and energy trade,” he said. Dr Ahmad Kaikaus said Bangladesh so far signed agreements with India and Nepal and getting ready to sign agreement with Bhutan to import electricity. He, however, pointed out that all the deals are made on bilateral basis. “But this will pave the way for multilateral deals,” he said. Monmohan Prakash said multilateral power trading is a complex issue although ADB has been continuing its effort to promote such trade.
Category: Business
Mitsubishi to acquire 25pc stake in Summit LNG terminal
August 18, 2018 Saturday 5:36 PM By News Desk, energynewsbd.com
Japan’s Mitsubishi Corporation on Friday said it agreed to acquire 25 per cent of Bangladesh’s Summit Liquefied Natural Gas (LNG) terminal and planned to help develop an offshore receiving site in the South Asian country. Summit LNG’s project plans call for a floating storage and regasification unit (FSRU) to be installed off the coast of Moheshkali, where it will receive and regasify LNG procured by Petrobangla, the country’s national oil and gas company. Construction of the terminal has already begun, with commercial operation expected to start in March 2019. The planned LNG import volumes are about 3.5 million tonnes per annum, Mitsubishi said. Bangladesh’s economic growth rose by 7.28 per cent in the financial year through mid-2017, and its population is expected to climb to over 185 million by 2030, boosting demand for electricity and LNG for power generation. Summit and Mitsubishi have agreed to jointly pursue other LNG projects in Bangladesh, said the Japanese company, from the supply of the super-chilled fuel to power generation. In March this year, the two companies signed a memorandum of understanding to jointly pursue an integrated LNG-to-power development consisting of an on-shore LNG receiving terminal, associated LNG supply and construction of 2,400-megawatt gas-powered.  
Category: Business
Summit, Mitsubishi, GE unveil $3billion energy investment in Bangladesh
July 12, 2018 Thursday 3:29 PM By News Desk, energynewsbd.com
The largest ever private investment in Bangladesh’s energy sector worth $3 billion around Tk 24,000 crore, is coming to facelift the country’s basic infrastructure. Local Summit Group, Japanese Mitsubishi Corporation and US-based General Electric Company (GE) inked an initial agreement to this effect at a programme in Dhaka on Wednesday. Tetsuji Nakagawa, Senior Vice-President of the infrastructure business division of Mitsubishi Corporation, Muhammed Aziz Khan, chairman of Summit Group, and Russell Stokes, President and CEO of GE Power, signed the agreement. It has been official that Summit will be the majority owner of the integrated project. GE will invest in equity and technology in the four 600MW-each combined cycle power plants with a total capacity of 2,400MW. Mitsubishi will be the partner for the complete integrated project, according to a statement of Summit Group. With implementation of the project in 2023, Summit will be doubling its power generation capacity. The combined cycle power plants will be powered by GE’s flagship 9HA gas turbines. The project includes two units of onshore LNG terminal with total capacity of 380,000-cubic metre, and oil terminals with 100,000 tonnes capacity-all to be located in Matarbari, Cox’s Bazar. The location of the 300MW heavy fuel-based power plant hasn’t been finalised yet. The project will be using world’s most efficient and environment-friendly technology. The LNG terminal will be using cutting-edge technology, so that there is no boil-off, utilising all the gas for electricity generation, said Aziz Khan at the signing ceremony. He also said: “In support of the Government’s Vision 2021 and 2030, Summit is partnering with GE and Mitsubishi to bring in the largest private FDI to Bangladesh, best technology at world’s lowest tariff to meet increasing demand of people and businesses for energy and power.” “GE Power is navigating customers through an energy transformation with a complete portfolio of fuel choices and innovative technology,” said Russell Stokes, President and CEO of GE Power. “In partnership with Summit Power, our HA technology enables unprecedented levels of efficiency to strengthen Bangladesh’s power generation.” Nasrul Hamid, State Minister for Power, Energy and Mineral Resources, and Tawfiq-e-Elahi Chowdhury, Energy Adviser to the Prime Minister, were present at the signing ceremony.
Category: Business
Tk 24,921 cr for overall development of power, energy
June 7, 2018 Thursday 10:28 PM By Staff Correspondent, energynewsbd.com
Finance Minister AMA Muhith on Thrusday proposed Tk 24,921 crore for Power, Energy and Mineral Resources Ministry in the budget for 2018-19 fiscal for the overall development of the country’s power and energy sector. “We supply electricity to about 92 percent of the country’s area and 90 percent households get electricity connections and our immediate goal is to raise power generation capacity from existing 16,046MW to 24,000MW by 2021,” he said this, while unveiling the national budget for the financial year 2018-19 (FY19) at Tk 4,645.73 billion in the Jatiya Sangsad (JS). Of the total Tk 24,921 crore Muhith proposed Tk 22,936 crore for the power division and Tk 1,985 crore for the energy and mineral resources division, while Tk 24,261 crore was allocated in the revised budget of FY 18. “We expect to generate, in phases, 40,000MW power by 2030 and 60,000MW by 2041. There is no alternative to achieve economic prosperity as per target. Currently, installation of a total of 59 power plants having the capacity of generating 15,205MW of electricity is under way,” he said. The minister said that the government is installing prepaid metres in residential units and Electronic Volume Corrector (EVC) in industrial units to ensure cost effective use of gas, adding, “A plan for installing two crore prepaid metres by 2021 is being implemented to reduce system loss, realise unpaid electricity bills and ensure efficient load management.” The bill payment, complaint disposal and application process for connection have been brought under automation, he said adding that as a result, customers are now getting these services easily. “Our target is to cut fuel use by 15 percent and 20 percent by 2021 and 2030 respectively through efficient use of power and energy.” He said the demand for fuel is gradually rising consistent with the economic advancement of the country and not possible to meet the increasing demand for energy only with natural gas, adding, “We therefore need to explore sources of alternative fuel. Approval was given to different companies to import and maintain stock of 24,44,766 LPG cylinders to meet the growing demand of natural gas with LPG.” In addition, one floating storage and re-gasification unit has already been set up to import Liquefied Natural Gas (LNG) and another unit will be setting up soon, Muhith said. He also said the supply of LNG equivalent to 500 mmcfd and an additional 500 mmcfd will be possible through these units from June and October respectively, adding, “We have a plan to install two land-based LNG terminals at Maheshkhali, Cox’sbazar and Payra, Patuakhali.”
Category: Business
Tk 26,226.37 cr to be allocated for power, energy
June 5, 2018 Tuesday 12:31 PM By BSS
The country’s power and energy sector is likely to get Tk 26,226.37 crore in the next national budget for the 2018-19 financial year (FY19), scheduled to be unveiled on Thursday. According to Power, Energy and Mineral Resources Ministry, an allocation of Tk 22,892.60 crore has been proposed for the power division and Tk 3,333.77 crore for the energy and mineral resources division for FY19. The Power, Energy and Mineral Resources Ministry sought around Tk 36,000 crore fiscal allocation, a ministry official said. The government allocated Tk 29,424.27 crore for 2017-18 fiscal for the power and energy sector. Of the amount, Tk 24,947.44 crore was allocated for power division and Tk 4,476.83 crore for energy sector. With the fiscal allocation the power division took 113 projects for power sector development. The overall progress in project implementation was 78.49 percent till April, the ministry official said.
Category: Business
Bangladesh needs $82 billion investment in power to be developed country
May 14, 2018 Monday 1:23 PM By News Desk, energynewsbd.com
State Minister for Power, Energy and Mineral Resources Nasrul Hamid said massive initiatives are underway to build a developed Bangladesh by 2041. The power sector needs US$82.5 billion in this regard while US$ 22 million has already been invested in the sector, he said while addressing at a session on “Power for Human Development” at the ‘Rising Bangladesh’ conference at Loeb House of Harvard University in Boston, the United State on May 12, 2018. Bangladesh has been working to increase power generation as it needs 60,000 megawatt (MW) of electricity to be a developed country by 2041, he also said. International Sustainable Development Institute (ISDI) of Florida and Centre for International Development of Harvard Kennedy School and Lakshmi Mittal South Asia Institute of Harvard University jointly organised the conference, said a press release. “Currently the power generation capacity of the country has reached to 16,046 MW while the government is working relentlessly to reach the general capacity 24,000 MW by 2021 to be a middle income country,” he said. Hamid said the government fixed 35 per cent natural gas, 35 per cent coal, import of renewable energy 10 per cent and nuclear and other sources 20 per cent as fuel mix for power generation in the Power System Master Plan-2018. Besides, the government is making optimum utilisation of modern technologies to develop power distribution and transmission system and the automation work is going on, he said. “We have undertaken to introduce enterprise resource planning (ERP) applications and supervisory control and data acquisition (SCADA) systems,” the state minister said. “The government encouraged private investment in the power and energy sector and meanwhile 50 percent electricity is generating from private sector,” he said, adding, “Initiative has been taken to handover a proportion of distribution and transmission line of power under private sector.” Nasrul said installment of smart grid and introduction of cashless payment technology in the power sector is a demand of time and then the power would transform into merit goods from public goods. He, however, said the power management would be people oriented with more investment, use of modern technology, taking appropriate plan and enhancement of capability of employees. Prime Minister’s Economic Affairs Advisor Dr Mashiur Rahman, Principal Coordinator (SDG Affairs) to the Prime Minister’s Office Abul Kalam Azad, Executive Chairman of Bangladesh Investment Development Authority (BIDA) Kazi M Aminul Islam and General Secretary of Bangladesh Economic Association (BEA) Dr Jamaluddin Ahmed spoke on the occasion.    
Category: Business
United Power emerges largest market cap co in power sector
May 12, 2018 Saturday 10:59 AM By News Desk, energynewsbd.com
United Power Generation and Distribution Company Limited emerged as the largest market capitalisation entity among the listed power-sector companies on the Dhaka bourse. The power generation company’s total market cap crossed US$ 1.0 billion milestone for the first time on Tuesday last and stood at Tk 88.67 billion on Thursday. “United Power is among the few companies in Bangladesh which crossed the U$ 1.0 billion market-cap milestone. It will enhance the prospect of company’s business and shareholders’ assets,” said a press release. Now, United Power is the sixth highest listed company in terms of market capitalisation on the Dhaka Stock Exchange (DSE) after Grameenphone, Square Pharmaceuticals, BATBC, BRAC Bank and ICB as of Thursday. Each share of United Power, which was listed on the DSE in 2015, closed at Tk 220 on Thursday, losing 0.95 per cent over the previous day. The company disbursed 90 per cent cash dividend for the year ended on June 30, 2017. In 2016, the company paid 125 per cent cash dividend. United Power has reported earnings per share (EPS) of Tk 2.88 for January-March 2018 as against Tk 2.77 for January-March 2017. In nine months for July 2017-March 2018, EPS was Tk 8.41 as against Tk 8.05 for July 2016-March 2017. The net operating cash flow per share (NOCFPS) was Tk 8.00 for July 2017-March 2018 as against Tk 8.60 for July 2016-March 2017. The net asset value (NAV) per share was Tk 37.71 as on March 31, 2018 and Tk. 37.47 as on June 30, 2017.
Category: Business
Nasrul Hamid urges German businessmen to invest in BD
April 21, 2018 Saturday 9:21 AM By UNB
State Minister for Power and Energy Nasrul Hamid has urged the German businessmen to invest in Bangladesh power sector. He made the call while addressing the ‘3rd German-Asia Business Dialogue’ in Germany’s Berlin on Wednesday, according to a message received in Dhaka. The junior minister said Bangladesh poses a potential to become a marketing hub of Germany and all other European countries to reach their products to a large market in Indian ‘seven sisters’ and also Myanmar. He said a huge demand has been created for advanced technology in three segments of power generation, distribution and transmission with the initiative of the Prime Minister Sheikh Hasina investment in the sector. Appreciating the organigers for arranging the German-Asia Business Dialogue, Nasrul Hamid hoped that this initiative will play an effective role in creating a platform to strengthen the relation between German and Asian companies. This will help build a coordination among member of parliaments, bureaucrats, and diplomats as well”, he added. Laurence Bay, Singapore ambassador in Germany, Prof. Dr. Jhy-Wey-Shich, Taiwan representative in Germany and Dr. Volker Treier, deputy chief executive of DIHK also spoke at the function. Meanwhile, Nasrul Hamid met with Mark Hauptmann, a German parliament member, to discuss different issues on investment, renewable energy and sustainable development. Bangladesh ambassador in Germany Imtiaz Ahmed was also present on the occasion.
Category: Business
ECNEC nods Tk 10,982 cr project for power transmission from Rooppur power plant
April 10, 2018 Tuesday 9:15 PM By BSS
The Executive Committee of the National Economic Council (ECNEC) on Tuesday approved a project involving Taka 10,982 crore to improve transmission infrastructures for evacuating power from the Rooppur Nuclear Power Plant. The approval came from the 22nd ECNEC meeting of the current fiscal year (FY18) held at the NEC conference room in the capital’s Sher-e-Bangla Nagar area with ECNEC chairperson and Prime Minister Sheikh Hasina in the chair. Briefing the reporters after the meeting, Planning Minister AHM Mustafa Kamal said a total of 16 projects were approved involving an overall estimated cost of Taka 15,683.24 crore. “Of the total project cost, Taka 5,707.97 crore will come from the GoB portion, Taka 1,235.07 crore from the organisation’s own fund while the rest of Taka 8,740.20 crore from project assistance.” Of the approved 16 projects, 15 are new projects while one is revised. The Planning Minister said Power Grid Company of Bangladesh Limited (PGCB) under the Power Division will implement the project with an estimated cost of Taka 10,981.75 crore by December 2022. On December 25, 2015, an agreement was signed between the Bangladesh Atomic Energy Commission (BAEC) and the Russian Rosatom worth US$12.65 billion to construct the country’s first nuclear power plant in Rooppur. Out of the two units of the plant, the first unit having capacity of 1,200 MW is expected to come into operation by October 2022 while the second unit also having 1,200 MW capacity is expected to come into operation by 2023. Under the circumstances, the project has been considered and approved in the today’s ECNEC meeting to develop necessary power transmission infrastructures for evacuating power to be produced from the nuke power plant. Of the total project cost of Taka 10,981.75 crore for the Power Transmission infrastructures project, the government will provide Taka 1,527.64 crore, the PGCB will provide Taka 1,235.07 crore while the rest of Taka 8,219.04 crore will come from the Indian third LoC. An official at the Power Division said the project will be implemented at some 37 upazilas under 13 districts in three divisions. The main project operations include erection of 609 kilometre 400 kV double circuit transmission line, construction of some 60 kilometer 230 kV Rooppur-Baghabari double circuit transmission line, and some 12 bay extensions. The PGCB has already conducted a feasibility study for the project and based on the findings of that study, this project has been drafted. The Planning Minister said once the Rooppur Nuclear Power Plant is built, power generation would be cost effective in the long run from that plant and there would remain no hassle and concern over the power generation as Russia would take away nuclear waste from the country. The day`s ECNEC meeting also approved another project for constructing and renovating the rail line with signaling system for the Rooppur nuclear power plant project with an estimated cost of Taka 335.97 crore. The Ministry of Science and Technology will implement the project by June 2020. The project will help establish overall transport management system for Rooppur Power Plant, establishing around 26.52 kilometre rail communication from Ishwardi bypass take off point to Rooppur nuclear power plant, introducing safe, fast, and goods-laden rail service for the Rooppur Plant, and thus boosting the revenue of Bangladesh railway.
Category: Business
BIFFL signs an agreement with Aman Spinning Mills
February 8, 2018 Thursday 12:35 PM By News Desk, energynewsbd.com
Bangladesh Infrastructure Finance Fund Limited (BIFFL) recently signed an agreement with Aman Spinning Mills Ltd (ASML) to finance under energy efficiency and conservation promotion financing projects (EE&CP) funded by JICA. S.M. Formanul Islam, Executive Director and CEO of BIFFL and Tahrin Aman, Managing Director of ASML signed the agreement on behalf of their organization, said a press release. Md. Helal Uddin, Additional Secretary and Chairman of SREDA, was present in the event as the chief guest. Manjur Morshed, Director (Energy Audit) of SREDA and Mari Iwata, representative from JICA were also present in the occasion special guests. Being established in 2011, BIFFL has been financing PPP projects, infrastructures, energy efficient and environment friendly projects.
Category: Business
IDCOL will arrange $135 million for three power plants having combined capacity of 280MW
December 5, 2017 Tuesday 8:17 AM By News Desk, energynewsbd.com
Infrastructure Development Company Limited (IDCOL), a government-owned development financial institution involved in private sector energy and infrastructure financing in Bangladesh, has recently signed a term sheet with Confidence Group to raise US$135 million term loan facility for establishment of three HFO fired IPP power plants in Bogra, Rangpur, and Chittagong having combined capacity of 280 MW. Confidence Power Bogra Limited, Confidence Power Rangpur Limited, and Zodiac Power Chittagong Limited will establish the said power plants at an estimated cost of US$ 200 million with brand new European engines from MAN and Rolls-Royce. All power projects are expected to go into commercial operation by 2019, said a press release. The program was graced by Mahmood Malik, Executive Director and CEO of IDCOL and Rezaul Karim, Chairman of Confidence Group, Imran Karim, Group Managing Director of Confidence Group, Salman Karim, Group CEO of Confidence Group, Nazmul Haque, Director (Investment and Advisory), and Khalid Islam, Managing Director of all the three companies were also present at the program along with relevant team members. IDCOL, the largest energy and infrastructure financier of the country, has already financed power projects supplying more than 1,500 MW to the national grid. IDCOL looks forward to investing additional US$ 1 billion by 2021 for development of priority infrastructure projects in Bangladesh.
Category: Business
BIFFL signed a letter of collaboration with Future Carbon Energy Services
October 30, 2017 Monday 12:16 PM By News Desk, energynewsbd.com
Bangladesh Infrastructure Finance Fund Limited (BIFFL) has recently signed a letter of collaboration (LoC) with Future Carbon Energy Services (FCES) for inclusion of BIFFL financed green brick projects with Clean Development Mechanism (CDM) under the United Nations Framework Convention on Climate Change’s (UNFCCC). The Project has already been registered with CDM in the name of National Programme for Energy Efficiency Improvement in the Brick Manufacturing Sector in Bangladesh (UNFCCC PoA Ref: 10355), said a press release from BIFFL. S M Formanul Islam, CEO of BIFFL and Raden Siddiqui, Managing Partner of FCES signed the letter of cooperation on behalf of their respective organisations. CDM encourages the developing countries to promote the projects that reduce greenhouse Gas emissions, and offers them to gain the benefits through creation of green jobs and entering new markets as well as strengthening ties between developed and developing countries. Recognizing the environmental hazards of conventional chimney based brick kilns, as well as the environment friendliness of tunnel kiln, BIFFL is promoting green technologies in the brick sector. Revenues earned from CDM will encourage the brick manufacturers to invest in green technologies.
Category: Business
Bangladesh Bank seeks Tk 200b sovereign guarantee for funding power sector
August 6, 2017 Sunday 12:54 PM By UNB
Bangladesh Bank (BB) has put forward three suggestions including a condition for government`s sovereign guarantee to mobilise Tk 20,000 crore (200 billion) for new investment in the power sector. The suggestions are floating Islamic bond with idle fund of the country`s Islamic banks, creating consortium of banks for large scale funding, and floating of bonds by the state-owned organizations in power sector. "We have submitted the suggestions to the government against the proposal of Tk 20,000 crore funding for new investment in the power sector," SK Sur Chowdhury said. He also mentioned the central bank has tagged a condition of providing sovereign guarantee from the government in financing the power sector by floating bonds and large bank loans. The suggestions as well as the condition of the central bank came against the backdrop of the government`s recent move to set up 18 new power plants having total capacity 2900 MW on a fast track basis within next one and a half year period. Of these, 7 plants having total 900 MW are planned to be set up on PDB`s own land while 4 plants having total 1000 MW would be set up in the private sponsors` lands and the 7 remaining plants having total 1000 MW in railway and sugar mills` unutilized lands. All these 18 plants of total 2,900 MW will be set up by private sector and the state-owned Power Development Board (PDB) will purchase electricity from these plants for a long term period of minimum 15 years. Official sources said the recent power crisis in the early summer prompted the government to take up these new projects to meet the power shortage before the next general election. They said initiating the move the Power Division invited a joint meeting of the prospective investors, banks, financial institutions, capital market representatives and other concerned ministries and government agencies to discuss their plan. The funding of the projects emerged as the big issue as implementation of the government`s new plan will require about Tk 20,000 crore. The existing banking law is also a barrier to the way of funding as any bank cannot provide a large loan to any client, which crosses the 25 percent limit of the bank`s total capital. Finally, the meeting formed a 10-member committee comprising Bangladesh Bank representatives and headed by an additional secretary of the Finance Ministry, to extensively examine the whole issue and find out solutions to resolve the funding problem. Officials said the Bangladesh Bank gave its suggestion during the meeting of the committee which held a number of meetings and now is in a process to finalise its recommendations. Sources said that the committee found that if banks and financial institutions go for large scale funding to any investor in power sector through creating consortium, in that case, there will be no need to amend the banking law. Bangladesh Bank officials also said that a big amount of fund could easily come from the idle money of Tk 5500 crore which remained unutilized with different Islamic banks of the country. The banks can float bonds to finance the projects. The state-owned PDB can float also bonds to raise a big fund through floating its own bond on the capital market. But in both cases, the central bank put a condition of providing government`s sovereign guarantee so that public or financial institutions can buy these bonds with trust and in risk-free manner. Power Division officials said they are still unaware of any suggestion of the central bank as they have not yet received the report of the additional secretary-led committee. They, however, said they have already completed the selection process of sponsors for a number of plants having total capacity of 1,800 MW. The proposals were sent to Prime Minister`s office for necessary approval, they added.       
Category: Business
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