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Tue 22 Oct 2019 08:03 AM

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Saudi's ACWA inks $3bn deal for Bangladesh power projects

ACWA Power has signed an agreement with the Bangladesh Power Development Board for a LNG-based power plant and terminal

Saudi's ACWA inks $3bn deal for Bangladesh power projects

Paddy Padmanathan, president and CEO of ACWA Power.

Saudi-based ACWA Power has signed an agreement with the Bangladesh Power Development Board (BPDB) for a LNG-based power plant and terminal in the South Asian country.

As part of the agreement, ACWA Power will target the development of 3,600MW gas fired independent power plants representing a total investment amount of about $2.5 billion, that will help meet the country’s growing power demand.

The project will consist of the power plants as well as a regasification terminal with an expected additional investment of approximately $500 million. The plant is likely to be located in Maheshkhali, upon completion of the feasibility study, a statement said.

BPDP chairman Khaled Mahmood and ACWA Power chairman Mohammed Abunayyan signed the agreement for one of the largest deals for Bangladesh’s power sector.

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Paddy Padmanathan, president and CEO of ACWA Power, said: “As we continue to expand our global operations, we are proud to embark on this ambitious project with the Bangladesh government.

"In line with the Bangladesh Vision 2021 and Vision 2041, we will be contributing to the energy security of the country and ensuring the foundations of its success for generations to come.”

The signing will also mark ACWA Power’s largest gas-to-power development and its initial foray into the Bangladesh power market.

Rajit Nanda, chief investment officer of ACWA Power, added: “Expanding our investment portfolio is a key focus for the company and we are delighted to be working with BPDB to participate in the burgeoning power generation sector here. With vast growth opportunities available, we are keen to extend our foothold in the region through our presence in Bangladesh.”

Bangladesh’s power sector is one of the fastest growing in South Asia, with a current installed capacity of around 24,000MW from just 3,200MW in 2009.

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