Funding shortage delays implementation of Bangladesh IPPs

• 11 years ago (2012-07-10)
• David Flin

Asia 848

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Abul Kalam Azad, the Bangladesh Power Secretary, has said that some IPP projects in the country are facing a funding shortage that is delaying their implementation. This follows a review by the Ministry of Power, Energy and Mineral Resources into the progress of the IPPs.

Azad said that the Bangladesh Bank and the Ministry of Finance are working together to ease the fund crunch of the IPP projects. He said: “The fund shortage has somewhat eased now. But implementation of the power plant projects might be delayed as a consequence of the fund shortage.” He said that the financial closure of three big projects: Bibiyana 1, Bibiyana 2, and Meghnaghat, with a combined generation capacity of 1017 MW, had not yet taken place.

Azad also said that the new Haripur 412 MW power plant will be implemented ahead of schedule, the Chandpur 150 MW combined cycle power plant has come online, and the Sirajganj 150 MW plant is on schedule to be commissioned in September. Azad said: “We have already received bids from interested sponsors to build five coal-fired power plants across the country. Awarding of the plants will be completed within 1-2 months. In addition, the Japan International Cooperation Agency (JICA) is carrying out a feasibility study to build three power plants, each with a capacity of 1320 MW, at Moheshkhali island.