In the coming five years, Bangladesh is expecting about USD 15 billion investment in its power sector, which is nearly two times of the investment in the power sector of the past decade. Most of the investment will come from abroad and will be utilised to build power stations, sub-stations and transmission lines.
According to the sources in the power division, the foreign investment in the sector has almost been finalized and the government is also on its way to allocate more money in the budget for the country’s power sector. Nuclear power is likely to fetch the lion’s share of this investment. Russia is already investing in the nuclear power plant at Rooppur. India, China and Japan are also investing in power plants in the country. These four countries are now installing the four largest power plants in the country.
The State Minister for Power, Energy and Mineral Resources Nasrul Hamid said: “Bangladesh now has an ideal environment for foreign investment. The investment-situation in Bangladesh is now far better than any time in the history.” That is why, he said, the foreign investors are expressing their interests in investing in Bangladesh. The demand for power is increasing day-by-day. Various countries including from Europe like France, Germany are now showing their interest to invest in the country’s power sector.
The Rooppur Nuclear Power Plant (RNPP) is expected to cost USD 14.14 billion, where Russia will provide USD 11.38 billion as a credit. Rest of the investment will be managed from Bangladesh government’s coffers.
India is investing in the coal-fired power plant at Rampal. China is investing in the 1,320 MW power plant of Payra of Patuakhali. Bangladesh-China Power Company is implementing the power plant. The power plant will require an estimated amount of USD 2 billion to materialize it. The credit deal with China is already signed and the money will be released soon. Japan is installing another 1,320 MW power plant in Matarbari, which will have an estimated investment of USD 4.5 billion.
Countries like Germany, Singapore, Malaysia and Saudi Arabia have already promised to invest in the sector. Power Secretary Dr. Ahmad Kaykaus told Nuclear Asia: “There is a plan to invest USD 15 billion in the country’s power sector by the year of 2021. Of this total amount already most of the amount is already promised by our foreign investors.”
Forty-seven power plants are already under construction in Bangladesh with a cumulative capacity of 13,771 MW. Some of these power plants will be starting their operation this year and the rest will be operational by 2024. In the last 9 years (2009-2017), around USD 8.9 billion was invested in the country’s power sector. Of this amount, USD 4.8 billion was invested by the public sector and USD 4.1 billion was invested by the country’s private sector.