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AIDA promises $5bn for solar plants in Bangladesh

  • Published at 12:10 am March 4th, 2019
Solar Plants
Photo: Bigstock

The Gulf News reports that an agreement was signed in this regard earlier, during the UAE-Bangladesh summit in Abu Dhabi

Arab Investment Development Authority (AIDA) has pledged to invest $5 billion for developing five gigawatt (GW) solar power plants in Bangladesh, in cooperation with Almaden Emirates Fortune Power (AEFP) and Bangladesh-based Intraco Solar Power.

The Gulf News reports that an agreement was signed in this regard earlier this week, during the UAE-Bangladesh summit in Abu Dhabi. 

UAE Minister of Economy Sultan Bin Saeed Al Mansouri and Bangladesh Foreign Minister Dr AK Abdul Momen were present at the signing ceremony, according to a press release issued on Thursday.

Chairman of AIDA Adil Al Otaiba said that they are coming on board to co-develop and invest with AEFP and Intraco Solar to accomplish this project. "The project is likely to reduce power costs in billions as well as create jobs for both the power plants and the proposed solar manufacturing facility based on an annual 500MW capacity,” he added.

Otaiba opined that development in Bangladesh will reach its maximum capacity by 2030, in line with the expectations of the government of Bangladesh and "may cost close to $5 billion". "We intend to harness all the resources and our experiences for the success of the project.”

The solar power project along with the manufacturing facility—which is set to be completed within the next six to eight years—will be powered by a total of 14 million solar panels, making it the largest solar power plant investment in Bangladesh.

AEFP and AIDA have already initiated several solar power plant development projects in the GCC, Africa, and Central Asian countries and will be instrumental in steering the project from concept to commissioning. 

The main objective of the project is to boost the rural population's access to affordable, sustainable, and reliable electricity supply.

Safa Capital Limited, a company regulated by Dubai Financial Services Authority are the lead financial advisers and arrangers of this project.

AIDA, with offices in Abu Dhabi and UK, is supported by the European Union and the United Nations. The company’s mandate is to develop and finance projects in the Indian sub-continent, Mena, and Africa in energy and infrastructure, among others.