OPEC Fund strengthens reliable power generation in Bangladesh

April 5, 2023: The OPEC Fund for International Development (the OPEC Fund) is providing a US$38 million term loan to Unique Meghnaghat Power Limited to finance the construction and operation of a 584 MW gas-based combined cycle power plant in Bangladesh. 

The total financing package of US$463 million includes loans from Standard Chartered Bank, the Asian Infrastructure Investment Bank (AIIB) and Deutsche Investitions- und Entwicklungsgesellschaft (DEG), a German development financier. 

OPEC Fund Director-General Dr. Abdulhamid Alkhalifa said: “The private sector has played a key role in driving power generation in Bangladesh, representing nearly half of the country’s installed capacity. The OPEC Fund has so far supported six private sector power projects with a total electricity generation capacity of 1,350 MW. These investments are not only providing reliable energy access to meet the growing demand, but also creating jobs and contributing to the countries’ economic growth.”

Bangladesh’s power sector is one of the fastest growing in south Asia. Reliable energy access remains key to economic growth as demand surges. The new power plant contributes to the long-term energy security of the country as it reduces dependency on aging and inefficient facilities. 

In the last decade, Bangladesh achieved significant progress in developing its energy resources, with a more than fourfold increase in generation capacity.  It has also connected more than 99 percent of its population to the grid. 

The project company, Unique Meghnaghat Power Limited, is owned by a consortium led by the Unique Group, one of the largest business conglomerates in Bangladesh, and comprising Nebras Power Limited, Strategic Finance Limited and General Electric. 

To date, the OPEC Fund has committed more than US$1.1 billion through over 80 projects to Bangladesh, supporting the country’s transportation, energy, financial, agriculture, water supply and sanitation and education sectors. 

About the OPEC Fund 
The OPEC Fund for International Development (the OPEC Fund) is the only globally mandated development institution that provides financing from member countries to non-member countries exclusively. The organization works in cooperation with developing country partners and the international development community to stimulate economic growth and social progress in low- and middle-income countries around the world. The OPEC Fund was established in 1976 with a distinct purpose: to drive development, strengthen communities and empower people. Our work is people-centered, focusing on financing projects that meet essential needs, such as food, energy, infrastructure, employment (particularly relating to MSMEs), clean water and sanitation, healthcare and education. To date, the OPEC Fund has committed more than US$24 billion to development projects in over 125 countries with an estimated total project cost of US$190 billion. The OPEC Fund is rated AA+/Outlook Stable by Fitch and AA, Outlook Positive by S&P. Our vision is a world where sustainable development is a reality for all.