Strengthening reliable power generation in Bangladesh

The OPEC Fund is providing a US$38 million loan to finance the construction and operation of a 584 MW gas-based combined cycle power plant in Bangladesh by the private investment group Unique Meghnaghat Power Limited. 

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 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. To date, we have supported six private sector power projects in the country, providing reliable energy access, creating jobs and contributing to economic growth.” 

Bangladesh’s power sector is one of the fastest growing in South Asia. Reliable energy access remains key for economic growth as demand surges. The new power plant will contribute to the long-term energy security of the country as it reduces dependence 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 also comprises Nebras Power, 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.