- ADB has signed on a financing package of $17.7 million for a 35 MW AC solar PV project in Bangladesh
- Project is to be located in Manikgonj district and will be owned and operated by SSPL
- It will generate over 50 GWh of clean power annually on completion to be supplied to the national grid
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The Asian Development Bank (ADB) has approved $17.7 million in financing for a 35 MW AC utility scale solar PV project in Bangladesh making it one of the first private sector solar plants in the country to secure multilateral institution financing. DEG – Deutsche Investitions- und Entwicklungsgesellschaft mbH of Germany’s KfW is co-financing the project with the bank.
The package comprises a loan from the bank and a loan from ADB administered Canadian Climate Fund for the Private Sector in Asia II.
The 35 MW AC Spectra Solar Power Project has been developed by Spectra Solar Park Limited (SSPL) and is designed to come up in Paturia in Manikgonj district. On completion the project is expected to generate more than 50 GWh of clean power annually to the national grid under a power purchase agreement (PPA) with the Bangladesh Power Development Board (BPDB), as per ADB project documents dated July 2019.
Project financing will go to SSPL that will build, own and operate the project. ADB defines SSPL as a special purpose vehicle (SPV) of Bangladesh’s Spectra Engineers Limited (SEL) and Hong Kong based Shunfeng Investments Limited (SIL) who own the company in 80:20 ratio. SIL is a subsidiary of Chinese solar power company Shunfeng International Clean Energy Limited.
According to the bank, the solar park will support the country in its efforts to become self-sufficient in terms of energy security and meet climate goals.
“This project strongly demonstrates that the solar energy sector in Bangladesh is an attractive destination for private sector engagement,” said Director of Infrastructure Finance, South Asia, Central Asia, and West Asia at ADB’s Private Sector Operations Department Shantanu Chakraborty. “This is a landmark project that will also incorporate very specific and meaningful design features to empower women and ensure a gender inclusive workplace.”
Bangladesh aims to have a 10% renewable energy share in its total mix by 2021 adding up to a total of 2.4 GW. The ADB says the target for solar PV in this objective is 1.74 GW since the landscape of the country is more suited for hydropower generation while grid connected PV projects face the challenges of land acquisition and rights of way for transmission access.