OPEC Fund strengthens reliable power generation in Bangladesh


More investment for Bangladesh’s fast-growing power generation sector as $38m loan granted.

The OPEC Fund for International Development (the OPEC Fund) is providing a $38m 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 $463m includes loans from Standard Chartered Bank, the Asian Infrastructure Investment Bank and the German development financier, DEG.

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 country’s 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% 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 $1.1bn through over 80 projects to Bangladesh, supporting the country’s transportation, energy, financial, agriculture, water supply and sanitation and education sectors.