A signing ceremony of Joint Venture Agreement (JVA) between state owned company “Electricity Generation Company of Bangladesh Limited (EGCB)” and “Marubeni Corporation, Japan (Marubeni)” for establishing Feni Solar Power Company Limited for the Implementation of 100 MW Solar Power Plant Project at Sonagazi, Feni, southeast of People’s Republic of Bangladesh (Project) was held on 3rd October 2023 at the Hotel Pan Pacific Sonargaon .
Mr. Nasrul Hamid MP, State Minister for Ministry of Power, Energy and Mineral Resources has graced the auspicious occasion as Chief Guest. Mr. Md. Habibur Rahman, BPAA, Senior Secretary, Power Division, MPEMR; Mr. Md. Nurul Alam, Secretary, Energy and Mineral Resources Division, MPEMR; H.E. Mr. Kiminori Iwama, Ambassador of Japan to Bangladesh and Mr. Md Mahbubur Rahman, Chairman, BPDB were present as Special Guests. Mr. S M Enamul Kabir, Additional Secretary, Power Division, MPEMR and Chairman, EGCB Ltd. chaired this auspicious occasion.
State Minister welcomed all the delegates attending the ceremony. Signing ceremony started with the recitation from the Holy Quran. Then, welcome address was given by Major General Moin Uddin (Retd), Managing Director (MD), EGCB Ltd. MD EGCB mentioned that currently EGCB has three operational gas based power plants with generation capacity of 954 MW (Siddhirganj 2×120 MW Peaking Power Plant, Haripur 412MW Combined Cycle Power Plant and Siddhirganj 335 MW Combined Cycle Power Plant). As an initiative to contribute to Government targets, EGCB also puts substantial focus on development of Renewable Energy. EGCB acquired 1000 acres land at Sonagazi, Feni for development of Renewable Energy Projects in various phases. In the first phase, EGCB is constructing a 75 MW Solar Power Plant through World Bank finance. A 230 kV 13.3 km transmission line is being constructed under the World Bank financed Project to evacuate power to Bangabandhu Shiekh Mujib Shilpa Nagar, Mirsharai, Chattogram. Commercial operation of the 75 MW Solar Plant is expected to be completed by November 2023.
Power Division suggested EGCB to implement Solar Power Projects through Joint Venture with world reputed companies in a view to transfer technology, knowhow & share risk for large grid tied solar power projects. EGCB invited EOI to select Joint Venture Partner for the development of 100 MW Solar Power Plant Project. Marubeni was selected through competitive selection process. Accordingly, EGCB and Marubeni entered into a non-binding Memorandum of Understanding (MoU) for the development of the Project. Tariff of the Project was approved by Cabinet Committee on Government Purchase (CCGP) on 27 September 2023.
Based on the signed MoU, EGCB and Marubeni prepared a Joint Venture Agreement and submitted the same to Power Division for approval. Cabinet approved JVA on 04 September 2023 after completing all the formalities. Project Company was named as Feni Solar Power Company Limited.
After signing this Joint Venture Agreement, Project Company will be incorporated in Registrar of Joint Stock Companies and Firms (RJSC). As soon as PPA and IA of this Project is signed, Project Company will engage Engineering, Procurement and Construction (EPC) Contractor through international competitive bidding process for the physical implementation of the Project. Financial Closing of the Project is expected to be achieved by June 2024. Commercial operation of the plant is expected by June 2026.
MD EGCB also briefed that EGCB is also developing two more solar projects each with 100 MW in the same area. With 375 MW generation capacity, this location is expected to be the first solar hub of Bangladesh. This Renewable Energy based projects of EGCB will greatly contribute to achieve the targets of COP26 to generate up to 40% of energy from clean energy sources by 2041 as desired by Hon’ble PM Her Excellency Sheikh Hasina, as well as to achieve 8th Five Year Plan Target, SDG Target 7.2 and Bangladesh Delta Plan 2100 Target. Moreover, this clean and environment friendly projects will contribute to achieve Nationally Determined Contribution (NDC) target of Government of Bangladesh to reduce Green House Gas Emission by 2030.
Mr. Shigeru Nagashima, Managing Director, Marubeni Asian Power Bangladesh (MAPB) Ltd. showed Project Introduction. MD MAPB mentioned that Marubeni is a major Japanese Integrated Trading and Investment Business Conglomerate, having more than 36.4 GW total gross (11.5 GW total net) capacity of power generation assets worldwide. Marubeni developed solar power projects of 2.8 GW worldwide. Marubeni also acted as EPC Contractor for various power plants of Govt. entities in Bangladesh including EGCB’s Haripur 412 MW CCPP. As part of embracing sustainability, determined to take actions to combat the worldwide climate change, Marubeni released the Notification regarding Business Policies Pertaining to Sustainability in September 2018 and LongTerm Vision on Climate Change: Towards Net-Zero GHG Emissions in March 2021. Marubeni is determined to further invest and involve in renewable energy projects.
Mr. Md. Habibur Rahman, BPAA, Senior Secretary, Power Division, MPEMR expressed satisfaction on the signing of JVA and desired to see a notable progress of the Project within shortest possible time in order to reduce dependency on fossil fuel and to enhance share of renewable energy in the energy mix.
During the arena of energy transition across the world, State Minister stressed the importance of Renewable Energy in our endeavor to move forward towards more environment friendly power and energy sources. Bangladesh has sets target to generate 10% of total electricity from Renewable Energy sources according to the 8th Five Year Plan. Furthermore, in accordance with the Sustainable Development Goal (SDG) target 7.2, Government is committed to increase substantially the share of renewables in our energy mix by 2030. He thanked EGCB for contributing to this national agenda of ensuring green energy on a large scale. He also expressed his gratitude to Japan Government as well as Marubeni Corporation for being involved for such a noble venture. He wished this Project all the success and hoped that it will create a visible impacts in the lives of Peoples of Bangladesh as well as to materialize the desire of our Honorable Prime Minister H.E. Sheikh Hasina made in COP26.
Finally, Signatory of EGCB Mr. Kazi Nazrul Islam, Company Secretary and official of Marubeni Corporation, Japan Mr. Moroo Shino, President and CEO, Marubeni Asian Power Singapore Ltd. signed the JVA