Bangladesh's Kushtia solar PV IPP timeline emerges
The signing of the PPA backing the 40MW Kushtia solar PV IPP project in Bangladesh is expected at the end of the summer.
Sustainable and Renewable Energy Development Authority (SREDA) – under the Ministry of Power, Energy and Mineral Resources – is the implementing agency of the grid-connected PV solar farm in Khulna, roughly 170km west of Dhaka.
“The development of the transaction structure and risk allocation for the project and power or energy purchase agreement is expected in two to three months,” said a source close to the deal. The expected timeline means SREDA will likely reach its next milestone by late August or September.
The implementing agency and advisers are conducting due diligence and are structuring the project, which means SREDA has yet to determine the total project value, PPP model or amount of land needed. The Tk3 billion ($35.5 million) Teknaf solar power project in Bangladesh, which reached financial closure in May 2019, is a useful benchmark. The project was financed via a 15-year project financing provided by four banks joined by GurantCo. Kushtia would be valued at roughly Tk4.29 billion, using Teknaf’s unit-value of Tk107 million per MW.
Bangladesh Power Development Board will be Kushtia’s offtaker, while SREDA’s advisers include: IFC (transaction); via IFC: TYPSA (technical); BETS Consulting Services (environmental); Farooq & Associates (legal); and Primus Energy (legal).
