The cost of the proposed 220-megawatt solar photovoltaic (PV) power plant in Sonagazi, Feni, is set to be reduced by Tk 2.46 billion before final approval, following recommendations from a recent meeting of the Project Evaluation Committee (PEC) of the Planning Commission, officials said.
The Power Division has revised the project proposal, lowering the estimated cost to Tk 18.88 billion from the earlier projection of Tk 21.34 billion, mainly after reassessing global market prices of PV modules and inverters.
The project, to be implemented by the Electricity Generation Company of Bangladesh (EGCB), will receive Tk 16.24 billion in loan support from the Islamic Development Bank (IsDB). Of the total cost, the government will provide Tk 1.48 billion, while Tk 1.17 billion will come from EGCB's own funds, according to the proposal.
"We have received the new proposal with a lower cost from the Power Division and will assess it to accelerate the approval process," said a senior official of the Industry and Energy Division of the Planning Commission.
Officials at the Economic Relations Division (ERD) said the government approved the terms of a $143.28-million IsDB loan in mid-September, which was subsequently endorsed by the lender's board later that month.
Under the revised proposal, the foreign loan component has been set at $133.08 million, with the remaining $10.20 million expected to be retained for future expansion to add 20-25MW of generation capacity, subject to government approval.
Earlier, the Power Division sent the proposal to the Planning Commission in April with an estimated cost of Tk 21.34 billion. The PEC meeting in May recommended revisiting the proposed cost as prices of several components had dropped in the international market.
The committee also advised excluding the construction of administrative buildings and rest houses from the project and reducing costs in consultancy services, staffing, and transportation.
The project aims to support Bangladesh's target of generating 10 per cent of electricity from renewable sources by 2030, in line with the Sustainable Development Goals, the Integrated Energy and Power Master Plan 2023, and the country's Nationally Determined Contributions under the Paris Agreement.
EGCB officials said the company has already acquired 999.65 acres of land in Sonagazi. Of this, approximately 285 acres host a 75MW solar power plant funded by the World Bank, operational from February 2024. The new project proposes constructing the plant on 634 acres of the remaining land.
A 2018 feasibility study by RE Force Management Services (India), EQMS Consulting Limited (Bangladesh), and Suntrace (Germany) assessed the techno-economic viability of solar and wind projects in Sonagazi, supporting the World Bank-financed 75MW plant.
A flood study by the Center for Environmental and Geographic Information Services (CEGIS) was carried out in August 2021. A project-specific feasibility study by the Infrastructure Investment Facilitation Company (IIFC) in January 2025 recommended setting up a 220MW (AC) solar PV plant at the site, according to Power Division officials.
jahid.rn@gmail.com
© 2025 - All Rights with The Financial Express
