Uncertainty Looms Over Tk 60,000 Crore Solar Power Mega Project
Bangladesh’s interim government has announced an ambitious initiative to ease the country’s chronic power crisis—construction of 55 solar power plants at a cost of nearly Tk 60,000 crore. Despite the scale of the plan, uncertainty now hangs over its implementation due to poor response in the tendering process and concerns over financing.
A Grand Vision Facing Challenges
The project, designed to generate 5,238 megawatts of electricity, was opened for tenders between December 2024 and March 2025. Bidding was invited in four phases, but response has been far below expectations. Even after extending deadlines five times, the level of participation remained weak, raising doubts about the feasibility of the venture.
Adding to the complexity, local banks remain in fragile condition, making domestic financing unlikely. This means the project heavily depends on foreign investment. Yet potential international financiers remain hesitant, citing concerns over the security of their funds and past mismanagement in the sector.
Under the previous fascist regime, a similar plan for 37 solar plants collapsed amid allegations of misappropriation of both domestic and foreign funds. That legacy continues to cast a long shadow, leaving investors cautious.
Tender Realities and Corporate Participation
According to the Power Division, the new tenders set high eligibility criteria. For a 50 MW solar power plant, bidders were required to demonstrate an annual turnover of USD 8.2 million, working capital of USD 57.2 million, and tender security of USD 5,000 per MW. Additionally, bidders needed clearance from local land authorities and agricultural officers.
Tender documents show that Max Infrastructure Limited submitted bids for 25 plants—the single largest participant. Other significant players included Desh Energy (9 bids), Confidence Power (7), Baraka Group (6), and Mir Group (5).
Some plants attracted competition: for example, the proposed 50 MW project linked to Cox’s Bazar’s 132/33 kV substation received three bids—from Max Infrastructure, a Karnaphuli-Baraka consortium, and Confidence Power. However, in other cases like Chuadanga, only one bidder came forward.
Overall, many projects received limited interest, reflecting industry skepticism about financial and regulatory conditions.
Expert Opinions
Energy experts warn that unless foreign funding is secured with strong guarantees, the entire program could collapse.
- Shafiqul Alam, Chief Energy Analyst at the Institute for Energy Economics and Financial Analysis (IEEFA), noted: “Foreign financing is essential. Investors will only step in if their returns are guaranteed and risks are minimized.”
- Mostafa Al Mahmud, President of the Bangladesh Sustainable and Renewable Energy Association (BSREA), emphasized urgency: “Natural gas production has fallen sharply. Bangladesh is spending huge sums of foreign currency to import fuel for conventional power plants. Shifting to solar energy is no longer optional—it’s a necessity.”
- Professor Dr. M Shahidul Islam, a noted energy specialist, added: “Our banks’ lending capacity is extremely limited. To attract foreign capital, we must introduce clear policy reforms and ensure transparency.”
Government’s Position
Power Development Board Chairman, Engineer Rezaul Karim, confirmed that the evaluation of bids is underway. “Several committees are independently scrutinizing the tenders. Once technical reviews are complete, the financial committee will begin work. We are optimistic that qualified companies will be selected in line with the tender conditions.”
The Road Ahead
The solar power initiative is undoubtedly bold—one of the largest renewable energy undertakings in Bangladesh’s history. Yet, its success hinges on restoring investor confidence, ensuring policy stability, and securing foreign capital.
If executed properly, the Tk 60,000 crore project could become a cornerstone of Bangladesh’s sustainable energy future. If not, it risks becoming another cautionary tale of big promises and missed opportunities.
