PROINSO announces development of 28 MW solar project in Bangladesh

PROINSO has announced that it has been working in partnership with Joules Power Limited (JPL) on a 28 MWp utility scale project in Bangladesh, the first of its kind in the country. The project is located in Teknaf, a sub-district of Cox’s Bazar, in the Division of Chittagong.

The project utilises an innovative financing solution from GuarantCo, part of the Private Infrastructure Development Group (PIDG), and is supported by the governments of the UK, Switzerland, Sweden, the Netherlands and Australia. 

The expected annual yield for year one is 43,000 MWh and at peak production the plant supply will cover up to 80% of the present electricity demand of the entire Teknaf region.  The reduction in CO₂ emissions over the next 20 years is estimated to be around 400,000 tons. 

Project funding has been secured through debt finance by Standard Chartered Bank (Bangladesh and UK) and One Bank (Bangladesh). PIDG company GuarantCo, is working with the project parties to be able to provide an unconditional credit guarantee for over 50% of the project debt. 

On the successful reach of financial close  the loan tenor is expected to be extended to 15 years for both local currency and USD debt. With the implementation of this pioneering funding solution, GuarantCo will be providing a risk guarantee for a significant portion of the project debt.

Technaf Solartech Energy Limited (TSEL) is the first utility scale solar project in Bangladesh delivered within the 1.6 GW solar project pipeline announced last year.