Abu Dhabi: Arab Investment Development Authority (AIDA) has committed $5 billion of investment to develop 5 gigawatts solar power plants in Bangladesh in cooperation with Almaden Emirates Fortune Power (AEFP) and Bangladesh-based Intraco Solar Power.
The agreement was signed earlier this week during UAE, Bangladesh summit in Abu Dhabi in the presence of UAE Minister of Economy Sultan Bin Saeed Al Mansouri and Bangladesh foreign minister AK Abdul Momen, according to a statement issued by the entities involved in the project on Thursday.
“AIDA is coming on board to co-develop and invest with AEFP and ISL in making this project with the Govt of Bangladesh a reality. The project is likely to reduce power costs in billions as well as to create jobs for both the power plants and the proposed solar manufacturing facility based on an annual 500MW capacity,” said Adil Al Otaiba, Chairman of AIDA.
“The development will reach its maximum capacity by 2030, in line with the expectations of the Government of Bangladesh and may cost close to $5 billion. We intend to harness all the resources and our experiences for the success of the project.”
The solar power project along with the manufacturing facility, which is set to be completed within the next 6 to 8 years, will be powered by a total of 14 million solar panels, making it the largest solar power plant investment in Bangladesh.
AEFP and AIDA have already initiated several solar power plant development projects in the GCC, Africa, and Central Asian countries and will be instrumental in steering the project from concept to commissioning. The main objective of the project is to boost the rural population access to affordable, sustainable, and reliable electricity supply.
Safa Capital Limited, a company regulated by Dubai Financial Services Authority are the lead financial advisers and arrangers to this project.
Aida with offices in Abu Dhabi and UK is supported by the European Union and the United Nations. The company’s mandate is to develop and finance projects in Indian subcontinent, Mena and Africa in energy, infrastructure, among others.