- Agreement marks largest gas-to-power development undertaken by ACWA Power
Bangladesh, Dhaka: ACWA Power, a global leader in water desalination and power generation, announced signing a Memorandum of Understanding with the Bangladesh Power Development Board (BPDB) for a LNG-based power plant and terminal in Bangladesh. As part of the agreement, ACWA Power will target the development of 3,600 MW gas fired Independent Power Plants representing a total investment amount of approx. USD $2.5 billion, that will help meet the country’s growing power demand.
The project will consist of the intended power plants as well as a regasification terminal on-ground with an expected additional investment of approximately USD $500 million. The plant will potentially be located in Maheshkhali, or an alternate location, upon completion of the feasibility study.
BPDP Chairman Engineer Khaled Mahmood and ACWA Power Chairman Mohammed Abunayyan, signed the agreement for the Natural Gas/R-LNG Based Combined Cycle Power Plant, one of the largest deals for Bangladesh’s power sector. The signing took place in the presence of Salman F Rahman, the Bangladesh Prime Minister’s Adviser for Private Industry and Investment, Nasrul Hamid Bipu, State Minister for Power, Energy and Mineral Resources and Dr. Ahmad Kaikaus, Senior Secretary for Power Division, Golam Moshi Bangladesh Ambassador in Riyadh Also present were Rajit Nanda, Chief Investment Officer at ACWA Power, Ayad Al Amri Executive Director for Gas to Power and Abdulsalam Al Hazmi VP Performance and Business Development, Aramco LNG Trading Unit.
Paddy Padmanathan, President and CEO of ACWA Power said: “As we continue to expand our global operations, we are proud to embark on this ambitious project with the Bangladesh government. We have a long legacy of working collaboratively with leadership in growing economies to sustainably supply their power and water needs at low cost in order to accelerate their socio-economic and financial development. In line with the Bangladesh Vision 2021 and Vision 2041, we will be contributing to the energy security of the country and ensuring the foundations of its success for generations to come.”
The signing will also mark ACWA Power’s largest gas-to-power development and its initial foray into the Bangladesh power market. ACWA Power will also work with Saudi Aramco for the first time for such a project.
Rajit Nanda, Chief Investment Officer of ACWA Power, commented on the MoU saying: “Expanding our investment portfolio is a key focus for the company and we are delighted to be working with BPDB to participate in the burgeoning power generation sector here. With vast growth opportunities available, we are keen to extend our foothold in the region through our presence in Bangladesh. This is an exciting project for the company and we look forward to working with strategic partners such as Saudi Aramco to bring it to life and create value for the people and economy of Bangladesh.”
Bangladesh’s power sector is one of the fastest growing in South Asia, with a current installed capacity of around 24,000 megawatt (MW) electricity from 3,200 MW in 2009.
About ACWA Power:
ACWA Power is a developer, investor and operator of a portfolio of power generation and desalinated water production plants currently with presence in 12 countries including in the Middle East and North Africa, Southern Africa and South East Asia regions. ACWA Power employs over 3,500 people with about 60% local employment. ACWA Power’s portfolio, with an investment value in excess of USD 45 billion, can generate 30+ GW of power and produce 5.3 million m3 /day of desalinated water to be mostly delivered on a bulk basis to state utilities and industrial majors on long term off-take contracts under Public-Private-Partnership, Concession and Utility Services Outsourcing models. ACWA Power, registered and head-quartered in the Kingdom of Saudi Arabia, is owned by eight Saudi conglomerates, Sanabil Direct Investment Company (owned by the Public Investment Fund of Saudi Arabia), the Saudi Public Pensions Agency and the International Finance Corporation (a member of the World Bank Group). ACWA Power pursues a mission to reliably deliver electricity and desalinated water at a low cost, thereby contributing to the social and economic development of the communities and countries it invests in and serves. ACWA Power strives to achieve success by adhering to the values of Safety, People and Performance in operating its business. For more info, please visit www.acwapower.com.
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© Press Release 2019