Bangladesh secures $200m from Asian Infrastructure Investment Bank to support renewables

[F-6 enthusiast]

Bangladesh secures $200m from Asian Infrastructure Investment Bank to support renewables​

The China-led Asian Infrastructure Investment Bank (AIIB) has extended a $200 million long-term credit facility to Bangladesh to finance a range of infrastructure projects, including renewable energy expansion.
MAY 9, 2022 SYFUL ISLAM

Image: Energon Renewables

​

The repayment period of the loan is 18 years, including a five-year grace period. Bangladesh will have to pay a 0.25% fee and a 0.25% commitment fee per annum for the portion of the total that is not withdrawn. The interest rate is 0.60% plus the variable borrowing cost margin of the AIIB.
Infrastructure Development Co. Ltd. (IDCOL), a Bangladeshi state-owned investor, will lend the funds to support renewable energy, energy efficiency, and social infrastructure projects. By borrowing loans from the Bangladeshi government and international sources, the IDCOL provides low-cost loans to renewable energy sector.
In addition to larger plants, IDCOL is now promoting rooftop solar power installations, especially on top of apparel factories. Thus far, it has approved loans for 41 factories, with a total generation capacity of 50 MW. It has set a target to provide enough funds to support the deployment of 300 MWp of rooftop solar capacity by the end of this year.
About 19.5 MW of rooftop solar plants have already been installed and switched on. One of the biggest ones is a 3.1 MWp array, while the smallest one is of a 324 KWp installation.

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IDCOL provides 80% of a project's funds at low cost. The rest is being handled by the customers. About $700,000 is needed to set up a 1 MW rooftop solar power system. The cost of each unit of electricity generated from a rooftop solar power system is lower than the electricity the factory owners get from the power grid. IDCOL also provide funds to set up solar minigrids, solar home systems, solar-run irrigation pumps, and solar street lights.
Bangladesh currently has the capacity to generate 787 MW of renewable energy, of which 553 MW comes from solar. The country is aiming to generate 40% of its total electricity from renewable sources by 2041.

Bangladesh secures $200m from Asian Infrastructure Investment Bank to support renewables

The China-led Asian Infrastructure Investment Bank (AIIB) has extended a $200 million long-term credit facility to Bangladesh to finance a range of infrastructure projects, including renewable energy expansion.

www.pv-magazine.com

 

[BananaRepublicUK]

Bangladesh secures $200m from Asian Infrastructure Investment Bank to support renewables​

The China-led Asian Infrastructure Investment Bank (AIIB) has extended a $200 million long-term credit facility to Bangladesh to finance a range of infrastructure projects, including renewable energy expansion.
MAY 9, 2022 SYFUL ISLAM

Image: Energon Renewables

​

The repayment period of the loan is 18 years, including a five-year grace period. Bangladesh will have to pay a 0.25% fee and a 0.25% commitment fee per annum for the portion of the total that is not withdrawn. The interest rate is 0.60% plus the variable borrowing cost margin of the AIIB.
Infrastructure Development Co. Ltd. (IDCOL), a Bangladeshi state-owned investor, will lend the funds to support renewable energy, energy efficiency, and social infrastructure projects. By borrowing loans from the Bangladeshi government and international sources, the IDCOL provides low-cost loans to renewable energy sector.
In addition to larger plants, IDCOL is now promoting rooftop solar power installations, especially on top of apparel factories. Thus far, it has approved loans for 41 factories, with a total generation capacity of 50 MW. It has set a target to provide enough funds to support the deployment of 300 MWp of rooftop solar capacity by the end of this year.
About 19.5 MW of rooftop solar plants have already been installed and switched on. One of the biggest ones is a 3.1 MWp array, while the smallest one is of a 324 KWp installation.

​

IDCOL provides 80% of a project's funds at low cost. The rest is being handled by the customers. About $700,000 is needed to set up a 1 MW rooftop solar power system. The cost of each unit of electricity generated from a rooftop solar power system is lower than the electricity the factory owners get from the power grid. IDCOL also provide funds to set up solar minigrids, solar home systems, solar-run irrigation pumps, and solar street lights.
Bangladesh currently has the capacity to generate 787 MW of renewable energy, of which 553 MW comes from solar. The country is aiming to generate 40% of its total electricity from renewable sources by 2041.

Bangladesh secures $200m from Asian Infrastructure Investment Bank to support renewables

The China-led Asian Infrastructure Investment Bank (AIIB) has extended a $200 million long-term credit facility to Bangladesh to finance a range of infrastructure projects, including renewable energy expansion.

www.pv-magazine.com

Why can’t the ADB lend this money to private banks. Who can then lend to private companies on commercial basis. ADB can also regulate them.

That way private institutions are liable for the loan instead of BD government.

 

[UKBengali]

Why can’t the ADB lend this money to private banks. Who can then lend to private companies on commercial basis. ADB can also regulate them.

That way private institutions are liable for the loan instead of BD government.

How is ADB supposed to regulate a bank in BD?

Only BD government can do this.

ADB can trust the BD government far more to pay the money back than a private entity which it has little power over.

BD is doing the right thing by going for a mix of public debt and PFI with tolls.

 

[Destranator]

Why can’t the ADB lend this money to private banks. Who can then lend to private companies on commercial basis. ADB can also regulate them.

That way private institutions are liable for the loan instead of BD government.

Private entities have access to loans through other channels.
In BD, the private sector is largely full of suckers who lack innnovation and always gun for short term profit - the govt has to step in in almost every industry to protect public interests. Until we have more competent companies like Walton in every industry, the govt has to keep implementing projects.
On topic, IDCOL is a govt Venture Capitalist entity investing in small businesses.

 

[BananaRepublicUK]

How is ADB supposed to regulate a bank in BD?

Only BD government can do this.

ADB can trust the BD government far more to pay the money back than a private entity which it has little power over.

BD is doing the right thing by going for a mix of public debt and PFI with tolls.

Most South American central banks are effectively regulated by NY courts.

On that basis they are granted special privileges.

Private entities have access to loans through other channels.
In BD, the private sector is largely full of suckers who lack innnovation and always gun for short term profit - the govt has to step in in almost every industry to protect public interests. Until we have more competent companies like Walton in every industry, the govt has to keep implementing projects.
On topic, IDCOL is a govt Venture Capitalist entity investing in small businesses.

I agree that we don’t have many visionary industrialists.

But I still trust them more than the crooked politicians.

 

[UKBengali]

Most South American central banks are effectively regulated by NY courts.

On that basis they are granted special privileges.

A lot of S American countries also have their currences pegged to the dollar and are economic basket cases.

BD does not want to go down that route.

Anyway it is a sovereigntly issue as well and only BD government has the right to regulate BD banks.

 

[BananaRepublicUK]

A lot of S American countries also have their currences pegged to the dollar and are economic basket cases.

BD does not want to go down that route.

Anyway it is a sovereigntly issue as well and only BD government has the right to regulate BD banks.

Your knowledge of world affairs is extraordinary lol

Yes, they are pegged to the dollar and also borrow in dollars. hence their court of arbitration is NY courts.

ADB looks like a benevolent org unlike world bank.

A bit of ADB supervision might elicit confidence of investors?