Dhaka – State Minister for Power and Energy Nasrul Hamid has urged the country`s banks and financial institutions to invest in the government`s ‘fast track projects’, presumably by borrowing –UNB news agency reported
“The government has created investment climate. So your investment is fully secured and guaranteed by the state,” he told the top officials of different banks and financial institutions while addressing a meeting on financing of the fast-track projects in power and energy sector at Biduyt Bhaban in the city on Wednesday.
The meeting was also attended by Chief Coordinator for SDG affairs in the Prime Minister Office, Bangladesh Bank deputy governor SK Sur Chowdhury, Banking Division secretary Yunusur Rahman, power secretary Dr. Ahmad Kaikuas and other top officials of different ministries.
Nasrul Hamid said the government is going to launch some fast track projects within the next month which will offer a big opportunity for banks and financial institutions to invest.
It was informed in the meeting that the country`s electricity generation is annually growing at 10 percent. A total of $8 billion had been invested invested in last 7 years.
At present there are some 116 projects are being implemented in the power sector, involving $24.73 billion investment where $13.78 is project aid. Besides, another $1.96 billion will be required for a further 14 projects.
Apart from these projects, PDPP of some 56 projects were submitted to the Economic Relations Division (ERD) for approval which will require $32.79 billion investment and project aid of $25.47 billion.
It is also noted that the country will require $85 billion investment in the country`s power generation, transmission and distribution segments. This huge investment has to be made by the government, G-to-G funding, ECA, Deferred Payment and local banks.
The State Minister said the banks will get a big opportunity to invest in the power sector where the government will provide guarantee against their investment.
Abul Kalam Azad said five segments in power sector offer huge investment which are generation, transmission, distribution, renewable energy and pre-paid metres. Banks can invest in these segments.
Yunusur Rahman said government`s schemes are attractive but need long term investment where banks are reluctant to invest. But banking division will move to pursue banks to invest in such long term project, he said.
In the meeting a committee was formed headed by additional secretary of the finance division Jamal Uddin Ahmed to coordinate financing related issues with different divisions and ministries.
