OASL to Arrange Over $50 Million for Bangladesh for Foreign Financing for Power Project
Ocean Aid Services Limited (OASL) plans to connect foreign investors and financiers with Bangladesh’s priority energy projects worth over $50 million, supporting the government’s wider push to attract foreign investment into energy infrastructure and renewable power.
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In a Nutshell
- OASL will connect viable energy projects worth over $50 million with international investors and financing institutions under an Engineering, Procurement, Construction and Financing (EPC+F) model. The company will not invest its own money in these projects.
- Potential projects include large-scale solar power plants, gas-based and hybrid power plants, transmission lines, substations, grid automation, smart metering, battery storage and LPG terminals.
- OASL is targeting projects that generally require two to three years to complete and include imported components.
- The company plans to begin formal discussions with relevant ministries, agencies and state-owned entities to identify priority projects, assess feasibility and develop financing arrangements.
- International partners would provide financing, technology, equipment, engineering expertise and project management, while OASL would coordinate with local stakeholders.
- The proposed projects could create jobs, transfer technology and support local industries, depending on their scale and commercial viability.
Context
Energy is one of the most important sectors where Bangladesh is already seeking greater foreign investment. During Prime Minister Tarique Rahman’s UNGA-bound visit to New York, he held a meeting on September 25 with business leaders and investors, organised by JPMorgan Chase in Manhattan, to seek long-term partnerships in Bangladesh’s energy industry, among other areas. The government has accordingly pledged reforms to simplify regulations, improve investor protection and strengthen infrastructure to make the country more attractive to foreign capital.
Ocean Aid Services Limited’s initiative is part of this broader effort to bring international financing into Bangladesh’s energy sector. The Chattogram-based company plans to connect viable projects with foreign financiers under the EPC+F model, focusing on investments worth more than $50 million, which would go towards such projects as solar, gas-based power generation .
OASL Managing Director A H M Manzur Alam said international partners would provide financing, technology and technical expertise, while OASL would coordinate with government bodies, utilities, local companies, contractors and suppliers. Depending on the financing structure, government support could include designating the responsible agency, coordinating approvals and documentation, and arranging sovereign loans through the Ministry of Finance where required. No specific investments have been confirmed, with the company planning to begin formal discussions with relevant government bodies to identify priority projects.
Why It Matters
This initiative is one step towards addressing current shortfalls in the energy sector. While the government has completed 32 gas wells in its first seven months to decrease dependence on imported LNG, around 60 mmcfd of the roughly 148 mmcfd in additional gas production remains underutilised due to pipeline constraints.
This shows the urgency of investments in energy-centric infrastructure that can expand electricity generation and address the issues behind underutilised electricity.
What We Think
Bangladesh needs both greater generation capacity and infrastructure to make better use of available energy supplies. With OASL’s proposed financing model, foreign capital and technical expertise could help address these gaps in current projects.