Bangladesh Floats Tender for 50 MW of Solar Projects at Sonagazi

World Bank to assist the development of the projects


The Electricity Generation Company of Bangladesh Limited (EGCB), an enterprise of Bangladesh Power Development Board, has floated a tender for 50 MW (AC) of solar power projects at Sonagazi located in the country’s Feni district.

Apart from the design, supply, installation, and commissioning of the projects, the scope of the tender also includes the operation and maintenance services for three years.

All bids must be submitted by February 27, 2020. A pre-bid meeting has been scheduled to be held on January 20, 2020.

According to the tender document, Bangladesh has received financing from the World Bank towards the cost of the Scaling-up Renewable Energy Project (SREP). It intends to apply part of the fund for the 50 MW solar project at Sonagazi.

A prospective bidder must pay a fee of local currency BDT 123 million (~$1.5 million) as the bid security deposit. Interested bidders should have had at least two similar contracts between January 1, 2010, and the bid submission deadline, each with a value of at least $30 million. The similarity of the contracts here also implies that the grid-connected solar projects should be of at least 30 MW in capacity, and one project must be in operation for at least two years. The minimum average annual turnover of the bidder should be $75 million in the last three years.

Renewable energy in the form of biomass is the main source of primary energy in the country, comprising about 35-60% of total primary energy use. As reported previously by Mercom, Bangladesh aims to install 2.47 GW of renewable energy projects by 2021. A significant amount of this capacity will be developed through solar and wind projects. This year, the World Bank approved a $185 million loan to facilitate 310 MW of renewable energy generation capacity in Bangladesh to meet the growing demand for electricity in the country.

Last year as well, the World Bank approved $55 million in financing to expand the use of renewable energy in rural areas of Bangladesh that grid electricity cannot easily reach. The funds were to be used to finance the Second Rural Electrification and Renewable Energy Development (RERED II) Project. The project aimed to install 1,000 solar irrigation pumps, 30 solar mini-grids, and about 4 million improved cooking stoves in rural areas.

In October 2019, Mercom reported that the consortium of ib vogt and AG Agro Industries won a contract to develop a 50 MW grid-tied solar project in the Chittagong district of Bangladesh.

Image credit: Solariaenergia