CPD urges for reviewing solar project cancellations amid Chinese investor concerns

The Centre for Policy Dialogue (CPD) has recommended amid investors’ concern that the government should reconsider its recent decision of cancelling 37 solar power plant projects in the country.

Otherwise, it could undermine confidence among investors, especially Chinese stakeholders, the think tank said at a seminar titled ‘Recent Challenges for Chinese Overseas Investment in Bangladesh’s Renewable Energy Sector: Way Forward’, held at a Dhaka hotel on Monday.

The interim government recently cancelled the solar power projects – worth over US$6 billion and totaling more than 3,287 megawatts in capacity, reasoning that there were political considerations and irregularities in the approval of the projects by the previous Awami League government.

During the seminar, Chinese investors, who had committed significant funding to several of the solar projects, expressed concern over the cancellation of the projects.

Representatives from Jinko Solar, Chint Solar, and the Chinese Renewable Energy Industries Association (CREIA) were present at the event.

Their concerns echoed Bangladeshi officials and sector leaders.

While presenting the keynote at the event, CPD Research Director Dr Khondaker Golam Moazzem and Programme Associate Abrar Ahammed Bhuiyan mentioned that 15 of the companies involving the projects had already acquired land.

With the cancellation of the projects, they would face financial and legal complexities, they added.

At a time when Bangladesh wants to expand its renewable energy capacity does such a cancellation move send a negative message to global investors, not just from China but from other key partners, CPD said.

Jalal Ahmed, Chairman of Bangladesh Energy Regulatory Commission; Mohammad Alauddin, Rector of the Bangladesh Power Management Institute; and Nahian Rahman Rochi, Head of Business Development at Bangladesh Investment Development Authority (BIDA), among others, attended the event as special guests.

Masudur Rahim, CEO of Omera Renewable Energy Ltd; Mostafa Al Mahmud, President of the Bangladesh Sustainable and Renewable Energy Association (BSREA); and Han Kun, President of the Chinese Enterprises Association in Bangladesh, also spoke at the event.