Beximco gets approval to set up largest solar power plant

The Bangladesh Export Import Company (Beximco) Limited has received the government’s approval to install a solar power plant in Gaibandha with a capacity of 280 megawatt peak (MWp).

The Beximco will invest a total of Tk 1,700 crore to set up the plant, which will be the largest solar power facility in the country, said the company in a filing with the Dhaka Stock Exchange (DSE) on Thursday.

The publicly traded company also disclosed that the plant is scheduled to be commissioned by mid-2022.

“Beximco awarded Solar Module, Solar EPC Main Plant, Switchyard, and Substation contracts to build a 280 MWp solar utility-scale power plant at Sundarganj in Gaibandha,” it said in the disclosure.

The facility will make Beximco the undisputed leader in utility-scale solar power production in Bangladesh. Together with a second project under development, the company will have a total combined capacity of 325 MWp, which will equate to a generation capacity of 230 MW, added the disclosure.

The Beximco had earlier launched Green Sukuk bonds worth Tk 3,000 crore to collect fund for building the new solar power plant.

In a separate filing, it said that the solar module contracts were awarded to LONGi Solar Technology Co. limited, a global manufacturer of high-efficiency mono-crystalline solar cells and modules.

The scope of the award covers engineering, procurement, construction, commissioning as well as operation and maintenance activities.

The company also disclosed that the switchyard and substation contract including control solutions were awarded to ABB, the leading global technology company that energizes the transformation of society and industry to achieve a more productive and sustainable future.

The transmission line engineering, procurement, and construction contracts were given to Confidence Infrastructure Limited.

The power line will have a length of 35.35 km, stretching from Sundarganj of Gaibandha to Rangpur Grid Substation in Rangpur.

The Beximco termed the agreement as an achievement for both companies as it is one of the key milestones in developing the country’s largest grid-tied solar power plant.

On June 30, Bangladesh Securities and Exchange Commission approved the issuance of a Tk 3,000 crore green Sukuk bond in favor of Beximco Limited, to finance construction goals and equipment procurement.

Sukuk is an Islamic financial certificate, similar to a treasury bond, which complies with Shariah laws.

The tenure of the bond is five years, of which investors will gain a minimum of 9 per cent as a secured annual return.

As per the commission’s statement, half of the Tk 3,000-crore fund would be raised through private placement, and Sukuk worth Tk 750 crore would be raised from the existing Beximco shareholders.

The remaining Tk 750 crore will be raised through an initial public offering in compliance with the commission’s public offer rules.

Sukuk holders will have the option to convert up to 20 per cent of the Sukuk to ordinary shares of Beximco annually at a 25 per cent discount to the conversion price.

Shares of Beximco, which has been listed since 1989, closed at Tk 140.80 yesterday, down 4.54 per cent from the previous day.