YOG INFRA Q3 2022 insights
BANGLADESH is seeing strong activity in power sector, more notably in partnerships with India for power imports and couple of new PPP project awarded under G2G partnerships. NEPAL saw similar partnerships with Indian developers although the activity in other sectors was subdued. SRI LANKA is aiming to develop a nodal PPP agency amid ongoing debt restructuring and a path to recovery from recent economic crises.
Read more about key developments in Infrastructure and PPPs in the three countries in our latest insight.
Bangladesh
ADANI POWER LTD. TO START EXPORTING POWER FROM INDIA TO BANGLADESH
Adani plans to start exporting electricity from a coal-fired plant in eastern India to Bangladesh before the end of the year, helping to alleviate energy shortages in the South Asian nation. Adani Power Ltd. will commission a 1.6 GW facility in Jharkhand state and a dedicated transmission line for the exports.
BANGLADESH SELECTS RSGT AS OPERATOR FOR PATENGA CONTAINER TERMINAL
The terminal is being developed by the Chittagong Port Authority with an investment of USD 240 Mn. Bangladesh’s Ministry of Shipping has selected Red Sea Gateway Terminal (RSGT) as the preferred operator of the new Patenga Container Terminal (PCT) at the Port of Chittagong (Chattogram port).
RSGT will be responsible for equipping and running the new terminal under a long-term concession from the Chittagong Port Authority. Supported by the Bangladeshi Government, the new terminal will consist of a 600 m quay and be able to simultaneously handle three ships, thereby helping to boost the vessel handling capacity of Chattogram port.
CHINA LOOKS TO INVEST MORE IN BANGLADESH RAILWAY
After high-speed rail and the research and development center of Bangladesh Railway (BR), China now wants to invest for building new rail lines connected to several economic zones, Chittagong Sea Port and new Teesta and Hardinge bridges.
The company, with a partnership with another state-owned Chinese company, intended to invest in total 10 projects under the Government-to-Government-Public Private Partnership (PPP) framework. China Energy International Group Company Ltd, a subsidiary of CEEC, has sent two separate proposals to the Railways Minister.
Under the G2G-PPP arrangement, Bangladesh may request other governments to provide financial support and select state-owned or private entities to act as the investors. The company will build, maintenance and operate the structure for a certain period and get money following the terms mentioned in the agreement.
DEVELOPER PLANS 20 MW SOLAR AQUACULTURE SITE IN BANGLADESH
A 20 MW solar plant being planned by Joules Power Limited in Bangladesh will be constructed on 75 acres of land which will be submerged for most of the year. The solar system will be installed on a site which will produce fish as well as agricultural products including mushrooms, which will grow in the shade of the panels.
The developer had backing from the World Bank-financed Investment Promotion and Financing Facility II for its first, 20 MW solar site in Bangladesh. The plant will be connected to the national grid by a single circuit line of 33 kV from the plant site to the Muktagacha substation operated by the Bangladesh Rural Electrification Board.
Nepal
NEPAL CABLE CAR PPP MOVES AHEAD
A cable car project to be built in a public-private partnership is moving ahead, securing key government approvals. The terms of reference and scope have been approved by the Ministry of Forest and Environment, the developer is now conducting an environmental impact assessment (EIA).
At the time of signing a memorandum of understanding, developer Muktinath Darshan had aimed to complete the assessment along with a detailed project report in 18 months. The delay is due to the challenges posed by difficult terrain and also because the route falls within a designated conservation area. The cost of the 84 km cable car project is estimated to be about NPR 53 Bn (USD 421 Mn) - with 80% debt and 20% equity.
The route will run from Birethanti in Myagdi district to Muktinath Temple (pictured) in the district of Mustang. The temple is located in a remote valley and is considered holy by both Hindus and Buddhists.
INDIA'S NHPC SIGNS MOU TO DEVELOP TWO HYDRO PROJECTS IN NEPAL
The National Hydro Electric Power Corporation of India (NHPC) plan to build two hydroelectric projects in Nepal. The pact signed for the hydro projects of 750 MW and 450 MW. NHPC India's leading hydropower development organization was founded in 1975 and is a Government of India Schedule A enterprise with 'Miniratna' status. The company is India's premier organization with a total installed capacity of 7,071.20 MW.
Sri Lanka
SRI LANKA PROPOSES TO ESTABLISH PPP AGENCY
Sri Lanka will set up a National Agency for Public-Private Partnership (NAPP). In the interim Budget presented to lawmakers, President Ranil Wickremesinghe proposed to allocate LKR 250 Mn (USD 686,840) to set up the agency. The country's railway network would be refurbished using private investments and proposed to redevelop the Kelaniweli line in a PPP as a pilot project. An operator will be selected through competitive bidding.
Sri Lanka is in the final stages of negotiations with the International Monetary Fund for a bailout package to resolve its economic crisis. Discussions on debt restructuring will be held with the main countries that provide loan assistance to Sri Lanka.
ADANI GROUP GETS SRI LANKA’S NOD FOR USD 500 Mn WIND POWER PROJECTS
India’s Adani Green Energy has been issued provisional approvals for the development of two wind power projects of 286 MW and 234 MW in Northern Province of Sri Lanka. Two wind power plants will attract an investment of over USD 500 Mn.
Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development.
YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.
With our offices in Singapore and India, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.
For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com
©2022 YOG INFRA. All rights reserved.