Infrastructure & PPPs in Bangladesh, Nepal, Sri Lanka and Bhutan - Q1 2026 Update

YOG INFRA
Apr 21
10 min read

BANGLADESH, NEPAL, BHUTAN, AND SRI LANKA are advancing large-scale clean energy, infrastructure, and connectivity projects, with combined announced investments exceeding USD 2.2–2.5 Bn, aimed at strengthening economic growth and energy security across the region. BANGLADESH is driving PPP-driven initiatives in solar, logistics, and low-carbon infrastructure, supported by international cooperation to enhance investment flows and institutional capacity. NEPAL is investing more than USD 240 Mn in cross-border petroleum pipelines, LPG infrastructure, and fuel storage. BHUTAN has planned USD 1.6 Bn in clean energy investments with new solar initiatives, driving diversification beyond hydropower. SRI LANKA is advancing private-sector-led urban and port infrastructure projects, including a USD 112 Mn residential development in Port City Colombo.

Read more about key developments in Infrastructure and PPPs in the four countries in our Q1 2026 insight.

BANGLADESH

BANGLADESH AND NETHERLANDS SIGN MOU TO STRENGTHEN PUBLIC-PRIVATE PARTNERSHIP INITIATIVES

The Public Private Partnership Authority (PPPA) of Bangladesh and the Kingdom of the Netherlands have signed a Memorandum of Understanding (MoU) to enhance government-to-government (G2G) cooperation in Public-Private Partnership (PPP) initiatives.

The MoU will pave the way for enhanced knowledge exchange, technical cooperation and investment facilitation, benefiting both countries and supporting Bangladesh’s long-term infrastructure and economic development goals.

The Netherlands’ strong interest in partnering with Bangladesh through structured PPP frameworks, sharing global best practices and expertise to deliver sustainable and high-impact infrastructure projects. The MoU marks a significant step forward in deepening bilateral cooperation and reinforcing PPP as a key engine for inclusive growth and development in Bangladesh.

BANGLADESH BANK LAUNCHES 10-YEAR SPECIAL SUKUK WORTH USD 820 MN

In a major step toward strengthening public infrastructure through Shariah-based financing, Bangladesh Bank (BB) has approved the launch of “Bangladesh Government Special Sukuk-1”, amounting to TK 10,000 Cr (USD 820 Mn). The central bank, the Sukuk will carry a tenure of 10 years with an annual profit rate of 9.75%. The financing structure will be based on the Ijara (leasing) mechanism, in line with Islamic financial principles.

The proceeds from the Sukuk will be secured against designated government assets, including seven residential housing projects for public servants developed by the Public Works Department, along with selected railway services operated by Bangladesh Railway.

This initiative aims to advance national development priorities by mobilizing Shariah-compliant funds for large-scale public housing and infrastructure projects, reinforcing the role of Islamic finance in government funding strategies.

URMI GROUP TARGETS 8.18 MWP SOLAR CAPACITY WITH NEW ROOFTOP PROJECT AT UHM LIMITED

Urmi Group has strengthened its commitment to renewable energy by signing a Memorandum of Understanding (MoU) to install a 126 kWp rooftop solar photovoltaic (PV) system at UHM Limited under the Swisscontact InSPIRE Project. The initiative marks another milestone in the Group’s decarbonization and clean energy transition journey.

With this new project, Urmi Group continues to scale up its renewable energy footprint. The Group currently operates 3.7 MWp of installed solar capacity across its facilities and is targeting a total capacity of 8.18 MWp in the coming phases—demonstrating a strong long-term vision for clean energy integration.

The rooftop PV system at UHM Limited is expected to significantly reduce dependence on grid electricity, lower operational energy costs, and deliver measurable carbon emission reductions through reliable on-site power generation. This initiative aligns with Urmi Group’s broader sustainability roadmap, which prioritizes energy efficiency, renewable integration, and climate-resilient manufacturing.

Urmi Group acknowledged the support of Swisscontact through the InSPIRE Project and expressed appreciation to SOLARIC Global for its technical collaboration and partnership in advancing renewable energy solutions within the textile and apparel sector.

NEPAL

NEPAL AND INDIA PARTNER ON USD 103 MN PIPELINE EXPANSION TO BOOST FUEL SECURITY

The Nepal Oil Corporation (NOC) is accelerating the construction of several major cross-border petroleum and liquefied petroleum gas pipelines in collaboration with India, marking a significant shift in the landlocked nation’s energy infrastructure. The expansion is centered on two primary petroleum routes: the 62-kilometer Amlekhgunj–Chitwan pipeline and the 50-kilometer Siliguri–Jhapa pipeline, with a combine cost of USD 103.1 Mn.

In addition to the pipeline network, the NOC is committing USD 59.4 Mn of its own funds to construct a massive fuel storage facility in Chitwan. This terminal is expected to serve as a strategic hub, allowing for larger reserves and more efficient distribution to the country’s central and western regions. The cooperation also extends to cooking gas. A proposed USD 82.5 Mn LPG pipeline stretching from Motihari, India, to Sarlahi, Nepal, is currently under development.

Beyond the financial savings, the project is expected to bolster fuel security in specific regions that have historically faced supply volatility. The transition from road-based transport to a dedicated pipeline network is anticipated to reduce the environmental footprint of fuel delivery and minimize traffic congestion on major highways.

LONGI, MOGHA RENEWABLES ANNOUNCE STRATEGIC PARTNERSHIP, LAUNCH HI-MO X-10 SOLAR PANELS IN NEPAL

LONGi and MOGHA Renewables announced a strategic partnership and the official launch of the Hi-MO X-10 solar panels in Nepal, marking a major milestone in the country's clean energy transition. With this launch, Nepal becomes one of the first markets globally to deploy LONGi's newest-generation solar technology. MOGHA Renewables, powered by the Dugar Group and Mogha Energy, brings strong local execution capabilities and deep market expertise to the collaboration. The partnership will focus on delivering advanced solar solutions across EPC and large-scale utility projects, serving commercial, industrial, and utility customers nationwide.

Powered by HPBC 2.0 (Hybrid Passivated Back Contact) technology, the LONGi Hi-MO X-10 delivers approximately 9% higher energy generation while requiring around 8% less land area compared to conventional modules, significantly improving project economics and land-use efficiency. The module incorporates advanced engineering features including lower operating temperatures, better hotspot temperature regulation, increased fire safety, higher generation under partial shading conditions, as well as anti-dust, anti-snow, and bifacial capabilities, enabling superior performance across diverse and challenging operating environments.

NEPAL BECOMES FIRST SOUTH ASIAN COUNTRY TO JOIN LEAF COALITION, SECURES USD 55 MN CLIMATE FINANCE

Nepal has signed a landmark agreement with the LEAF Coalition to receive up to USD 55 Mn in climate finance, marking the country as the first in South Asia to access funds through this global initiative for forest protection. The Lowering Emissions by Accelerating Forest Finance (LEAF) Coalition is a Public-Private Partnership (PPP) model that includes over 30 international companies alongside the governments of Norway, the United Kingdom, the United States, and South Korea.

Nepal’s ongoing commitment to reducing greenhouse gas emissions through jurisdictional REDD+ programmes. It emphasized that the deal would support Nepal in maintaining 45% of its land as forest by 2030 and achieving net-zero emissions by 2050.

Nepal has also become the first government to offer “correspondingly adjusted” carbon credits to private sector buyers under the LEAF Coalition. These credits can be used in compliance schemes, including Singapore’s Carbon Tax and CORSIA for aviation emissions, with up to 25% of credits carrying such adjustments.

The funds will further strengthen Nepal’s community-based forest management system, benefiting more than three million households across the country. This milestone positions Nepal as a regional leader in climate finance and forest conservation, highlighting the country’s proactive approach to tackling climate change through collaborative international partnerships.

BHUTAN

ADANI GROUP OFFICIALLY BEGINS WORK ON 570 MW WANGCHHU HYDROPOWER PROJECT IN BHUTAN

In a significant boost to regional renewable energy cooperation, the Adani Group has officially commenced construction on the 570 MW Wangchhu Hydropower Project in Bhutan, marking a key milestone in India–Bhutan energy collaboration.

The Wangchhu project is being developed as a joint venture between the Adani Group and Druk Green Power Corporation (DGPC), Bhutan’s state-owned hydropower utility. Under the agreement:

DGPC holds a 51% majority stake, ensuring strong local ownership,
Adani Group holds the remaining 49% stake in the venture.

The Wangchhu Hydropower Project is estimated to require an investment of approximately USD 695 Mn. Construction activities are expected to be completed within five years of groundbreaking, targeting full commercial operation by late 2029-early 2030.

WORLD BANK GROUP APPROVES USD 815 MN FINANCING PACKAGE FOR 1,125 MW DORJILUNG HYDRO PROJECT

The World Bank Group financing package includes a USD 150 Mn grant and a USD 150 Mn credit from the International Development Association (IDA) and a USD 15 Mn enclave loan from the International Bank for Reconstruction and Development (IBRD) to the Government of Bhutan, as well as a USD 200 Mn IBRD enclave loan and a USD 300 Mn A loan from the International Finance Corporation (IFC) to Dorjilung Hydro Power Limited (DHPL). DHPL is a Special Purpose Vehicle entity owned by Bhutan’s Druk Green Power Corporation (60%) and Tata Power (40%).

The 1,125 MW Dorjilung Hydroelectric Project located on the Kurichhu River in eastern Bhutan, will generate more than 4,500 GWh of clean electricity annually, increasing the country’s energy production by 40% and energy exports by 42%. The project will help close Bhutan’s seasonal energy gap, eliminating the need for costly energy imports in winter, and generating surplus energy during the summer and monsoons to export to India when domestic energy demands in Bhutan are low. The savings and revenues from the project will create fiscal space for social spending and other investments to benefit the people of Bhutan.

Dorjilung will be Bhutan’s largest hydropower project developed under a Public-Private Partnership (PPP) model, marking a shift to a more sustainable financing model for hydropower development and paving the way for greater private sector investment in the hydropower sector.

INDIA POWER CORPORATION LIMITED TO DEVELOP 70 MW SOLAR PROJECT IN BHUTAN

India Power Corporation Limited (IPCL) has signed a strategic partnership with Bhutan’s Green Energy Power Private Limited to develop a 70 MW solar power project in Paro district, marking a significant step in India’s role in expanding Bhutan’s renewable energy capacity. The project, part of IPCL’s larger plan to install 1.5 GW of solar capacity in Bhutan over the next five years, aims to enhance the Himalayan nation’s energy mix beyond its traditional reliance on hydropower. The Tenchuka site, chosen for its favorable technical conditions, spans around 200 acres of south-facing land with high solar irradiation and lies just 3.5 km from the Jamjee 220/33 kV substation, enabling efficient power evacuation.

Bhutan’s energy demand is projected to more than double in the coming two years, driven by the development of projects like the Gelephu Mindful City project, the expansion of energy-intensive industries such as ferrosilicon, and rising consumption from digital infrastructure and crypto-mining operations. By adding solar capacity, projects like Tenchuka will help Bhutan diversify its energy sources, meet growing domestic demand, and move closer to its target of 25,000 MW of installed power capacity by 2034, including 5,000 MW from solar energy.

SECI EXPLORES SOLAR COLLABORATION WITH BHUTAN TO SUPPORT 5 GW TARGET BY 2040

A high-level delegation led by the Solar Energy Corporation of India (SECI) has concluded a strategic visit to Bhutan to explore opportunities for collaboration in renewable energy development. The delegation included representatives from public sector undertakings (PSUs), private sector developers, and EPC contractors.

SECI engaged with senior officials from the Royal Government of Bhutan (RGoB), including the Hon’ble Energy Minister, the Director General of the Department of Energy, members of the Bhutan Chamber of Commerce and Industry, and the Ambassador of India to Bhutan. Discussions centered on Bhutan’s ambitious target of achieving 5 GW of solar capacity by 2040, alongside plans for large-scale infrastructure development.

SECI highlighted potential collaboration avenues under the Memorandum of Understanding (MoU) signed between India’s Ministry of New and Renewable Energy (MNRE) and the RGoB. Key focus areas included the development of joint ventures in green energy projects to accelerate Bhutan’s clean energy transition.

The engagement is expected to pave the way for actionable partnerships aimed at enhancing regional energy security, supporting Bhutan’s sustainability goals, and generating shared economic value. SECI reaffirmed its commitment to working closely with the RGoB to develop scalable and innovative clean energy solutions for a resilient future.

SRI LANKA

HAMBANTOTA PORT ROLLS OUT SRI LANKA’S FIRST AUTOMATED GATE PASS SYSTEM

Hambantota International Port has launched an Automated Gate Pass Management System, becoming the first port in Sri Lanka to introduce a fully automated and paperless gate access process. The system uses QR code technology to manage entry and exit at port gates and forms part of the port's broader digital transformation programme. The Automated Gate Pass Management System replaces manual gate pass procedures with a digital access control process.

It allows faster verification at entry points and reduces dependence on paperwork, while lowering processing time and limiting manual intervention. The platform is intended to improve operational flow within the port and reduce congestion at access points. The launch marks the first phase of a wider digitalization programme at Hambantota International Port. The port is positioning the system as part of its efforts to improve operational efficiency and support Sri Lanka's broader push towards technology-led logistics and port management.

PORT CITY COLOMBO ENTERS ACTIVE DEVELOPMENT WITH FIRST RESIDENTIAL PROJECT

Construction commenced on the first residential development within Port City Colombo, marking a major execution milestone for Sri Lanka’s flagship Special Economic Zone and signaling its transition from regulatory readiness to active private-sector development. The project, Bay One Residences Colombo, is being developed by ICC Port City (Private) Limited, an entity established by International Construction Consortium (Private) Ltd. (ICC). The development represents one of the earliest major Sri Lankan private-sector residential investments within Port City Colombo and is expected to play a key role in activating the city’s mixed-use urban environment.

Port City Colombo spans 269 hectares of reclaimed land, with its first phase of infrastructure now completed. Bay One Residences is positioned as a first-mover residential offering designed to support integrated urban living, enabling residents to live, work, and relax within a single ecosystem. Located on a 13,945 square metre prime waterfront site, the project represents a total investment of approximately USD 112 Mn, including land and development costs.

SLPA INKS AGREEMENT WITH FRENCH SHIPPING COMPANY

The Sri Lanka Ports Authority (SLPA) signed a Terminal Service Agreement with French shipping company CMA CGM, with the intention of accommodating greater volumes of container cargo within the Colombo Port. The Terminal Service Agreement formalizes the operational and commercial arrangements between SLPA Terminals and CMA CGM. It provides a framework for scheduling vessel calls, coordinating cargo handling, and improving overall efficiency at the port. CMA CGM’s global experience in shipping and terminal operations is expected to support enhanced service management and facilitate the handling of higher container volumes through Colombo.

The agreement is part of ongoing efforts by SLPA to strengthen port services and attract international shipping lines. Colombo continues to function as a key deep-water port in the region, serving as a hub for transshipment and regional maritime trade. The signing of the Terminal Service Agreement with CMA CGM is intended to consolidate the port’s service capabilities and support its continued growth as a major maritime gateway.

List of key transactions - Bangladesh ,Nepal, Sri Lanka and Bhutan Q1-2026

Source: YOG INFRA analysis

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