Dhaka Chamber of Commerce & Industry (DCCI) organized a Seminar on “Issues & Challenges of Financial Closure of Large and Mega Power Projects” at DCCI on 6th August 2016. Dr. Mashiur Rahman, Hon’ble Advisor to the Prime Minister on Economic Affairs, Government of People’s Republic of Bangladesh, graced the occasion as the Chief Guest. Mr. Tariqul Islam, Secretary, Planning Division, Government of People’s Republic of Bangladesh was present as the Special Guest.
Engr. Mohammad Hossain Director General Power Cell Ministry of Power, Energy & Mineral Resources GoB, Mr. Ashraf Ahmed Chief Executive Officer Riverstone Capital Limited, Mr. Tanvir A Siddiqui Vice President Infrastructure Development Company Limited (IDCOL) were attend the seminar as the designated discussants. M Fouzul Kabir Khan Former Secretary Power Division, Ministry of Power Energy and Mineral Resources, GoB presented key note paper at the seminar.
The Recommendations emerged from the seminar are as follows:
1. Efficiency needs to be improved in conducting technical, legal and environmental due diligence in order to reduce the time lap
2. Adequate risk sharing structure needs to be developed in order to develop win-win business model under PPP arrangement
3. Unified project due diligence procedure aligning the needs to local banks, foreign development financial institutions and Donor Agency.
4. Focus on developing the capacity of sponsor including focusing on balance sheet, track record and bid preparation
5. Removal of hindrance to public-private partnership for facilitating private investment.
Mid- term Recommendations:
6. Lending rate of local financial institutions need to be lowered.
7. Dependency on foreign sources for funding needs be reduced.
8. Lengthy process in providing legal vetting should be reduced.
9. Consistent and attractive taxation policy and skilled management and workforce for setting-up and maintain mega power plants.
10. Policy support to channel insurance fund in funding large and mega power projects
11. Capacity of PPP office including project development agencies need to be developed
12. A separate fund needs to be develop to meet-up the upfront cost of the project, even before approval of the project
13. Capital market needs to be well equipped as a source of funding for large and mega power project
14. Power bonds needs to be introduce as long term funding avenue for the power projects
15. Long term Power Financing Funding Facility likewise Investment Promotion & Financing Facility (IPFF) can be replicated for financing power projects