Govt's solar ambition clouded by cold investor response in 3rd tender too
This round had three deadline extensions
Highlights:
- 3rd tender round ends with only 29 bids for 19 plants
- Bid submission closed after 3 deadline extensions
- 3 proposed plants in Ctg, Tangail receive no bids
- Local firm Max Infrastructure single bidder for 5 plants
- Experts say strict tender terms, financing challenges as barriers
- High land prices also blamed for reduced interest
The government's aim to scale up solar energy has once again met with tepid investor interest as the third round of tenders for grid-tied solar power plants closed with poor participation and several projects failing to draw any bids.
The third package, floated by the Bangladesh Power Development Board (PDB), invited bids for 19 solar power plants with a combined capacity of 1,780 megawatts.
However, by the submission deadline yesterday, only 29 bids were submitted, despite three deadline extensions and the sale of 69 bid documents.
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This subdued response mirrors the outcomes of the first and second tender rounds, where investor interest was similarly lacklustre. Between December 2024 and March 2025, the PDB floated four international tender packages aiming to install 5,238MW of grid-connected solar power across 55 sites.
The third package, launched on 27 January, offered projects ranging from 70MW to 100MW at locations across the country.
Industry experts point to restrictive terms in the tender documents as a major reason for the poor turnout. These conditions, they say, make it difficult for potential developers to secure funding from both local and international lenders.
"After 10 months of preparation and much fanfare about solar power, what we see is frustrating," said Sakir Ahmed, former adviser to Green Solar Energy and former CEO of Xindex Energy.
"Policymakers need to rethink why the government is failing to attract serious investors," he told The Business Standard.
PDB officials also noted that some proposed plant sites – particularly those where land prices are high – were less appealing to developers.
Energy Adviser Muhammad Fouzul Kabir Khan commented earlier, "We are trying to attract credible companies in this new round of bidding after cancelling previous Letters of Intent. We are cautiously optimistic."
No bids for 3 plants
Among the 19 proposed solar plants in the third round, three with 100MW capacity – located in Anwara and Baroiarhat in Chattogram, and Mirzapur in Tangail – received no bids at all.
Nine other projects each attracted only a single bidder. Of these, local firm Max Infrastructure submitted bids for five plants located in Rupsha, Rajbari, Faridpur, Pirganj, and Ghatail.
Desh Energy Powering Development was the sole bidder for three projects in Mymensingh, Moulvibazar, and Gopalganj, while a joint bid from Fiber Home and GBB Power was submitted for a 70MW plant in Sitakunda.
The most competitive bidding took place for the 70MW Chakaria project, which received five bids. Bidders included Desh Energy, Karnaphuli-Infraco Consortium, Fujian Yongfu AWP POT, MCL-MAHL-Lakdhanvi JV, and Max Infrastructure.
The 100MW Cox's Bazar (North) plant drew four bids from the Karnaphuli-BSPL Consortium, MCL-MAHL-Lakdhanvi JV, Ditrolic-Powernetic Consortium, and China Northeast EPE.
In Ishwardi, a 70MW plant received three bids from Max Infrastructure, Desh Energy, and Paramount.
Earlier, the first package, which included 12 plants totaling 353MW, received only 20 bids despite selling 98 tender documents. The second package, targeting 500MW across 10 sites, sold 42 bid documents and saw five deadline extensions. The bid submission deadline for the fourth package, which covers 2,605MW at 14 locations, is expected next month.
