
Oct 17, 2024
| Staff Correspondent | TNA
Investors at a discussion expressed concern at the suspension of foreign-funded projects in the renewable energy sector and requested simplified project approval and tax incentives to attract overseas investment in the sector.
The discussion on overseas investment in the renewable energy sector was hosted by the Centre for Policy Dialogue at a hotel in the capital on Thursday.
Attending the event virtually, Chint Solar (Bangladesh) chairman Gan Peng raised concern over the suspension of some 35 renewable power projects that were already granted Letter of Intent.
‘Attracting Chinese investment is not difficult but materialising them is difficult. If Bangladesh needs Chinese investment in renewables, the LOI-secured projects must see green light,’ Gan said.
The event was participated by several dignitaries from government wings including National Board of Revenue chairman Abdur Rahman Khan who assured the investors of consistent policy support.
He said, ‘No investors are afraid of tax. They need consistent policies and NBR will try its level best to maintain consistency.’
CPD research director Khondaker Golam Moazzem presented keynotes, highlighting the requirement for foreign investment to achieve Bangladesh’s renewable energy goals and the challenges within.
He cited Institute for Energy Economics and Financial Analysis (IEEFA) that estimated Bangladesh’s requirements for $1.5-1.71 billion annually to achieve targeted 40 per cent renewable energy-based power generation by 2041 and cautioned that the country’s traditional fiscal and financial instruments hardly could attract overseas investment at larger scale.
He recommended several immediate and long-term solutions including incentivising foreign investors to use Taka-denominated bonds, creation of a stabilised fund, bilateral currency swap agreement with key partners, public-private partnership with government-backed financial guarantees, quick dispute resolution with international arbitration standards, among others.
Shahidur Rahman, the country manager of Jinko Solar Bangladesh, requested tax incentives, easing project approval process and to provide ‘investment-ready’ lands.
IEEFA’s lead energy analyst Shafiqul Alam placed some recommendations including investment-ready industrial plots and a widened power transmission network.
Chaired by CPD executive director Fahmida Khatun, Chowdhury Liakat Ali, director (sustainable finance department) at Bangladesh Bank, Ariful Hoque, director general at Bangladesh Investment Development Authority, Syeda Afzalun Nessa, head of sustainability at the Hongkong and Shanghai Banking Corporation, among others, also spoke.