The government will mobilise Tk 20,000 crore from commercial banks within the next six to nine months for implementing a series of power projects to generate 2,000 megawatts of electricity.

At a meeting on Wednesday, State Minister for Power and Energy Nasrul Hamid asked the banks to assist the local power sponsors by investing the funds.

SDG Chief Coordinator Abul Kalam Azad, Power Secretary Dr Ahmad Kaikaus, Banking Division Secretary Md Eunusur Rahman, Bangladesh Bank Deputy Governor SK Sur also attended the meeting along with the high officials from several banks, including Standard Chartered, HSBC, Dhaka Bank, Prime Bank, Agrani Bank.

The state minister also assured the banks that their investment will be more secured in Bangladesh’s power sector.

The Power Division is implementing 116 projects at an estimated cost of $24.73 billion. Of the total cost, around $13.78 billion will come from project aids.

Besides, the power division is also planning to implement another 56 projects that will require $32.79 billion, including $25.47 billion in project aids.

The government will need around $85 billion for implementing power transmission, generation and distribution projects.

The government is planning to implement the projects with funds from government-to-government deals, ECA financing and local banks.    

In response to the proposal from the state minister, top officials of the banks said they have already received proposals from different power sponsors.

The also said they are ready to support the power sector development. They suggested reforms in some rules and regulations and a review of the statutory liquidity ratio (SLR).

SDG Chief Coordinator Abul Kalam said the Finance Division will soon form a high-powered committee comprising representatives of NBR, finance division, power division and private banks to address the issue.

Banking Division Secretary Md Eunusur Rahman said the local banks are reluctant in investing in the power sector as those are long-term investments. He also assured that they are ready to address any issue the banks might have been facing in this regard.

BB Deputy Governor SK Sur said the government can mobilise funds for power sector development by issuing Islamic and corporate bonds.

The government is planning to utilise a chunk of idle money from the forex reserves and commercial banks’ funds to implement a series of priority power projects for meeting the power demand in the long term.

The power sector has already received $8 billion in investments during the last eight years of the current Awami League government.

“Power Division wants to make the local banking sector and financial institutions aware of the investment opportunities in power sector,” Power Cell Director General Mohammed Hossain, who presented the keynote at the meeting, told daily sun.

Bangladesh Bank has over Tk 1 lakh crore of idle money, officials said.