ME Firms: ACWA Power & Saudi Aramco Set to Hike Investment in Bangladesh
Last updated on September 19th, 2020
Adhering to their strategic investment plans, several firms in Saudi Arabia are planning to invest almost $30 billion in various sectors of Bangladesh. Energy giants – Saudi Aramco, ACWA Power, Aljomaih Energy and Water Company are some of these.
Based on information from various Bangladeshi sources, ACWA Power is planning to create an LNG-based MW plant in Bangladesh. The news comes after the Saudi firm signed an agreement with Bangladeshi authorities in Dhaka on Thursday.
Sources revealed that an official MoU was signed by the Chairman of ACWA Power, Mohammed Abunayyan and several officials from the Bangladesh Power Development Board (BPDB). As per the deal, the energy sector of Bangladesh will receive investments worth $3 billion from ACWA Power. Almost $2.5 billion spent on construction of the power plant and the remaining investment was spent on initiating an LNG terminal for facilitating fuel supply to the plant.
Considering the ongoing climatic change and the social responsibility of the firm towards using renewable sources of energy, ACWA Power had announced plans to set up a 2MW solar power plant. Recent discussions between Saudi firms and Bangladeshi authorities clearly reveal the growth opportunities that Saudi Arabia see in Bangladesh’s energy sector.
The officials of the Economic Relations Division (ERD) of Bangladesh have affirmed the investment plans of Saudi Aramco. As stated by an ERD official, “Saudi Arabia wants to set up a training institute in Bangladesh so that they can hire more skilled manpower. They also want to recruit highly skilled nurse.”
Post conducting a meeting with the Finance Minister AHM Mustafa Kamal, the Deputy Minister for Labour and Social Development of Saudi Arabia – Mahir Abdul Rahman Gassim, announced that multiple issues are being discussed. Gassim stated, “Saudi Aramco is focusing on the energy sector and we [Saudi Arabia] are eager to make more investments in Bangladesh.”
The two-day Joint Economic Council meeting saw representatives from seven conglomerates of Saudi Arabia, including: ACWA Power, Aljomaih Energy and Water Company, Saudi Aramco and Honey and Health.
The Senior Assistant Chief of ERD’s Middle East wing, Faisal Zahur stated that the Saudi delegation was analysing a draft agreement scheduled to be signed today. He added that issues related to the welfare of Bangladeshi workers in Saudi were also considered in the meeting.
Trade relations between Bangladesh and Saudi Arabia are not a new story. In March 2019, a high powered Saudi delegation headed by the Saudi Commerce and Investment Minister Majed bin Abdullah Al-Qasabi and the Saudi Economy and Planning Minister, Mohammed bin Mezyed Al-Tuwaijri, had received proposal for a $35 billion investment plan.
With investment plans like this one in more countries of Asia, energy giants – Saudi Aramco and ACWA Power will be able to grab attention in the Asian markets sooner than expected.
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